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DTN Early Word Opening Livestock       06/24 06:22
   Weakness is Likely Early Monday

   Follow-through pressure is expected early on Monday after triple-digit
losses in cattle and hog futures Friday. Limited early volume may allow for
short-covering, but the general tone of the market is expected to be weak.

By Rick Kment
DTN Analyst



Cattle: Steady               Futures: Lower   Live Equiv: $141.75 +0.78*
Hogs:   Steady to $1 Lower   Futures: Mixed   Lean Equiv: $ 81.72 -0.71**

*   based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   Cash cattle interest is expected to remain limited Monday morning with
packers and feeders busy with showlist distribution and inventory taking. Bids
and asking prices are not expected through the day. The limited trade reported
last week should still keep packers short bought. This is likely to stimulate
activity earlier in the week than last week, although the volatility in futures
trade and beef values will likely limit early-week interest. Futures trade is
expected to open mostly lower, although a combination of follow-through
liquidation is likely with moderate short-covering following the triple-digit
losses Friday. The increase in cattle inventory in feedlots at the beginning of
the month is likely to add to the underlying market pressure with total cattle
on feed at 102% of year-ago levels. This is above market estimates before the
report. The combination of underlying weakness in the complex last week as well
as growing cattle numbers is expected to put firm pressure on the entire
complex.
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