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DTN Early Word Opening Livestock       07/29 05:57
   Lean Hog Futures to Open on the Defensive

   Look for the lean hog pit to slump further on the opening, pressured by
negative fundamentals and further long liquidation. Live and feeder cattle
futures should open moderately higher thanks to residual buying interest and
recent cash premiums.

By John Harrington
DTN Analyst



Cattle:  Steady-$2 HR   Futures: 10-30 HR    Live Equiv $178.75 +$1.19*
Hogs:    Steady-$1 LR   Futures: 50-100 LR   Lean Equiv $139.83 - 0.85**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   Although cattle buyers remain very short bought, we don't believe country
trading will start to develop as early as today. Expect a typically quiet
Tuesday, but significant business could certainly surface as early as Wednesday
or Thursday. Given how cash has be so surprisingly explosive this summer,
pricing showlists has become tricky and a bit dangerous. Having said that, we
think some feedlot mangers are thinking around $168-170 in the South and
$265-plus in the North. Those levels could certainly change if the board either
takes off again or starts to implode. Live and feeder futures should open
moderately higher, supported by spillover buying interest and constructive
fundamentals.
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