August 29, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

We saw further clean up trade in the south yesterday at $99 live and $1.55-$1.56 dressed. This should clean things up ahead of the long weekend and market participants will now look for clues as to how the market will trade next week and beyond. My opinion is that we will see an increase in beef demand coming back from the last holiday of summer and this along with a manageable supply of fed cattle will give us a rally in cash fed cattle prices through September and into October. Going home for the weekend we see both feeder cattle and slaughter cow markets on the defensive and I would look for that to continue into next week.

Cash Beef Situation and Outlook:

Yesterdays kill was estimated at 127,000 head, which would be 1,000 head below last week and 1,000 head below the same day a year ago. The week-to-date kill now stands at 509,000 head, which would be 4,000 head above the same period a week ago with the industry looking for a 670,000 head production week. The boxed beef market was mixed yesterday with the choice cutout closing $.01 higher to settle at $160.99 and the select cutout closing $.39 lower to settle at $153.94. Sales volume was light with 250 loads of beef sold (94.91 loads of choice fab cuts, 93.13 loads of select fab cuts, 23.44 loads of trim, 38.24 loads of grinds). The choice/select spread settled at $7.05 a gain of $.40.

The beef market was mostly steady going into the long weekend and I would expect to see more of the same today. Yesterday saw some price discounts emerge in the choice and select round complex, with some price reductions also found in select and no-roll loin cuts. Sources indicate that there has been an increase in select and no-roll grade cattle coming across the kill floor as of late and this can be attributed to the softening of select and no-roll grade beef cuts. I will look for a better demand scenario to unfold in the beef complex coming back from the holiday, with higher cutout prices being the end result.

Futures Market Situation and Outlook:

August live cattle settled at $101.07 a gain of $.45, October live cattle settled at $103.82 a gain of $.05, and the December live cattle settled at $105.87 a gain of $.65. In the feeder cattle pit, August feeder cattle settled at $112.40 a loss of $.55, September feeder cattle settled at $111.10 a loss of $.12, and the October feeder cattle settled at $110.42 steady on the day. The reported CME feeder cattle index for 8/27/08 was $112.76 a loss of $.65.

Live cattle futures settled modestly higher yesterday on short covering and hedge lifting ahead of the holiday. Feeder cattle settled modestly lower on technical selling. I wouldn’t expect to see much out of the market today as we have this week’s cash market priced in and participants will be leaving early for the holiday weekend. Overnight we saw 2 loads of cattle delivered against the August live cattle contract. RJO delivered the cattle out of Clovis, NM with Rosenthal receiving them. Keep in mind, today is the last trading day for August live cattle. Russia announced overnight that they were going to delist 19 U.S. poultry plants from importing meat into their country. This comes after they issued a statement yesterday stating they were going to increase their domestic pork and poultry production, enabling them to decrease their U.S. pork and poultry imports by “hundreds of thousands of metric tons” over the course of the next several years. I say to them good luck with that. I think we need to be careful here, as it sounds like the old Russian play book from back in the 70’s-80’s is coming back out. Put some bad press out to break the market, and then buy it. If you’re a developing country like Russia, China, India, etc, and you have no idea how you are going to feed your people in the coming years, I suppose you have to put stories like this out, in order to break the market, so that you can buy it. In my opinion, demand for both pork and beef is alive and well, and I would look for higher prices in both complexes going into next year. Futures trade will be choppy and two-sided today as trader’s square positions ahead of the holiday; however I would look for an improvement in prices next week. Look for a $.10-$.20 higher open to live and feeder cattle futures this morning. Have a Great Weekend and as Always Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 28, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

An active fed cattle trade developed yesterday afternoon with prices generally steady with the week before. Sales volumes were moderate in Texas and Nebraska at $99 live and $1.55-$1.56 dressed, with light numbers changing hands in Kansas and Colorado at the same price. All told, the USDA is estimating close to 40,000 head of cattle were sold in all regions yesterday. Fall out from the futures board, an improvement in basis, a lower boxed beef market, and producers willing to move cattle at steady money ahead of a long holiday weekend were all catalysts for the midweek trade. I would have thought that the market would have been lower given all the negative psychology yesterday, as packers were only bidding $97 early in the morning. I would look for further cleanup trade today and tomorrow at steady money with yesterday. Most all classes of cattle selling through the sale barns as of midweek are bringing lower money and this should continue for the rest of the week.

Cash Beef Situation and Outlook:

Yesterdays kill was estimated at 128,000 head, which would be 1,000 head below last week and even with the same day a year ago. The week-to-date kill now stands at 255,000 head, which would be 5,000 head above the same period a week ago with the industry looking for a 670,000 head production week. The boxed beef market was lower yesterday with the choice cutout closing $1.06 lower to settle at $160.98 and the select cutout closing $.98 lower to settle at $154.33. Sales volume was moderate with 344 loads of beef sold (121.27 loads of choice fab cuts, 105.08 loads of select fab cuts, 33.02 loads of trim, 84.84 loads of grinds). The choice/select spread settled at $6.65 a loss of $.08.

Pressure returned to the boxed beef market yesterday with more product available compared to demand ahead of the long holiday weekend. With the weekly kill running 5,000 head above last and many on the buy side citing they are comfortable with their inventories going into the weekend and packers apparently have some extra product to move with the increased production. Look for further pressure in the boxed beef complex until next week. Beef exports for the week of August 15-21, 2008 are as follows:

Beef: Net sales of 13,800 MT were primarily for Mexico (6,400 MT), South Korea (2,700 MT), Japan (1,400 MT), Canada (800 MT) the Netherlands (800 MT), Hong Kong (600 MT), and Russia (400 MT). Exports of 14,100 MT were mainly to Mexico (5,400 MT), South Korea (2,800 MT), Canada (1,600 MT), Japan (1,300 MT), Russia (1,300 MT), Vietnam (1,000 MT), and Taiwan (400 MT).

Futures Market Situation and Outlook:

August live cattle settled at $100.62 a loss of $1.07, October live cattle settled at $103.77 a loss of $1.97, and December live cattle settled at $105.22 a loss of $2.00. In the feeder cattle pit, August feeder cattle settled at $112.95 a loss of $.07, September feeder cattle settled at $111.22 a loss of $.92, and the October feeder cattle settled at $110.42 a loss of $1.17. The reported CME feeder cattle index for 8/26/08 was $113.41 a loss of $.20.

