The Argentine tradition of ending a steak dinner with a glass of red wine and a dessert of fresh fruit is apparently not only good for your palate but also for your health according to researchers at the Hebrew University in Jerusalem. Red wines (fermented fruit juice) and fruit are rich in polyphenols, a group of powerful antioxidants that are thought to protect against cancer and heart disease. The digestion of fatty meats apparently releases oxidizing toxins. If the polyphenols from wine or fruit arrive at the moment the stomach begins digesting the meat, they appear to stop these toxins from entering the blood stream. Dr. Joseph Kanner of the research team said for this beneficial effect to take place the red wine and fruit should be served after the main meat course and not before or during.

Corn prices have fallen 30% from their highs set last month. Yesterday, December corn futures tumbled to an intraday low of $5.63 a bushel, a price level not seen since March 28. By the early afternoon, it recovered to $5.79. On the cash market, corn demand has been hit by falling export demand and lower demand from domestic ethanol plants. The ethanol industry has been cutting back production due to low prices of ethanol and high prices for corn. These feed cost declines have taken roughly $10 cwt off the breakeven costs of raising hogs next summer. At today’s feed prices, hogs can be contracted for next summer at a small profit. These are the first profit potential pork producers have seen in many months. In recent weeks, fat cattle and grains have moved in concert higher which has been very unusual. Analysts say that weather has been perfect in the Midwest for corn pollination. Elsewhere, heavy rains in Australia augur a good wheat crop down there. The bottom line is that the great grain boom appears to be fizzling out worldwide. This will be bad for livestock prices eventually. Stay tuned.

Many grassfed meat and milk marketers are finding consumers with corn gluten allergies to be among their most loyal and enthusiastic customers. Currently, it is estimated that there are around 10 million Americans with this allergy and these people represent a multi-billion dollar market for grassfed products. However, these people must have absolutely grassfed products. Texas grassfed meat marketer, Jon Taggart, recently found out just how sensitive these people are to corn when one of his most loyal, long-term customers came to him and said that some lamb she had purchased from him had made her sick. She said she knew this was because the lamb had been fed grain. Jon called the rancher who supplied the lamb, who swore they never fed grain on their ranch. However, later that day he called back and said they were indeed at fault. He found that a commercial molasses energy block they were feeding had minute particles of corn in it. Be careful!

American meat producers have been getting bailed out of a 2008 price wreck by the weak American dollar which has boosted exports. According to Cattle-Fax, beef exports increased by 33 percent, pork exports by 61 percent and poultry exports by 29 percent in a year-to-date analysis. Without these exports, prices would have dropped severely this summer as meat producers continue to expand production despite on-going production losses due to high grain prices. Domestic meat production increased by 2.2 billion pounds in the first five months of 2008 and exports consumed one billion pounds or 68 percent of this increase. However, 54 percent of these exports went to just three countries - Mexico, Russia and China - with whom the USA has had trade problems in the past. Russia has banned all American poultry imports in the past and China has done the same with pork imports. Mexico is currently charging the USA is dumping beef and pork into its market and threatening anti-dumping duties. China’s pork production increased by 4.8 percent in a year-to-date analysis and the Chinese government recently announced a $420 million dollar subsidy to further increase pork production. Cattle-Fax expects exports, as a percentage of the whole, to continue to increase but notes that this also increases price risk due to foreign government actions and currency realignments.

David Evans raises pastured broilers and layers near San Francisco, California. He said he can currently buy organic corn and soybean meal from China for approximately the same price as conventional corn and soybean meal from the American Midwest. Evans currently finishes all of his beef cattle on grass and feeds day old bread to his pastured hogs but has not found a replacement for grain with his chickens. He said he tried to drop the soybean meal from his laying hen ration but that his egg production collapsed. Evans sells his birds’ eggs in the Ferry Terminal Farmers’ Market for $7.00 a dozen. He said he can sell all he can produce at that price. This is approximately a dollar a dozen less than the going rate for pastured chicken eggs in California.

The Wall Street Journal on Monday said the current world commodity price runup now fits all known definitions of a bubble. The paper said bubbles are not based upon supply and demand but are always financial in origin. At their heart lies someone willing to lend money to buy the commodity at an ever-higher price. The recent housing price runup happened because home owners could borrow money cheaply with few questions asked. Now, of course, both the borrowers and the lenders are going through the wringer politely known as "deleveraging." In commodities, prices are being driven up by Asian countries buying commodities with billions in accumulated trade surpluses and loans to trade deficit consuming countries from commodity producing countries with similar large trade surpluses. Eventually this bubble will burst, just as housing did, and wreak similar havoc on both borrowers and lenders. Long-term, commodities always return to a price at, or slightly below, their cost of production. The apparent winners in a bubble always wind up being the biggest losers at the end.