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DTN Early Word Opening Livestock       11/14 06:35
   Market Uncertainty Develops Following Midweek Market Weakness

   Market cautiousness is seen early Thursday morning following abrupt
triple-digit losses seen midweek. The swift shift lower can't be seen as a
surprise following the potential for a correction over the last several weeks,
but it doesn't make the market pressure any easier.

By Rick Kment
DTN Livestock Analyst

Cattle: Steady to Higher  Futures: Mixed   Live Equiv $155.35 +2.34*
Hogs:   Mixed             Futures: Lower   Lean Equiv $91.87 -1.51**

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


   The majority of cash cattle trade is still yet to develop over the next two
days despite light trade seen in the South Wednesday as prices settled mostly
at $115-per-cwt live basis. These prices are generally steady to $1 per cwt
higher than last week's levels, but the biggest question will be if continued
cash market support will develop following the shift in futures direction. The
continued aggressive moves in boxed beef values continue to suggest that even
more aggressive support is to be had due to strong packer margins as they try
to keep plants full in order to process as many cattle as possible at current
prices. But the change in direction of futures trade will likely create lower
bids in an attempt to limit spending increases through the week. Futures trade
is expected mixed as a combination of short covering and follow-through selling
is likely through the early minutes of trade. The general weaker tone that
started to develop Wednesday is likely to limit upside market support through
the day, although the underlying tone of the market still remains firm as long
as prices remain within range of the recent market highs. Thursday slaughter
runs are expected at 118,000 head.
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