Yesterdays live cattle volume saw 28,976 contracts trade in the pit and 11,429 contracts trade on Globex. Live cattle open interest declined 1,050 contracts to come in this morning at 270,275. Yesterday’s feeder cattle volume saw 4,579 contracts trade in the pit and 1,093 contracts trade on Globex. Feeder cattle open interest declined 655 contracts to come in this morning at 32,212.

Live and feeder cattle futures melted down yesterday on the lower tone to the cash markets and the debacle in the hog pit. Late last week the USDA delisted 7 Mexican meat plants from exporting meat to the United States due to sanitation issues. Now the talk towards midweek is that Mexico will retaliate and not allow certain plants in the U.S. to export beef and pork to Mexico. This along with the sharply lower dressed pork and live hog trade had hogs limit down and that weakness spilled over into the cattle market yesterday. Here again, we find ourselves faced with stories and hype disrupting the futures market, as there is a reason Mexico is one of our largest trading partners in terms of beef and pork exports, and we have to assume that any type of import/export spat between our two countries will be resolved quickly. Look for some short covering and hedge lifting ahead of the weekend in the live and feeder cattle futures, which could provide a little support to the market. At which time we will have to come back from the long holiday weekend and reassess supply and demand factors of the market. One thing is for sure though after yesterdays market performance the charts look bearish and the technicians will be looking to sell rallies. Look for a $.10-$.20 higher open to live and feeder cattle futures this morning. Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 27, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

The cash feedlot trade was quiet yesterday with no meaningful packer bids being posted as of yesterday and feeders offering a smaller showlist offering at $101-$102 live and $1.62 dressed. A late week trade is expected at steady to slightly lower money this week as packers will be buying for a short kill week next week. Boxed beef values are trading better than expected as some last minute buying ahead of Labor Day supports the market. I will look for the fed cattle market to strengthen after Labor Day as fed cattle supplies will be on the decline and beef demand will pick up. Feeder cattle markets are on the defensive and will likely remain that way into next week. Slaughter cow markets are lower as well as we begin to see more numbers coming to market.

Cash Beef Situation and Outlook:

Yesterdays kill was 128,000 head, which would be 1,000 head below last week and even with the same day a year ago. The industry is looking for a 670,000 head production week. The boxed beef market was higher yesterday with the choice cutout closing $.42 higher to settle at $162.04 and the select cutout closing $.89 higher to settle at $155.31. Sales volume was decent with 340 loads of beef sold (146.52 loads of choice fab cuts, 116.67 loads of select fab cuts, 31.85 loads of trim, 44.57 loads of grinds). The choice/select spread settled at $6.73 a loss of $.47.

The beef market is acting better than expected this week on some last minute buying ahead of Labor Day and packer inventories of beef to sell coming into this week more manageable than last week. Rib cuts are said to be in a little better shape when compared to last week and this along with a better price scenario in the round complex is helping to support cutout values early this week. I will look for a mostly sideways beef trade until after we get back from the holiday, at which time I think values will improve.

Futures Market Situation and Outlook:

August live cattle settled at $101.70 a loss of $.30, October live cattle settled at $105.75 a loss of $.05, and the December live cattle settled at $107.22 a loss of $.12. In the feeder cattle pit, August feeder cattle settled at $113.02 a loss of $.07, September feeder cattle settled at $112.15 a loss of $.75, and the October feeder cattle settled at $111.60 a loss of $.95.

The futures were pretty volatile yesterday with lower settlements linked to gyrations in the grain markets and uncertainties over the cash fat and feeder cattle markets. Live cattle futures continue to find willing buyers under the market ever since early last week, as certain traders look for an improvement in cash beef and cattle values after the Labor Day holiday. Feeders got pounded on the close yesterday, and technically Oct and Nov look like they could now move down to the $109 area. I would expect to see more volatility and choppiness for the rest of this week until more is known about this week’s cash fed cattle trade. October live cattle futures will have support at $104 and December live cattle will have support at $106 today, and it will be important for these support levels to hold in order to stave off another $1-$2 lower. I do look for higher cash and futures prices in September and October so pick your chart points and trade it that way. Look for a $.20-$.30 lower open to live and feeder cattle futures this morning. Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 25, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

We left last week with a friendly cattle on feed report and a fed cattle market that trades mostly $1-$2 lower. The on feed report showed cattle on feed in the nations feedlots at 9.869 mil head or 96% of a year ago (96%), placements during the month of July at 1.661 mil head or 102% of a year ago (107%), and marketing’s during the month of July at 2.042 mil head or 102% of a year ago (102%). The report will be considered friendly deferred month live cattle futures in particular December live, as the placement number came in well below analysts expectations. The placement breakdown showed feedlots placed an even amount of cattle weighing less than 600 lbs and cattle weighing over 800 lbs when compared to last year, and 2.5% or 8,000 head more cattle weighing 600-699 lbs and 7.5% or 29,000 more head of cattle weighing 700-799 lbs.

Last weeks fed cattle market traded mostly $98-$99 live and $1.55-$1.56 dressed in all feeding areas on moderate movement. For the week feeder cattle markets were mostly $2 lower as were slaughter cows. The beef was lower for most of the week and that will likely continue for most of this week as well. Feedlot movement was light last week, which likely means we will see larger showlists coming into this week, with packers buying for a short kill week next week. I will look for a steady to lower fed cattle trade this week and look for the market to straighten out after the Labor Day holiday, as fed cattle numbers will be manageable until the end of the year.

Cash Beef Situation and Outlook:

Last weeks cattle kill was estimated at 667,000 head, which would be 15,000 head below the previous week. The weekly slaughter produced an estimated 518.7 mil lbs of beef. The boxed beef market was $3.32 lower on choice product and $1.24 lower on select product on moderate movement. Friday saw further losses in the beef complex as the choice cutout was $.74 lower to settle at $160.78 and the select cutout was $1.29 lower to settle at $155.19. Sales volume was light on Friday with 275 loads of beef sold (110.90 loads of choice fab cuts, 96.64 loads of select fab cuts, 15.30 loads of trim, 52.53 loads of grinds). The choice/select spread settled at $5.59 a gain of $.55.

The beef market was lower for most of last week as both domestic retail and export demand backed off. There was some export business that came in from Russia late in the week, however that supported the round complex and not the other parts of the carcass. Most orders are filled going into the Labor Day holiday and this will likely keep beef values on the defensive for at least the first part of this week barring any renewed export business. Middle meats remain the main burden to packers and this also will likely be the case until after the Labor Day holiday.

