The CRB Commodity Yearbook 2007

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THE CRB COMMODITY YEARBOOK 2007

Commodity Research Bureau

John Wiley & Sons, Inc.

THE CRB COMMODITY YEARBOOK 2007

Commodity Research Bureau

John Wiley & Sons, Inc.

Copyright © 2007 by Commodity Research Bureau. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada. Wiley Bicentennial Logo: Richard J. Pacifico No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 5724002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.wiley.com. ISBN 978-0-470-08015-3 Printed in the United States of America 10

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CRB believes that the information and opinions contained herein are reliable, but CRB does not make any warranties whatsoever, expressed or implied, and CRB assumes no liability for reliance on or use of information and opinion contained herein. Commodity Research Bureau Editorial Board

Editor in Chief Christopher J. Lown

Associate Editor Amy L. Kelley

Commodity Research Bureau 330 South Wells Street, Suite 612 Chicago, Illinois 60606-7110 USA 800.621.5271 or +1.312.554.8456 Fax: +1.312.939.4135 Website: www.crbtrader.com Email: [email protected]

Contributing Author Richard W. Asplund

TABLE OF CONTENTS PAGE

6T 24T 26T 28T 29T 31T 33T 34T 38T 48T 60T 317

The Commodity Price Trend Commodity Prices Extend 2001-06 Bull Market to New Highs Fed Engineers A Soft-Landing for the US Economy in 2006 World Economic Expansion Continues Through 2006 Crude Oil Prices Remain Strong in 2006 US Dollar Remains Vulnerable on Higher Overseas Rates US Housing Bubble Bursts and Faces Long Recovery Road Strong Ethanol Demand Drives Corn Prices to 10-Year Highs Futures and Options Volume Statistics, U.S. Futures and Options Volume Statistics, Worldwide Conversion Factors Yearbook CD Instructions

PAGE

1 5 6 7 8 11 12 13 14 16 17 20 21 22 29 30 32 33 36 37 42 44 49 50 56 63 64 72 76 78 86 87 91 93 95 97 100 104 106 109 113 118 120 121 125 128 133 134 145 151 156 158

Aluminum Antimony Apples Arsenic Barley Bauxite Bismuth Broilers Butter Cadmium Canola (Rapeseed) Cassava Castor Beans Cattle and Calves Cement Cheese Chromium Coal Cobalt Cocoa Coconut Oil and Copra Coffee Coke Copper Corn Corn Oil Cotton Cottonseed and Products CRB Futures Index Currencies Diamonds Eggs Electric Power Ethanol Fertilizers (Nitrogen, Phosphate & Potash) Fish Flaxseed and Linseed Oil Fruits Gas Gasoline Gold Grain Sorghum Hay Heating Oil Hides and Leather Hogs Honey Interest Rates, U.S. Interest Rates, Worldwide Iron and Steel Lard Lead

162 167 168 170 174 176 178 179 180 184 185 186 189 191 192 196 198 203 205 210 214 218 220 223 228 230 231 233 234 239 243 248 254 262 266 272 273 275 276 278 279 283 285 288 289 290 293 295 296 300 311 314

Lumber and Plywood Magnesium Manganese Meats Mercury Milk Molybdenum Nickel Oats Olive Oil Onions Oranges and Orange Juice Palm Oil Paper Peanuts and Peanut Oil Pepper Petroleum Plastics Platinum-Group Metals Pork Bellies Potatoes Rayon and Other Synthetic Fibers Rice Rubber Rye Salt Sheep and Lambs Silk Silver Soybean Meal Soybean Oil Soybeans Stock Index Futures, U.S. Stock Index Futures, Worldwide Sugar Sulfur Sunflowerseed and Oil Tall Oil Tallow and Greases Tea Tin Titanium Tobacco Tung Oil Tungsten Turkeys Uranium Vanadium Vegetables Wheat and Flour Wool Zinc

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CRB Commodity Yearbook

A nnual publicat ion of fundament al dat a, including supply/demand and product ion/consumpt ion and price dat a, on ov er 100 commodit y market s. Concise int roduct ory art icles t hat describe t he salient feat ures of each commodit y. A v ailable as a hardcov er book w it h CD.

CRB Encyclopedia of Commodity and Financial Prices

Concise int roduct ory art icles on t he fundament al market fact ors mov ing commodit y and financial prices, prov iding a v aluable complement t o underst anding price behav ior on t he long-t erm hist orical price chart s. A v ailable as a hardcov er book w it h CD.

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ACKNOWLEDGEMENTS The editors wish to thank the following for source material: Agricultural Marketing Service (AMS) Agricultural Research Service (ARS) American Bureau of Metal Statistics, Inc. (ABMS) American Forest & Paper Association (AF & PA) The American Gas Association (AGA) American Iron and Steel Institute (AISI) American Metal Market (AMM) Bureau of the Census Bureau of Economic Analysis (BEA) Bureau of Labor Statistics (BLS) Chicago Board of Trade (CBT) Chicago Mercantile Exchange (CME / IMM / IOM) Coffee, Sugar & Cocoa Exchange (CSCE) Commodity Credit Corporation (CCC) Commodity Futures Trading Commision (CFTC) The Conference Board Economic Research Service (ERS) Edison Electric Institute (EEI) E D & F Man Cocoa Ltd Farm Service Agency (FSA) Federal Reserve Bank of St. Louis Fiber Economics Bureau, Inc. Florida Department of Citrus Food and Agriculture Organization of the United Nations (FAO)

Foreign Agricultural Service (FAS) Futures Industry Association (FIA) International Cotton Advisory Committee (ICAC) International Rubber Study Group (IRSG) Johnson Matthey Kansas City Board of Trade (KCBT) Leather Industries of America MidAmerica Commodity Exchange (MidAm) Minneapolis Grain Exchange (MGE) National Agricultural Statistics Service (NASS) National Coffee Association of U.S.A., Inc. (NCA) New York Cotton Exchange (NYCE / NYFE / FINEX) New York Mercantile Exchange (NYMEX) Commodity Exchange, Inc. (COMEX) Oil World The Organisation for Economic Co-Operation and Development (OECD) Random Lengths The Silver Institute The Society of the Plastics Industry, Inc. (SPI) United Nations (UN) United States Department of Agriculture (USDA) United States Geological Survey (USGS) Wall Street Journal (WSJ) Winnipeg Commodity Exchange (WCE)

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THE COMMODITY PRICE TREND The Reuters-CRB Continuous Commodity Index (CCI) in 2006 extended the rally that began in 2001 and posted a new record high of 409.65 in December 2006. During the 2001-06 bull market, the Reuters/CRB CCI index rallied by a total of 124.1% through December 2006. The Reuters/ CRB CCI index closed 2006 up +13.5%, marking the fifth consecutive annual increase (2002 +23.0%, 2003 +8.9%, 2004 11.2%, 2005 +22.5%, 2006 +13.5%). Four of the six Reuters/CRB Sub-indexes posted gains in 2006: Grains +44.0%, Metals +28.0%, Industrials +21.9%, Softs +13.2%. Two of the sub-indexes showed declines: Energy (-16.1%) and Meats (-1.9%). The Reuters /CRB CCI index was driven higher in 2006 by continued strong physical demand in most commodity markets, a continued influx of cash into commodity index funds early in the year, and the generally weak dollar seen during 2006. The dollar index fell by –8.2% in 2006, which was an underlying bullish factor for commodity prices in 2006. Commodity prices in 2006 received continued support from very strong GDP growth in China (Q4-2006 10.4%) and India (Q4-2006 +8.6%) and a significant pickup in GDP growth in Japan (Q4-2006 +4.8%) and Europe (Q4-2006 +3.3% yr/yr). US GDP growth eased during 2006 but still showed real GDP growth of +3.3% in 2006 which was slightly higher than +3.2% in 2005. Energy The Reuters /CRB Energy Sub-index, which is comprised of Crude Oil, Heating Oil, and Natural Gas, accounts for 18% of the overall Reuters-CRB CCI Index. The Energy Sub-index in 2006 closed –16.1%, falling back after showing double-digit percentage gains for four consecutive years (2005 +54.4%, 2004 +27.5%, 2003 +11.9%, 2002 +56.5%). Crude oil in 2006 on a nearest-futures basis closed virtually unchanged on the year at $61.05 (vs $61.04 in 2005), but gasoline prices fell –6.3% and heating oil prices fell – 7.5%. Natural gas plunged 43.9% during the year. Petroleum prices showed strength early in 2006 on a buildup of inventories ahead of the expected active hurricane season and a continuation of speculative buying, but then fell sharply during autumn when there were no hurricane threats and petroleum inventories were excessive. Grains The Reuters /CRB Grains and Oilseeds Sub-index, which is comprised of Corn, Soybeans, and Wheat, accounts for 18% of the overall Index. The Grains and Oilseeds Subindex in 2006 closed +44.0% yr/yr. The corn and soybean crops in 2006 were relatively large due to favorable weather, but corn prices rallied by 80% starting in September 2006 as the extent of strong demand for corn from ethanol producers became clear. The rally in corn prices boosted soybean and wheat prices as well since high corn prices will

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encourage US farmers to plant more corn in spring 2007, and less soybeans and wheat. Industrials The Reuters /CRB Industrials Sub-index, which is comprised of Copper and Cotton, accounts for 12% of the overall Index. The Industrials Sub-index showed a +21.9% gain in 2006, adding to the +30.3% gain in 2005. Copper soared by another 32% in 2006 for its fifth consecutive yearly gain (2002 +6.7%, 2003 +49.6%, 2004 +42.6%, 2005 +45.4%, 2006 +32.0%). Copper prices rallied in early 2006 on continued strong demand, but then fell back due to the weak US housing and auto sectors (which are big copper users) and stepped-up copper mining production. Cotton prices rose only +3.7% in 2006 despite a poor US cotton crop because China avoided US cotton and purchased most of its cotton imports from India. Livestock The Reuters /CRB Livestock Sub-index, which is comprised of Live Cattle and Lean Hogs, accounts for 12% of the overall Index. The Livestock Sub-index closed –1.9% in 2006, remaining weak after falling –1.1% in 2005. Live cattle futures prices closed –4.0% in 2006 and lean hog futures prices closed –5.5%. Livestock prices were undercut early in 2006 by price competition from chicken (due to the backup of US poultry exports tied to bird flu in Asia) and later in the year from high corn and feed prices. Precious Metals The Reuters /CRB Precious Metals Sub-index, which is comprised of Gold, Platinum, and Silver, accounts for 17% of the overall Index. The Precious Metals Sub-index rallied by +28.0% in 2006, which was the fifth consecutive yearly gain (2002 +17.1%, 2003 +25.9%, 2004 +8.9%, 2005 +20.5%, 2006 +28.0%). Bullish factors included lagging mining output, strong investment and jewelry demand, and the weak dollar in 2006. Softs The Reuters /CRB Softs Sub-index, which is comprised of Cocoa, Coffee, Orange Juice, and Sugar #11, accounts for 23% of the overall Index. The Softs Subindex in 2005 closed +13.2%, which the third consecutive yearly gain (2004 +37.2%, 2005 +22.4%, 2006 +13.2%). Sugar in 2006 showed a sharp decline of –20.0% due to higher sugar production and a washout of long speculators. However, coffee prices rose +17.8% and cocoa prices rose +8.7%. Orange juice rose sharply by +60.7% on the third consecutive year of a poor Florida orange crop due to lasting damage from hurricanes in 2004 and 2005.

CRB INDEXES

Monthly Reuters-CRB Futures Index Year

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

High L ow Close High L ow Close High L ow Close High L ow Close High L ow Close High L ow Close High L ow Close High L ow Close High L ow Close High L ow Close

Source: Reuters

High, Low and Close (1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

244.30 238.93 238.99 235.36 221.56 234.28 198.96 187.18 189.74 213.70 201.43 210.46 232.58 223.02 224.12 195.97 186.38 187.29 248.92 234.58 248.45 271.08 257.49 262.57 288.38 277.07 284.75 363.70 348.57 363.30

243.91 236.14 242.41 236.08 223.97 227.65 191.45 182.76 182.95 215.29 206.74 208.78 228.34 219.68 221.78 193.53 187.19 192.33 251.59 245.39 247.25 275.02 258.94 274.73 305.00 280.19 305.00 364.28 345.49 353.27

248.01 241.64 245.17 231.74 223.04 228.88 193.28 183.38 191.83 217.88 209.61 214.37 225.75 210.24 210.26 205.45 192.26 204.92 247.23 228.10 232.15 285.28 270.52 283.77 323.33 304.22 313.57 365.66 346.56 361.91

249.00 237.64 248.29 229.09 223.42 223.99 192.89 187.14 192.39 214.15 207.61 211.03 216.39 208.87 214.50 208.39 195.21 201.16 236.62 228.77 232.53 284.42 268.53 272.54 313.23 297.47 303.74 382.46 360.85 379.53

254.79 245.54 250.96 226.67 214.03 215.90 193.99 185.05 186.72 226.12 211.86 222.27 219.29 208.43 209.00 205.33 197.42 204.20 242.16 231.26 235.55 277.94 266.80 277.25 304.25 292.06 300.83 399.66 376.35 379.80

249.98 238.52 239.42 216.75 208.42 214.63 193.43 185.07 191.54 227.29 222.23 223.93 212.39 203.86 205.56 209.33 199.56 209.29 238.25 231.39 233.78 282.03 264.34 265.94 315.79 300.76 306.91 387.52 363.63 385.63

243.38 232.01 242.75 216.75 205.99 206.00 192.91 182.67 190.36 225.69 217.42 218.61 209.27 201.84 202.70 215.10 207.24 210.97 237.20 230.36 234.21 275.38 265.50 267.78 316.46 302.71 315.24 396.16 375.73 391.49

245.30 236.69 241.98 207.48 195.18 195.68 199.59 190.14 199.35 228.02 217.76 227.41 202.90 197.02 199.63 219.24 208.46 219.20 243.74 233.96 243.70 278.10 265.20 276.50 321.60 309.21 318.99 399.90 380.15 390.95

244.50 240.03 243.06 205.03 196.31 203.30 209.41 199.03 205.19 232.20 224.74 226.57 202.34 188.24 190.49 229.62 217.60 226.53 246.07 236.79 243.66 285.37 269.12 284.98 333.58 317.05 333.33 393.51 359.07 370.10

247.62 238.34 240.04 206.57 201.34 203.28 209.91 199.66 201.52 234.38 218.38 219.28 191.09 182.83 185.66 231.67 223.82 228.91 250.67 241.68 247.58 289.29 280.53 283.70 338.19 326.36 326.68 389.24 361.19 383.92

243.52 235.27 235.92 206.73 195.18 195.42 207.54 202.23 204.07 231.46 220.93 229.79 192.74 181.83 192.66 231.83 223.29 230.64 257.54 244.79 248.44 292.49 280.20 290.94 332.58 326.09 332.49 408.91 385.23 408.79

D e c.

Range

238.39 254.79 228.84 228.84 229.14 ---197.29 236.08 187.89 187.89 191.22 ---206.20 209.91 200.74 182.67 205.14 ---233.37 234.38 225.46 201.43 227.83 ---193.94 232.58 187.73 181.83 190.61 ---238.39 238.39 230.17 186.38 234.52 ---263.60 263.60 249.60 228.10 255.29 ---291.02 292.49 276.15 257.49 283.90 ---349.20 349.20 332.62 277.07 347.89 ---409.65 409.65 391.77 345.49 394.89 ----

7T

CRB INDEXES

8T

CRB INDEXES

9T

CRB INDEXES

10T

CRB INDEXES

11T

CRB INDEXES

12T

CRB INDEXES

13T

CRB INDEXES

14T

CRB INDEXES

15T

CRB INDEXES

16T

CRB INDEXES

17T

CRB INDEXES Reuters-CRB Index (CCI) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

241.57 228.96 192.49 207.65 228.30 191.44 242.04 266.65 282.96 354.56

239.75 230.59 187.21 211.28 223.42 190.91 247.89 264.93 289.01 354.30

245.29 227.27 188.50 213.87 218.06 201.86 237.81 278.19 312.70 353.74

244.60 225.62 189.83 211.29 213.43 200.74 231.73 276.48 305.26 371.33

250.45 221.19 190.04 220.42 214.69 201.69 237.38 272.78 298.11 385.81

243.78 213.19 191.16 224.73 208.37 203.92 235.11 270.78 308.07 374.50

236.30 209.86 187.16 220.51 204.98 211.42 234.05 270.41 311.47 386.50

240.99 202.06 196.72 220.84 200.18 214.01 238.13 271.18 315.00 389.11

242.24 202.19 202.20 228.23 195.34 226.00 241.44 276.47 324.05 372.98

243.67 203.75 203.88 226.36 186.20 227.52 246.15 285.36 333.46 376.70

240.06 201.76 203.90 226.56 188.42 228.54 250.66 286.02 330.39 395.21

234.27 191.76 204.10 228.98 190.42 234.62 258.44 283.28 343.83 397.28

241.91 213.18 194.77 220.06 205.98 211.06 241.74 275.21 312.86 376.00

Source: Reuters

Reuters/Jefferies CRB Futures Index1 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

241.57 228.96 192.49 207.65 228.30 191.44 242.04 266.65 282.96 340.95

239.75 230.59 187.21 211.28 223.42 190.91 247.89 264.93 289.01 331.30

245.29 227.27 188.50 213.87 218.06 201.86 237.81 278.19 312.70 325.98

244.60 225.62 189.83 211.29 213.43 200.74 231.73 276.48 305.26 345.84

250.45 221.19 190.04 220.42 214.69 201.69 237.38 272.78 298.11 351.22

243.78 213.19 191.16 224.73 208.37 203.92 235.11 270.78 306.97 339.21

236.30 209.86 187.16 220.51 204.98 211.42 234.05 270.41 308.04 346.86

240.99 202.06 196.72 220.84 200.18 214.01 238.13 271.18 318.76 340.18

242.24 202.19 202.20 228.23 195.34 226.00 241.44 276.47 326.19 310.28

243.67 203.75 203.88 226.36 186.20 227.52 246.15 285.36 326.44 304.36

240.06 201.76 203.90 226.56 188.42 228.54 250.66 286.02 315.27 310.84

234.27 191.76 204.10 228.98 190.42 234.62 258.44 283.28 327.58 311.60

241.91 213.18 194.77 220.06 205.98 211.06 241.74 275.21 309.77 329.89

1

New calculation begins June 20, 2005.

