wmeubank@ocp.kcmo.com
ING DERIVATIVES CLEARING
209 South LaSalle, Chicago, Illinois
(August 22, 1997) CATTLE: FUTURES TRAIL CASH GAINS–Recent Cattle on Feed report was a bit more negative than previous ones as the placements in July soar more than expected. The marketing number though hung tough and coming into the report beef demand was heavily instilled. The result was higher live prices to new swing highs at $66.00 Texas/Kansas and $67.00 Nebraska. We believe the reason for that is simply the report suggests that the premiums were too high. Kills through the year end won't be as low as expected. We do, however, expect the demand to hold up well. We're looking for a dip in the live to $63.00- 65.00 near-term post holiday. If so, a subsequent break in the October to the 68.00 to 67.00 area should be a buy.
John W. Kleist
Sagamore Partners, Inc.
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