Futures Market Situation and Outlook:

August live cattle settled at $101.85 a gain of $.40, October live cattle settled at $105.77 a loss of $.52, and the December live cattle settled at $106.90 a loss of $.55. In the feeder cattle pit, August feeder cattle settled at $112.85 a gain of $.02, September feeder cattle settled at $112.95 a gain of $.27, and the October feeder cattle settled at $112.50 a loss of $.02. The reported CME feeder cattle index for 8/21/08 was $113.21 a loss of $.05.

There were 3 live cattle deliveries against the August contract Friday with MF Global delivering 3 loads at Texhoma, OK and Rosenthal receiving them. The market should start out better in the live cattle futures this morning, especially the deferred month contracts as they will receive support from the lower than expected placements in the cattle on feed report and higher corn. Feeder cattle will be under pressure early, however if we get a run higher in the deferred month fats feeders should find some support at last weeks lows. I wouldn’t expect to see very much strength in front month August live and feeder cattle futures as they will both expire at the end of the week and the cash markets will be on the defensive. The on feed report continues to show we will have a supply friendly 4^th quarter cash fed cattle market and for these reasons I continue to want to be long December live cattle. There was good fund buying in Feb live cattle last week and we could see a rally in that contract as well, especially if we continue to see strength in the corn market. However, with that said, any $3-$4 rally in Feb and April live cattle and Oct and Nov feeder cattle in the next couple of weeks, will be an important hedging opportunity for producers going into the corresponding marketing dates. Look for a $20-$.30 higher open to live cattle futures this morning and $.20-$.30 lower in the feeder cattle futures. Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 22, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

The live cattle trade continued in the southern feeding states yesterday with most business getting done at $99 live and $1.56 dressed, steady with earlier in the week. Northern cattle traders haven’t done much in the way of moving inventory yet this week as most major packers are only bidding $98/$1.56. Cattle feeders in the north are looking for $100 live and $1.60 dressed, and with the rally on the board yesterday, it is going to be hard for packer buyers to pry cattle from the producer’s hands for anything less than steady money with last week. There were some reports of a few cattle trading in Nebraska at $99 live, but numbers looked pretty light. The beef market is still on the ropes, which is going to give packers all the more incentive to try and buy cattle cheaper this week in the north, however showlists are quite a bit smaller in that part of the country so it is going to be interesting to see how everything plays out. I would say that we are probably going to see the board get beat up early this morning and cattle will eventually trade for $99 live and $1.58 dressed in Nebraska by this afternoon. If the beef stays on the defensive, which it seems like it will through next week, and given the fact that packers will be buying cattle for a short kill week on the following week, I would say right now that a lower fed cattle trade is in store for next week as well. Going home for the weekend slaughter cows and feeder cattle selling through the sale barns are bringing steady to lower money, and I would look for that to continue into next week also.

Cash Beef Situation and Outlook:

Yesterdays kill was estimated at 128,000 head, which would be even with a week ago and 3,000 head above the same day a year ago. The week-to-date kill now stands at 505,000 head compared to 512,000 head for the same period a week ago with the industry looking for a 665,000 head production week. The boxed beef market was lower yesterday with the choice cutout closing $1.57 lower to settle at $161.52 and the select cutout closing $.56 lower to settle at $156.48. Sales volume was moderate with 342 loads of beef sold (161.05 loads of choice fab cuts, 98.02 loads of select fab cuts, 32.17 loads of trim, 51.12 loads of grinds). The choice/select spread settled at $5.03 a loss of $1.01.

The boxed beef market was led lower once again yesterday by sharp price reductions in the rib complex. Choice and select boneless ribeyes were under extreme pressure as mounting inventories at the packinghouse and lackluster retail and export demand the last couple of days forced packers to offer deep discounts in order to move product. Yesterday also saw some price reductions for the inside round, boneless strips, top butts, and tri-tip. Short ribs, briskets, and most ground beef and boneless beef items were higher yesterday as export demand for the short ribs and domestic demand for ground beef remains firm. As I have been mentioning for the last couple of days, consumer demand ahead of Labor Day is a little lackluster and most on the retail and wholesale level of the beef complex say they are comfortable with their inventory positions. This will likely keep the beef market under moderate pressure into the first of September, at which time we will likely see the retail and wholesale buyer reload the pipeline after the holiday and foodservice buyers will get a little more serious about procuring their middle meat needs for end of year celebrations. Continue to look for a sideways to lower trend in the boxed beef complex.

Futures Market Situation and Outlook:

August live cattle settled at $101.45 a gain of $.75, October live cattle settled at $106.30 a gain of $1.30, and the December live cattle settled at $107.45 a gain of $1.10. In the feeder cattle pit, August feeder cattle settled at $112.82 a loss of $.25, September feeder cattle settled at $112.67 a loss of $.57, and the October feeder cattle settled at $112.52 a loss of $.65. The reported CME feeder cattle index for 8/20/08 was $113.26 a gain of $.04.

Yesterdays live cattle volume saw 12,937 contracts trade in the pit and 6,470 contracts trade on Globex. Live cattle open interest declined 1,440 contracts to come in this morning at 271,953. Yesterday’s feeder cattle volume saw 2,904 contracts trade in the pit and 838 contracts trade on Globex. Feeder cattle open interest declined 304 contracts to come in this morning at 32,735.

Live cattle futures saw another solid performance yesterday on renewed fund buying of deferred month contracts and short covering. The biggest factor in the live cattle rally the last couple of days has been the strength in the corn market, which of course has been detrimental to the feeder cattle futures. However, with that said, the feeders have managed to come back into the close as we find buyers in Oct and Nov feeders under $112. The cash cattle and beef markets are and will likely remain under pressure until the end of the month, which will keep both August live and August feeders from participating in any near term rally that is likely to unfold if corn continues to move higher. Participants in the cattle futures market will be eagerly anticipating the conclusion to this weeks cash fed cattle trade and the cattle on feed report set to be released after the close of trading today. The report is likely to show 96% on feed, 107% placements, and 101% marketing’s. Placements will of course be the wild card in the report again and I think we are going to see month over month increases in placement patterns now until the end of the year as summer nears an end and cattle are moved off of grass. This increase in placement activity will be skewed towards heavier cattle until October and November, which means that those cattle will finish during the late 4^th quarter of this year and into the first quarter of next year. This will make it all the more important to use a rally in cash cattle and subsequent rally in futures after Labor Day, to get January through April cattle hedged via Feb and April live cattle futures and options. We will likely open a little lower this morning and chop around until more is know about the northern fed cattle trade. I wouldn’t expect futures to do very much until we get the on feed report behind us, however the way it feels right now, Wednesday’s lows in live and feeder cattle futures should hold for a little bit. Look for a $.10-$.20 lower open to futures trading this morning. Have a Good Weekend and as always Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 21, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