Source: Reuters

Reuters/Jefferies CRB Total Return Index1 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

128.76 121.37 90.91 122.59 159.32 123.82 171.83 213.15 244.84 305.70

126.39 119.89 87.70 128.50 160.43 124.53 182.79 215.30 250.48 298.05

129.10 116.14 92.84 132.60 154.34 135.70 178.17 226.72 273.57 294.39

127.38 116.50 98.19 128.43 153.31 138.03 171.17 227.21 267.03 313.52

133.37 112.73 99.21 139.10 154.96 138.93 175.28 234.19 254.14 319.76

128.81 106.99 100.32 144.80 148.13 138.66 178.21 230.03 267.60 310.00

127.50 104.52 103.26 143.12 143.62 143.23 178.96 232.57 271.16 318.32

132.36 99.52 109.02 147.23 143.81 145.91 184.60 236.76 281.23 313.52

133.15 102.17 114.04 155.89 137.50 153.53 182.27 238.75 288.68 287.18

137.39 101.37 114.00 155.00 127.30 153.91 191.06 254.24 289.74 282.84

134.51 98.24 116.31 157.45 124.39 151.63 194.53 248.91 280.70 290.08

127.64 90.11 118.58 158.74 123.48 161.51 204.73 241.10 292.65 291.98

130.53 107.46 103.70 142.79 144.22 142.45 182.80 233.24 271.82 302.11

1

Theoretical data prior to June 20, 2005.

Reuters-CRB Livestock Sub-Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

18T

(01/02/1982 = 100)

Source: Reuters

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

266.08 239.60 206.47 247.36 254.81 249.43 252.70 248.90 305.39 292.31

264.82 234.03 220.47 249.80 254.62 251.46 242.32 250.53 294.73 280.30

262.53 226.72 218.75 257.10 262.97 243.59 240.06 266.53 302.88 271.42

279.54 235.29 222.97 262.53 259.27 216.16 237.27 274.15 295.95 260.24

282.22 235.76 226.14 256.37 252.40 209.26 251.07 291.60 293.97 267.26

268.15 229.99 219.14 251.37 257.32 199.59 248.86 294.91 269.99 281.87

271.58 207.42 198.18 243.94 257.15 206.70 245.33 292.29 266.35 279.30

265.42 197.30 206.89 229.65 248.31 196.98 244.63 285.44 269.80 286.07

257.26 189.93 209.31 228.34 240.83 197.76 261.29 287.72 280.26 286.33

245.92 199.85 221.68 233.64 230.82 217.97 264.33 287.29 288.27 283.14

244.43 186.52 227.97 239.69 227.86 234.73 264.96 296.26 292.59 287.19

242.39 180.88 239.13 251.99 237.26 247.80 255.07 297.60 297.62 290.82

262.53 213.61 218.09 245.98 248.64 222.62 250.66 281.10 288.15 280.52

Source: Reuters

CRB INDEXES Reuters-CRB Grains and Oilseeds Sub-Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

215.98 214.52 174.76 167.48 171.45 164.09 187.57 237.68 173.61 192.42

221.87 214.79 165.92 170.65 163.23 160.38 189.29 243.83 175.50 200.30

237.07 213.25 170.54 174.94 164.33 163.97 183.12 261.79 198.55 201.42

238.69 199.56 166.69 174.44 158.41 160.53 185.98 267.95 189.30 201.28

230.18 196.08 163.22 180.96 155.93 162.97 194.62 247.24 190.57 213.15

215.02 190.83 163.11 169.12 156.71 171.11 193.35 234.25 203.73 209.41

205.02 182.58 152.45 152.62 170.42 188.10 181.84 203.40 209.28 215.23

212.19 166.56 166.33 150.32 168.74 199.34 192.82 188.28 193.48 203.24

216.58 169.78 170.88 160.91 167.95 213.65 201.68 186.93 187.59 211.18

224.63 179.47 161.96 162.60 161.37 204.33 209.28 176.69 186.48 245.19

226.06 184.47 158.72 167.06 163.22 200.95 222.27 176.41 181.90 269.05

218.68 177.89 155.35 171.37 162.14 193.39 226.46 175.24 186.72 271.79

221.83 190.82 164.16 166.87 163.66 181.90 197.36 216.64 189.73 219.47

Source: Reuters

Reuters-CRB Softs Sub-Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

327.64 415.43 337.91 268.52 269.11 256.23 320.55 265.93 336.40 443.78

350.54 413.98 307.51 254.77 274.59 246.71 326.00 259.29 355.04 452.96

372.52 404.35 285.94 259.39 265.27 259.73 302.23 265.98 382.92 448.44

382.78 387.22 267.35 260.26 254.72 256.73 302.05 259.39 360.12 458.99

413.76 393.07 264.74 267.91 268.62 254.63 293.41 256.91 352.93 460.75

401.03 365.64 281.81 280.26 255.68 252.54 272.95 266.95 356.99 447.03

394.65 367.69 263.21 285.20 251.01 270.15 275.12 285.81 354.86 460.34

398.59 372.51 272.47 273.72 244.01 278.25 273.77 289.61 348.25 451.85

399.18 348.36 277.53 270.43 238.45 307.15 271.84 304.70 351.72 433.83

389.98 351.86 276.51 270.05 231.91 311.84 257.57 309.01 372.25 433.57

401.19 365.91 285.29 257.94 254.36 311.53 258.78 318.42 385.16 461.09

419.17 353.12 284.51 255.68 254.63 311.73 263.99 339.23 407.59 476.10

387.59 378.26 283.73 267.01 255.20 276.44 284.86 285.10 363.69 452.39

Source: Reuters

Reuters-CRB Precious Metals Sub-Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Year

Average.

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

247.53 248.47 234.41 247.16 265.48 241.90 295.57 377.11 388.68 505.52

253.11 264.43 242.14 266.43 259.23 245.33 298.35 375.30 397.96 514.07

258.96 260.37 236.84 256.51 253.04 254.47 290.78 400.41 405.72 530.47

247.44 268.39 232.19 253.53 252.17 261.61 279.76 390.82 400.86 595.40

250.59 249.46 232.87 255.44 261.28 266.59 295.52 351.29 396.71 651.48

253.42 237.82 225.71 268.03 254.87 276.27 294.54 354.67 408.05 572.29

239.26 245.86 224.55 267.08 243.70 268.03 302.39 366.98 398.70 599.67

246.69 236.52 225.82 266.97 232.22 264.27 310.85 380.85 407.77 619.15

250.85 233.80 232.58 269.50 239.24 269.19 321.35 377.08 420.18 587.59

255.18 231.20 253.20 263.47 232.66 267.88 321.26 394.42 435.92 567.40

245.16 231.77 246.60 261.97 227.06 272.29 333.13 408.67 446.08 618.12

246.46 229.92 246.81 266.96 237.71 281.24 355.31 402.12 474.28 613.96

249.55 244.83 236.14 261.92 246.56 264.09 308.23 381.64 415.08 581.26

Source: Reuters

Reuters-CRB Industrials Sub-Index 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

(1967=100)

Jan.

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

270.41 210.53 182.97 201.37 206.86 150.49 185.33 262.68 232.07 314.02

270.19 207.84 178.44 202.67 199.04 151.21 190.29 269.43 236.01 326.07

270.85 217.25 180.15 204.59 186.19 156.49 193.39 273.02 253.38 322.13

263.10 210.75 184.41 194.18 174.20 152.31 188.69 256.62 258.44 358.06

268.38 212.15 184.94 207.18 173.72 152.59 186.75 249.14 249.39 398.97

267.49 217.89 176.40 200.83 162.54 167.27 190.80 234.34 252.99 383.23

258.50 215.99 182.58 207.37 158.63 172.54 201.85 224.38 261.77 401.59

251.84 211.93 184.71 217.64 153.43 164.08 198.23 226.27 263.66 408.38

243.77 216.96 191.68 224.10 145.27 161.79 212.04 233.50 267.00 394.84

238.57 206.76 190.18 217.16 131.33 162.28 236.48 227.52 285.21 380.43

230.50 200.15 187.34 217.11 140.85 176.79 243.08 223.80 285.66 372.50

215.60 188.18 187.10 219.27 146.56 178.53 244.56 223.54 298.25 373.90

254.10 209.70 184.24 209.46 164.89 162.20 205.96 242.02 261.99 369.51

Source: Reuters

19T

CRB INDEXES Reuters-CRB Energy Sub-Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

220.04 172.94 134.58 231.38 345.00 195.20 337.33 371.45 478.71 693.34

202.43 174.02 129.41 245.97 328.00 202.12 375.64 355.20 491.25 636.54

197.71 167.87 146.56 254.09 312.27 243.96 346.99 376.02 563.52 634.70

191.95 175.68 169.80 244.62 319.96 262.72 313.78 384.99 567.69 692.42

200.26 167.64 174.02 278.91 308.23 269.34 328.18 426.01 526.48 674.95

190.52 160.86 180.31 308.81 292.65 258.24 342.51 419.28 595.62 682.24

192.73 159.57 196.88 301.39 267.20 260.08 332.71 438.34 628.00 710.09

205.97 150.85 219.08 328.52 269.05 274.04 343.58 459.75 716.27 754.36

212.80 166.17 228.80 366.18 253.17 301.33 317.98 475.69 803.00 651.32

225.03 163.45 225.66 356.34 232.68 301.49 338.95 574.75 797.33 633.84

211.70 153.67 225.76 366.76 214.70 278.41 331.81 535.62 716.36 643.38

188.21 133.38 223.94 361.93 206.92 311.52 361.52 475.97 733.16 626.34

203.28 162.18 187.90 303.74 279.15 263.20 339.25 441.09 634.78 669.46

Source: Reuters

Reuters-CRB Currencies Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

(1977=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

134.61 125.06 130.97 127.65 118.42 110.20 125.37 143.44 150.16 142.95

130.30 126.10 128.48 124.37 116.58 109.38 126.36 143.23 148.99 140.86

129.56 125.65 126.37 124.01 114.25 110.40 126.61 140.68 150.81 141.45

128.71 124.96 125.74 123.43 113.01 111.33 126.42 139.36 148.53 143.36

130.83 124.33 125.32 119.42 112.24 114.54 132.07 137.62 146.39 149.49

131.75 122.86 124.63 122.54 110.92 117.39 133.04 140.48 143.52 147.98

130.14 121.89 124.08 121.59 111.29 121.30 130.30 141.81 141.21 147.20

126.84 120.65 126.89 119.04 114.02 119.68 128.77 140.92 143.74 148.24

128.02 126.18 128.89 117.11 115.21 119.54 130.93 141.25 144.42 147.65

129.07 130.98 130.66 115.99 114.04 119.02 135.96 144.04 141.94 146.19

129.58 128.86 128.24 114.89 112.69 120.77 136.23 149.66 139.32 147.72

126.93 130.69 127.71 117.55 112.01 121.97 140.44 152.54 140.48 149.64

129.70 125.68 127.33 120.63 113.72 116.29 131.04 142.92 144.96 146.06

Source: Reuters

Reuters-CRB Interest Rates Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

111.73 117.89 121.32 100.05 108.79 109.51 115.27 NA 121.38 120.69

112.69 117.38 119.62 101.51 108.94 110.34 116.68 NA 122.44 119.33

110.78 116.89 118.11 102.61 109.86 107.65 116.88 123.94 118.91 117.83

109.74 116.99 118.56 103.99 108.61 108.31 116.13 118.47 120.81 115.44

111.02 116.87 116.57 101.80 107.69 109.04 119.22 115.30 123.07 114.45

112.12 118.00 112.78 103.65 107.90 110.08 120.42 114.52 124.63 114.57

113.61 118.13 112.32 104.12 108.24 111.45 116.27 117.46 123.04 115.02

113.14 119.09 110.71 105.21 109.63 114.14 113.02 119.91 122.40 116.87

113.73 121.67 108.79 105.10 110.74 116.24 113.86 121.02 122.52 118.33

114.68 122.67 106.42 105.57 112.26 115.54 NA 121.71 120.07 118.28

115.77 121.23 107.46 105.94 112.29 115.44 NA 121.25 119.11 119.64

116.46 122.33 104.56 108.44 108.97 115.27 NA 120.64 119.85 119.86

112.96 119.10 113.10 104.00 109.49 111.92 116.42 119.42 121.52 117.53

I ndex not calculated for September 16, 2003 to March 17, 2004 due the non-trading status of the 90-day T-Bill futures .

Reuters-CRB Energy Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

20T

(1977=100)

Source: Reuters

(1977=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

206.58 161.58 121.00 220.53 251.05 185.01 279.06 300.37 415.65 593.19

190.96 157.72 116.39 237.09 256.70 190.86 307.09 298.35 428.72 554.80

186.85 151.69 136.44 241.29 246.06 224.68 282.73 314.50 493.69 578.71

179.95 154.94 152.20 221.42 258.47 234.25 243.10 322.72 497.67 649.56

186.96 153.95 153.53 247.72 264.15 233.13 243.92 359.33 461.97 651.96

177.03 146.54 157.52 263.67 248.51 226.56 256.78 342.21 515.29 652.57

179.48 140.94 176.40 255.40 231.56 234.70 264.31 367.52 537.91 680.35

183.81 133.79 185.48 268.97 238.47 240.27 275.82 389.41 593.73 659.03

181.21 143.89 196.52 292.15 231.53 256.04 248.55 402.57 624.18 564.39

189.93 140.22 192.71 287.36 201.64 250.75 265.44 460.54 584.79 534.32

184.01 131.31 202.36 286.70 180.55 228.78 271.25 430.64 538.28 541.08

172.65 118.14 207.81 249.86 180.49 258.02 284.02 389.95 548.87 555.93

184.95 144.56 166.53 256.01 232.43 230.25 268.51 364.84 520.06 601.32

Source: Reuters

CRB INDEXES CRB Metals Sub-Index

(1967=100)

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

301.63 268.29 213.74 261.71 212.47 174.76 199.71 287.40 355.95 458.64

314.62 264.16 221.29 248.29 212.90 176.41 204.17 306.07 364.50 485.21

313.30 267.94 220.66 240.26 210.59 181.22 206.72 320.96 371.99 504.91

307.82 272.68 222.50 237.57 204.94 186.31 202.78 321.90 371.31 571.37

314.72 270.55 227.01 241.56 205.14 189.12 205.57 314.73 365.83 623.28

316.61 265.39 223.50 239.24 205.60 189.38 207.77 308.28 369.32 616.35

316.07 261.89 234.41 232.04 197.04 192.66 212.24 312.29 361.39 621.31

319.28 255.45 237.06 226.20 188.09 184.51 214.09 318.21 363.75 619.41

310.95 243.16 243.65 228.82 181.32 184.03 220.24 333.97 364.70 628.12

296.58 232.73 242.77 225.15 179.50 185.61 240.20 350.45 369.68 668.55

290.01 224.78 247.19 216.25 172.96 183.21 248.49 359.77 370.47 726.02

271.76 218.73 253.77 215.36 173.80 186.27 266.70 361.92 425.84 745.75

306.11 253.81 232.30 234.37 195.36 184.46 219.06 324.66 371.23 605.74

Source: Commodity Research Bureau

CRB Textiles Sub-Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

269.52 257.45 237.40 226.56 244.74 218.08 231.25 257.58 239.93 255.02

271.25 253.08 233.67 227.69 241.84 216.84 235.31 253.15 240.36 255.52

274.25 259.10 235.09 234.87 233.40 218.40 235.04 252.37 247.12 251.74

271.49 254.41 234.94 234.25 225.97 214.72 234.64 247.97 247.73 248.26

270.16 249.87 234.45 242.70 224.47 211.21 231.66 249.74 246.60 244.26

270.89 250.57 229.24 243.76 222.12 220.16 235.24 242.65 244.69 244.16

271.97 249.00 225.02 241.28 222.44 222.95 240.88 233.48 247.21 242.03

273.21 246.35 226.43 243.73 218.55 221.74 237.50 233.58 243.08 243.89

272.06 244.38 222.21 244.33 214.74 219.02 244.30 237.31 246.64 245.78

270.64 243.39 223.51 244.90 207.79 220.10 256.99 235.03 251.24 244.89

269.23 242.46 227.73 248.17 215.86 225.85 257.59 235.88 248.96 246.37

262.34 240.31 222.63 248.57 218.99 227.76 254.25 236.39 250.83 251.15

270.58 249.20 229.36 240.07 224.24 219.74 241.22 242.93 246.20 247.76

Source: Commodity Research Bureau

CRB Raw Industrials Sub-Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

339.39 299.61 262.81 267.85 254.54 219.05 255.85 312.24 320.94 363.04

344.54 296.85 259.65 260.91 248.53 222.33 258.59 309.54 324.57 371.00

340.99 302.89 255.03 260.39 246.35 231.03 260.97 316.77 333.31 372.08

333.63 301.25 251.75 258.23 244.03 230.38 258.79 318.52 336.68 385.69

336.84 305.40 250.07 265.37 244.29 231.81 257.65 312.98 331.99 400.62

337.30 299.72 248.91 261.78 245.92 243.72 260.47 308.40 331.88 399.97

334.89 295.56 253.43 255.19 244.22 245.38 263.77 308.84 325.29 403.50

340.47 290.17 255.96 255.69 238.10 240.53 263.99 307.54 324.52 404.29

337.33 280.98 262.56 258.81 228.30 240.77 273.24 315.25 329.36 404.45

334.47 275.73 266.37 257.29 220.52 240.68 291.18 315.13 332.79 417.79

327.64 268.88 270.39 252.58 218.94 243.04 295.88 320.52 332.83 437.08

310.56 265.94 267.30 256.00 221.57 248.21 302.30 322.65 349.53 446.55

334.84 290.25 258.69 259.17 237.94 236.41 270.22 314.03 331.14 400.51

Source: Commodity Research Bureau

CRB Foodstuffs Sub-Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

(1967=100)

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

235.11 227.01 206.75 180.37 189.68 203.33 238.60 263.90 252.84 243.31

237.80 224.06 196.53 175.68 192.93 202.39 237.01 275.85 246.44 241.95

244.45 227.68 189.81 183.76 200.48 204.04 234.16 287.49 253.58 239.60

240.91 229.62 187.94 189.88 203.57 197.88 234.55 287.41 252.19 243.17

238.45 239.15 191.60 194.32 210.24 195.85 239.15 285.33 254.21 250.70

241.03 238.54 195.96 190.42 213.09 207.11 239.53 278.05 255.43 253.86

237.75 229.77 182.09 176.52 222.61 218.25 232.81 273.83 251.31 261.17

239.92 223.56 191.60 171.63 232.42 222.32 234.30 270.42 247.65 267.04

239.66 221.42 192.12 175.02 224.06 226.98 244.69 272.10 249.22 269.14

247.60 224.02 190.13 183.53 199.51 230.63 251.04 257.76 253.37 267.52

251.08 209.87 183.46 186.75 200.24 230.76 255.36 268.47 252.74 271.19

238.97 193.10 178.24 186.58 203.40 237.99 257.99 261.77 242.54 273.16

241.06 223.98 190.52 182.87 207.69 214.79 241.60 273.53 250.96 256.82

Source: Commodity Research Bureau

21T

CRB INDEXES CRB Fats and Oils Sub-Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

251.33 243.27 230.99 171.15 170.49 169.64 222.39 305.30 248.45 231.10

258.86 234.23 194.96 154.77 158.27 165.91 209.89 300.47 238.13 221.46

251.94 243.63 172.59 161.97 165.77 177.34 215.72 318.53 252.70 217.14

227.72 242.61 174.97 165.37 177.63 167.61 216.91 330.54 263.98 214.75

232.31 268.84 176.78 177.74 177.95 164.38 219.56 302.31 262.93 222.03

248.87 271.10 187.84 171.57 196.02 193.38 229.01 295.32 266.01 221.97

248.32 265.68 178.61 152.26 232.89 193.29 225.83 304.60 245.81 247.09

249.72 272.81 191.19 153.11 259.60 192.85 223.36 290.52 243.51 271.97

252.10 280.06 209.68 157.52 237.33 193.20 251.40 302.51 259.50 267.18

283.11 277.37 209.53 160.41 177.05 193.90 285.47 267.12 268.43 257.29

288.95 249.93 194.38 165.44 174.66 211.97 288.08 279.42 269.77 264.75

269.92 231.77 177.98 167.35 184.78 230.05 292.22 271.36 231.17 270.94

255.26 256.78 191.63 163.22 192.70 187.79 239.99 297.33 254.20 242.31

Source: Commodity Research Bureau

CRB Livestock Sub-Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Year

Average.

