§    Calls for impeachment over U.S. Beef:  More than 500,000 Internet users participated in the signature collecting campaign for the impeachment of Korean President Lee 70 days after his inauguration over the acceptance of U.S. beef.  Thousands of protesters launched a candlelight vigil in downtown Seoul Friday evening to call on the government to revoke the beef deal.  Korean consumers are worried about President Lee's beef market policy and his efforts to cement alliance with the United States.

§    Commodities are the hottest investments as of late.  CME Group reports that in 2004 the dollar value was at $590 billion and in 2007 it was at $2 trillion.  This increase is just for futures and options for corn, rice, oats and wheat.  The Commodity Futures Trading Commission held a forum last week in Washington D.C. on the issue because so many farmers and food processors are blaming investors for driving up their costs and is taking public comments to determine if it will take action. The commission has had rules to limit speculative trading in place for some time. 

§    Live hog prices have increased about 20% in the previous two weeks as strong domestic demand hits the market.  A $15 gain from April through mod-May has been seen for the last several years but this year that figure is already at $23.50 and we haven’t hit the peak of mid-May yet.

§    According to Cattle-Fax, a growing global economy and population combined with the weak U.S. dollar remains very supportive to protein exports. Pork, poultry and beef exports were above year ago levels during the first quarter of 2008.  Rising costs in cattle and beef production means prices at all levels of the industry will need to increase. Either demand must grow or the industry will contract and we will produce less beef per capita at higher price levels. Of the $175/head lost in export value due to BSE, about $90/hd has already been regained. South Korea and Japan hold the remaining $85/hd in export value.

§    While the weak U.S. dollar has helped overseas demand for U.S. products such as meat it also has reduced U.S. imports, meaning containers that leave U.S. ports often go on to other destinations instead of returning to U.S. shores. Meatingplace.com reports that declining U.S. imports of Australian beef, for example, are resulting in fewer refrigerated containers available for U.S. meat exports. Increasing beef exports to South Korea could require up to 800 to 1,000 more refrigerated containers per month, predicted U.S. Meat Export Federation Director of Export Services Kevin Smith.

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