There was further light fed cattle trading in the southern feeding regions of Texas and Kansas at mostly $98-$98.50 live and $1.55 dressed. This would be $.50-$1 lower then the bulk of trading in that part of the country yesterday. There was also a light fed cattle trade developing in the Nebraska feedlot market at $98-$98.75 live and $1.56-$1.56 ½ dressed late yesterday afternoon, however after the board rallied around midsession many feeders were passing bids waiting until later in the week. There remains quiet a few cattle to be sold in the north yet and I still think they are going to get sold at steady to lower money. The lower beef market is going to be an overriding factor in this weeks cash trade in my opinion as packers are not going to be very eager to give up margin now that they have a lot of their forward sales and Labor Day business caught up for the time being. I will continue to look for a $98/$1.56 trade in the north by tomorrow afternoon. As we hit the midweek point, fed cattle selling through the northern auction markets are brining $1-$2 lower money with tops ranging between $96-$98. Slaughter cows are trading on the defensive as are feeder cattle markets. El Reno, OK was calling their feeder market $1-$3 lower yesterday and I would suspect we will see more of the same going into the first part of next week.

Cash Beef Situation and Outlook:

Yesterdays kill was estimated at 127,000 head, which would be 1,000 head below last week and 1,000 head above the same day a year ago. The week-to-date kill now stands at 377,000 head, which would be 7,000 head behind last weeks pace with the industry looking for a 665,000 head production week. The boxed beef market was lower yesterday with the choice cutout closing $1.25 lower to settle at $163.09 and the select cutout closing $.12 lower to settle at $157.04. Sales volume was moderate with 309 loads of beef sold (129.48 loads of choice fab cuts, 99.27 loads of select fab cuts, 24.23 loads of trim, 55.97 loads of grinds). The choice/select spread settled at $6.06 a loss of $1.13.

The beef market was lower yesterday as weakness in rib and loin cuts weighted on cutout values. There was also some discounting throughout the round complex, which added to the pressure. Domestic retail demand is a little soft right now and this will likely remain the case until after Labor Day. I will still hold with my opinion that the beef market will stay on the defensive until the end of the month. Beef export sales for the week of August 8-14, 2008 are as follows:

Beef: Net sales of 20,200 MT were primarily for South Korea (8,500 MT), Mexico (7,800 MT), Canada (1,600 MT), Russia (1,000 MT), Taiwan (500 MT), and Japan (300 MT). Exports of 13,700 MT were mainly to Mexico (5,200 MT), South Korea (2,900 MT), Canada (1,600 MT), Russia (1,200 MT), Japan (1,200 MT), Taiwan (600 MT), and Vietnam (600 MT).

Futures Market Situation and Outlook:

August live cattle settled at $100.70 steady on the day, October live cattle settled at $105.00 a gain of $.17, and the December live cattle settled at $106.35 a gain of $.52. In the feeder cattle pit, August feeder cattle settled at $113.07 a gain of $.37, September feeder cattle settled at $113.25 a gain of $.55, and the October feeder cattle settled at $113.17 a gain of $.40. The reported CME feeder cattle index for 8/19/08 was $113.22 a gain of $.11.

Yesterdays live cattle volume saw 14,166 contracts trade in the pit and 8,908 trade on Globex. Live cattle open interest declined 1,197 contracts to come in this morning at 273,415. Yesterday’s feeder cattle volume saw 2,863 contracts trade in the pit and 1,731 trade on Globex. Feeder cattle open interest declined 167 contracts to come in this morning at 33,288.

Live and feeder cattle futures saw a decent short covering rally yesterday, which ended with higher settlements for the day. There was also what appeared to me to be some pretty decent fund buying in the deferred month contracts, in particular the February live cattle, on the screen all day long. The buying on the screen led the pit higher and was a major influence in the higher settlements in both the live and feeder cattle futures yesterday. Front month live and feeders didn’t do very much yesterday as cash weakness kept the August contract months in check. The cash beef, fat cattle, and feeder cattle markets are going to stay on the defensive until the end of the month in my opinion. However, if we were to see another leg higher in the grain markets, which solely in my opinion could be very possible, we could have seen enough down in deferred month fat cattle futures for the time being. Strength in December forward live cattle would give feeders a reason to rally, if nothing else to relieve oversold conditions and keep the crush spreads in line. The market might have been trying to tell us this yesterday. If such a rally were to develop in back month fat cattle, we need to keep in mind that we have to use it as a hedging opportunity in Feb and April fats, as feedlot placements are going to start increasing in the weeks and months ahead. Look for a $.10-$.20 higher open to live cattle futures and $.10-$.20 lower in the feeder cattle futures. Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 20, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

We saw a moderate fed cattle trade develop in the southern feeding regions of the country at prices $1 lower on a live weight basis and $2 lower on a dressed basis. The USDA reported close to 35,000 head of fed cattle sold in Texas and Kansas yesterday afternoon at mostly $99 live and $1.56 dressed, with a few late sales reported at $98 live. There were also a few cattle reportedly sold in Colorado at $99 live as well, however numbers look light. Cattle that were carried over from last week and ideas the beef market may be topping for a couple weeks were the catalysts for feeders to move cattle earlier than normal this week. Northern cattle traders were not as eager to sell cattle so early in the week as they sold more cattle than the south last week and their showlist numbers are quite a bit smaller when compared to the south. However, with that said, it is going to be hard for them to command too much higher money with the lower southern trade and the faltering futures board. I will look for the northern trade to develop either today or tomorrow at lower money (i.e. $99 live and $1.56-$1.58 dressed). The market looks like it could stay on the defensive until after the Labor Day holiday.

Cattle selling through the northern sale barns are bringing mostly steady money with tops on the beef fats being $97-$99 and on the Holsteins at $85-$88. Slaughter cows are mixed depending on what part of the country you are in, with cutter and boner cows bringing mostly $45-$62 with the breakers and whites bringing $62-$68. Feeder cattle sales are mixed as well, however for the most part the yearling cattle weighing 600 lbs-800 lbs continue to bring $105-$115 throughout most of the country.

Cash Beef Situation and Outlook:

Yesterdays kill was estimated at 129,000 head, which would be even with a week ago and 3,000 head above the same day a year ago. The week-to-date kill now stands at 250,000 head, which would be 6,000 head behind last week with the industry looking for a 665,000 head production week. The boxed beef market was mixed yesterday with the choice cutout closing $.05 higher to settle at $164.34 and the select cutout closing $.25 lower to settle at $157.16. Sales volume was light with 214 loads of beef sold (71.16 loads of choice fab cuts, 79.18 loads of select fab cuts, 7.96 loads of trim, 55.86 loads of grinds). The choice/select spread settled at $7.18 a gain of $.30.

