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DTN Early Word Opening Livestock       10/09 06:06
   Meat Futures Staged for Mixed Opening

   Look for the cattle complex to open mixed tied to pre-cash positioning. Lean
hog futures are also likely to open with uneven prices thinks to residual
buying and late-week profit-taking.

By John Harrington
DTN Livestock Analyst

   Cattle: Higher     Futures: mixed      Live Equiv $138.30 + 0.09*
Hogs: Steady to $1 HR Futures: mixed Lean Equiv $ 93.20 + $1.89**

*  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 trade will be higher sometime Friday, pulling out of the
ugly nosedive that has persisted since Labor Day. As far as we can tell, the
only real question is: How much higher? Understandably, asking prices will be
tied to the premium of spot October. That means live steers and heifers should
be priced around $130 or better (i.e., $205-plus dressed). Packers seem to be
quite short-bought, yet still wary about early fall beef demand. Live and
feeder futures are set to open on a mixed basis thanks to a combination of
follow-through buying and pre-cash profit-taking.
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