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DTN Early Word Opening Livestock       05/22 06:43
   Additional Pressure Likely Midweek

   Follow-through weakness is expected in the livestock complex early Wednesday
morning as concerns continue about cattle supplies and pork demand surrounding
the trade war with China.

By Rick Kment
DTN Analyst

Cattle: Steady   Futures: Lower   Live Equiv: $143.37 -0.70*
Hogs:   Steady   Futures: Mixed   Lean Equiv: $ 92.08 +0.54**

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


   Increased cash market interest is expected Wednesday morning with limited
initial packer bids developing, while asking prices are expected to become more
evident as the day develops. Given the overall tone of the cattle complex and
wholesale beef values, it is likely that steady money at the end of the week
would be considered a bullish move. Bids are expected to develop near $115 live
and $185 dressed, but both sides will be closely focusing on the direction of
futures trade during the morning. Limited volume is expected in live cattle and
feeder cattle futures trade with the focus split between follow-through selling
pressure and short-covering. Some additional adjustments are expected the next
couple of days as traders try to prepare for Friday's Cattle on Feed report,
expecting bearish market shifts developing due to increased supply levels in
April. This may continue to add moderate-to-strong weakness through all cattle
trade with feeder cattle markets potentially giving back the moderate gains
from last week, testing short-term lows once again.
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