The cash beef market was steady to lower yesterday on lackluster retail demand. Most rib cuts, chuck rolls, outside rounds, and tri-tips were all in need of discounting yesterday as inventories of these cuts were outpacing demand. Boneless beef markets were mixed with strength in the boneless cow 90’s and weakness in the fed cattle 50’s, most of which can be attributed to the larger fed cattle slaughter last week. Ground beef values were mostly higher yesterday and this should remain the case through Labor Day. The beef market feels a little heavy coming into this week and I think we will probably see lower prices until we get past the Labor Day holiday. I don’t think we will see a huge break as export demand remains firm, but to see the choice and select cutout’s lose another $2-$3 by the end of the month should not be unexpected. Look for a softer market going into the end of the week.

Futures Market Situation and Outlook:

August live cattle settled at $100.70 a loss of $1.22, October live cattle settled at $104.82 a loss of $1.12, and the December live cattle settled at $105.82 a loss of $.92. In the feeder cattle pit, August feeder cattle settled at $112.70 a loss of $.95, September feeder cattle settled at $112.70 a loss of $.87, and the October feeder cattle settled at $112.77 a loss of $.72. The reported CME feeder cattle index for 8/18/08 was $113.11 a loss of $.04.

Live cattle volume saw 15,917 contracts trade in the pit and 8,139 contracts trade on Globex. Live cattle open interest gained 1,566 contracts to come in this morning at 275,574. Feeder cattle volume saw 4,450 contracts trade in the pit and 1,031 contracts trade on Globex. Feeder cattle open interest gained 636 contracts to come in this morning at 33,591.

Live and feeder cattle futures were under pressure yesterday as technical and commercial selling linked to lower cash cattle markets pushed the market into new lows for the most recent move down. October and December live cattle now look as though they are going to test support from last month at $104 and $105 respectively. I would assume that we will test this support by the end of the week if not earlier as the market waits for a lower northern fed cattle trade and positions itself for this Friday’s cattle on feed report. The report is likely to show 96% on feed, 107% placed, and 101% marketed, however official estimates will be released this morning. The increase in placements is going to be a feature now going into the end of the year as more feeder cattle come to market in the coming weeks and months. The majority of these cattle will get placed into the first quarter of next year, which will make it all the more important to use rallies in the Feb and April live cattle as hedging opportunities going through fall. The feeder cattle market is going to remain under pressure due to lower fed cattle markets, higher corn markets, and more feeders becoming available to the market. Feeders are getting a little oversold and could see a corrective bounce, however I would imagine that it would be short lived. Look for a $.10-$.20 lower open to live and feeder cattle this morning. Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 19, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

It was a typical quiet Monday in the cash feedlot trade with no bids being posted and offers of $102-$103 live and $1.62 dressed to start the week. A look at last weeks feedlot movement shows Texas/Oklahoma cattle feeders selling 35,667 head of fed cattle for $100 live, Kansas feeders selling 29,003 head of fed cattle for $100 live and $1.58 dressed, Nebraska cattle feeders selling 63,774 head of fed cattle for $100 live and $1.58-$1.59 dressed, Colorado feedlots selling 9,141 head of fed cattle for $99.50-$100 live and $1.58-$1.59 dressed, and Iowa/MN feedlots selling 36,592 head of fed cattle for $98-$99 live and $1.58 dressed. Weekly totals include negotiated cash and negotiated grid sales as reported to the USDA. Showlists are coming in a little larger in the southern trading regions of the country with smaller numbers showing up in the north. This is a result of the moderate movement in the south last week. This week my opinion remains the same, I think we will see a slight pull back in boxed beef prices ahead of the Labor Day holiday, which in turn will prompt a small pull back in cash fed cattle prices. I will look for a mostly $99-$100 live trade and $1.56-$1.58 dressed by the end of the week. To start the week fed cattle, feeder cattle, and slaughter cows selling through the auction markets are mostly steady with last week.

Cash Beef Situation and Outlook:

Yesterdays kill was estimated at 124,000 head, which would be 3,000 head below last week and 2,000 head below the same day a year ago. The industry is looking for a 665,000 head production week. The boxed beef market was lower yesterday with the choice cutout closing $.04 lower to settle at $164.29 and the select cutout closing $.35 lower to settle at $157.41. Sales volume was light with 203 loads of beef sold (81.94 loads of choice fab cuts, 69.16 loads of select fab cuts, 4.07 loads of trim, 47.62 loads of grinds). The choice/select spread settled at $6.88 a gain of $.31.

The boxed beef market was modestly lower as weekend beef clearance was described as average, which led to minimal fill-in business yesterday. Last weeks larger slaughter figures left packers with extra inventory of rib and loin meat to sell, which had them offering discounts on those items yesterday. For the most party end meats, ground beef, and boneless beef items were steady and this should be the case for most of the week.

Futures Market Situation and Outlook:

August live cattle settled at $101.92 a gain of $.25, October live cattle settled at $105.95 a gain of $.10, and the December live cattle settled at $106.75 a gain of $.37. In the feeder cattle pit, August feeder cattle settled at $113.65 a loss of $.25, September feeder cattle settled at $113.57 a loss of $.82, and the October feeder cattle settled at $113.50 a loss of $1.02. The reported CME feeder cattle index for 8/15/08 was $113.15 a gain of $.18.

Yesterdays live cattle volume saw 19,932 contracts trade in the pit and 7,272 contracts trade on Globex. Live cattle open interest gained 199 contracts to come in this morning at 274,020. Yesterday’s feeder cattle volume saw 2,768 contracts trade in the pit and 1,635 trade on Globex. Feeder cattle open interest declined 556 contracts to come in this morning at 32,986.

