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DTN Early Word Opening Livestock       06/21 06:08
   Follow-Through Pressure Likely Friday

   Sharp losses developing in all livestock trade Thursday sparked increased
underlying weakness in the entire complex. A combination of follow-through
selling and end-of-week short-covering is likely early Friday morning.

By Rick Kment
DTN Analyst

Cattle: $2 to $4 Lower       Futures: Lower   Live Equiv: $142.53 +0.44*
Hogs:   Steady to $1 Lower   Futures: Mixed   Lean Equiv: $ 82.43 -0.25**

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


   Light-to-moderate cash cattle trade developed in most areas Thursday
afternoon. Although some additional clean-up trade may develop during the day
on Friday, a weaker tone is expected. Live cattle traded from $108 to $110 per
cwt. This is mostly $2 per cwt lower than last week. Dressed trade in the North
was reported at $178 to $183, mostly $181 to $183 per cwt. This is generally $3
to $4 per cwt lower than last week as packers were able to focus on fears that
further pressure may develop later in the summer after the Fourth of July
holiday. The sluggish movements in beef values has also eroded plant margins,
causing packers to reduce spending and will likely slow overall production
levels during late June and early July. Futures are expected mixed to mostly
lower with the firm losses in feeder cattle trade sparking increased underlying
weakness. At this point, the market remains technically stable, with prices
still hovering within the wide sideways trading range seen the last couple
months. Attention through late Friday is expected to also move to the afternoon
Cattle on Feed report. Expectations are mixed ahead of the report. If cattle on
feed and placed numbers come in near estimates, it is likely that the report
will have little market impact.
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