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

361.37 286.77 249.71 261.83 267.57 251.61 316.67 372.16 359.25 331.93

356.89 265.73 231.27 245.67 250.14 260.32 308.65 353.19 341.74 328.72

343.71 279.13 216.59 252.65 261.05 274.95 310.49 362.41 353.05 320.09

333.09 280.03 231.92 258.44 273.14 257.32 311.25 369.65 373.63 314.72

338.67 309.09 236.71 268.41 288.88 256.33 320.03 369.31 377.41 327.28

338.44 301.80 241.07 260.53 306.84 289.40 333.29 374.28 361.10 340.29

343.09 281.81 235.92 241.72 329.73 288.22 324.58 395.48 330.39 359.18

342.90 281.60 254.64 238.62 341.78 279.03 327.63 392.33 331.75 388.13

338.44 258.47 274.60 245.35 313.84 274.13 361.30 395.40 349.24 384.78

344.87 256.56 294.16 252.78 260.77 276.94 386.60 365.68 358.04 366.35

340.87 232.29 279.97 240.45 252.97 288.86 385.63 373.69 369.98 364.05

323.03 217.99 272.14 259.65 264.23 313.14 372.48 370.63 337.97 372.08

342.11 270.94 251.56 252.18 284.25 275.85 338.22 374.52 353.63 349.80

Source: Commodity Research Bureau

CRB Spot Index 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

(1967=100)

Jan.

(1967=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

292.16 267.54 238.31 227.91 225.75 212.55 248.72 291.55 291.19 308.31

296.14 264.66 231.76 222.00 224.13 214.02 249.60 295.38 290.08 311.58

297.68 269.59 226.07 225.85 226.51 219.65 249.73 304.54 298.13 310.86

292.11 269.67 223.61 227.78 226.66 216.54 248.66 305.49 299.24 319.47

292.54 276.42 224.55 233.68 229.81 216.43 250.00 301.44 297.73 330.81

294.07 273.07 225.83 229.89 231.98 228.09 251.77 295.70 298.26 332.19

291.18 266.71 221.44 219.54 235.20 233.96 250.71 294.10 292.80 337.82

295.14 260.89 227.35 217.28 235.83 232.98 251.49 291.86 290.63 341.30

293.41 254.96 231.10 220.60 226.62 235.10 261.25 296.90 293.94 342.48

295.82 253.34 232.12 224.15 211.72 236.59 274.11 290.35 297.75 348.24

294.16 242.99 230.78 223.29 211.15 238.01 278.66 298.19 297.48 359.66

279.06 233.36 226.54 224.99 214.01 244.06 283.38 296.26 301.05 365.33

292.79 261.10 228.29 224.75 224.95 227.33 258.17 296.81 295.69 334.00

Source: Commodity Research Bureau

Goldman Sachs Commodity Index (GSCI) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

22T

(12/31/1969=100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

214.62 170.94 135.29 200.14 239.18 168.97 241.74 269.18 324.47 442.12

194.88 168.98 132.37 211.15 231.54 172.75 264.19 266.23 332.80 422.49

192.88 164.28 143.86 214.19 220.13 193.58 246.70 280.10 374.05 427.47

191.24 165.89 155.40 200.42 222.86 199.87 221.68 284.06 371.68 469.73

198.60 161.48 156.81 219.11 222.32 200.65 228.18 303.19 350.65 477.93

186.50 154.50 158.22 230.07 213.26 197.07 235.01 292.63 382.96 471.65

185.35 149.22 165.21 222.13 202.89 203.12 233.18 298.97 396.64 490.32

194.25 141.12 177.60 230.88 203.76 208.76 241.35 308.01 431.85 485.65

197.20 148.40 187.64 247.73 197.04 223.69 228.54 315.29 455.28 434.56

205.75 149.57 184.89 243.67 178.07 222.70 242.22 356.70 444.90 431.13

199.35 144.64 191.84 251.82 169.63 212.18 246.24 341.12 418.56 442.05

181.94 131.72 194.62 244.79 167.74 230.03 261.23 314.25 435.45 444.62

195.21 154.23 165.31 226.34 205.70 202.78 240.86 302.48 393.27 453.31

Source: Goldman Sachs

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COMMODITY PRICES EXTEND 2001-06 BULL MARKET TO NEW HIGHS

The Reuters-CRB Continuous Commodity Index (CCI) in 2006 extended the rally that began in 2001 and posted a new record high of 409.65 in December 2006. Over the course of the 2001-06 bull market, the RJ/CRB index rallied by a total of +124.1% through December 2006. The 2001-06 commodity bull market of +124.1% is the second largest commodity bull market in post-war history, moderately behind the 1971-74 rally which totaled +146.7%. However, the current commodity rally is by far the longest-running rally at 63 months and counting. The 1971-74 rally was comparatively short at 28 months. The Reuters-CRB Continuous Commodity Index (CCI) fared much better in 2006 than did the Reuters/ Jefferies RJ/CRB index, as seen in the nearby chart. The RJ/ CRB index was reformulated in June 2005 with a much heavier weighting on petroleum products of 33% versus the 12% weighting in the old CCI index. The new, revised RJ/CRB index rallied in early 2006 and posted a record high in March 2006, but then plunged in the latter half of 2006, mainly because of the sharp sell-off in crude oil prices. In fact, the RJ/CRB index through January 2007 fell by a total of -17.6% from its record high of 365.45 posted in March 2006 and showed a year-on-year decline in 2006 of -7.4%.

The Reuters-CRB CCI index, by contrast, showed a renewed rally in late 2006 that pushed the index to a new record high in December and produced a year-on-year gain in 2006 of +8.6%. The rally in late 2006 was driven by strength in corn, soybeans, precious metals, natural gas, coffee, cocoa and orange juice. Strength in those commodities was more than enough to offset the weakness in petroleum prices and copper that pushed the new RJ/ CRB index lower in the second half of 2006. The current 2001-06 commodity bull market has been driven by a progression of factors, which helps explain the longevity of the rally. In the first 3 full years of the rally (2002-04), the commodity rally was driven mainly by the -33% plunge in the dollar, which resulted from the Fed’s extraordinarily easy monetary policy during that time frame. The Fed during 2002-04 targeted the federal funds rate in the extraordinarily low range of 1-2% to help the US get through the tough times caused by the post-2000 technology and stock market bust and the 9/11 attack in 2001. Commodities, as real assets, typically rise in price when the currency in which they are quoted depreciates in value. The nearby chart shows how commodity prices rallied sharply during 2002-04 when the dollar plunged. In fact, the weekly correlation of the RJ/CRB index and the dollar index over the 2002-04 period was remarkably strong with a negative correlation of -0.95, illustrating the close connection between the weak dollar and strong commodity prices.

Commodity Bull Markets Ranked by Percentage Gain (1960-2006) ---------------------- Low ----------------------

1971-74 2001-06 1977-80 1986-88 1992-96

October 1971 October 2001 August 1977 July 1986 August 1992

Source: Commodity Research Bureau

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96.40 182.83 184.70 196.16 198.17

---------------------- High ----------------------

February 1974 December 2006 November 1980 Ju n e 1988 April 1996

237.80 409.65 337.60 272.19 263.79

Percent Rally

Rally Duration (months)

Avg CPI (yr-yr% )

146.7% 124.1% 82.8% 38.8% 33.1%

28 63 39 23 44

4.9% 2.6% 10.2% 3.2% 2.8%

However, the Fed started tightening its monetary policy in June 2004 due to the improved economic outlook and concerns that a bubble was emerging in the housing market from extremely low mortgage rates. The Fed’s tighter monetary policy provided eventual support for the dollar and halted the dollar’s decline, thus removing a linchpin of the commodity rally. However, during 2004 and particularly in 2005, strong commodity demand from China took over from the dollar as the major factor driving commodity prices higher. China’s fast-growing demand for energy, industrial metals, and construction commodities was the key factor driving these sectors higher. In addition to strong demand, production supply in those sectors could not keep up with the new demand because of years of underinvestment in new production, refining, and extraction facilities. That led to a squeeze in energy, industrial metals and construction commodity prices from 2004 through early 2006. Chinese demand has had less impact in boosting the agricultural markets. China is a large agricultural and meat producer in its own right and China’s need to import agricultural products is therefore much less than for energy, industrial, and construction products. Moreover, producers in the agricultural markets can respond more quickly with higher production when prices are high, meaning that prices can more quickly revert to the mean in agricultural markets. After peaking in early 2006, the commodity indexes then generally fell during late summer when petroleum prices plunged. Oil prices fell in the latter half of 2006 due to plentiful petroleum inventories in the US, adequate production by OPEC, and the lack of any hurricane disruptions to oil production in the Gulf of Mexico for the first time in two years. Weakness in the commodity indexes in the latter half of 2006 was also caused by lower copper prices which stemmed from (1) the fact that mining production finally caught up with demand, and (2) heavy long liquidation pressure by speculators.

The 2001-06 bull market in commodity prices has been a phenomenon caused by a weak dollar and strong commodity demand, not by an outbreak of inflation. The current commodity bull market is therefore very different from the commodity rallies in the 1970s which were driven mostly by double-digit inflation rates. The nearby chart shows how inflation has remained historically low all during the 2001-06 commodity bull market, with an average CPI of only +2.6%. Looking ahead, there is little reason to suspect that the secular bull market in commodity prices is over. Production has caught up to demand in some markets and that has caused downward corrections in those markets. In addition, commodity prices could see a prolonged downward correction due to global economic risks and a further shake-out of speculative longs. Nevertheless, the long-term secular bull trend in commodity prices will likely remain in place due to (1) the prospects for continued strong global demand in coming years (particularly from hyper-growth countries such as China and India), (2) lagging supply, and (3) the ongoing vulnerability of the dollar.

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FED ENGINEERS A SOFT-LANDING FOR THE US ECONOMY IN 2006

The US economy came into 2006 in relatively strong shape. Hurricane Katrina had hit the US on August 29, 2005 and had caused US GDP in Q4-2006 to fall to +1.8% from the strong +3.6% average seen in the first three quarters of 2005. However, US GDP then bounced back to +5.6% in Q1-2006. US GDP during 2006 eventually showed a strong annual growth rate of +3.4%. The US Federal Reserve in early 2006 continued the process of raising interest rates, a process that began in mid-2004. The Fed started raising interest rates in mid2004 when the US economy appeared to be in a sustained expansion and when the Fed needed to prevent an asset bubble from emerging. The Fed in 2001-03 had driven the federal funds rate target as low as 1% in an attempt to prevent deflation and allow the US economy to recover after the stock market bubble burst in 2000 and after the 9/11 attack on September 11, 2001. The Fed’s extraordinarily easy monetary policy in 2001-03 succeeded in supporting the US economy but it also produced a bubble in the housing market stemming from extremely low mortgage rates and easy mortgage credit. By mid-2006, the Federal Reserve finally decided to halt its interest rate hike regime with the funds rate target at 5.25%. The Fed’s 2-year tightening process left the funds rate target up by a total of 4.25 percentage points from the 1% level seen in mid-2004. The Fed halted its rate hike regime, despite the fact that it still saw upside inflation risks at the time, because the Fed was more worried about the US housing market bubble, the spike in oil prices to over $70 per barrel in spring

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2006, and the lagged effect of monetary policy tightening that was already in the pipeline. Federal Reserve members were well-aware of the Fed’s historical tendency to overdo its tightening moves and cause recessions. Instead, the Fed wanted to be forward looking and stop tightening before a recession became inevitable. In fact, the Fed’s decision to stop tightening in mid2006 turned out to be the right decision. The US economy in the last three quarters of 2006 slowed to the low-2% area, but never came close to turning into a recession. When the Fed stopped tightening monetary policy in mid-2006, the 10-year T-note yield fell sharply by 85 bp from 5.25% in June 2006 to 4.40% by December 2006. The decline in longterm interest rates provided some stimulus for the US economy in late 2006 and supported US consumer spending and business investment. The halt in the Fed’s tightening process in mid-2006 also allowed the 30-year mortgage rate to fall sharply by 70 bp from 6.80% in July 2006 to 6.10% by early-December 2006. The decline in mortgage rates allowed the air to come out of the US housing bubble relatively slowly, thus limiting the collateral damage for the rest of the US economy. The Fed also received some help in the latter half of 2006 from crude oil prices, which fell sharply by $26 from the record level of $78.40 in July 2006 to $50 by January 2007. The fortuitous decline in crude oil prices was mainly due to the lack of any disruptive hurricanes in 2006, which meant that US petroleum inventories remained plentiful in the latter half of 2006 and into early 2007, thus pushing crude oil and petroleum product prices lower.

The Fed in the latter half of 2006 adopted post-meeting statement language that noted the upside inflation risks and said that the Fed might still have to tighten monetary policy again to address inflation. However, the marketplace in the latter half of 2006 remained convinced that the Fed’s next move would be towards easing sometime in 2007. The core CPI inflation rate rose steadily in early-2006 and reached an 11-year high of +2.9% in September 2006, where it was far above the generally-accepted 2.0% ceiling for inflation. The core PCE deflator, which is the Fed’s preferred inflation measure, was better behaved than the core CPI and only rose as high as +2.4% in Aug-Sep 2006, but that was still an 11-year high for the series and was also above the generally-accepted 2.0% ceiling for inflation. However, the Fed did not reinitiate a tightening move in late 2006 in response to the rise in core inflation because (1) US GDP eased to the 2% area, (2) the Fed was worried about the US housing sector, and (3) the Fed believed that there was a strong chance that core inflation would moderate going into 2007. In the fourth quarter of 2006, core inflation did ease a bit from the peak seen in September 2006, thus validating the Fed’s decision to take a wait-and-see approach on inflation. The US economy came into 2007 in relatively solid shape, although GDP growth had eased to the low 2% level and the market was only expecting moderate GDP growth of 2.5-3.0% through 2007. Expectations for the US economy in 2007 were relatively subdued due to concerns about the US housing and auto sectors and historically high petroleum prices. The overall US economy as of early 2007 had not seen any significant spillover weakness from the housing

sector, but the news from the housing market became worse in February and March 2007 on a raft of bankruptcies among sub-prime mortgage lenders. In addition, the supply of new and existing homes available for sale remained very high in early 2007, meaning that a recovery for US homebuilders would be delayed until at least 2008. In addition, home prices remained soft through early 2007, meaning homeowners had less ability to use their homes as an ATM machine to extract cash via home equity loans. The global stock markets in early March 2007 fell sharply by about 6%, causing fresh concerns about a possible US recession by late 2007. In fact, former Fed Chairman Alan Greenspan in early March 2007 predicted a one-third chance for a US recession by year-end. A recession could result from a spill-over of weakness from the housing and auto sectors, tighter mortgage credit, and reduced consumer and business confidence stemming from the March 2007 global stock market correction. Despite those threats, most forecasters as of March 2007 were still predicting that the US economy would remain in an expansion mode with GDP growth in the mid-2% area through the end of 2007. Positive factors for the US economy as of March 2007 included strong overseas economic growth, continued firm US consumer spending, and historically low interest rates. Crude oil prices in early 2007 rose by about $10 per barrel to the $60 per barrel area, but that was substantially below the record high seen in mid-2006. Thus as of March 2007, it once again appeared that the US economy would be able to muddle through its various difficulties and remain in an expansion mode through 2007.