There were more deliveries against the August live cattle contract last night with Rosenthal delivering 10 loads out of Amarillo, TX and another Rosenthal account receiving all 10 loads. The last date on deliveries was 6/30/08 with a settlement price of $101.92. Futures saw a bounce from last Friday’s sell off, however as expected the early rally didn’t last long as technical sellers emerged shortly after the open. The $106 area couldn’t hold in the October live cattle yesterday, which now leaves support at $105 as the next target. Feeders were weak all day and next level of support in that market looks to come into play about $1 lower in Sep, Oct, and Nov from yesterday’s settlement. Look for a $.10-$.20 lower open to live and feeder cattle futures this morning. Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 18, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

We left last week with a cash feedlot trade that developed at mostly steady money with the week prior. Moderate numbers of fed cattle traded in the southern feeding regions of Texas, Oklahoma, and Kansas at $100 live and $1.58 dressed. In the northern feeding states of Colorado, Nebraska, and Iowa cattle sold for $99.50-$100 live and $1.58-$1.59 dressed. It sounds like movement was pretty good in the north and a little light in the south, however I will report on actual totals tomorrow morning once everything is counted and reported to the USDA. Had it not been for the meltdown in the commodity markets on Friday I am confident we could have seen $101 cattle trade in the south, but never-the-less it wasn’t a bad trade considering it is the middle of August. Pre-booking of beef orders for Labor Day and export demand along with packers having a pre-sold position of beef to cover we’re all catalysts for the steady trade. It does sound like some of the domestic beef demand might slack off a bit going into the Labor Day holiday, which means we could see a moderating in beef prices for a couple of weeks, which would likely lead to a lower fed cattle trade during the same time period. Fed cattle numbers are by no means burdensome and will remain fairly tight going into the end of November, which overall will be supportive to the market, but to see a minor correction in the next couple of weeks should not be unexpected. Last weeks feeder cattle market was mostly steady to $2 higher. With the midweek gains in the corn market and lower cattle futures, some markets were reporting steadier than higher by the end of the week. If we were to see a small downtick in fed cattle prices in the next week or two, we will also likely see some money taken off of the feeder cattle market as well. Another feature in the feeder cattle will be more numbers of cattle coming off summer pasture in the weeks ahead. This will be a price limiting factor; however with plenty of pen space chasing an overall smaller offering of cattle compared to years past, the market shouldn’t fall out of bed. The slaughter cow market was steady last week, and here too, the closer we get to fall, the more cows that will become available to the marketplace. I will look for a mostly steady cow market for this week as well.

Cash Beef Situation and Outlook:

Last weeks cattle slaughter was estimated at 682,000 head and produced an estimated 529.6 mil lbs of beef. The weekly kill included at Friday production of 127,000 head and a Saturday effort of 43,000 head. The year-to-date cattle slaughter is running 1% above a year ago at 21,567 mil head with ytd beef production running 1.7% above a year ago at 16.6 bil lbs. Last weeks boxed beef market was $2.90 higher on the choice product and $2.63 higher on the select product on moderate spot movement. On Friday we started to see mixed tone develop in the beef market with the choice cutout closing $.51 lower to settle at $164.33 and the select cutout closing $.04 higher to settle at $157.76. Sales volume on Friday was light with 208 loads of beef sold (77.34 loads of choice fab cuts, 67.40 loads of select fab cuts, 17.53 loads of trim, 45.56 loads of grinds). The choice/select spread settled at $6.57 on Friday a loss of $.55.

Last weeks beef market started out on firm footing for both middle meats and end cuts, however as the week wore on and buyers were looking at increased slaughter rates at the packinghouse level, some were backing away from middles and concentrating more on procurement of end meats. Export demand for chucks and rounds continues to be a supporting factor in the marketplace taking away from domestic supplies. The sources within the beef market cite they are comfortable with current inventory positions for the time being and would rather get past Labor Day to get a better handle on demand going into fall before making any more major purchasing decisions. With this said it will be up to the export market to pick up the slack. For these reasons I think we could see boxed beef values move into more of a sideways to lower trade for the next couple of weeks. Again though, spurts of overseas buying along with last minute buying for Labor Day should keep the market from breaking sharply lower.

Futures Market Situation and Outlook:

For the week August live cattle gained $.20 to settle at $101.67, October live cattle lost $.60 to settle at $105.85, and the December live cattle gained $.32 to settle at $106.37. In the feeder cattle pit last week, August feeder cattle lost $.72 to settle at $113.90, September feeder cattle lost $2.25 to settle at $114.40, and the October feeder cattle lost $.87 to settle at $114.52. The reported CME feeder cattle index for 8/14/08 was $112.97 a loss of $.04 for the day and a gain of $1.35 for the week.

Fridays live cattle volume saw 21,393 contracts trade in the pit and 9,253 contracts trade on Globex. Live cattle open interest declined 578 contracts to come in this morning at 273,855. Friday’s feeder cattle volume saw 3,391 contracts trade in the pit and 1,903 contracts trade on Globex. Feeder cattle open interest declined 662 contracts to come in this morning at 33,544.

The latest commitment of traders report showed funds net long 32,297 contracts of live cattle futures and options, commercial traders net long 7,593 contracts of live cattle F/O, and small specs net short 35,889 contracts of live cattle F/O. The report also showed funds net long 7,558 contracts of feeder cattle F/O, commercials are net long 795 contracts of feeder cattle F/O, and small specs were net short 8,354 contracts of feeder cattle F/O. Deliveries continued on Friday with Rosenthal delivering and receiving 9 loads out of Amarillo, TX. The last date on deliveries was 6/30/08 with a settlement price of $101.67. Also late Friday Canada reported another case of BSE in a 6 year old cow in Alberta, but again this should be a non event. We left last week with a general sell off in all commodity markets, which spilled over into the CME livestock markets. I thought we might see a couple of dollar pull back in the futures market after we got last weeks cash trade out of the way, however I didn’t know it was going to happen all in one day. December live cattle managed to hold support at $106 on Friday, however October couldn’t and this likely doesn’t bode well technically for the entire complex for this week. This would especially be true given my opinion of lower cash markets in during the next couple of weeks. Any early week short covering rally is likely going to be viewed by the technical traders as a selling opportunity, unless by some chance fundamentals of the market remain stronger than I anticipate. I don’t think we will see a huge break in futures, however we could easily see $1-$2 lower from Friday’s settlements by late this week. Feeder cattle futures are going to have a tough time technically as well, closing into new lows for the move on Friday. With outside markets a little higher this morning we could easily see a corrective trade higher in live and feeder cattle futures early this week, however I think futures will struggle on rally attempts towards midweek. Look for a $.10-$.20 higher open this morning to live and feeder cattle futures. Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 15, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

The cash feedlot trade was untested again yesterday with the best packer bids being found at $98 live and $1.60 dressed and most feedlots priced at $102-$103 live and $1.63 dressed. I would expect to see a steady/higher trade by the end of the day today that takes place at $100-$101 live and $1.60 dressed. Packers seem to have a need for cattle this week and next as they fill beef orders ahead of the Labor Day holiday and cover export sales. Next week could be a different story though, as it seems interest for beef past next week could be diminishing a bit from domestic buyers. To see both the cutout and cash fed cattle market slow down after recent gains the last couple of weeks should not be unexpected, before we pick back up and trade higher into the end of September through Oct, Nov, and Dec. So bottom line, we will call for higher this week and look for steady lower next week. Cattle selling through the auction markets continue to bring steady to higher money going home for the weekend, however here too, we could begin to see some of those markets begin to soften a bit early next week as well. Need to keep a close eye on the cash feeder cattle market, as we are starting to see more numbers coming off of summer grass coming to town.

