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DTN Early Word Opening Livestock       08/26 06:01
   Late Week Meat Futures Likely to Open Mixed

   The cattle complex seems set to open on a mixed basis tied to a combination
of follow-through selling and pre-weekend short-covering. Lean hog futures
should also begin with uneven price action with residual selling on one hand
and profit-taking on the other.

By John Harrington
DTN Livestock Analyst



Cattle: Steady w/Wed   Futures: Mixed   Live Equiv $135.75  + .08 *
Hogs:   Steady-$1 LR   Futures: Mixed   Lean Equiv $ 81.98  + .92 **

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

GENERAL COMMENTS:

   While it's possible that we could see odds and ends trade in cattle feeding
country Friday, trade volume expectations are limited thanks to the active
round of business conducted on Wednesday. Although some showlists still have
ready cattle for sale, most producers have little stomach to entertain still
lower bids than those used at midweek. For their part, despite excellent
processing margins, packers don't seem motivated to even bid steady with
Wednesday's decline. Perhaps they fear lower beef prices next week tied to the
pre-Labor Day apathy of retailers and food managers. Live and feeder futures
should open on a mixed basis tied to a slow combination spillover selling and
short-covering.
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