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DTN Early Word Opening Livestock       11/13 06:26
   Technical Support Building in Hog Futures

   Limited early-morning activity is expected, but a firm undertone is likely
to redevelop in lean hog trade as traders focus on technical buying midweek.
Cattle futures remain firm, but limited short-term upside market may subdue
early buying activity.

By Rick Kment
DTN Livestock Analyst

Cattle: Steady   Futures: Mixed    Live Equiv $154.32 *1.31*
Hogs:   Mixed    Futures: Higher   Lean Equiv $93.38 +2.19**

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


   Cash cattle trade remains generally quiet early Wednesday morning with
asking prices and bids still hard to fully pin down for the week. The
underlying support in boxed beef values and lack of deviation from the current
market support in futures trade is pointing to the expectation of higher cash
cattle trade through the end of the week. Both sides are unwilling to fully put
a foot on base at this point, although the underlying support would suggest
another $1 to $2 per cwt rally is very possible by the time dust settles
Friday. Trade is likely to be delayed until later in the week with some Friday
trade almost expected at this point following the trend of cash market activity
not wrapping up until late in the week. Futures are expected mixed in limited
morning activity. There continues to be underlying firm buyer support near the
current price levels as traders continue to hold prices at or near market highs
for this market trend. With prices at the highest levels since spring, the
focus on December contracts being able to move above and hold $120 per cwt has
become the most recent hurdle. A move above this level is likely to create
additional market momentum although aggressive buying above these levels are
expected to be limited in the near future due to the traditional seasonal
pressure seen through the holidays. Wednesday slaughter runs are expected at
118,000 head.
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