·  July 1 Cattle on Feed: On Feed: 98.8%, Placements, 85.1%, Marketings, 97.4%

·  Cow slaughter is up 12% this year – this may indicate that producers are holding back heifers in order to rebuild their herds which, in turn, will likely decrease the available calf supply into 2008.

·  According to Cattle Buyers Weekly, analysts are cautious about whether or not we are back on track for the rest of the summer of it we could revisit the lows we saw around July 4th.  If the kills over the next few weeks are around 655,000, the cutout may start to decline and test our previous lows. 

·  Carcass weights will also be important to watch; fewer cattle at heavier carcass weights still equals more beef in the marketplace.

·  Many analysts believe that we are not seeing the typical expansion we see due to drought, high feed costs and increased market volatility.  This year is on track to

·  The cattle industry typically sees 50% expansion and 50% liquidation in the 10 – 12 year cattle cycle we’ve seen in the last 100 years.  Currently, analysts feel we’re stalled.

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