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WORLD ECONOMIC EXPANSION CONTINUES THROUGH 2006

World GDP growth in 2006 was stronger than expected at +5.1% and will continue near that pace at +4.9% in 2007, according to IMF forecasts. The global economy is growing at the highest rates seen in the past several decades. The main engine of world growth continues to be China with its third straight year of GDP growth near 10% in 2006. Japanese GDP growth was supported by growth in nearby China and Japan’s GDP growth reached +4.8% by Q4-2006 (qtr-qtr annualized). India showed very strong growth in 2006 near 8% and was also an important source of world GDP growth. Europe in 2006 even got into the game with its GDP growth improving from the +1.5% area in 2004-05 to +3.3% by Q4-2006. US GDP growth flagged a bit in 2006 but the US economy by then had succeeded in helping to prime world growth over the previous several years. Global central bank rates generally rose in 2006 as most countries responded to inflation pressures. The Bank of Japan raised its overnight rate from zero to 0.50% by February 2007. The European Central Bank raised its refinancing rate by 175 basis points from 2.00% in late2005 to 3.75% by early-2007. The Chinese central bank raised interest rates during 2006 and also tightened bank lending by raising the reserve requirements for banks. Yet despite the higher interest rates seen in 2006, the world economy continued to strengthen during the year. As of early 2007, the outlook still remained generally

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favorable for the global economy. Global stock markets took a tumble in early 2007, but the fallout for the real economy seemed to be limited. Global interest rates remained generally low and world confidence remained generally strong, supporting the view for continued stable global GDP growth through 2007. The stable inflation situation should allow world bond yields to remain subdued in 2007. The MSCI World Developed 10-year Government Bond yield was stable near 4.50% in 2006 and is likely to remain near that level in 2007 as global central banks address inflation risks and reassure bond investors that inflation will be kept low. Low world long-term interest rates are helping to offset negative factors such as slower GDP growth in the US and continued elevated energy prices. While the outlook for the global economy is generally favorable, there are several sources of risk. First, there is the possibility of a stumble in China due to its myriad of imbalances and its inflated stock market. The Chinese government during 2006 clamped down a bit on credit and investment and there is always the possibility they will go too far. Second, the global stock market correction that began in March 2007 could worsen, thus causing negative spillover effects for the real global economy and possibly causing defaults or bankruptcies by some hedge funds or financial institutions. Third, crude oil prices could see a renewed surge if there are any new supply disruptions in 2007 such as hurricanes or terrorist attacks on Middle East oil facilities.

CRUDE OIL PRICES REMAIN STRONG IN 2005

Crude oil futures prices in early 2006 extended the rally that began in November 2001 and posted a record high of $78.40 in July 2006. Crude oil prices were driven higher by speculative buying and by predictions for another active hurricane season in the second half of 2006. The US petroleum market was very nervous about another bad hurricane year in 2006 after being hit hard by Hurricane Hugo in 2004 and by Hurricanes Katrina and Rita in 2005. Those hurricanes produced major shutdowns of oil drilling rigs in the Gulf of Mexico and longterm damage to underwater pipes and infrastructure. Oil prices in early 2006 were also pushed higher by (1) strong global economic growth (world 2006 GDP +4.3%) which produced strong petroleum demand, and (2) lagging production from OPEC and non-OPEC producers. Strong demand and lagging supply were in fact the main bullish factors that drove the 2001-06 bull market, which saw oil prices increase by more than four-fold from the $16.70 per barrel level seen when the bull market began in November 2001 to the record high of $78.40 seen in July 2006. When crude oil prices hit a record high in nominal terms in July 2006, oil prices in real (inflation-adjusted) terms were still about 25% below the record high posted back in 1982, as seen in the nearby chart. The upward spike in oil prices to about $100 per barrel on an inflation-

adjusted basis in 1982 was due to the Iranian revolution and the Iran-Iraq war. Thus while oil prices in 2006 reached a record high in nominal terms, businesses and consumers are not being hit as hard in inflation-adjusted terms as they were back in the early 1980s. After the strength seen in crude oil prices in the first half of 2006, crude oil prices in August and September 2006 then started falling sharply when no hurricanes approached the Gulf of Mexico and threatened US oil rigs. Hurricanes did come across the Atlantic in late summer and autumn 2006 but virtually all of them turned north before reaching the US mainland. As a result, the Gulf of Mexico in 2006 saw no disruptions in operations from hurricanes.

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Crude oil prices fell sharply on the lack of any hurricanes and when it became clear that US petroleum inventories were too high. Petroleum producers and distributors had built up preventative inventories going into autumn 2006 due to predictions of an active hurricane season, but were then left trying to slash inventories in autumn 2006 when no hurricanes arrived. Crude oil prices fell as low of $55 by November, which represented a decline of about $20 per barrel (-27%) from the record high of $74.80 posted in July 2006. After the sharp sell-off seen in July-October 2006, crude oil prices then showed a moderate upward rebound of about $8 per barrel when OPEC announced on October 20, 2006 that it would cut production by 1.2 million barrels per day starting November 1. OPEC’s goal was to reduce excess global petroleum inventories to normal levels. However, OPEC in November and December ended up implementing only about one-half of the promised production cut. That caused oil prices to show a renewed decline in December and January to a 1-1/2 year low near $50 per barrel in January 2007. OPEC responded to the weak prices in late December and January by announcing a further 500,000 barrel per day production cut effective February 1, 2007. OPEC’s Feb 1 production cut, combined with very cold weather in the US in late January and early February, succeeded in pushing crude oil prices higher by about $12 per barrel to the $62 per barrel area by March 2007. Aside from the drawdown in heating oil inventories from cold weather, product inventories were also drawn down in early 2007 by a variety of US refinery snafus which kept the US refinery operating rate below its 10-year average.

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Oil prices also received support in Jan-Feb 2007 from President Bush’s plan announced in mid-January to start buying 100,000 barrels per day of crude oil in spring 2007 to double the size of the Strategic Petroleum Reserve to 1.5 bln barrels over the next 20 years. As of March 2007, the US inventory situation remained comfortable, which meant that OPEC remained under pressure to minimize production to support prices. US crude oil inventories in early March 2007 were 9.2% above their 5-year seasonal average. Product inventories were less plentiful than crude oil inventories but were still comfortable. Gasoline inventories were 2.3% above the 5-year seasonal average and distillates inventories (diesel fuel and heating oil) were 5.4% above the 5-year seasonal average. OPEC in late 2006 and early 2007 was successful in cutting production by enough to boost crude oil prices and protect an apparent floor of $50 per barrel. At the same time, it appears that Saudi Arabia did not want crude oil prices to rally much above $65 per barrel. Saudi Arabia, if not OPEC as a whole, appears to be targeting WestTexas Intermediate crude oil prices in the range of $5065 per barrel. While oil prices saw downward pressure in the second half of 2006 and early 2007, bullish factors could emerge later in 2007. Going into spring and summer 2007, the markets will take account of summer gasoline demand and the possibility for hurricane disruptions. Moreover, in the bigger picture, the age of cheap oil appears to be over due to strong long-term global demand for petroleum combined with lagging investment in finding new reserves and increasing production capacity. There is also the perennial threat of supply disruptions from terrorist strikes, weather, or politically-inspired export cutoffs (e.g., from Iran). Crude oil prices in any case are likely to remain volatile in 2007 and will continue to play a key role in influencing the global economy.

US DOLLAR REMAINS VULNERABLE ON HIGHER OVERSEAS RATES

The US dollar index in 2006 trended lower during the year and closed –8.2% on the year, reversing about two-thirds of the moderate +12.8% gain seen in 2005. The dollar index as of March 2007 remains near the lower end of the sharp 33% sell-off seen in 2002-04. The weaker dollar seen in 2006 was a mildly supportive factor for commodity prices, though certainly not to the extent seen in 2002-04 when the 33% plunge in the dollar produced the beginning stages of the 2002-07 commodity bull market. The dollar fell sharply in April 2006 once it became apparent that the Fed was near the end of its tightening regime. In 2005, by contrast, the dollar was able to show a modest upward rebound mainly because of the Fed’s rate hike regime, whereby the Fed raised the federal funds rate from 1% in mid-2004 to 5.25% by mid-2006. The Fed’s rate hike regime steadily pushed US dollar interest rate differentials higher against European and Japanese rates, which remained low as the central banks in those countries tried to deal with weak economic growth. Higher US short-term interest rates encouraged foreign investors to put their cash into the US money markets to earn a higher yield than they could earn in Europe or Japan. The Fed’s tighter monetary policy also meant that the Fed was pumping fewer dollar reserves into the nation’s banking system, making dollars a bit less plentiful. The 3-month US Libor rate differential rose sharply by 380 bp (to +2.30% from -1.50%) against the 3-month European Euribor rate over the course of the Fed’s

tightening move from mid-2004 to mid-2006. The 3-month US Libor rate rose by 400 bp against the Japanese 3month rate over that time frame. However, by mid-2006 the Fed was done tightening while the European Central Bank and the Bank of Japan were in the midst of starting to raise interest rates. The Bank of Japan raised its overnight rate by 25 bp from zero to 0.25% in July 2006, and then raised its overnight rate by another 25 bp to 0.50% in February 2007. Meanwhile, the European Central Bank from late-2005 through early 2007 raised its 2-week refinancing rate steadily by 25 bp increments for an overall rate hike of 175 bp from the 2.00% level (seen from mid-2003 to late2005) to 3.75% by March 2007. The combination of sideways US interest rates and higher European and Japanese interest rates produced a mild deterioration in US interest rate differentials during 2006, thus putting some downward pressure on the dollar. The US-European 3-month interest rate differential fell by 80 bp during 2006 and early 2007 from 2.30% to 1.50%. The US-Japanese 3-month interest rate differential during the latter half of 2006 fell by about 50 bp to 4.60%. The dollar continued to see underlying support from the fact that US interest rates (5.25% funds rate) were still well above European (3.75%) and Japanese (0.50%) rates. However, the deterioration in the US interest rate advantage against Europe and Japan was still a negative factor for the dollar in the latter half of 2006.

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The dollar during 2006 also continued to see downward pressure from the massive US trade deficit. The US trade deficit in 2006 rose to a new record high of $763.6 billion from $716.7 billion in 2005. Meanwhile, the US current account balance, which is the broadest measure of US trade with the rest of the world and includes goods, services, and transfer payments, hit a record high of $225.6 billion in Q3-2006. As a percentage of US GDP, the US current account deficit was about 6.7% of GDP in 2006, just below the quarterly record of 7.0% seen in Q4-2005. The US trade deficit did show a moderate improvement in the latter half of 2006, mainly because lower crude oil prices reduced the value of US oil imports and because strong growth overseas boosted US exports. However, there remained little likelihood for any longterm, fundamental improvement in the US trade deficit because of the intractable problems behind the US trade deficit such as (1) the huge US demand for oil imports, (2) the improved comparative advantage of nations such as China and India which have cheap labor and the resources to employ that labor into export powerhouses, and (3) the poor US household savings rate and high Asian savings rate which results in capital flows to the US (which boosts the US capital account surplus and is the flip side of the US current account deficit). The yen showed a strong 6-yen rally against the dollar and a 9-yen rally against the euro in March 2007 when the global stock markets went into a sharp downward correction. The sell-off sparked a big outflow from yen carry trades, whereby investors and hedge funds in the

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past few years have built up a huge overall position in speculative global assets by borrowing yen at near-zero rates and then selling those yen to obtain other currencies to invest at higher yields. The yen rallied sharply as investors reversed yen carry trades and needed to convert their foreign currencies back into yen to repay their loans. Looking ahead, there is little reason to expect a major move either way in the dollar. The dollar has proven that it can survive the massive US trade deficit since US interest rate differentials remain favorable and since foreign investors still want to invest in dollar-denominated assets. US interest rate differentials are not likely to fall much more since the European Central Bank will probably only tighten by another 25-50 bp and the Bank of Japan will drag out its normalization of interest rates over a period of years. Still, there are risks for the dollar stemming from the massive US trade deficit and from China, which has now built up more than $1 trillion in dollar reserves. The dollar could take a severe hit at some point if China and other Asian export powerhouses decide to more aggressively diversify their dollar reserves.

US HOUSING BUBBLE BURSTS AND FACES LONG RECOVERY ROAD

The US housing market kicked into high gear starting in 2002-03 after the Federal Reserve in 2001-03 slashed its federal funds rate target by 5.50 percentage points from 6.5% in late 2000 to 1% by mid-2003. The Fed’s easing caused the 30-year mortgage rate to plunge from 8% in late-2000 to the 5.5-6.5% range during 2003-05. Moreover, the extremely low level of short-term rates allowed mortgage lenders to offer initial rates on variable rates that were well below fixed rates of 5.5-6.5%. Mortgage lenders also developed a host of more lenient loans, including zero interest loans, 100% and 120% financing loans, and loans for sub-prime borrowers.

faced a reckoning and were forced to slash new housing starts activity because of high unsold home inventories.

Cheap and easy mortgage credit, combined with speculative fever, produced a gold rush in the US housing market. The gold rush was not only in primary homes but also in vacation condos and homes. Strong demand for homes produced record levels of home sales and housing starts and also pushed housing prices sharply higher.

Home sales picked up a bit in late 2006, which helped to soften the decline in the US housing market. However, the supply of new and existing homes available for sale was near 10-year highs in late-2006 and early-2007. This overhang of homes available for sale kept downward pressure on home prices and also forced US homebuilders to further slash their building plans in an attempt to offload their big inventories of unsold homes. In addition, many sub-prime lenders ran into trouble in late-2006 and early-2007 with high default rates, causing concerns about mortgage lender bankruptcies and a cut-back in credit to the housing sector. Based on high unsold home inventories and tighter mortgage credit, it seems likely that a true recovery in the US housing sector will not occur until 2008 or even 2009. In the meantime, the US housing sector will continue to present spillover risks for the overall US economy.

The good times for the US housing market finally came to an end when the Fed’s tighter credit in 2004-06 pushed variable rate mortgages higher and also pushed the 30-year mortgage rate from 5.50% in mid-2005 to as high as 6.80% in mid-2006. That 130 bp rise in the 30year mortgage rate, combined with extremely high home prices, finally caused buyers to drop out of the market. New and existing home sales peaked in late 2005 and moved sharply lower through 2006. Builders didn’t give up on new building until early 2006 when they finally

By mid-2006 it was clear that the US housing bubble had burst. The plunging housing market was one of the reasons why the Fed halted its tightening process in mid2006 with the funds rate at 5.25%. The halt in the Fed’s tightening process allowed the 30-year mortgage rate to fall to 6.11% in December 2006 from the 4-1/2 year high of 6.80% seen in July 2006. Lower mortgage rates helped to prevent an even faster melt-down of the US housing sector.

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STRONG ETHANOL DEMAND DRIVES CORN PRICES TO 10-YEAR HIGHS Corn prices exploded starting in September 2006 when the extent of corn demand from ethanol producers became clear. Corn prices in the space of 5 months rallied by 94% from the $2.25 per bushel level in August 2006 to a 10-year high of $4.37 in February 2007. Corn prices could easily rally further through 2007, depending on whether US farmers plant enough new acres of corn in spring 2007 and whether the weather cooperates during summer 2007. US ethanol producers use corn almost exclusively as the feedstock for producing ethanol. That contrasts with Brazilian ethanol producers, who use sugar almost exclusively as their feedstock. Brazil is currently the world’s second largest world producer of ethanol, just behind the US. Sugar prices saw strength in late-2005 and early-2006, mainly because of strong demand for sugar from Brazilian ethanol producers. Brazilian ethanol producers now use about one-half of Brazil’s sugar crop for ethanol. Sugar prices fell back through 2006, however, because sugar production caught up with demand, thus causing a small surplus in the 2006-07 marketing year (Oct-Sep) after three straight years of deficits. Brazil and other countries have plenty of land available to produce more sugar, meaning sugar producers can keep up with increasing demand from ethanol producers. In the US, ethanol production has been growing very rapidly in the past several years. The US in late 2006 had 106 ethanol plants in production and there were 48 ethanol facilities under construction, according to the Renewable Fuels Association. US ethanol production in December 2006 reached a record high of 11.023 million barrels per month, according to the US Energy Information Administration, which is equivalent to 5.56 billion gallons per year. US ethanol production in December 2006 was up sharply by +27% year-on-year. Meanwhile, US ethanol imports in December 2006 totaled 985,000 barrels per month, which is equivalent to about 500 million gallons per year. The total ethanol supply

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(US production plus imports) in December was therefore about 6 billion gallons per year, which accounts for about 4% of US transportation fuel usage. US ethanol production in December (of an annualized 5.56 billion gallons) used an annualized 1.32 billion bushels of corn (5.56 billion gallons divided by the ethanol yield of 2.8 gallons/bushel of corn, less one-third to account for the fact that about one-third of corn used in ethanol production can be reused as DDG-distillers dried grain feed for livestock feed). US ethanol usage in December therefore took the equivalent of 12.5% of total US corn production (i.e., 1.32 billion bushels divided by the 200607 crop of 10.535 billion bushels). In terms of land, the corn used by US ethanol producers in December 2006 (annualized) required the use of 8.82 million acres of land, which is 12.5% of US planted corn acres (79.366 million in 2006-07) and 4.3% of the total US land planted with corn, soybeans or wheat (203.88 million acres). Corn usage during the 2006/07 marketing year (SepAug) was so strong that the USDA forecasted that corn consumers would use not only all of the corn that US farmers grew during the summer of 2006, but also 62% of the corn held in inventories. Thus, the USDA as of March 2007 was forecasting that the US 2006-07 carry-over would fall by 62% to 752 million bushels, which was the third lowest US carry-over in the past 3 decades. In order to prevent a further drop in US corn carryover in the next marketing year, US farmers in spring 2007 needed to plant 10-12 million acres more of corn. The surge in corn prices pushed the profit margin on corn sharply higher and many farmers were eager to plant more corn in spring 2007. However, as of March 2007, the jury remained out on whether those new planted acres of corn would materialize. Moreover, even if US farmers did plant 10-12 million more acres of corn and even if the weather turns out to be favorable during summer 2007, the corn supply situation will tighten even further going

into the next marketing year of 2007-08 when ethanol production will be even higher. President Bush in his State of the Union Address in January 2007 announced a very ambitious plan for the US to use 35 billion gallons of alternative fuels by 2017. That is about 6 times current usage and 5 times the current Renewable Fuel Standard of 7.5 billion gallons per year by 2012. However, the US corn-based ethanol industry simply cannot produce 35 billion gallons per year of ethanol , because (1) there isn’t enough farm land in the US, (2) there would not be enough corn left over for human food consumption and livestock feed (about 55% of US corn goes for livestock feed), and (3) corn prices would soar beyond economical levels for ethanol producers. The practical limit for corn-based ethanol is probably about 15 billion gallons per year, which is about three times current production and about 10% of the US fuel supply. Even on that scale, corn-based ethanol producers would need about 3.6 billion bushels of corn (15 bln gallons divided by the yield of 2.8 gallons/bushel less 1/3 for DDG), which would represent one-third of the US 2006-07 corn crop and would require the use of 12% of all US corn/soybean/wheat farmland. The only way for the 35 billion gallon goal to be met is if the US ethanol industry can produce at least 20 billion gallons of ethanol with cellulosic-based ethanol by 2017. At present, there are no commercial ethanol plants that use cellulosic feedstocks (such as switch grass, corn stalks, wood chips, etc.) because more research needs to be done to work out economical ways to process that cellulosic material into ethanol. The industry consensus is that it will take another 5 years before cellulosic-based ethanol can be produced economically on a large scale.

