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Nexus eNote

Happy Easter!

Beef
Week Ending	3/14/08	3/7/08	Year Ago	% of Prior Week	% of Prior Year
Slaughter	641,000	640,000	631,000	100.2%	101.6%
Beef (million lbs)	495.8	495.0	480.3	100.2%	103.2%
Choice Value	145.69	150.03	165.50	97.1%	88.0%
Select Value	143.86	147.03	155.20	97.8%	92.7%
Choice/Select Spread	1.83	3.00	10.31	61.0%	17.7%
Dressed Steer Weight	850	855	828	99.4%	102.7%
Dressed Heifer Weight	751	760	747	98.8%	100.5%

Live Cattle
Week Ending	3/14/08	3/7/08	Year Ago	% of Prior Week	% of Prior Year
Live Steer Weight	1,295	1,295	1,270	100.0%	102.0%
Live Heifer Weight	1,160	1,191	1,186	97.4%	97.8%
5 Area Cattle Price	89.85	90.36	98.32	99.4%	91.4%
Nearby Cattle Futures	90.50	90.52	99.97	100.0%	90.5%

Grain
Week Ending	3/14/08	3/7/08	Year Ago	% of Prior Week	% of Prior Year
Nearby Corn Futures	5.45	5.33	3.89	102.3%	140.1%
Nearby Soybean Futures	13.40	13.41	7.36	99.9%	182.1%

Come and learn the latest risk management

options at an upcoming meeting:

Tuesday, March 25^th – Harmony, Minnesota

Wheeler’s 12:00 Noon

To RSVP or for further details call 877.207.1051 or

email info@nexusag.org.

Nexus eNote

· Feedlots have gotten behind in their marketings; this is evidenced by the high percentage of cattle grading Choice and carcass weights 15 - 20 lbs above last year. Expectations that high corn costs would bring cattle to market earlier are not coming to fruition.

· U.S. ethanol policy continues to push meat and poultry prices higher while also increasing livestock raising costs, says economist Tom Elam of Farm Econ. Reported in Cattle Buyer’s Weekly, based on a preliminary study, cumulative cost to the food industry of the renewable fuel program will be about $100 billion from 2005-2010. This year’s costs to the broiler industry are up $3.4 billion, turkey input costs are up $646 million, swine input costs are up $2.9 billion, cattle input costs are up $2.24 billion and dairy producer input costs are up $2.7 billion. In cost per animal, Elam estimates the 53 cents per chicken; $3.40 per turkey; $38 per hog and $117.50 per fed beef animal.

· Packer margins moved $12.37 last week going from $4.69 to -$7.68.

· The Department of Justice’s review of JBS SA’s proposed acquisitions of National Beef Packing and Smithfield Beef Group will focus on JBS’s expected market share. It will also examine whether overlapping plants in two regions might hurt live cattle prices and if the deals will impact consumers. Thoughts are that the plans will gain approval, say observers. Three large players will remain in the processing of grain-fed cattle and strong competition will remain for these cattle, especially as numbers in North America could decline annually for the next several years.

Nexus eNote

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