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Beef
Week Ending	2/5/08	1/29/08	Year Ago	% of Prior Week	% of Prior Year
Slaughter	613,000	640,000	642,000	95.8%	95.5%
Beef (million lbs)	472.8	495.9	491.9	95.3%	96.1%
Choice Value	143.44	144.00	143.06	99.6%	100.3%
Select Value	137.40	137.30	134.91	100.1%	101.8%
Choice/Select Spread	6.04	6.70	8.15	90.1%	74.1%
Dressed Steer Weight	845	848	851	99.6%	99.3%
Dressed Heifer Weight	777	756	756	102.8%	102.8%

Live Cattle
Week Ending	2/5/08	1/29/08	Year Ago	% of Prior Week	% of Prior Year
Live Steer Weight	1,312	1,304	1,295	100.6%	101.3%
Live Heifer Weight	1,178	1,171	1,195	100.6%	98.6%
5 Area Cattle Price	89.47	90.29	88.00	99.1%	101.7%
Nearby Cattle Futures	90.22	91.40	89.82	98.7%	100.4%

Grain
Week Ending	2/5/08	1/29/08	Year Ago	% of Prior Week	% of Prior Year
Nearby Corn Futures	5.00	4.98	3.98	100.4%	125.6%
Nearby Soybean Futures	12.87	12.43	7.21	103.5%	178.5%

Nexus eNote

· The U.S cattle industry used to follow a very predictable 10 year pattern. Many experts believe that those days are now over. The last cycle occurred between 1981 and 1995. There has been a decline in the cow herd since then even though production has increased because of heavier slaughter rates and industry efficiencies.

· Electronic grading is closer to being a reality. USDA’s Agricultural Marketing Service will begin testing soon at four major packing companies. These plants will do side by side testing with current USDA graders grading the same carcasses as the machines. Consistency from plant to plant and minimizing the times where human grades differ from the machines are the goals for this next round of testing.

· Colorado State meat scientists recently reported that tenderness is the first and most important factor for beef consumers. The report states that a 10% increase in tenderness could add $150 - $170 million to the income of the U.S. beef industry.

· Even after Tyson takes their Emporia plant out of slaughter production, experts argue that there is at least 8,000 head of excess capacity. Predictions of further capacity being shut down in the future are prevalent within the industry. Due to record high grain, hay, protein, energy and fuel prices cattle producers are limited from expanding their herds. In fact, beef cow numbers declined for the second year in a row according to Cattle-Fax. In 2007, the U.S. cattle industry decreased 200,000 head.

· The Choice/Select spread historically puts in lows this time of year and then starts to widen as we enter the spring grilling season.

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