US ethanol producers are currently receiving strong support from the federal government, which has helped the industry to get on its feet. The federal government gives fuel blenders a 51 cent excise tax credit for blending ethanol into gasoline (the credit lasts until 2010). In addition, the federal government protects US ethanol producers with a 54 cent import tariff on imported ethanol, which is enough to make large-scale ethanol imports from Brazil uneconomical. The 54 cent tariff is currently set to expire at the end of 2008. Ethanol prices closely follow gasoline prices because ethanol and gasoline have essentially the same characteristics in being able to provide fuel for internal combustion engines. However, ethanol prices trade at a premium of 43 cents on average to wholesale gasoline prices. The premium stems from the 51 cent subsidy for ethanol, the fact that ethanol produces 20% lower mileage than gasoline, and other factors. The prospects for ethanol in the US are bright, particularly when cellulosic ethanol becomes commercially viable. Ethanol currently accounts for only about 4% of the US fuel supply, meaning there is plenty of room on the upside. Increased ethanol production helps support US farmers, reduces pollution (since ethanol burns cleaner than gasoline), and increases America’s energy independence. However, there are downsides to corn-based ethanol in the form of higher food prices and competition with more environmentally-attractive solutions such as vehicles powered by electricity or fuel cells. Still, the ethanol industry is a fast-growing force that will have a major impact on the US agriculture sector for at least the next two decades.

35T

Volume U.S. U.S. Futures Volume Highlights 2006 in Comparison w ith 2005 2006 Top 50 Contracts Traded in 2006 R an k

2006 Contracts

%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

502,077,391 257,926,673 255,571,869 124,870,313 93,754,894 79,940,222 71,053,203 47,239,893 41,748,538 40,790,379 37,966,797 26,792,373 26,486,999 24,471,474 24,157,726 23,029,988 22,647,784 19,677,365 17,833,331 16,224,871 16,099,540 15,917,584 15,100,721 14,844,858 13,990,589 11,470,031 10,279,576 9,488,524 9,350,043 9,323,467 8,620,908 8,452,484 8,209,698 7,973,290 6,567,650 6,481,001 5,528,263 5,433,063 5,280,652 4,806,526 4,763,168 4,490,407 4,407,512 3,883,261 3,795,538 3,281,312 3,169,302 2,809,839 2,349,055 2,311,008

1,982,740,953 61,156,265 2,043,897,218

Eurodollars (3-month), CME E-Mini S&P 500 I ndex, CME T-Notes (10-year), CBT T-Notes (5-year), CBT T-Bonds (30-year), CBT E-Mini NASDAQ 100, CME Crude Oil, NYMEX Corn, CBT E-Mini Russell 2000 I ndex, CME Euro FX, CME T-Notes (2-year), CBT Mini ($5) Dow Jones I ndustrial I ndex, CBT Rogers I nternational TRAKRS, CME TRAKRS PI MCO, CME Henry Hub Swap, NYMEX Natural Gas, NYMEX Soybeans, CBT Japanese Yen, CME Federal Funds (30-day), CBT Wheat, CBT British Pound, CME Gold (100 oz.), COMEX Div. of NYMEX Sugar #11, NYBOT S&P 500 I ndex, CME Heating Oil #2, NYMEX Swiss Franc, CME Canadian Dollar, CME Soybean Oil, CBT Soybean Meal, CBT E-Mini Crude Oil, NYMEX Gasoline, Unleaded, NYMEX Gold, CBT Live Cattle, CME Natural Gas Penultimate Swap, NYMEX Australian Dollar, CME Lean Hogs, CME E-mini S&P SmallCap 600 I ndex, CME Silver (5,000 oz), COMEX Div. of NYMEX TRAKRS Select 50, CME Crude Oil, E-mini, NYMEX Wheat, KCBT Cotton #2, NYBOT Coffee C, NYBOT Gasoline, RBOB, NYMEX High Grade Copper, COMEX Div. of NYMEX Mexican Peso, CME Cocoa, NYBOT Nikkei 225 I ndex, CME TRAKRS PI MCO SPTR, CME Socal Basis Swap, NTMEX

Top 50 Contracts Contracts Below the Top 50 TOTAL

2005 Contracts

%

2005 R an k

25.32% 13.01% 12.89% 6.30% 4.73% 4.03% 3.58% 2.38% 2.11% 2.06% 1.91% 1.35% 1.34% 1.23% 1.22% 1.16% 1.14% 0.99% 0.90% 0.82% 0.81% 0.80% 0.76% 0.75% 0.71% 0.58% 0.52% 0.48% 0.47% 0.47% 0.43% 0.43% 0.41% 0.40% 0.33% 0.33% 0.28% 0.27% 0.27% 0.24% 0.24% 0.23% 0.22% 0.20% 0.19% 0.17% 0.16% 0.14% 0.12% 0.12%

410,355,384 207,095,732 215,124,076 121,908,830 86,926,569 72,453,141 59,650,468 27,965,057 28,902,033 34,530,730 21,205,359 24,892,328 36,081,429

25.63% 12.94% 13.44% 7.62% 5.43% 4.53% 3.73% 1.75% 1.81% 2.16% 1.32% 1.55% 2.25%

1 3 2 4 5 6 7 11 10 9 13 12 8

10,406,462 19,142,549 20,216,137 12,471,672 11,602,282 10,114,098 8,769,751 15,890,617 13,007,072 15,377,489 13,135,581 7,784,498 7,930,156 7,676,130 8,324,616 5,682,214 13,166,417

0.65% 1.20% 1.26% 0.78% 0.72% 0.63% 0.55% 0.99% 0.81% 0.96% 0.82% 0.49% 0.50% 0.48% 0.52% 0.35% 0.82%

23 15 14 21 22 24 25 16 20 17 19 28 27 29 26 31 18

5,833,556 2,751,455 4,749,093 4,153,543 4,885,430 5,536,351

0.36% 0.17% 0.30% 0.26% 0.31% 0.35%

30 41 34 35 33 32

3,682,919 3,848,990 3,987,778

0.23% 0.24% 0.25%

39 38 36

3,950,842 3,674,886 2,582,927 1,886,270

0.25% 0.23% 0.16% 0.12%

37 40 43 45

1,580,162

0.10%

48

97.01% 2.99% 100.00%

1,600,893,079 51,978,280 1,652,871,359

96.86% 3.14% 100.00%

* For 2005 Top 50 contracts totaled 1,612,086,304 including 6 contracts that are not among 2006's Top 50.

36T

VOLUME U.S. U.S. Futures Volume Highlights 2006 in Comparison w ith 2005 2006 2006 2005 RANK EXCHANGE CONTRACTS % CONTRACTS 1 Chicago Mercantile Exchange (CME) 1,101,712,533 53.90% 883,118,526 2 Chicago Board of Trade (CBT) 678,262,052 33.18% 561,145,938 3 New York Mercantile Exchange (NYMEX)** 216,252,995 10.58% 166,608,642 4 New York Board of Trade (NYBOT)* 32,746,692 1.60% 29,013,416 5 OneChicago 7,922,465 0.39% 5,528,046 6 Kansas City Board of Trade (KCBT) 4,771,711 0.23% 3,690,025 7 Minneapolis Grain Exchange (MGE) 1,614,543 0.08% 1,389,922 8 CBOE Futures Exchange (CFE) 478,424 0.02% 177,632 9 EUREX US 135,803 0.01% 2,200,384 10 NASDAQ LI FFE Markets (NQLX) 257,000 TOTAL 2,043,897,218 100.00% 1,652,872,531 * I ncludes the New York Futures Exchange, New York Cotton Exchange and Coffee, Sugar and Cocoa Exchange. ** I ncludes Comex Division.

% 53.43% 33.95% 10.08% 1.76% 0.33% 0.22% 0.08% 0.01% 0.13% 0.02% 100.00%

2005 RANK 1 2 3 4 5 6 8 9 7 9

Chicago Board of Trade (CBT) FU TU R E W h ea t Mini Wheat Corn Mini Corn Oats Soybeans Mini Soybeans South American Soybeans Soybean Oil Soybean Meal Rice Mini Silver Mini Gold Silver Gold T-Bonds (30-year) T-Notes (10-year) T-Notes (5-year) T-Notes (2-year) I nterest Rate Swap (10-year) I nterest Rate Swap (5-year) Municipal Note I ndex (10-year) 30-Day Federal Funds Ethanol OTC Ethanol Forward Swap OTC Ethanol Previous Swap Dow Jones I ndustrial I ndex ($25) Dow Jones I ndustrial I ndex Mini ($5) Dow Jones I ndustrial I ndex Dow Jones AI GCI I ndex Dow Jones AI GER I ndex Total Futures

CONTRACT UNIT 5,000 bu 1,000 bu 5,000 bu 1,000 bu 5,000 bu 5,000 bu 1,000 bu 5,000 bu 60,000 lbs 100 tons 200,000 lbs 1,000 oz 33.2 troy oz 5,000 oz 1 0 0 oz 100,000 USD 100,000 USD 100,000 USD 200,000 USD 100,000 USD 100,000 USD 100,000 USD 5,000,000 USD 29,000 US Gallons 14,500 US Gallons 14,500 US Gallons 25 USD x I ndex 10 USD x I ndex 5 USD x I ndex 100 x I ndex 100 x I ndex

2006 16,224,871 67,637 47,239,893 162,545 427,315 22,647,784 581,047 226 9,488,524 9,350,043 321,330 547,182 1,994,920 1,208,471 8,452,484 93,754,895 255,571,869 124,870,313 37,966,797 520,090 272,749 505 17,833,331 5,564 42 60 18,686 1,919,847 26,792,373 14,669 5,990 678,262,052

2005 10,114,098 32,295 27,965,057 102,292 351,539 20,216,137 495,313 12,088 7,676,130 8,324,616 228,502 163,395 389,737 86,218 626,901 86,926,569 215,124,076 121,908,830 21,205,359 655,711 202,737 33,502 11,602,282 2,676

2004 7,955,155 31,044 24,038,233 86,771 416,448 18,846,021 362,829

2003 6,967,416 22,288 19,118,715 53,404 318,898 17,545,714 250,447

CONTRACT UNIT 5,000 bu 100 USD x I ndex

CONTRACT UNIT 5,000 bu 5,000 bu 5,000 bu 5,000 bu

2002 6,872,891

7,593,314 8,569,243 168,165 204,255 420,604 12,398 89,539 72,949,053 196,119,150 105,469,410 9,454,774 856,968 243,353 65,026 11,940,120

7,417,340 8,158,445 265,234 34,804 145,173

63,521,507 146,745,281 73,746,445 4,415,906 1,038,777 110,275 94,541 8,271,726

6,816,483 7,174,507 193,723 7,723 9,024 72 55 56,082,284 95,786,299 50,512,085 3,203,855 661,527 53,030 8,678 6,285,789

1,787,405 24,892,328 11,337

2,577,138 20,695,848 40,882

4,416,302 10,859,690 43,321

6,485,501 2,224,757 14,782

561,145,938

489,230,144

373,669,290

276,316,119

2006 4,763,168 8,543 4,771,711

2005 3,682,919 7,106 3,690,025

2004 2,833,370 1,429 2,834,799

2003 2,632,033 2,391 2,634,424

2002 2,738,536 17,370 2,755,949

2006 1,613,239 7 18 1,279 1,614,543

2005 1,384,750 647 427 3,848 1,389,922

2004 1,378,694 56 2,521 116 1,381,456

2003 1,066,489

2002 1,199,149

16,535 3,996 1,087,020

2,253 1,201,543

18,132,447 415,140 14,475,100

Kansas City Board of Trade (KCBT) FU TU R E W h ea t Value Line I ndex Total Futures

Minneapolis Grain Exchange (MGE) FU TU R E Spring Wheat Hard Red Spring Wheat I ndex Hard Red Winter Wheat I ndex National Corn I ndex Total Futures

37T

VOLUME U.S. Chicago Mercantile Exchange (CME) Future Lean Hogs Pork Bellies, Frozen Butter Cash Butter Nonfat Dry Milk Class I I I Milk Class I V Milk Live Cattle Feeder Cattle Random Lumber Diamonium Phosphate Urea Ammonium Nitrate Urea Eurodollar (3-month) Euroyen E-Mini Eurodollar (5-year) 2-Year SWAP 5-Year SWAP 10-Year SWAP Consumer Price I ndex Eurozone Harmonized CPI I ndex One Month LI BOR Australian Dollar British Pound Brazilian Real Canadian Dollar Czech Koruna Euro FX E-Mini Euro FX Hungarian Forint I sraeli Shekel Japanese Yen E-Mini Japanese Yen Korean Won Mexican Peso New Zealand Dollar Norwegian Krone Polish Zloty Russian Ruble South African Rand Swedish Krona Swiss Franc Australian Dollar / Canadian Dollar Australian Dollar / Japanese Yen Australian Dollar / New Zealand Dollar British Pound / Japanese Yen British Pound / Swiss Franc Canadian Dollar / Japanese Yen Chinese Renimibi / U.S. Dollar Swiss Franc / Japanese Yen Euro / Australian Dollar Euro / Canadian Dollar Euro / Hungarian Forint Euro / Norwegian Krone Euro / Polish Zloty Euro / British Pound Euro / Japanese Yen Euro / Swedish Krona Euro / Swiss Franc Nikkei 225 I ndex (USD) Nikkei 225 I ndex (JPY) S&P 500 I ndex E-Mini S&P 500 I ndex Mini S&P Asia 50 I ndex S&P 500 Barra Growth I ndex S&P 500 Barra Value I ndex S&P Technology-Telecomm Sector I ndex S&P MidCap 400 I ndex S&P SmallCap 600 I ndex S&P Citigroup Growth

38T

Contract Unit 40,000 lbs 40,000 lbs 40,000 lbs 20,000 lbs 44,000 lbs 200,000 lbs 200,000 lbs 40,000 lbs 50,000 lbs 100,000 bd ft 100 tons 100 tons 100 tons 1,000,000 USD 1,000,000,000 JPY

2,500 USD x CPI 10,000 EUR x I ndex 3,000,000 USD 100,000 62,500 100,000 100,000 125,000 62,500 30,000,000 1,000,000 12,500,000 6,250,000 125,000,000 500,000 100,000 227,000 500,000 2500000 500,000 193,600 125,000 200,000 AUD 200,000 AUD 200,000 AUD 125,000 GBP 125,000 GBP 200,000 CAD 1,000,000 CHR 250,000 CHF 125,000 EUR 125,000 EUR 30,000,000 EUR 125,000 EUR 500,000 125,000 EUR 125,000 EUR 125,000 EUR 125,000 EUR 5 USD x I ndex 5 USD x I ndex 500 USD x I ndex 50 USD x I ndex 25 USD x I ndex 500 USD x I ndex 500 USD x I ndex 125 USD x I ndex 500 USD x I ndex 200 USD x I ndex 250 USD x I ndex

2006 6,481,001 107,564 3,800 18,673 954 225,137 113 8,209,698 1,286,395 271,024 6 79 47 502,077,391 662,653 4,237 31,260 56,320 44,510 40 1,369 852,119 6,567,650 16,099,540 94,514 10,279,576 461 40,790,379 386,850 620 113 19,677,365 9,203 5,867 3,795,538 529,782 6,461 23,899 125,762 70,491 4,618 11,470,031 6,708 19 39 173 6,151 24 5,407 55 205 109 1,050 328 15,194 42,053 272,182 151 49,475 2,809,839 2,126,654 14,844,858 257,926,673 960 94 18 4 153,268 130 5,473

2005 4,153,543 124,418 7,708 2,337 217 182,509 138 5,833,556 1,017,348 236,241 38 55 208 410,355,384 200,958

2004 3,204,186 151,949 6,167

2003 2,164,155 161,329 8,544

2002 1,931,260 152,054 5,897

114 345,973 690 4,510,128 741,265 242,873 62 218 300 297,284,038 224,821

230 191,351 137 4,436,089 704,852 223,891

12 103,375 4,714 3,851,736 585,517 164,423

208,771,164 179,573

202,080,832 231,723

30,485 35,315 35,170 41 835 1,048,468 4,749,093 8,769,751 23,144 7,930,156 118 34,530,730 642,857 77

26,240 56,438 65,281 5,264

6,640 43,616 40,030

5,671 13,301 7,234

2,886,987 2,672,733 4,676,512 2,911 5,611,328 31 20,456,672 190,554 10

1,138,358 1,609,289 2,595,155 277 4,219,618

1,110,934 1,049,220 2,166,469 4 3,134,963

11,193,922 16,860

6,986,600 7,252

12,471,672 4,887

7,395,322 5,466

6,085,209 2,740

4,394,982 2,557

3,674,886 187,437 3,966 15,046 45,835 63,379 1,884 7,784,498 1,797 836 1,990 830 3,209 452

3,247,222 162,370 2,122 4,461 30,620 65,749 812 4,067,767 676 1,066 639 651 689 344

2,123,623 120,235 388

1,354,256 54,148 303

4,420 73,542 4 3,596,658 220 94

55,275 1 2,830,738 16 16

894 103 102

519 263

338 823 1,032 10 522 18,548 39,069 123,805 394 12,264 1,886,270 952,618 15,377,489 207,095,732

