v   This summer packers saw their gross margins average around 10% of total retail value.  Feeders are not currently willing to sell cattle for less money and retailers are not looking to increase the wholesale price a lot so many packers may be looking to slow down their kill in order to manage their finances.

v   World wheat supplies look to be the shortest they have been in over 45 years.  Spot Chicago wheat futures rallied to a record price of $8.50 and unless dry conditions in the Southern Hemisphere lessen, this price could go even higher.  Look for acres to be converted to wheat during the upcoming growing season much in the same fashion we saw an increase in corn acres this year.

v   The high wheat prices will most likely keep corn prices from seeking a “harvest low”.  But, large production could weigh on the market in the fourth quarter.

v   Cattle-Fax’s harvest forecast is for warm and dry weather in our region.  The winter forecast is for warmer than average temperatures.

v   Placements of cattle in August were 7% below the 5-year average.

v   Last year Nebraska sold $3.9 million worth of fresh and frozen beef to Hong Kong and approximately $1 million worth to Macau.  Macau is the leading tourist destination (75,000 visitors per day) in Asia and recently, officials announced that Nebraska beef will be a featured product at a new casino there. 

NOTICE:  

Nexus Marketing (www.nexusag.org) is sending you this e-newsletter to keep you better informed.

Subscribe additional email addresses to receive the Nexus eNote by sending an email to subscribe@nexusag.org with the word “subscribe” in the subject line and the email addresses you wish to add in the body along with their name.

Unsubscribe from the Nexus eNote by sending an email to unsubscribe@nexusag.org from your email account with the word “unsubscribe” in the subject line and your name in the body.

©2007 Nexus Marketing