v      Beef cow replacements are down 6% from 2006 according to the July 1 Cattle Inventory Report.  Between the lower cow numbers, continued drought and smaller calf crop, total beef output is not expected to significantly increase in the next two years.

v      Since 1995, retained heifer numbers are down almost 1 millions head.  This translates into a 15.8% decline.

v      These facts indicate that beef producers are in a liquidation phase.  Liquidation combined with a bullish Cattle on Feed report last Friday has helped support the CME Live Cattle contracts early this week.

v      Have you noticed the increasing price of feeder calves?  According to Cattle-Fax, the general rule is that for every $1.00/bushel move in corn price, a $12/cwt price move in the opposite direction will be seen in feeders.

v      Also according to Cattle-Fax. the new owner of Swift and Company, JBS SA, will be hiring 1000 additional employees along with procuring 2000 more cattle per day to get the Greeley, Colorado plant back to full 5800 head/day capacity.  This will equate to 40% more boxed beef production.

v      Japanese scientists researching global warming have determined that beef production contributes more greenhouse gas than cars do.  Producing 2.2 lbs of beef generates more carbon dioxide than the average car does every 160 miles.  The U.K.’s New Scientist found that producing the same amount of beef also consumed nearly 170 megajoules of energy, which would be like leaving a 100-watt light bulb on for 20 days.  Most of this energy was used transporting and producing feed for the cattle.

v      Popcorn prices are expected to increase by 13% later this year.  The reason?  Ethanol.  Farmers raising field corn are receiving more for their corn because of the ethanol boom and popcorn producers receive a price above the field corn price because of the additional care required to raise it.  The processing plants are paying more, so too, will consumers.

v      The price for Choice retail beef for June was 7.5% higher than 2006 – averaging $4.22/lb.

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