110 769 901

247 554 247

54 306 5

98 3,859 43,635 118,614 318 7,290 1,239,010 260,128 16,175,584 167,202,962

65,696 161,600

7,166 58,768

1,794 765,463

949 571,241

20,175,462 161,176,639

23,699,667 115,741,691

2,533 8,049 68 205,058 1,882

2,754 8,852 197 260,764 2,354

5,119 14,131 60 302,817 1,635

7,756 17,238 1,410 387,800 191

VOLUME U.S. Chicago Mercantile Exchange (CME) Future S&P Citigroup Value E-mini S&P SmallCap 600 I ndex E-Mini MSCI EAFE NASDAQ 100 I ndex E-Mini NASDAQ 100 I ndex Russell 2000 I ndex E-Mini Russell 2000 I ndex Russell 1000 I ndex Long-Short TRAKRS I ndex I I Rogers I nternational TRAKRS TRAKRS BXY TRAKRS PI MCO TRAKRS PI MCO SPTR TRAKRS Select 50 I ndex TRAKRS Commodity TRAKRS Euro Currency TRAKRS Gold HDD Weather HDD Seasonal Weather HDD Seasonal Weather Strips CDD Weather CDD Seasonal Weather Strips Euro HDD Weather Euro CAT Weather Euro Seasonal HDD Weather CSI Housing I ndex Goldman Sachs Commodity I ndex GSCI Excess Return I ndex S&P 500 ETF Russell 2000 ETF E-Mini Nasdaq Bio-Tech I ndex Nasdaq 100 ETF Total Futures

New York Board of Trade (NYBOT) FU TU R E Euro / US Dollar, Small Euro / Australian Dollar Euro / Canadian Dollar Euro / Czech Koruna Euro / Hungarian Forint Euro / Japanese Yen Euro / Swedish Krona Euro / British Pound Euro / Norwegian Euro / South African Rand Euro / Swiss Franc British Pound / Australian Dollar British Pound / Canadian Dollar British Pound / New Zealand Dollar British Pound / Norwegian Krone British Pound / South Africa Rand British Pound / Swedish Krona Small Australian Dollar / US Dollar Small British Pound / US Dollar Small New Zealand Dollar / US Dollar Small US Dollar / Canadian Dollar Small US Dollar / Japanese Yen Small US Dollar / Swiss Franc US Dollar I ndex Revised NYSE Composite I ndex Russell 1000 I ndex Russell 1000 Growth I ndex Russell 1000 Value I ndex Russell 2000 I ndex Reuters-CRB Futures I ndex (CCI ) RJ/CRB Futures I ndex Total Futures*

(Continued)

Contract Unit 250 USD x I ndex 100 USD x I ndex 50 USD x I ndex 500 USD x I ndex 20 USD x I ndex 500 USD x I ndex 100 USD x I ndex 100 USD x I ndex 1 USD x I ndex 1 USD x I ndex 1 USD x I ndex 1 USD x I ndex 1 USD x I ndex 1 USD x I ndex 1 USD x I ndex 1 USD x I ndex 1 USD x I ndex 20 USD x I ndex 20 USD x I ndex 20 USD x I ndex 20 USD x I ndex 20 USD x I ndex 20 GBP x I ndex 20 GBP x I ndex 20 GBP x I ndex 250 USD x I ndex 250 USD x I ndex 100 USD x I ndex 100 shares 200 shares 250 USD x I ndex 200 shares

2006 7,289 5,528,263 17,461 2,269,870 79,940,222 619,286 41,748,538 38,304 980,098 26,486,999 304,172 24,471,474 2,349,055 5,280,652 746,723 277,792 1,257,549 115,763 2,875 13,675 65,258 8,450 3,435 950 1,225 3,632 615,260 13,141 2,009 785 75 1,849 1,101,712,533

2005

2004

2003

2002

4,885,430

3,282,347

1,417,513

343,087

2,682,058 72,453,141 571,055 28,902,033 530,665 1,172,321 36,081,429

4,011,983 77,168,513 614,040 17,121,233 51,437 5,693,223

4,421,221 67,888,938 655,778 3,878,935 14,941

4,903,287 54,491,180 843,479 859,885

2,250,341 397,642 1,827,018 75,266 9,610 50 107,475

4,138,262 1,248,272 4,868,842 16,404 2,080

7,424,763 1,196,525 6,065,013 6,058 225

23,656

8,176

7,302 3,332

2,015 535

375

498,424

450,036

371,473

518,323

4,522 47 3 3,817 883,118,526

664,584,607

530,989,007

444,537,987

2005 110,186 59,644 12,179 21,525 12,905 448,372 129,028 253,818 55,945

2004 12,409 44,000 52,496 28,093 17,640 363,069 64,334 226,404 29,536

2003 5,365 30,466 49,890 2,774 24 346,751 49,977 117,989 29,815

2002 2,560 14,635 17,731

337,756 45,757 124,485 17,670

261,897

143,274

133,218

69,057

21,762

6,006

15,624 39,715 28,262 1,159,938 14,047 885,881 2,905 2,391 298 9,144 7,424 29,013,416

247 5,664 41 748,204 14,678 961,771 2,442 2,392 424 19,230

563,032 7,143 677,626 836 415 10 23,156

411,571

23,955,212

18,822,048

2,334

1,831

(Continued) CONTRACT UNIT 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 125,000 GBP 125,000 GBP 125,000 GBP 125,000 GBP 125,000 GBP 125,000 GBP 100,000 AUD 62,500 GBP 100,000 NZD 100,000 USD 100,000 USD 100,000 USD 1,000 USD x I ndex 50 USD x I ndex 500 USD x I ndex 500 USD x I ndex 500 USD x I ndex 500 USD x I ndex 500 USD x I ndex 200 USD x I ndex

2006 116,029 58,144 26,477 17,533 11,615 586,129 54,571 304,382 44,635 163 183,446 10 2 2 2 2 2 27 17,437 80 18,910 142,751 64,417 1,168,486 3,213 837,065 2,730 2,031 1,038 14,312 150 32,746,692

646,455

14,283 16,272,144

39T

VOLUME U.S. New York Board of Trade (NYBOT)** Option Coffee 'C' Sugar #11 Sugar #11 Options on Futures Spreads Cocoa Cotton #2 Cotton #2 Options on Futures Spreads Pulp Orange Juice Frozen Concentrate US Dollar I ndex Euro Euro / Canadian Dollar Euro / Swedish Krona Euro / British Pound Euro / Swiss Franc Euro / Japanese Yen British Pound / Japanese Yen US Dollar / Japanese Yen US Dollar / British Pound Revised NYSE Composite I ndex Russell 1000 I ndex Russell 2000 I ndex Russell 3000 I ndex Reuters-CRB Futures I ndex (CCI )

Contract Unit 37,500 lbs 112,000 lbs

2006 2,785,053 6,250,162 54,880 377,905 1,820,259 10 1,710 426,967 39,299 130 525 33 84 14 4,021 62 140 14 42,794 81,274 28,639 182 6,320

2005 2,370,161 3,631,939 14,861 512,259 1,709,345 534 6,478 433,288 35,356 242 6 122 88

2004 1,970,068 2,854,683

2003 1,328,081 1,690,190

2002 1,063,090 1,380,300

429,769 1,725,982

497,188 2,157,441

743,237 1,171,843

554,432 57,189 352

195,541 29,532 578

175,794 28,694 69

67

253

14

116 14

40 17

776 209

104 156

10 37,872 142,299 32,362 1,568 1,539

25 26,952 103,944 36,305 4,647

31 18,912 61,264 734

8,932,169

7,774,379

6,010,110

4,656,335

3,857,721

CONTRACT UNIT 1 0 0 oz 5,000 oz 25,000 lbs 44,000 lbs

2006 15,917,584 5,433,063 3,281,312 9,149 24,641,108

2005 15,890,617 5,536,351 3,950,842 28,491 25,406,301

2004 14,959,617 5,006,125 3,190,625 72,169 23,228,536

2003 12,235,689 4,111,190 3,089,270 107,490 19,543,639

2002 9,018,183 3,135,564 2,807,286 74,000 15,035,033

CONTRACT UNIT 1 0 0 oz 5 0 oz 42,000 gal 42,000 gal 42,000 gal 42,000 gal 1,000 bbl 400 bbl 42,000 gal 1,000 bbl 1,000 bbl 42,000 gal 10,000 MMBTU 4,000 MMBTU 1,500 tons

2006 378,116 373,119 13,990,589 126,191 8,620,908 59,106 71,053,203 4,806,526 3,883,261 12,042 3 1,127 23,029,988 1,328,409 52,305 24,157,726 7,973,290 1,317,291 245,305 181,765 205,978 1,408,279 2,311,008 611,795 533,176

2005 321,923 376,179 13,135,581

2004 267,552 295,695 12,884,511

2003 95,613 268,305 11,581,670

2002 41,053 219,771 10,695,202

13,166,417

12,777,442

11,172,050

10,979,736

59,650,468 5,682,214 1,964 986,534

52,883,200 720,421

45,436,931 277,411

45,679,468 210,228

135,385

30

1,516

4,010 19,142,549 522,439 28,058 10,406,462 2,751,455 1,247,570 181,241 160,530 429,597 1,261,653 1,580,162 338,241 682,135

14,764 17,441,942 136,123 7,490 5,353,792 294,011 488,699 69,555 62,048 320,144 652,511 569,540 184,909 334,230

14,710 19,037,118 115,502 5,235 2,356,600

12,826 24,357,792 67,981 4,124

10 metric tons 50,000 lbs 20 Airdry Metric Tons 15,000 lbs 500 USD x I ndex 200,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 125,000 GBP 12,500,000 JPY 125,000 GBP 50 USD x I ndex 500 USD x I ndex 500 USD x I ndex 500 USD x I ndex 500 USD x I ndex

Total Options**

1,449

New York Mercantile Exchange (NYMEX) COMEX Division FU TU R E Gold Silver High Grade Copper Aluminum Total Futures

NYMEX Division FU TU R E Palladium Platinum No. 2 Heating Oil, NY E-Mini Heating Oil, NY Unleaded Gasoline, NY E-Mini Unleaded Gasoline, NY Crude Oil E-Mini Crude Oil NY Harbor RBOB Gasoline Brent Crude Oil E-Mini Brent Crude Oil Propane Natural Gas E-Mini Natural Gas C oa l Henry Hub Swap Natural Gas Penultimate Swap AECO-C/NI T Basis Swap CI G Rockies San Juan Basis Swap Sumas Basis Northwest Rockies Basis Swap Socal Basis Swap WAHA Basis PG&E Malin Basis

40T

7,026 172,313

5,890

134,632 241,769

11,564

VOLUME U.S. New York Mercantile Exchange (NYMEX)

(Continued)

NYMEX Division FU TU R E PG&E Citygate Basis Permian Basis Transco Zone 6 Basis Swap Texas Eastern Zone M-3 Basis Dominion Transmission - Appalachian Basis Centerpoint Basis Swap TCO Basis Transco Zone 3 Basis Swap Florida Gas Zone 3 Basis Swap Columbia Gulf Onshore Basis Henry Hub Basis Swap Chicago Basis Swap ANR - Louisiana Basis Swap ANR - Oklahoma Basis Michigan Basis Houston Ship Channel Basis Swap NGPL Mid-Continent Tennessee 500 Leg Basis Swap Tennessee Zone 0 Basis Swap Trunkline, LA Basis Swap NGPL Louisiana Basis NGPL TEX/OK Basis Northern Natural Gas Demarcation Basis Northern Natural Gas Ventura Basis Panhandle Basis Swap Sonat Basis Swap Texas Gas Zone SL Basis Swap TETCO ELA Basis Transco Zone 4 Basis Swap TETCO STX Basis Socal I ndex Dominion Transmission - Appalachian Basis I ndex Demarc Natural Gas I ndex Swap Ventura Natural Gas I ndex Swap Centerpoint East I ndex El Paso, San Juan I ndex Swap PG&E Citygate I ndex El Paso, Permian I ndex Swap Henry Hub I ndex Swap Houston Ship Channel I ndex Swap Rockies Kern Opal - NW I ndex Chicago I ndex Swap Transco Zone 6 I ndex Sumas I ndex Panhandle I ndex Swap NGPL Midcontinental I ndex Tetco M-3 I ndex WAHA I ndex Swap NGPL TEXOK I ndex Demarc Natural Gas Swing Swap NGPL TEXOK Swing Swap NGPL Midcontinental Swing Swap Socal Swing Swap Dominion Transmission - Appalachian Swing Swap San Juan Swing I ndex PG&E Citygate Swing Swap El Paso Permian Swing Houston Ship Channel Swing Henry Hub Swing Kern River Opal Plant Swing Swap Chicago Swing Transco Zone 6 Swing Swap Sumas Swing Swap Future Panhandle Swing Texas Eastern Zone M-3 Swing WAHA Swing Ventura Natural Gas Swing Swap Centerpoint East Swing Swap PJM Daily

CONTRACT UNIT

2006

2005

2004

2003

2002

356,769 520,763 313,674 642,301 433,304 68,895 333,867 58,349 13,785 68,181 467,158 555,309 24,476 47,516 484,925 1,696,435 279,960 19,071 81,632 7,001 2,798 1,119,784 162,381 306,787 1,404,498 18,722 49,163 11,811 13,652 69,669 53,086 10,120 2,218 2,508 1,378 3,702 14,331 16,710 332,129 131,702 29,994 5,114 11,199 14,976 9,444 1,615 44,685 26,784 3,537 1,073 472 202 19,888 3,344 852 2,960 5,092 10,247 37,243 8,495 572 1,515 2,546 3,634 2,394 7,918 434 58 3,530

642,845 306,329 529,577 716,299 459,360

209,906 128,814 480,197 278,235 247,191

110,812 211,397

186 1,340

178,591 95,595

7,702 1,898

316,053 92,944 972 27,332 337,152 324,560 6,869 57,584 158,667 778,513 160,828 8,600 56,197 3,972 11,619 401,241 73,501 207,843 870,855 8,966 10,640 8,196 1,394 36,481 23,512 8,186

244,049 56,993

103,343 2,750

3,610

24,272 98,408 174,498

3,526

52,967 94,137 429,266 69,854

8,235 81,074

856 856

32,580

1,666

3,724 60,266 17,651 21,771 224,329

2,260 13,418 35,901 65,843

2,072 4,950 5,525

24,755

4,872

19,790

13,132

924 14,878 11,740 271,791 148,249 8,562 6,605 8,796 13,088 6,171 19,601 26,923

11,528 3,832 248 4,147 2,606 6,384 85,830 3,380 991 914 1,434 2,780 498 5,252

217,349

2,250 65,860 12,791 1,581

1,798

4,549

1,078 40,102 102

599 1,310

190,591

30,221

41T

VOLUME U.S. New York Mercantile Exchange (NYMEX)

(Continued)

NYMEX Division FU TU R E PJM Monthly PJM Weekly Northern I llinois Hub Daily Northern I llinois Hub Monthly AER-Dayton Hub Daily AER-Dayton Hub Monthly PJM Off-Peak LMP Swap Northern I llinois Off-Peak Monthly AER-Dayton Off-Peak Monthly Dow Jones NP15 Dow Jones Mid-Columbia Dow Jones SP15 NYI SO A NYI SO G NYI SO J NYI SO A Off-Peak NYI SO G Off-Peak NYI SO J Off-Peak NYI SO Zone A LBMP Daily Peak Swap NYI SO Zone G LBMP Daily Peak Swap NYI SO Zone J LBMP Daily Peak Swap MI SO-Cinergy Hub LMP Swap-Peak MI SO-Michigan Hub LMP Swap-Peak MI SO-I llinois Hub LMP Swap-Peak Cinergy Hub Off-Peak LMP Swap Michigan Hub Off-Peak Calendar Swap Cinergy Hub Daily Peak Swap I SO New England I nternal Hub Peak LMP I SO New England I nternal Hub LMP Swap Off-Peak I SO New England I nternal Hub Daily Peak Swap ERCOT Sellers Choice Peak Swap WTI Crude Oil Calendar Swap Dubai Crude Oil Calendar Swap Euro Gasoil 50 CI F vs I CE European ULSD (ppm) CI F Med Swap Euro ULSD 50ppm CI F Calendar Swap Gasoil Calendar Swap Argus Gasoline Crack Spread SW RBOB vs Heating Oil Swap RBOB Calendar Swap RBOB Bullet Swap RBOB Up-Down Calendar Swap NYMEX Brent Calendar Swap NYMEX WTI -Brent Calendar Swap Dated Brent Crude Oil Calendar Swap WTI Bullet Swap Gulf Coast Jet Fuel Calendar Swap Gulf Coast Heating Oil Calendar Swap Gulf Coast Gasoline Calendar Swap Gulf Coast No 6 Fuel Oil 3.0% Swap NY Harbor Residual Fuel 1.0% Sulfur Swap NY Harbor Heating Oil Calendar Swap NYMEX Gasoline Calendar Swap NY Harbor Conv Gasoline vs RBOB Singapore Jet Kerosene Swap Singapore 380CST Fuel Oil Swap Singapore Gasoil Swap Singapore Naptha Swap Europe SI NPO Fuel 180CST CALS NW Europe Gasoline Swap-Argus Price Brent Bullet Swap Brent (I CE) Calendar Swap Mediterranean Premium Unleaded Gasoline (50ppm) Swap European Gasoil 0.2 NEW Calendar Swap Europe 1% Fuel Oil NWE CALS Europe 1% Fuel Oil RDAM CALS Europe 3.5% Fuel Oil NWE CALS Europe Naptha Calendar Swap

42T

CONTRACT UNIT

2006

2005

2004

2003

171,655 1,900 1,080 38,220 590 8,026 83,734 88,724 12,710 100 120 290 61,394 50,385 26,492 18,054 13,568 9,380 26,630 10,666 920 13,728 1,040 880 24,076 280 440 44,965 25,445 59,270 860 377,086 88,601 70 6 16 419 9,052 2,175 13,562 480 6,169 1,557 495 1,425 34,373 3,052 3,269 21,921 27,673 38,366 44,436 3,738 600 4,898 461 13,484 2,750 20,213 5,133 5,341 38,305

652,077 36,900 700 21,038 13,860 18,020 85,922 59,640 13,500 900 5,830 1,740 118,351 62,913 40,495 15,580 8,060 3,160

234,207 18,725

142,859 3,963

3,770 3,310 6,594 91,067 26,018 13,214

88,826 52,996 10,245

26 2 3,047 681 105 811

5,840

9,780 240 119,569 41,573

4,030

41,931

152,680

33,785

200 625 51,347 20,279

375 2,355

126 1,200

615 861 3,352 21,515 15,163 24,760 21,697

118 305 150 6,629 603

1,382 707 20 140

2002

1,268 4,848 758

VOLUME U.S. N ew York Mercantile Exchange (N YMEX)