Cash Beef Situation and Outlook:

Yesterdays kill was estimated at 128,000 head, which would be 4,000 head above last week and 5,000 head above the same day a year ago. The week-to-date kill now stands at 512,000 head, which would be 9,000 head above the same period last week with the industry looking for a 670,000 head production week. The boxed beef market was higher yesterday with the choice cutout closing $.24 higher to settle at $164.84 and the select cutout closing $.22 higher to settle at $157.72. Sales volume was moderate with 337 loads of beef sold (105.89 loads of choice fab cuts, 121.45 loads of select fab cuts, 38.27 loads of trim, 71.43 loads of grinds). The choice/select spread settled at $7.12 a gain of $.02.

The beef market was steady to modestly higher yesterday; however the market feels like it is losing some steam. Most buyers cite that they are getting some of their near term needs covered going into the Labor Day holiday and with this weeks kill running 9,000 head above the same period last week, most are moving to the sidelines and looking for bargains to resurface in the marketplace. Yesterday saw some price discounts begin to surface in the clod, short and strip loins, and top butt markets. Ground beef and boneless beef markets were higher yesterday as demand ahead of Labor Day remains firm. I will look for beef prices to moderate going into early next week.

Futures Market Situation and Outlook:

August live cattle settled at $103.35 a gain of $.17, October live cattle settled at $107.90 a gain of $.45, and the December live cattle settled at $108.40 a gain of $.25. In the feeder cattle pit, August feeder cattle settled at $114.17 a gain of $.12, September feeder cattle settled at $115.45 a gain of $.27, and the October feeder cattle settled at $115.42 a gain of $.57. The reported CME feeder cattle index for 8/13/08 was $113.01 a gain of $.24.

Yesterdays live cattle volume saw 13,033 contracts trade in the pit and 5,416 contracts trade on Globex. Live cattle open interest declined 1,725 contracts yesterday to come in this morning at 274,555. Yesterday’s feeder cattle volume saw 4,688 contracts trade in the pit and 1,371 trade on Globex. Feeder cattle open interest declined 153 contracts to come in this morning at 34,206.

It was another slow day in the live and feeder cattle pits yesterday as the market pretty much has a higher fed cattle trade priced in for this week and waits for fresh inputs to trade off. It looks like we have another commodity meltdown this morning, with metals, grains, and energies down sharply on the overnight, some of which will likely filter into the livestock markets this morning. As pointed out above, I think we could possibly take a little money off the beef and fat cattle markets next week, which would give the market another reason to sell off either late today or Monday. I am going to look for a little correction in cash and futures prices by the middle of next week, and we will need to keep a close eye on the $106 support area in both the October and December live cattle, as this price level needs to hold on any near term pull back. Corn is will be sharply lower on the open this morning and if this were to rally the feeders anything near a dollar higher early in the trade this morning it would likely be a good sell, if nothing else for a day trade. Look for a $.10-$.20 lower open to live cattle futures and $.10-$.20 higher in the feeders this morning. Have a Good Weekend and Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 14, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

The cash fed cattle market was mostly quiet again yesterday with the exception of a few cattle trading in the eastern sections of the country for $100-$101. Best packer bids found so far this week are $98 in the south with most feedlots offering cattle at $102-$103 and $1.63 dressed. With smaller showlists and a healthy packer appetite for cattle this week I am still going to call for a mostly $100-$101 live and $1.60 dressed trade by the end of the week. Beef demand is holding up fairly well and packers have some meat sold out in front of them for which they need cattle to process. Next week could be a different story though as some on the buy side of the beef equation say they may back away from the market as most of their immediate needs get filled. The salebarn cattle are all trading mostly higher on fats, feeders, and slaughter cows. There are a few instances of some lower markets on feeders and slaughter cows depending on what part of the country you are in, but overall steady to higher is the best call. Starting to see more and more cattle coming off of grass running through the western barns, and this should be the case going into October/November.

Cash Beef Situation and Outlook:

Yesterdays kill was estimated at 128,000 head, which would be 2,000 head above last week and 6,000 head above the same day a year ago. The week-to-date kill now stands at 384,000 head, which would be 5,000 head above last weeks pace with the industry looking for a 670,000 head production week. The boxed beef market was higher yesterday with the choice cutout closing $.13 higher to settle at $164.60 and the select cutout closing $.05 higher to settle at $157.50. Sales volume was moderate with 350 loads of beef sold (155.16 loads of choice fab cuts, 115.64 loads of select fab cuts, 13.31 loads of trim, 65.42 loads of grinds). The choice/select spread settled at $7.10 a gain of $.08.

The beef market was moderately higher yesterday on steady to higher pricing throughout the chuck, round, and rib complexes. Weakness in strip loins and top butts kept a lid on cutout values yesterday. The ground beef complex continues to be supportive to beef cutout values. As mentioned above, certain buyers around the country are getting their immediate needs filled up along with their Labor Day orders, and as such they say they may back away from the market for a week or two. Export demand remains strong and this should continue for weeks to come, however if we were to see domestic buyers become a little less aggressive in the market this could help to slow the gains we have seen recently. For these reasons I will call for a mostly sideways boxed beef market for the rest of the week. Export sales for the week of August 1-7, 2008 are as follows:

Beef: Net sales of 10,000 MT were primarily for Mexico (3,600 MT), Japan (1,900 MT), Canada (1,300 MT), Vietnam (1,000 MT), Russia (900 MT), and South Korea (800 MT). Exports of 13,800 MT were mainly to Mexico (5,600 MT), South Korea (2,800 MT), Canada (1,700 MT), Japan (1,300 MT), Russia (800 MT), Vietnam (700 MT), and Taiwan (300 MT).

Futures Market Situation and Outlook:

August live cattle settled at $103.17 a gain of $.40, October live cattle settled at $107.45 steady on the day, and December live cattle settled at $108.15 a gain of $.65. In the feeder cattle pit, August feeder cattle settled at $114.05 a loss of $1.10, September feeder cattle settled at $115.17 a loss of $1.27, and the October feeder cattle settled at $114.85 a loss of $.95. The reported CME feeder cattle index for 8/12/08 was $112.77 a gain of $.02.

