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DTN Early Word Livestock Comments      06/22 06:44
   Hogs are Overdue for a Bounce

   Cattle futures traders seem to be waiting for cash cattle to trade before
being more aggressive. The strong move higher last week ran its course of
exuberance due to cash finally trading higher. Hog futures are searching for a
bottom but have been unable to find it. Futures are now oversold and ready for
a bounce.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady    Futures: Mixed   Live Equiv:   $231.05 -1.28*

   Hogs:  Steady    Futures: Mixed   Lean Equiv:  $127.46 +0.11**

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

   (The Live Cattle Equiv. Index has been updated to depict recent changes in
live cattle weights and grading percentages.)

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

   GENERAL COMMENTS:

   Cattle futures closed Monday with little fanfare as feeders were a bit
higher and live cattle were a bit lower. It was not the usual triple-digit
gains or losses that we have now become accustomed to. There was little news
for traders to go on for market direction, leaving them a little cautious in
taking positions. The cash market was not tested with only some light trade in
Iowa, but nothing to hang your hat on. It is a good possibility packers will be
willing to pay steady money for cattle again this week even though boxed beef
prices continue to decline significantly. Choice cuts were down $2.08 with
select cuts down $2.15. Grain futures are lower again overnight which should
provide some support to the cattle complex.
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