(C onti nued)

N YMEX D ivision FU TU R E

C ON TR AC T U N IT

European ULSD R otterdam C alendar Swap Europe Gasoil 0.2 Med C alendar Swap Europe 3.5 Fuel Oil R DAM C ALS NY Harbor No 2 C rack Spread C alendar Swap Gulf C oast Gas vs Heating Oil Spread Swap Gulf C oast Jet vs NYMEX HO Spread Swap Gulf C oast No 6 Fuel Oil C rack Swap NYH C onv Gas vs NY Unleaded Gas Spread Swap NY Harbor R esidual Fuel Oil C rack Swap Los Angeles Jet Fuel vs NYH #2 Heating Oil Spread Swap Gasoline vs. Heating Oil Swap US Gulf C oast No 2 C rack Spread C alendar US Gulf C oast Unleaded 87 C rack Spread C alendar NY Harbor Unleaded C rack Spread C alendar No 2 Up-Down Spread C alendar Swap Unleaded 87 Up-Down C alendar Swap Singapore Jet Kerosene vs Gasoil Spread Swap R BOB C rack Spread Singapore Fuel Oil Spread Swap WTI -Brent (I C E) C alendar Swap WTI -Brent (I C E) Bullet Swap Brent-Dubai Swap European Gasoil 0.2 C I F NEW vs Gasoil Swap European Gasoil 0.2 FOB MED vs Gasoil Swap European Gasoil 0.2 R otterdam Barges vs Gasoil Swap European Naptha C rack Spread European Gasoil (10ppm) R otterdam Barges vs Gasoil East/West Fuel Oil Spread Swap European ULSD (50ppm) C I F NEW vs Gasoil European 3.5% Fueal Oil Spread 1% Fuel Oil New C rack Spread Swap 3.5% Fuel Oil R otterdam C rack Swap High-Low Sulfur Fuel Oil Spread Swap Dated-to-Frontline Brent Swap Singapore Gasoil vs R otterdam Gasoil Swap European Gasoil C rack Spread Swap TD5 West Africa to US Atlantic C oast Freight TD7 North Sea to Europe Freight TD3 Middle Eastern Gulf to Japan Freight European Jet C I F NEW vs Gasoil Swap European Jet R otterdam Barges vs Gasoil Swap TC 2 R otterdam to US Atlantic C oast Nitrogen Oxide (NOX) Emissions Sulfur Dioxide (SO2) Emissions Sugar #11 T otal F utures

2006 45 10 14,699 48,323 3,378 2,427 360 200 4,877 5,550 1,646 1,203 19,933 3,775 4,193 12,010 3,075 13,254 913 35,343 200 15,455 30 75

2005 128 8,639 37,792 1,800 6,137 1,875

2004

2003

2002

120,780 3,650 1,750

4,700

12,307 704 5,876 32,542 1,848 2,525

20,795 1,375 45,775 45,336 2,352 6,675

150

141,201,756

110,054,812

92,246,019

92,324,686

2005

2004

2003

2002

166,608,057

133,283,348

111,789,658

107,359,719

95

15 2,332 27 2,069 148 5 95 152 1,701 21,394 5,610 14,040 65 30 30 480 5 630 5 4,105 10 178,934,185

668

592

810 125

460 131

GLOB EX Futures Traded on N YMEX FU TU R E C rude Oil miNY Brent C rude Oil Brent C rude Oil miNY Gasoil R otterdam Physical Heating Oil miNY R BOB Gasoline miNY Natural Gas miNY Palladium miNY Brent Bullet Swap R BOB Financial WTI Financial Henry Hub Financial Last Day Henry Hub Full Penultimate Heating Oil Financial Gold miNY Silver miNY C opper miNY Asian Gold London C opper T otal F utures T otal F utures**

C ON TR AC T U N IT

2006 9,323,467 1,442 11 13 422,248 872 2,035,824 3 20,432 3,020 820,579 28,495 6,540 19,231 313 40 77 39 56 12,682,702 216,257,995

43T

VOLUME U.S. US Futures Exchange (USFE) FU TU R E Russell 1000 I ndex Russell 2000 I ndex CAD / USD CHF / EUR CHF / USD GBP / EUR JPY / USD USD / AUD USD / EUR USD / GBP Jumbo 2-Year Treasury Note T-Notes (5-year) T-Notes (10-year) T-Bonds Total Futures

CONTRACT UNIT 100 USD x I ndex 100 USD x I ndex 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 1,000,000 USD 200,000 USD 200,000 USD 200,000 USD

2006 688 19,618 49 18,984 122 7,895 194 195 1,875 628 525 14,000 66,630 4,400 135,803

2005 251,293 738,156 1,831 60,801 841 38,518 2,826 532 19,758 1,330 1,760 431,742 365,369 282,469 2,200,384

CONTRACT UNIT

2006 7,777,241 9,124 136,100 7,922,465

2005 5,474,663 14,162 39,000 5,528,046

2006 2,043,902,218

2005 1,652,871,946

2004

2003

2002

2004 1,890,097 29,585

2003 1,488,573 127,424

2002 151,878 32,203

1,922,726

1,619,194

184,081

2004 1,323,726,632

2003 1,042,968,664

2002 851,310,459

PERCENT CHANGE 23.66% 24.87% 26.92% * I ncludes the New York Futures Exchange, New York Cotton Exchange and Coffee, Sugar and Cocoa Exchange. ** I ncludes Commodity Exchange, I nc.

22.51%

35.30%

2,332,942 2,818,977 980,426 6,186,008

ONECHICAGO FU TU R E Single Stock Futures Exchange Traded Funds Narrow-Based Equity I ndex Total Futures

Total US Futures Volume TOTAL FUTURES

Options Traded on U.S. Securities Exchanges Volume Highlights 2006 in Comparison w ith 2005 2006 RANK EXCHANGE 1 Chicago Board of Options Exchange 2 I nternational Securities Exchange 3 Philadelphia Stock Exchange 4 American Stock Exchange 5 Pacific Stock Exchange 6 Boston Options Exchange Total Options

2006 CONTRACTS 674,735,348 591,961,518 273,093,003 197,045,745 196,586,356 94,390,602 2,027,812,572

% 33.27% 29.19% 13.47% 9.72% 9.69% 4.65% 100.00%

2005 CONTRACTS 468,249,301 448,695,669 162,618,812 201,631,832 144,780,498 78,202,185 1,504,178,297

% 31.13% 29.83% 10.81% 13.40% 9.63% 5.20% 100.00%

2005 RANK 1 2 4 3 5 6

Options Traded on U.S. Futures Exchanges Volume Highlights 2006 in Comparison w ith 2005 2006 2006 2005 RANK EXCHANGE CONTRACTS % CONTRACTS 1 Chicago Mercantile Exchange (CME) 301,551,501 60.12% 207,233,185 2 Chicago Board of Trade (CBT) 127,622,361 25.45% 113,505,455 3 New York Mercantile Exchange (NYMEX)** 59,899,331 11.94% 38,002,895 4 New York Board of Trade (NYBOT)* 11,920,477 2.38% 8,932,169 5 Kansas City Board of Trade (KCBT) 515,479 0.10% 263,511 6 Minneapolis Grain Exchange (MGE) 40,491 0.01% 32,464 7 EUREX US 0 0.00% 800 Total Options 501,549,640 100.00% 367,969,679 * I ncludes the New York Futures Exchange, New York Cotton Exchange and Coffee, Sugar and Cocoa Exchange. ** I ncludes Commodity Exchange, I nc.

44T

% 56.32% 30.85% 10.33% 2.43% 0.07% 0.01% 0.00% 100.00%

2005 RANK 1 2 3 4 5 6 7

VOLUME U.S. Options Volume on U .S. Futures Exchange 2002-2006 C hicago B oard of Trade (C B T) Option W h ea t C orn Oats Soybeans Soybean C rush Soybean Oil Soybean Meal R ice Silver (5,000 oz) Gold (100 oz) T-Bonds T-Notes (10-year) T-Notes (5-year) T-Notes (2-year) 30-Day Federal Funds Binary Flexible US T-Bonds Flexible T-Notes (10-year) Flexible T-Notes (5-year) Dow Jones I ndustrial I ndex Mini ($5) Dow Jones I ndustrial I ndex T otal Options

Contract Unit 5,000 bu 5,000 bu 5,000 bu 5,000 bu 50,000 bu 60,000 lbs 100 tons 200,000 lbs 5,000 oz 1 0 0 oz 100,000 USD 100,000 USD 100,000 USD 200,000 USD 5,000,000 USD

10 USD x I ndex 5 USD x I ndex

2006 2,597,975 11,317,388 25,738 6,042,797 6,828 902,096 746,185 26,868 1,521 193,944 20,731,673 61,888,144 11,585,131 804,975 9,424,628 47,237 392,648 311,295 24,100 100,589 450,601 127,622,361

2005 1,870,541 6,257,027 22,320 6,817,588

2004 1,465,760 7,593,355 36,498 6,045,952

2003 1,788,500 4,515,240 36,163 4,885,399

2002 1,773,559 5,397,748 90,780 4,227,445

682,825 685,830 17,834

947,383 971,335 22,064

665,532 546,267 34,978

659,302 404,351 35,272

15,661,021 55,648,782 17,691,564 23,251 6,534,587

13,788,908 56,878,013 17,215,903 10,206 4,707,103

15,180,025 41,165,629 9,697,455 11,874 1,614,319

15,324,548 31,741,521 7,533,556 32,468

600,641 259,295 4,000 114,353 613,996 113,505,455

193,663 96,192 29,900 190,708 571,299 110,764,242

57,442 56,920 200 263,629

38,456 60,577 4,225 234,219

80,521,459

67,566,482

2005 198,274 3,228 203

2004 179,093 4,010 401

2003 129,227 7,991 800

2002 156,699 5,595 259

796 71,431 502,021 142,253 25,171 48 188,001,048 146,893 231,329 419,232 1,284

1,654 122,014 500,927 142,638 20,056 437 130,598,377 166,360 190,976 465,261 3,664

1,269 79,901 664,291 179,347 18,139 53 100,823,779 156,569 206,862 489,123 5,050

2,107 23,852 476,467 121,226 14,665 318 105,580,961 121,443 153,329 849,646 5,688

50,107 109,970 2,100,595 72,119

55,596 60,593 1,492,887

53,766 42,495 1,187,819

82,285 18,098 929,518

44,458 9,810,489 4,289,038

8,774 5,834,225 477,712

8,564 4,986,456 112,864

4,197 5,235,388 46,355

670 35,306 110,093 4,779 175,226 28,725 16,400 310,925 225,550 13,674

375 37,612 10,015 6,205

780 50,439

2,573 71,991

4,048

4,602

3,475 11,527 39,650 5,650

230 501 3,390 150

32 281

900 33,625 5,400

450 13,950

729

1,392

1,492

1,318

207,233,185

140,457,074

109,220,627

113,909,833

C hicago Mercantile Exchange (C ME) Option Lean Hogs Pork B ellies, Frozen B utter Nonfat Dry Milk Mini B FP Milk C lass I I I Milk Live C attle Feeder C attle R andom Lumber E uroyen E urodollar (3-month) B ritish Pound C anadian Dollar Japanese Yen Mexican Peso R ussian R uble Swiss Franc A ustralian Dollar E uro FX E uro FX E uropean B ritish Pound E uropean C anadian Dollar E uropean Japanese Yen E uropean Swiss Franc E uropean Nikkei 225 S&P 500 I ndex E -Mini S&P 500 I ndex E OM S&P 500 I ndex E OM E -Mini S&P 500 I ndex S&P MidC ap 400 I ndex NA SDA Q 100 I ndex E -Mini NA SDA Q 100 I ndex R ussell 2000 I ndex E -Mini R ussell 2000 I ndex C DD Weather HDD Weather HDD Seasonal Weather C DD Seasonal Weather HDD Seasonal Weather Strip C DD Seasonal Weather Strip E uro C A T Weather E uro HDD Seasonal Weather E uro C A T Seasonal Weather E uro C DD Seasonal Strip Weather Goldman Sachs C ommodity I ndex C SI Housing I ndex T otal Options

C ontract U nit 40,000 lbs 40,000 lbs 40,000 lbs 44,000 lbs 100,000 lbs 200,000 lbs 40,000 lbs 50,000 lbs 100,000 bd ft 100,000,000 JPY 1,000,000 USD 62,500 100,000 12,500,000 500,000 2,500,000 125,000 100,000 125,000 E UR 125,000 E UR 62,500 100,000 12,500,000 E UR 125,000 5 USD x I ndex 500 USD x I ndex 50 USD x S&P I ndex 250 USD x I ndex E OM x I ndex 500 USD x I ndex 100 USD x I ndex 20 USD x I ndex 500 USD x I ndex 100 USD x I ndex 20 USD x I ndex 20 USD x I ndex 20 USD x I ndex 20 USD x I ndex 20 USD x I ndex 20 USD x I ndex 20 GB P x I ndex 20 GB P x I ndex 20 GB P x I ndex 20 GB P x I ndex 250 USD x I ndex 250 USD x I ndex

2006 225,013 1,198 241 116 549 85,713 930,169 156,292 20,909 87 268,957,052 158,473 375,257 544,716 371 433 47,984 36,562 1,849,119 190,610 18,191 7,256 53,753 6,773 59,200 15,785,802 9,893,979 80,424 147,471 435 71,499 317,765 5,812 933,224 18,050 75,277 114,000 27,100 209,300 97,200 500 2,000 33,100 9,350 377 2,799 301,551,501

50,996

45T

VOLUME U.S. Kansas City Board of Trade (KCBT) Option W h ea t

Contract Unit 5,000 bu

Total Options

2006 515,479

2005 263,511

2004 254,304

2003 465,381

2002 570,823

515,479

263,511

254,304

465,381

570,887

2006 40,468 23

2005 27,245 2,697

2004 34,260

2003 39,764

2002 61,086

32,464

34,826

46,711

61,226

29,830

2005 2 1 1 6 122 88 116 14 1 2 3 10 37,872 142,299 32,362 1,568 1,694 1,539

2004

2003

2002

2001

67 40 17

253 776 209

14 104 156

936 685 16

45 25 26,952 103,944 36,305 4,647 3,515

60 31 18,912 61,264 734

140

8,932,169

Minneapolis Grain Exchange (MGEX) Option American Spring Wheat National Corn I ndex

Contract Unit 5,000 bu 5,000 bu

Total Options

New York Board of Trade (NYBOT)** Option Australian Dollar / Japanese Yen Australian Dollar / New Zealand Dollar Euro / Australian Dollar Euro / Canadian Dollar Euro / Swedish Krona Euro / British Pound Euro / Japanese Yen British Pound / Japanese Yen Canadian Dollar / Japanese Yen New Zealand Dollar / US Dollar US Dollar / Canadian Dollar US Dollar / British Pound Revised NYSE Composite I ndex Russell 1000 I ndex Russell 2000 I ndex Russell 3000 I ndex Reuters-CRB Futures I ndex (CCI ) RJ/CRB Futures I ndex

(Continued) Contract Unit 200,000 AUD 200,000 AUD 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 100,000 EUR 125,000 GBP 200,000 CAN 200,000 NZD 200,000 USD 125,000 GBP 50 USD x I ndex 500 USD x I ndex 500 USD x I ndex 500 USD x I ndex 500 USD x I ndex 200 USD x I ndex

Total Options**

1,449

9,905

1,913

974

891

7,774,379

6,010,110

4,656,335

3,857,721

2006 3,708,573 1,646,959 75,403

2005 2,889,803 1,131,812 143,609

2004 4,667,523 1,022,348 216,350

2003 4,310,318 560,018 47,326

2002 1,948,564 530,831 37,315

5,430,935

4,165,224

5,906,221

4,920,341

2,516,710

2006 321 595,427 10,185 500 18,868 583,342 3,210 2,227 21,016,562 1,209,952 100 400 24,750 21,416 838,985 82,176 220 25 142 995 9,581,663 246,472 1,150 24,556

2005 404 983,388 12,868

2004 637 800,277 1,880

2003 633 668,859 2,430

2002 456 602,170 747

8,302 973,849 2,700 5,841 14,726,263 440,234 510

1,134 904,466 3,175 300 11,512,918 357,156

616,245 3,465

721,932 1,087

10,237,121 164,928

11,460,857 92,603

12,267

9,600

825

2,905

45,250

23,622

131

9,168,354 103,058 1,525 3,175

8,071,967 47,328

8,742,277 13,557

New York Mercantile Exchange (NYMEX)* COMEX Division Option Gold Silver High Grade Copper

Contract Unit 1 0 0 oz 5,000 oz 25,000 lbs

Total Options

NYMEX Division Option Platinum Heating Oil Heating Oil 1-month CSO Heating Oil 6-month CSO Heating Oil APO Unleaded Gasoline Unleaded Gasoline 1-month CSO Unleaded Gasoline APO Crude Oil Crude Oil 1-month CSO Crude Oil 2-month CSO Crude Oil 6-month CSO Crude Oil 12-month CSO Crude Oil One Day Crude Oil APO RBOB Gasoline RBOB Crack Spread RBOB 2-month CSO RBOB Average Price RBOB European Expiration Natural Gas Natural Gas 1-month CSO Natural Gas 2-month CSO Natural Gas 3-month CSO

46T

Contract Unit 5 0 oz 42,000 gal

1,000 bbl

1,000 bbl

10,000 MMBTU

500

10,966,023 4,636 200

VOLUME U.S. New York Mercantile Exchange (NYMEX)* NYMEX Division Option Natural Gas 5-month CSO Natural Gas One Day Gas-Crude Oil Spread Heating Oil-Crude Oil Spread PJM Monthly European Style Natural Gas European Style Crude Oil European Style Heating Oil European Style Unleaded Gasoline

2005 5,500 795 21,440 29,862 247,040 19,515,968 379,250 1,525 3,372

2004

2003

2002

2001

56,142 82,505 73,640 6,968,569 119,218 24,339 25,270

79,664 98,503 3,985 2,012,703 17,080 8,023 12,270

35,797 28,747

6,521 6,364

54,468,396 59,899,331

33,837,671 38,002,895

23,967,338 29,873,559

20,515,440 25,435,781

23,868,006 26,384,716

2006 501,549,640

2005 367,969,679

2004 289,158,384

2003 221,700,069

2002 213,149,576

PERCENT CHANGE 36.30% 27.26% 30.43% * I ncludes the New York Futures Exchange, New York Cotton Exchange and Coffee, Sugar and Cocoa Exchange. ** I ncludes Commodity Exchange, I nc.

