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DTN Early Word Opening Livestock       11/15 06:45
   Renewed Buying Sought in Cattle Trade

   The bounce higher in cattle futures Thursday took away many of the fears
that a strong bearish trend may be developing across the complex. This should
leave limited but supportive market moves early Friday.

By Rick Kment
DTN Livestock Analyst

Cattle:  Steady to Higher   Futures: Mixed   Live Equiv $154.46 -0.89*
Hogs:    Lower              Futures: Lower   Lean Equiv $91.89 +0.02**

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


   Although additional cash cattle trade is still expected to be seen during
the day Friday, the tone of the market is likely to be have been set by light
to moderate trade trickling in over the last two days. Trade in the South
developed Wednesday at $115 per cwt, while Northern dressed trade held $182 per
cwt. These prices are generally steady to $1 per cwt higher than last week, and
indicate a firming trend still develops through the complex. The break away
from the $2 and higher gains per week seen over the past few weeks may curb
market bullishness. But one can argue that the more stable and gradual price
support remains more sustainable and is better for long term market movement as
it limits price volatility. Futures trade are expected mixed to mostly higher.
The ability for traders to earn back much of the previous losses created a
calming effect across the complex, allowing traders to look for renewed
long-term support. Seasonal pressure through the upcoming holiday season seems
to be the major sticking point that should limit further growth over the next
couple of weeks. The recent price swings through the week appears to have set a
firm $2 to $3 per cwt trading range which traders may feel more comfortable,
that could reduce the concern of a major correction developing over the near
term. Friday slaughter runs are expected at 117,000 head.
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