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DTN Early Word Opening Livestock       07/26 08:38
   Expanded Trading Limits Available in Cattle Futures

   The sharp moves Monday have opened the opportunity for expanded trading
limits in both live cattle and feeder cattle futures Tuesday morning. This is
expected to lead to even more market volatility, although given the sharp
two-day rally, there are questions as to just how much gas is left in the
cattle market tank, given there is no change in fundamentals.

By Rick Kment
DTN Analyst

Cattle: Steady             Futures: Higher   Live Equiv: $134.10 -.60*
Hogs:   Steady to $1 LR    Futures: Mixed    Lean Equiv: $ 94.44 +.41**

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


   Activity levels in the live cash-cattle traded markets are expected to
remain at a standstill following typical showlist distribution through the day
on Monday. The limit higher rally of $3 per cwt in nearby cattle futures is
expected to spark additional buyer support from the sidelines as the morning
continues. But the question of just how prices will move higher without being
unchecked by a steady round of position-taking following the two-day rally is
heavy on the mind of many traders. Cash markets are likely to remain dead in
the water once again Tuesday as active trade will likely be delayed until the
last half of the week. But the $5 to $5.40 per cwt rally in nearby contracts
over the last two sessions could set a seasonal market low, allowing for
additional buyer support to build through the last week of July and early
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