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DTN Early Word Opening Livestock       11/22 06:12
   Limited Trading Range Expected For Cattle

   Live cattle futures held well again yesterday in spite of the significant
decline of feeder cattle futures. Traders were willing to hold out another day
as the Cattle-on-Feed report looms.

By Robin Schmahl
DTN Analyst



Cattle: Steady Futures: Mixed Live Equiv: $151.66 -1.43*
Hogs:   Higher Futures: Higher Lean Equiv: $86.32 -5.11**

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

GENERAL COMMENTS:

   Live cattle futures held well again yesterday in spite of the significant
decline of feeder cattle futures. Traders were willing to hold out another day
as the Cattle-on-Feed report looms. Their resolve may be tested today as the
market has consolidated for over a week. Further declines in boxed beef may be
in focus more as trading activity opens today. Support for the complex stems
from cash cattle trading $1 to $2 higher this week, but that may not be a
factor in today's trading activity. However, the fact that cattle are current
with slaughter in October one percent above a year earlier at 2.98 million head
with weights down 3 pounds from a year ago is keeping support under the market.
It may take lower than expected supply on the report this afternoon in order to
move prices higher. Otherwise, some premium could be taken out of the market
rather quickly as funds may liquidate.
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