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DTN Early Word Opening Livestock       10/23 06:55
   Hog Futures Search for Stability

   Initial trade is expected to remain sluggish in all livestock trade
Wednesday morning, but increased emphasis is moving back to the Tuesday shift
lower in hog futures and focus on direction through the end of the week.

By Rick Kment
DTN Livestock Analyst

Cattle: Steady   Futures: Mixed   Live Equiv: $142.41 +1.35*
Hogs:   Lower    Futures: Lower   Lean Equiv: $ 80.87 -2.43**

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


   Cash cattle trade remains quiet going into midweek with bids and asking
prices still not too active. It is expected that live asking prices in the
South will remain at $110 and higher, while more Northern dressed asking prices
will be seen through the morning. At this point, it is uncertain if packers
will show much interest this early in the week or wait until the tail end of
the week. There is the potential that active trade will be delayed until after
the Cattle on Feed report on Friday afternoon. Futures trade is expected mixed
with limited market direction likely through morning trade following the
inability to retest resistance levels in either feeder cattle or live cattle
trade early in the week. The monthly Cold Storage report released Tuesday
afternoon posted total beef stocks falling 1% from month-ago levels, while
supplies have tumbled 8% from last year's levels. This indicates that strong
clearance is continuing through the end of the third quarter. Wednesday
slaughter runs are expected at 117,000 head.
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