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DTN Early Word Opening Livestock       12/18 05:52
   Cattle Staged to Open Significantly Higher

   Live and feeder cattle futures seem geared to open significantly higher,
supported by Friday's stronger cash market. Lean futures should also open on a
firm basis, boosted by short-covering and spillover buying from the cattle

By John Harrington
DTN Livestock Analyst

Cattle: Steady-$2 HR   Futures: 100-200 HR   Live Equiv $133.02  + .15*
Hogs:   Steady-$1 LR   Futures: 25-50 HR     Lean Equiv $ 82.85  + .27**

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


   Activity in cattle country Monday will be typically limited to the
distribution of new showlists. We believe that the pre-Christmas offering will
probably be steady to somewhat larger than last week. The trade is starting out
with a strong basis, which could make it tough for feedlot managers to hold for
higher asking prices, unless the board keeps running higher. Given the long
holiday weekend ahead, buyers and sellers would like to have cash business
completed by Thursday. We'll see. Live and feeder futures should open
significantly higher, supported by the recent bullish cash news.
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