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DTN Early Word Opening Livestock       10/26 06:03
   Hog Paper Stacked to Open Moderately Higher

   Look for lean hog futures to open moderately higher, supported by
short-covering and bull spreading. The cattle complex should also begin on a
firm basis with the help of improving carcass value and ideas of further cash
market strength.

By John Harrington
DTN Livestock Analyst

Cattle: $1-3 HR   Futures: 10-30 HR   Live Equiv $123.42 +1.16*
Hogs:   Steady    Futures: 25-50 HR   Lean Equiv $ 78.47 + .50**

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


   While a few preliminary bids could surface at midweek, we don't expect to
see meaningful trade volume develop before Thursday and Friday. As long as the
board and cutouts avoid significant reversals, feedlot managers are likely to
stick with significantly higher asking prices (e.g., $105 plus basis Kansas and
Texas). Live and feeder futures seem staged to open moderately higher, boosted
by both short-covering and new spec buying (open interest does seem to be
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