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DTN Early Word Opening Livestock       02/22 06:11
   Hog Market Support Expected

   Follow-through support is expected to move into hog futures following sharp
triple-digit gains Thursday. The focus across the complex will be on the
plethora of backlogged reports to be released Friday, which could create mixed
messages through the complex.

By Rick Kment
DTN Analyst



Cattle: Steady               Futures: Mixed    Live Equiv: $144.79 +0.58*
Hogs:   Steady to $1 Lower   Futures: Higher   Lean Equiv: $ 65.65 +1.06**

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

GENERAL COMMENTS:

   Up until now, cash cattle trade has been illusive as packers and feeders
have held respective price levels with little movement or desire to meet in the
middle. Packers remain short-bought and are expected to need to make adequate
sales in order to fuel next week's procurement levels, but with recent support
in futures trade and consistent beef demand, feeders are shooting for higher
prices Friday. Bids and asking prices are expected to redevelop within the same
range as earlier in the week, but active trade may not develop until late in
the day. Futures movement is expected to remain mixed with traders not only
trying to adjust to previous market shifts, but trying to assess the meaning
and take home message of all of the backlogged report data that will be
available throughout the day. With export data and Cold Storage reports
covering multiple weeks and months, it is going to be a challenge sorting out
what is still meaningful to the market during late February.
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