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DTN Early Word Opening Livestock       06/25 06:14
   Continued Liquidation Expected

   Livestock traders continue to search for underlying market support following
the sharp shift lower last week. This recent pressure has broken through
long-term support in lean hog trade, while feeder cattle futures have set
contract lows.

By Rick Kment
DTN Analyst

Cattle: Steady               Futures: Mixed   Live Equiv: $141.83 -0.70*
Hogs:   Steady to $2 Lower   Futures: Lower   Lean Equiv: $ 82.32 +0.60**

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


   Limited cash cattle activity is expected on Tuesday with the early-week
market pressure limiting overall packer interest during the morning. With
showlists generally smaller, it is likely that packers will become more
aggressive in searching for market-ready cattle earlier in the week, but the
underlying pressure in the market may cause significantly lower initial bids.
At this point, it is uncertain how feedlot managers will react this early in
the week. They might hold out for potential market support later in the week,
and higher prices, or they could cut their losses if pressure continues to
develop through the end of the week, taking advantage of what basis
opportunities they currently have. This could keep cash market activity
variable the next few days, but currently bids and asking prices are not yet
well defined. Futures trade is expected to remain generally weak. The ability
to hold narrow gains in nearby live cattle trade Monday despite the sharp
feeder cattle trade, is putting more focus on commercial support trickling back
into the complex this week. With nearby contracts at or near contract lows, the
concern of follow-through pressure remains evident for the near future.
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