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DTN Early Word Opening Livestock       12/18 06:11
   Meat Futures Set for Further Losses

   Look for the cattle complex to open significantly lower once again, checked
by residual bearishness and defensive fundamentals. Hog paper should also
remain under substantial price pressure, linked to negative momentum and
spillover selling from the cattle pits.

By John Harrington
DTN Analyst

Cattle: Cash $3-$5 LR       Futures 100-300 LR    Live Equiv $165.77 - .92*
Hogs:   Cash Steady-$1 LR   Futures 50-100 LR     Lean Equiv $94.79 - $1.74**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue


   Light cattle trading developed in Kansas Wednesday (i.e., $156-$157, $7-$8
lower than last week), but business elsewhere was little more than scattered
(e.g., a few dressed deals marked in Nebraska at $249-$250). Given the
volatility of futures, look for showlists to be priced around $2-$3 over the
nearby board. Live and feeder futures are likely to open substantially lower
thanks to bearish momentum and extremely cautious buying interest.
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