Yesterdays live cattle volume saw 15,148 contracts trade in the pit and 10,597 contracts trade on Globex. Live cattle open interest gained 58 to come in this morning at 276,353. Yesterday’s feeder cattle volume saw 5,661 contracts trade in the pit and 1,296 contracts trade on Globex. Feeder cattle open interest declined 218 contracts to come in this morning at 34,412.

Yesterdays cattle trade was all about the corn trade as limit up corn sparked a strong rally in deferred month live cattle future and pummeled feeder cattle futures. The corn certainly feels like it may have made a near term low for awhile, and this should help to support some of the deferred live cattle contracts for the time being. The cash fed cattle market feels good for this week and I think higher money is attainable, however as I point out above, if the beef market starts to fade going into next week, we could see a pull back in the fed cattle market as well. Overall the trend of higher cash fat cattle markets is in tact and should remain that way into December, however if we were to see a couple dollar pull back in cattle prices going into the end of the month, this would weigh on front month live cattle futures, in particular August and October. Feeder cattle futures may have seen enough down for just a minute, however here too, I think we are going to see more feeders coming to market in the weeks and months ahead, and this should limit advances in the cash market as well as futures. I will continue to view rallies in October and November feeder futures as selling opportunities. Look for a $.10-$.20 higher open to cattle futures this morning. Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

August 13, 2008

Good Morning from the Chicago Board of Trade,

Cash Cattle Situation and Outlook:

For the most part the cash feedlot trade was quiet yesterday as packer inquiry remains light to begin the week. Feedlots are offering smaller showlist numbers at $102 live and $1.63 dressed and I would not expect to see much trade develop until late week. It was rumored that a few cattle were trading in the eastern cornbelt at steady to higher money, however nothing could be confirmed. I think that once we do begin to see the cash feedlot trade develop that it will be taking place at steady to higher money (i.e. $100-$101 live and $1.60 dressed). As mentioned, showlist numbers are down this week, beef demand, both domestic and international, remains healthy, and packer margins are in good shape. Fed cattle, slaughter cows, and feeder cattle selling through the nations auction markets are all trading at steady to higher money and this should be the case for the balance of the week.

Cash Beef Situation and Outlook:

Yesterdays kill was estimated at 129,000 head, which would be 2,000 head above last week and 7,000 head above the same day a year ago. The week-to-date kill now stands at 256,000 head, which would be 3,000 head above the same period a week ago with the industry looking for a 670,000 head production week. The boxed beef market was higher yesterday with the choice cutout closing $1.43 higher to settle at $164.47 and the select cutout closing $.82 higher to settle at $157.45. Sales volume was moderate with 307 loads of beef sold (106.13 loads of choice fab cuts, 111.23 loads of select fab cuts, 17.41 loads of trim, 72.73 loads of grinds). The choice/select spread settled at $7.02 a gain of $.61.

The beef market was higher yesterday as domestic and export buyers returned to the marketplace to price chuck and round cuts, in particular chuck rolls. There was also some active interest in pricing rib and loin cuts, in particular here the short loin, for quick and forward shipment. The coarse ground beef market was higher and this lent support to the boneless beef complex. Once again we see decent buying from domestic buyers ahead of the Labor Day holiday and there is active interest coming from export buyers, all of which should be supportive to the beef complex for the balance of this week. There will be a point in time when the beef market will slow down for a couple of days, especially when the majority of the Labor Day buying gets completed, however overall I think we need to view the choice cutout as heading back up to the mid-upper $170’s by early winter. Beef buyers will want to realize this and continue to buy dips in the market going forward.

Futures Market Situation and Outlook:

August live cattle settled at $102.77 a gain of $.47, October live cattle settled at $107.45 a gain of $.62, and the December live cattle settled at $107.55 a gain of $.57. In the feeder cattle pit, August feeder cattle settled at $11.5.15 a gain of $.17, September feeder cattle settled at $116.45 a loss of $.27, and the October feeder cattle settled at $115.80 a loss of $.05. The reported CME feeder cattle index for 8/11/08 was $112.75 a gain of $.01.

Yesterdays live cattle volume saw 17,856 contracts trade in the pit and 9,770 contracts trade on Globex. Live cattle open interest declined 1,910 contracts yesterday to come in this morning at 276,299. Yesterday’s feeder cattle volume saw 5,522 contracts trade in the pit and 1,867 contracts trade on Globex. Feeder cattle open interest gained 55 contracts to come in this morning at 34,630.

Live cattle futures settled higher yesterday on cash optimism and short covering, while feeders settled moderately lower on the higher CBOT corn trade. Both October and December live cattle will run into resistance at $108 this week, and a close above that level in either contract would be conducive to further price appreciation. Both these contracts will find some near term support this week at $106 as well. The feeder cattle could see a little bounce if we get some higher price action in the deferred month fat cattle, however I still like selling rallies in Oct and Nov feeder cattle going into fall. The corn feels like perhaps it could have found a near term bottom for a minute, but we will need to see follow through to the upside for the rest of this week to confirm this. If we did bottom the corn for awhile, this would be a pressuring factor to feeder cattle prices. I have been and continue to be friendly feeder cattle prices; however that friendliness lasts until the end of summer, at which time we will begin to see more feeder cattle coming to market, which will be a price limiting factor. There were 2 loads of cattle delivered against the August live cattle contract last night, both loads delivered out of Pratt, KS by RJO and both loads received by Rosenthal. Look for a $.10-$.20 higher open to live and feeder cattle futures this morning. Trade Well!!!

Any one wanting a more detailed report on the cattle and beef markets including fundamental, chart and technical analysis, plus spec/hedge recommendations for packers, processors, producers, and meat buyers feel free to contact me by phone or e-mail to set up a free trial.

There is risk in trading futures and options.

Have a Good Day,

Troy Vetterkind

Chicago Board of Trade

141 West Jackson Blvd.

Suite 1220A

Chicago, IL 60604

1-888-299-1477 Toll Free

1-312-896-2068 Direct

1-708-224-5985 Mobile

tvetterkind@linngroup.com

Reproduction or rebroadcast of any portion of this information is strictly prohibited without the written permission of the Linn Group, Inc. the information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Opinions expressed are subject to change without notice. This material and any view expressed herein are provided for informational purposes only and should not be construed in any way as an inducement to buy or sell commodity futures or options contracts. The Linn Group and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.