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DTN Early Word Opening Livestock       12/12 05:52
   Mixed Trade Likely in Initial Trade

   Limited early activity is expected as traders slowly return to the market
following Tuesday's market shift. This is likely to bring a combination of
short-covering and spillover buying, keeping prices mixed.

By Rick Kment
DTN Analyst

Cattle: Steady     Futures: $1 Higher   Live Equiv: $140.83 -0.27*
Hogs:   $1 Lower   Futures: $1 Higher   Lean Equiv: $ 78.14 +0.68**

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


   Cash cattle interest remains undeveloped going into the Wednesday trading
session as packer interest is likely to improve through the day, but business
isn't expected until sometime Thursday or Friday. Asking prices are generally
undeveloped but a few asking prices earlier in the week at $122 live and $190
dressed are expected to remain in effect. This could give some definition to
the market through the next couple of days, although at this point, there will
likely be a wide gap in bids and asking prices once packers do show interest.
Firm follow-through buying is expected in feeder cattle trade following the
aggressive Tuesday rally. But this is likely to also create the desire to
square positions given the wide market shift in the last two weeks. A market
correction is likely to develop at some time in the next two weeks, as traders
take advantage of the $3 to $4 per rally in the last few trading sessions. Live
cattle markets are expected mixed in sluggish direction following cash market
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