September Placements are expected to be 3.0% larger than last year. This makes three months of higher placements. We expect this trend to last one more month. Cattle placed in September will be marketed from February through June.

Allendale anticipates a Marketing total 2.7% smaller than September of 2008. Marketings will remain under last year levels through November, then equal last year in December, then move to slightly higher than last year in the first quarter 2010.

Total Cattle on Feed will be slightly higher than last year as of October 1. Building Placement levels will push Cattle on Feed to above last year levels through February. Keep in mind a comparison to last year is skewed as last year placements were down sharply from October through December.

Allendale projects a 39.840 million lb pork belly stock level for the end of September. This marks the fifth month of the drawdown phase of the belly stocks storage cycle. It is also the second highest stock number since 1970. We forecast 9.2 million lbs of bellies were withdrawn from warehouses during September. The five year average decline is 5.7 million lbs. from the previous month.