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DTN Early Word Opening Livestock       01/23 06:11
   Feedlot Cash Premiums Likely to Spark Higher Cattle Futures Opening

   Look for live and feeder futures to open moderately higher thanks to a
combination of cash premiums and technical buying. Lean hog paper should also
begin with a firm undertone, girded by short-covering and the strength of the
cash index.

By John Harrington
DTN Livestock Analyst

Cattle: Steady-$2 HR   Futures: 25-50 HR    Live Equiv $131.01  - .66*
Hogs:   Steady-$1  HR  Futures: 50-100 LR   Lean Equiv $ 84.98  + .82**

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


   According to the standard playbook, the cash cattle trade will be quiet
Monday as packer limit activities to the collection of new showlists. We expect
the offering to be steady to somewhat smaller than last week. Since nothing
succeeds like success, feedlot managers will not hesitate to price ready steers
and heifers higher, probably around $125 in the South and $200 in the North.
Yet cash traders are not likely to seriously square off until Wednesday or
later. Live and feeder futures seem staged to open moderately higher Monday,
supported by the premium status of feedlot sales and technical buying interest.
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