Headline News

DTN Early Word Opening Livestock       07/20 06:30
   Livestock Futures Staged for Firm Opening

   The cattle complex should open with a firm undertone thanks to
follow-through buying and technical buying. Similarly, lean hog issues seem
likely to begin with at least moderate gains, supported by bull spreading and
short covering.

By John Harrington
DTN Livestock Analyst



Cattle: Steady  Futures: 50-100 HR Live Equiv $139.59 - 0.04*
Hogs: Steady-0.50 LR Futures: 50-100 HR Lean Equiv $110.18 + 0.70**

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

GENERAL COMMENTS:

   Light to moderate trade volume surfaced in parts of Nebraska yesterday with
most dressed steers and heifers marked at $188, about $2 lower than last week's
weighted average. A few deals brought as much as $189-190. With packers
unnerved by narrowing margins and feedlot managers steeled by higher futures,
significant trade volume may be delayed until sometime Friday. Opening bids
should start out around $115-117 in the South and $186-188 in the North. We
assume that asking prices will be around $122 plus in the South and $190-192 in
the North. Live and feeder futures are set to open higher, boosted by
follow-through buying and pre cash short covering.