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DTN Early Word Opening Livestock       12/17 06:10
   Further Livestock Selling Seems Likely at Midweek

   Live and feeder cattle futures seem set to open substantially lower once
again, pressured by bearish momentum, technical selling, and a serious lack of
buying interest. Lean hog contracts are also likely to lose more ground on the
opening, checked by residual long liquidation and yesterday's bad stumble in
the pork carcass value.

By John Harrington
DTN Analyst

Cattle:  Steady-$2 LR   Futures: 100-300 LR   Live Equiv $166.69 - $1.18*
Hogs:    Steady-$1 LR   Futures: 50-100 HR    Lean Equiv $ 96.53 - $4.48**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue


   Psychology in the cattle market continues to devolve with imploding futures
and struggling cut-outs lowering the cash expectations of feedlot managers.
Scattered dressed sales were reported in parts of the North on Tuesday at $252,
nearly $5 lower than last week's weighted average basis Nebraska. Given the
confusion naturally generated by the runaway board selling seen so far, both
buyers and sellers would no doubt like to see CME smoke start to clear before
they have to get serious about trading cattle. We assume that tentative asking
prices will be around $2-3 over spot December live. Live and feeder futures
seem ready to push further lower on the opening, pressured by bearish momentum
and technical selling.
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