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Beef
Week Ending	12/7/07	11/30/07	Year Ago	% of Prior Week	% of Prior Year
Slaughter	663,000	677,000	643,000	97.9%	103.1%
Beef (million lbs)	523.3	533.4	503.1	98.1%	104.0%
Choice Value	148.33	150.65	142.53	94.6%	104.1%
Select Value	132.30	135.61	125.99	92.9%	105.0%
Choice/Select Spread	16.03	15.04	16.54	110.0%	96.9%
Dressed Steer Weight	877	865	875	101.4%	100.2%
Dressed Heifer Weight	790	789	773	100.1%	102.2%

Live Cattle
Week Ending	12/7/07	11/30/07	Year Ago	% of Prior Week	% of Prior Year
Live Steer Weight	1,339	1,336	1,335	100.2%	100.3%
Live Heifer Weight	1,204	1,207	1,207	99.8%	99.8%
5 Area Cattle Price	93.54	95.03	86.47	98.4%	108.2%
Nearby Cattle Futures	94.02	98.20	86.65	95.7%	108.5%

Grain
Week Ending	12/7/07	11/30/07	Year Ago	% of Prior Week	% of Prior Year
Nearby Corn Futures	3.99	3.83	3.58	104.2%	111.5%
Nearby Soybean Futures	11.19	10.98	6.62	101.9%	169.0%

Nexus eNote

§ The Senate passed a new $286 billion farm bill on Friday with a 79-14 vote.

§ Recently, U.S. beef was exported to Russia - the second largest beef importer in the world. Brazil has recently been the main exporter into Russia but as the Brazilian real increases in value and the U.S. dollar decreases, the U.S. should now be a major player in the market to export to Russia.

§ Incomes in Asia are increasing, right along with the demand for meat and dairy products. Over the next ten years it is forecasted that the demand will increase 30 – 50%. By 2020, Asia will look to consume 1.9M more tons of beef.

§ While exports look promising, the weaker economy and reduced consumer purchasing power will likely negatively affect the domestic demand for meat. Grocery stores and foodservice sales have seen deceases in sales since the fall. The sales decreases are significant enough that grocers and foodservice companies are pushing meatpackers to lower prices on their products.

§ The link between E.coli and distillers grains will continue to be studied after industry experts criticized the Kansas State study that showed a strong correlation between E.coli and cattle fed distillers grains. Checkoff monies are being used in three separate studies to research the link, according to Cattle Buyers Weekly. With projections that distillers grains will replace 1 billion bushels of corn in the livestock feed market by the end of 2008, it is absolutely necessary to understand the affects of feeding distillers grains.

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