Cattle Herd Contraction

<a href="http://www.agriculture.com/ag/futuresource/FutureSourceStoryIndex.jhtml?storyId=76600218" >DJ OUTLOOK 07: US Cattle Herd To Be Thinner In New Yr</a><br />n<br />n<blockquote>The nation's beef cattle herd, both in number and by<br />nweight, will be thinner in 2007, say some analysts, with high corn prices seen<br />nas a major deterrent to expansion.<br />n<br />n Analysts used current 2007 corn futures values in their projections, although<br />na large number of ethanol plants being built could push corn prices even higher<br />nas that fuel competes with livestock for corn supplies.<br />n<br />n "The big shift the US cattle industry will be looking at in 2007 is the<br />ncontraction of the beef cattle herd, which had begun to expand in 2004," said<br />nDan Vaught, economist with AG Edwards &amp; Sons. "The trend toward tighter beef<br />nsupplies has already begun as seen in the last U.S. Department of Agriculture<br />nmonthly cattle-on feed report and we will see that trend continue in the next<br />nreport."<br />n<br />n The next <acronym title="United States Department of Agriculture, Bought and Paid for by The Big Meat Packers">USDA</acronym> monthly report, for November's data, is scheduled for release<br />non Friday. Vaught predicts the number of cattle placed into feedlots for final<br />nfattening was down 10% in November, compared with a year ago. Other early<br />nanalyst estimates are close to that figure.<br />n</blockquote><br />n<br />nMore news that confirms the price I get for cattle should at least hold firm. If corn prices were lower the price I would get for calves would go up but hold steady is good enough for me, I guess. It's better than the prices going down but a slight raise in prices would be nice. Prices for everything else goes up so a raise in price wouldn't hurt but you can't have everything.<br />n<br />n<strong>Shoot for the moon. Even if you miss, you'll land among the stars. Les Brown</strong>