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USDA Forecasts Stronger US Beef Exports In 2008
WASHINGTON, May 11, 2007 (Dow Jones Commodities News via Comtex) --The U.S. Department of Agriculture is predicting stronger U.S. beef exports next year as trade increases with Japan and South Korea. The U.S. will export 1.52 billion pounds of beef next year, the USDA said Friday in its first 2008 forecast of the year. That would be up from the USDA's latest 2007 forecast for 1.284 billion pounds of beef exports.

FOCUS: Hispanics May Add Worth To Underutilized US Meat Cuts
CHICAGO (Dow Jones)--Meat industry representatives say the dramatic surge in the U.S. of the Hispanic population is contributing value to meat products generally underutilized by the general public, although a meat market analyst suggests that other demand factors also play a role.

Wholesale Beef Prices Bounce This Week; Pork Also Gains
KANSAS CITY (Dow Jones)--Wholesale beef prices reported by the U.S. Department of Agriculture posted a solid rebound this week, with the choice-grade composite value gaining $7.23 per hundredweight to retrace 42% of the decline that occurred from April 13 through May 4. Wholesale pork prices advanced as well but with a more modest gain of $2.46. However, Friday's pork carcass composite price, at $77.80, was the highest since July 5, 2006.

FOCUS: Fed Cattle Prices Likely To Follow Seasonal Trends
KANSAS CITY (Dow Jones)--Fed cattle prices in the central and southern Plains generally are expected to follow seasonal trends toward lower values over the next few months, even if holiday beef demand provides a short-term boost.

US Retail Meat: Better Weather, Holidays To Help Spark Sales
KANSAS CITY (Dow Jones)--Grocers across the country are hoping forecasts for improved weather conditions this weekend in the major metropolitan areas will lead to increased sales of fresh meat and poultry cuts from their stores. In addition, the Mother's Day holiday on Sunday, despite being largely a dine-out event, is the first in a series of holidays to occur about every two weeks through Independence Day.

Market Talk: 1519 EDT [Dow Jones] - The USDA's supply/demand report Friday morning may be forecasting a meat consumption shift for 2008, said Richard Nelson, livestock market analyst at Allendale Inc. The USDA said projected U.S. beef consumption in 2008 is expected to decline 0.45% to 28.150 billion pounds from 28.276 billion in 2007 in spite of increases in production and imports because of a projected decline in beginning stocks and increased exports, Nelson said. This should be seen during the year in the form of continued high prices for beef and probably for cattle because the regulator for consumption, if product is around at all, is price. However, pork consumption is expected to rise in 2008 by only 0.25% to 19.295 billion pounds from 19.247 billion. Chicken consumption for 2008 is projected to rise 1.78% to 30.493 billion pounds from 29.959 billion.

Ag Traders Still Largely Favor CME-CBOT Union
CHICAGO (Dow Jones)--After the Chicago Mercantile Exchange revised its bid to acquire the Chicago Board of Trade Friday morning, many grain and livestock traders at the exchanges continued to support the crosstown union instead of a linkage with rival InterContinentalExchange Inc. (ICE).

Japan To Begin US Beef Plant Audits Monday -USDA Official
WASHINGTON (Dow Jones)--Japanese officials are scheduled to begin the process of auditing U.S. beef-producing facilities Monday as part of a deal that would result in a loosening of restrictions on U.S. beef exports, U.S. government and industry officials said Thursday.

STORIES OF INTEREST:

Russian Meat Imports Up 18.6% On Year In Jan-Mar - Prime-Tass
MOSCOW (Dow Jones)--Russia's meat imports rose 18.6% on the year to 251,500 metric tons in January-March, the Federal Customs Service said Friday, Prime-Tass news agency reported.

Australian Cattle Mkt: Prices Mostly Fall As Supply Lifts
CANBERRA (Dow Jones)--Prices for beef cattle in major Australian saleyards mostly fell this week, weighed down by increased offerings, marketing concern Meat & Livestock Australia Ltd. reported Friday.

EU Gets Letter From Russia Rejecting End To Polish Meat Ban
BRUSSELS (Dow Jones)--The European Union has received a letter from the Russian agricultural minister rebuffing a request to end the Russian ban on Polish meat imports, its executive commission said Friday. The letter, addressed to E.U Health Commissioner Markos Kyprianou, restates Russia's position on the Polish meat ban issue as it was last discussed in Cyprus, commission spokesman Philip Todd said.

THE MARKETS:

CME Livestock Review: Live Cattle Rally; Funds, Cash, Spreads
CHICAGO Dow Jones)--After sagging at the start due to Chicago Board of Trade corn's sharp rise, Chicago Mercantile Exchange live cattle contracts rebounded and closed higher on fund buying and cash optimism for next week that spurred June/August bear spreading against spot-June longs conducting the Goldman Roll. The roll, which ended on Friday, is done in conjunction with the Goldman Sachs Commodity Index. Feeder cattle closed mostly firm on live cattle's recovery, May/August bull spreading and underlying chart support. However, November and 2008 January contracts were still reeling somewhat from CBOT corn pressure. Lean hogs closed moderately higher on short covering, talk of better cash bids for next week, and June/July bull spreading against funds that moved some of their spot-June positions into July and August as the Goldman Roll wound down. Pork belly futures closed mostly higher.

MARKET TALK: Light Cash Cattle Trade Continues At $97.50
1221 EDT [Dow Jones] - Light fed cattle trading continued in the central and southern Plains Friday at a steady $97.50-per-hundredweight price, market analysts, brokers and traders said. Even in areas where no trading was reported, inquiry was said to be light to moderate. The fresh sales were said to be a combination of clean-up trading and sales from next week's showlists. Cattle traded this week at $97 to $97.50 on a live basis and $154 to $155 dressed.

-By Curt Thacker; Dow Jones Newswires; 913-322-5178; curt.thacker@dowjones.com

(END) Dow Jones Newswires

05-11-07 1638ET

Copyright (c) 2007 Dow Jones & Company, Inc.

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