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DTN Early Word Opening Livestock       11/30 06:16
   Meat Futures Set for Firm, Post-Holiday Opening

   The cattle complex is geared to open moderately higher, supported by
follow-through buying and ideas of improving late-year beef demand. Lean hog
contracts should also open on a firm basis thanks to bull-spreading interest
and decent odds for seasonally improving fundamentals.

By John Harrington
DTN Livestock Analyst

Cattle:  Steady-$2 HR  Futures: 10-30 HR   Live Equiv $137.43 + 0.56*
Hogs:    Steady        Futures: 10-30 HR   Lean Equiv $ 76.87 + 0.66**

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


   The cash cattle market never really got off the ground last week. We waited
through sunset on Friday, but the amount of identifiable business was just not
enough to wad a shotgun. Several thousand head were marked in Nebraska at $195,
and about the same number was tagged in Kansas at $127 (both dressed and live
about steady with the previous week). Generally refusing to accept packer bids
so far under the December board, many feedlot managers simply decided to
carryover marketable inventory into this week. Today will be limited to the
distribution of new showlists. We assume the offering will be larger for that
reason. On the other hand, cattle buyers should be extremely short bought.
Don't be surprised if today's kill falls under 100,000 head. Early asking
prices should be around $132-plus in the South and $200-plus in the North. Live
and feeder futures are likely to open moderately higher, supported by residual
buying and ideas of improving beef demand.
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