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DTN Early Word Opening Livestock       04/27 06:09
   Watch for Cattle Contracts to Open New Week Lower

   Live and feeder cattle pits are likely to open moderately lower this
morning, pressured by profit taking, the larger than expected March placement,
and beef demand worries. Hog futures seem geared to open on a mixed basis
thanks to a light combination of follow-through buying and early week profit
taking.

By John Harrington
DTN Analyst



Cattle:  Steady        Futures: 25-50 LR  Live $173.31 - $2.02*
Hogs:    Steady-$1 HR  Futures: mixed     Lean Equiv $ 74.83 + 0.27**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   Activity in cattle feeding country this morning will be limited to the
distribution of new showlists. Thanks to both small trade volume totals
generated last week and seasonal tendencies, we expected the offering to be
generally larger. However, the short bought status of packers coupled with
decent processing margins could would to counter any negative impact of more
live supplies. Positively, some cash sales seemed to surface late Friday that
were definitely firmer than the biz seen last Wednesday (e.g., Nebraska report
some live trade as high as $161 in the 3% shrink area). Preliminary asking
prices should be around $162-163 in the South and $263-plus in the North. Live
and feeder futures are likely to open moderately lower, pressed by profit
taking and negative reaction to the larger than expected placement total
contained in the April 1 on feed report unveiled on Friday.
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