4.01%

26.88%

Total Options Total Options*

Contract Unit

1,000 bbl 1,000 bbl

Total US Options Volume TOTAL OPTIONS

47T

Volume Worldwide Australian Stock Exchange (ASX), Australia S&P/ASX I ndex All Futures on I ndividual Equities Total Futures S&P / ASX I ndex All Options on I ndividual Equities Total Options

2006 110,769 693,683 804,452 1,170,793 20,477,083 21,647,876

2005 106,237 490,238 596,475 1,163,213 21,828,002 22,991,215

2004 66,256 460,501 526,757 794,121 19,164,851 19,958,972

2003 67,769 267,630 335,399 578,066 15,988,740 16,566,806

2002

2006 1,818,764 285,699,806 287,518,570

2005 2,257,756 266,362,631 268,620,460

2004 1,586,762 233,759,713 235,349,514

2003 1,600,261 175,622,679 177,223,140

2002 1,144,628 89,740,269 90,884,897

2005 485,902

2004 620,997

2003 478,544

2002 446,115

311,459 24,984 3,031 63,385 3,338 97,795 47,360 668 2,640 42,336 25,466 6,065,361 6,362 5,220 606,582 121,249,186 260,404 382,326 18,536 829,982 1,760 21,035 42 5,401 776 926,171 20,642,962 232,609 37,330

225,200

113,473

152,939

1,024 47,347 60 52,600 7,225 15 2,742 57,609 40,453 7,063,923 6,265

9,475 40,257 172 43,902 2,917 483

1,295 48,326 75 16,616 624 4,425

98,386 49,158 6,630,407 85

65,892 62,896 5,231,780

2,892,016 100,290,263 1,005,212 1,189,805 9,762 775,591 1,175 27,069

1,158,155 57,641,625 888,957 3,520,170 5,052 666,988 435 9,778

592,342 48,568,401 474,713 3,185,443 1,628 183,647 224 1

14,255

13,200

536,358 33,326,518 126,525

731,544 22,823,905 234,958

232,883

79,645

160

396 33,466,104 827,427 908,062

23,943,757 608,772 365,914

16,784,939 625,382 227,097

16,132,798 182,673 116,199

187,850,634 149,932 28,540 22,341 1,662

173,533,508 236,058 62,378 50,148 3,206

113,895,061 173,142 82,728 37,423 1,143

95,912,579 213,130 102,904 34,689 2,720

BOVESPA, Braz il I bovespa I ndex All Options on I ndividual Equities Total Options

Bolsa de Mercadorias & Futuros (BM&F), Braz il Arabica Coffee Arabica Coffee, Mini Live Cattle Live Cattle, Mini Feeder Cattle Sugar Crystal Cotton Corn Soybean Futures Gold Forward Gold Gold Spot Anhydrous Fuel Alcohol Bovespa Stock I ndex Futures I NrX-50 I PA C Bovespa Mini I ndex I nterest Rate I nterest Rate Swap I nterest Rate x Exchange Rate Swap I nterest Rate x Reference Rate Swap I nterest Rate x Price I ndex Swap (formerly I nflation) I nterest Rate x I bovespa I ndex Swap Exchange Rate Swap Price I ndex x Exchange Rate Swap Price I ndex I nterest Rate x I BrX-50 I D x US Dollar Spread Futures FRA on I D x US Dollar Spread I D x US Dollar Spread Swap Mini I D x US Dollar Swap with reset I D x I PCA Spread Global 2010 Global 2014 Global 2015 Global 2019 Global 2027 Global 2034 Global 2037 Global 2040 US T-Note A-Bond 2018 US Dollar Mini US Dollar US Dollar forward points Euro Total Futures Gold on Actuals Gold Exercise US $ Denominated Arabica Coffee US $ Denominated Arabica Coffee Exercise Corn Corn, Exercise Soybeans

48T

2006 528,462 13 392,012 61,935 296 69,351 2,920 135,188 98,112 308 3,180 24,369 26,426 13,232,399 5,118 965 3,702,409 161,654,736 192,356 398,757 189,796 2,760,520 1,813 26,443 5,885 200 7,448 1,016,176 14,396,347 145,943 207,107 58,840 820 60 702 273 449 4,321 270 57,590 630 2,186 52,350,517 5,053,580 1,648,807 70 258,466,105 119,378 19,492 30,602 2,370 3,119 175 1,345

586,143 18,571,494 981,454

460 760

VOLUME WORLDWIDE Bolsa de Mercadorias & Futuros (BM&F), Braz il Live Cattle Live Cattle, Exercise Bovespa Stock Bovespa Stock Exercise I nterest Rate I nterest Rate (I DI ) I nterest Rate (I DI ) Exercise I nterest Rate (volatility) I DI I ndex (exercise) I DI I ndex (volatility) Fexible Bovespa Stock I ndex US Dollar on Actuals US Dollar Exercise US Dollar Volatility Flexible Currency Total Options

(Continued)

2006 987 251 26,625 2,072 945,250 9,279,101 18,080 933,445 105,410 1,848,810 199,557 9,766,867 552,837 1,042,235 206,128 25,104,136

2005 71 6,344 9,380 268,819 2,058,806 147,840 539,825 237,895 351,575 85,279 6,251,235 391,221 793,665 207,585 11,595,830

2004 550 2 21,730 11,350 1,253,545 2,224,832 154,100 879,575 131,099 143,180 687,412 2,708,961 147,645 255,150 866,474 9,894,430

2005 6,431 755 928

2003 764 42

182,183 1,772,583 155,263 9,810

2002

2,539,353 15,910

1,185 1,216,418 2,148,440 130,187 30,030 949,200 6,890,541

1,098,543 5,703,209

2004 9,617 1,351 4,246

2003 12,513 711 6,883

2002 9,450 1,316 9,271

41 1,499 148

366 1,909 270

354 1,031 24

118 392

1

1

3

2

529,512 51 500 18,000 31,208 61,120 682,116 54,850 21,550 41,500 494,057 950 34,900 46,000 1,137,635 395,540 368,703 100,600 67,850

376,679 51

400,003

292,128

41,350 71,800 26,410 583,060 28,000 42,092

67,390 326,090 3,770 514,451 1,000 1,800

3,761 75,150

227,235

36,586

125,689

197,560 100,630 311,030 33,800 38,700

72,350 33,000 4,800 23,300 43,575

3,100

58,620 106,800

2,200 17,500

25,100

38,050 465,122 95,300 29,100

18,600 46,200 28,300

23,900 8,200 24,200

153,200 105,740 1,112,158 31,800 1,950 2,300 6,000 4,800 43,100 7,200 151,100

51,200 1,500 501,448

578,467 947,759 152,174

Budapest Stock Exchange (BSE), Hungary (BCE merged with BSE in 2005) Feed Corn F eed W h ea t W h ea t Euro Wheat Extra Wheat Feed Barley Sunflower Seed Rapeseed Soybeans Ammonium Nitrate Gold Budapest Stock I ndex (BUX) Budapest Stock Mid & SmallCap I ndex (BUMI X) 5-Year Government Bond JPY/HUF CHF/HUF CZK/HUF EUR/HUF GBP/HUF PLN/HUF TRY/HUF USD/HUF AUD/USD CAD/JPY CHF/JPY GBP/USD GBP/CHF GBP/JPY GBP/SEK EURO/CHF EURO/CSD EURO/CZK EURO/GBP EURO/HRK EURO/NOK EURO/JPY EURO/PLN EURO/RON EURO/RUB EURO/SEK EURO/TRY EURO/USD DAUD/USD DCAD/JPY DEUR/CHF DEUR/CZK DEUR/GBP DEUR/JPY DEUR/PLN DEUR/USD

2006 5,050 840 521 126 124 238 1,235 471 9 4 130 1,879,034 30 2,500 29,267 100,200 48,180 2,688,100 82,415 33,600 66,500 814,635 46,400 19,000 19,050 631,500 388,770 361,450 242,950 86,350 2,900 35,600 227,500 13,000 93,200 198,151 110,070 16,400 19,600 81,630 379,473 1,117,803 4,300 150 1,300 1,300 1,600 13,400 300 77,850

1,600

2,039,000 249,750

41,800

49T

VOLUME WORLDWIDE B udapest Stock Exchange (B SE), H ungary (B C E merged w ith B SE in 2005) DGBP/C HF DGBP/JPY DGBP/USD DUSD/C AD DUSD/C HF DUSD/C ZK DUSD/JPY DUSD/PLN USD/BR L USD/C AD USD/C HF USD/C ZK USD/JPY USD/MXN USD/NOK USD/PLN USD/R UB USD/TR Y USD/SEK USD/UAH EUR (1 week) GBP (1 week) USD (1 week) DAUD/USD (1 week) DEUR /C ZK (1 week) DEUR /GBP (1 week) DEUR /JPY (1 week) DEUR /PLN (1 week) DEUR /USD (1 week) DGBP/C HF (1 week) DGBP/JPY (1 week) DGBP/USD (1 week) DUSD/C AD (1 week) DUSD/JPY (1 week) AUD/USD (1 week) EUR /JPY (1 week) EUR /PLN (1 week) EUR /USD (1 week) GBP/C HF (1 week) GBP/JPY (1 week) GBP/USD (1 week) USD/C AD (1 week) USD/C HF (1 week) USD/JPY (1 week) All Futures on I ndividual Equities Total Futures C orn W h ea t Sunflower Seed BUX MOL OTP US Dollar EUR C AD/JPY (HUF settlement) EUR /C ZK (Foreign currency settlement) EUR /C ZK (HUF settlement) EUR /GBP EUR /JPY (Foreign currency settlement) EUR /JPY (HUF settlement) EUR /PLN EUR /PLN (HUF settlement) EUR /USD (Foreign currency settlement) EUR /USD (HUF settlement) GBP/C HF (Foreign currency settlement) GBP/C HF (HUF settlement) GBP/JPY (Foreign currency settlement) GBP/JPY (HUF settlement) GBP/USD (Foreign currency settlement) GBP/USD (HUF settlement) USD/C HF (Foreign currency settlement) USD/C HF (HUF settlement) USD/JPY (Foreign currency settlement) USD/JPY (HUF settlement) T otal Options

50T

(C onti nued) 2006 26,000 39,500 23,200 6,100 600 500 2,400 700 6,700 345,405 258,422 6,700 239,572 3,400 2,200 8,600 22,810 305,634 5,100 10,000 910,300 2,100 24,000 9,100 18,000 2,000 26,450 24,500 92,800 28,400 39,000 41,400 22,650 7,500 500 22,350 4,000 100,690 13,200 25,700 34,350 22,100 4,900 3,000 919,426 13,656,165 527 125 180 3,125 300 50 2,000 205,000 80,000 2,300 2,200 25,000 41,000 500 36,756 1,200 6,000 514,901 38,600 500 25,200 6,600 500 800 1,000 500 30,500 1,400 1,026,764

2005 12,400 52,600 81,140 138,600 6,200 200 6,800 3,900

2004

2003

17,750 249,547 11,400 573,360

117,700

16,440

666,030

146,525

57,500

5,400

253,532

3,800

2002

1,700

12,300 12,500 750 4,500 20,000 34,250 25,700 63,900 400 1,200

249,750

41,800

737,069 9,322,332 365 150 55

707,875 5,440,102 432 90

694,553 8,176,981 888 242

452,638 2,411,412 305 150

113,970

414,095

260,850

11,000 92,200 500

4,015 35,830

225

4,269

44

15

3,959 4,829

10

515

160,617

115,219

436,890

285,955

VOLUME WORLDWIDE Dalian Commodity Exchange (DCE), China Corn No 1 Soybeans No 2 Soybeans Soybean Oil Soybean Meal Total Futures

2006 64,976,076 8,897,061 1,925,226 10,333,006 31,549,669 117,681,038

2005 21,859,732 40,035,707 541,093

2004 5,828,045 57,340,803 114,347

2003

2002

60,000,808

12,689,935

36,738,182 99,174,714

24,750,958 88,034,153

14,953,398 74,973,493

4,404,134 48,407,404

2006 40,425,513 33,860 395,550 515,891 6,481 4,361 213,514,918 83,868 225,960 21,200 12,464 7,492 15,804 9,161 12,982 17,537 192,065 30,860 101,586 8,326 2,441 210,081 246,288 17,618 107,036 1,064,167 36,901 21,783 43,692 185,682 90,361 18,340 11,482 14,349 91,537 171,262 81,265 120,278 25,242 146,585 21,262 32,829 89,405 164,519 25,622 59,958 11,369,444 29,643

2005 32,722,572 41,761 72,351 269,354 2,038 27,079 139,983,083 82,203 233,955 31,221 9,464 2,343 5,111 22,700 9,694 11,220 169,198 26,035 118,601 5,910 9,568 218,982 177,863 12,963 75,356 807,761 3,554 895 30,368 84,118 30,441 3,861 4,103 9,695 24,807 117,720 21,844 65,660 14,955 35,459 7,187 6,161 55,280 112,686 9,706 63,814 8,639,822 4,638

2004 29,229,847 24,934

2003 27,181,218 32,589

2002 19,996,503 44,524

456,346 333 70,403 121,661,944 99,776 243,541 18,018 5,254 573 1,050 16,382 4,288 844 236,325 8,863 118,457 2,035 1,983 160,160 182,949 5,358 12,705 798,106

181,954 2,017

965

EUREX, Frankfurt, Germany (formerly DTB and SOFFEX) DAX HEX 25 MDAX TecDAX DJ Global Titans 50 DJ Global I taly Titans 50 DJ Euro STOXX 50 DJ Euro STOXX Automobiles DJ Euro STOXX Banks DJ Euro STOXX Basic Resources DJ Euro STOXX Chemicals DJ Euro STOXX Construction DJ Euro STOXX Financial Services DJ Euro STOXX Food and Beverage DJ Euro STOXX Healthcare DJ Euro STOXX I ndustry Goods and Services DJ Euro STOXX I nsurance DJ Euro STOXX Media DJ Euro STOXX Energy DJ Euro STOXX Non-Cyclical Goods and Services DJ Euro STOXX Media DJ Euro STOXX Technology DJ Euro STOXX Telecom DJ Euro STOXX Cyclical Goods and Services DJ Euro STOXX Utilities DJ STOXX 50 DJ STOXX Mid 200 DJ STOXX 600 DJ STOXX 600 Automobiles & Parts DJ STOXX 600 Banks DJ STOXX 600 Basic Resources DJ STOXX 600 Chemicals DJ STOXX 600 Construction & Materials DJ STOXX 600 Financial Services DJ STOXX 600 Food & Beverage DJ STOXX 600 Healthcare DJ STOXX 600 I ndustrial G&S DJ STOXX 600 I nsurance DJ STOXX 600 Media DJ STOXX 600 Oil & Gas DJ STOXX 600 Personal & Household Goods DJ STOXX 600 Retail DJ STOXX 600 Technology DJ STOXX 600 Telecom DJ STOXX 600 Tracel & Leisure DJ STOXX 600 Utilities Swiss Market I ndex (SMI ) Swiss Market I ndex Mid-Cap (SMI M)

Volatility Index on Dax-New (VDAX) Volatility Index on SMI (VSMI) DJ Euro STOXX 50 (VSTOXX) Swiss Government Bond (CONF) Euro-BUND Euro-BOBL Euro-BUXL 3-Month Euribor Euro-SCHATZ Exchange Traded Funds All Futures on I ndividual Equities Total Futures

1,419 211

32,222 647

166 347 70,931 1,527 18,803 305 3,261

116,035,326 152,714 483,451 10,185 54 481 995 8,538 3,281 230 323,207 8,339 105,614 444 42 281,967 192,907 40 16,927 970,107

86,354,731 83,677 560,757

8,595

25,376

41,394

100,674

110 9,037 151,250 698 77,762

303,315 279,535 1,304 690,719

170

15,887 19,596

8,331 20,537

13,306 20,403

29,622 8,098,575

9,651 8,969,235

7,019,626

308,206 239,787,517 159,166,394 585,142 122,928,076 78,393

284,809 244,414,274 150,087,139 666 503,951 117,370,528 187,996

275,392 191,263,413 114,678,996 12,668 527,815 108,760,955 56,126

684,630,502

668,650,028

536,013,920

166

1,406 334,314 319,889,369 167,312,119 1,265,079 767,458 165,318,779 17,569 35,589,089 960,631,763

109 372,385 299,287,916 158,262,122 470,831 688,831 141,228,207 13,425 77,802 784,896,954

51T

VOLUME WORLDWIDE EUREX, Frankfurt, Germany

(Continued)

(formerly DTB and SOFFEX) DAX DAX 1st Friday Weekly DAX 2nd Friday Weekly DAX 3rd Friday Weekly DAX 4th Friday Weekly DAX 5th Friday Weekly HEX 25 TecDAX DJ Global Titans 50 I ndex DJ Euro STOXX 50 I ndex DJ Euro STOXX 50 I ndex - 1st Friday DJ Euro STOXX 50 I ndex - 2nd Friday DJ Euro STOXX 50 I ndex - 4th Friday DJ Euro STOXX 50 I ndex - 5th Friday DJ Euro STOXX Automobile DJ Euro STOXX Banks DJ Euro STOXX Basic Resources DJ Euro STOXX Chemicals DJ Euro STOXX Construction & Materials DJ Euro STOXX Financial Services DJ Euro STOXX Food and Beverage DJ Euro STOXX Healthcare DJ Euro STOXX I ndustrial Goods & Services DJ Euro STOXX I nsurance DJ Euro STOXX Media DJ Euro STOXX Oil & Gas DJ Euro STOXX Personal & Household Goods DJ Euro STOXX Retail DJ Euro STOXX Technology DJ Euro STOXX Telecom DJ Euro STOXX Travel & Leisure DJ Euro STOXX Utilities DJ STOXX 50 I ndex DJ STOXX 600 I ndex DJ STOXX 600 Automobiles & Parts DJ STOXX 600 Banks DJ STOXX 600 Basic Resources DJ STOXX 600 Chemicals DJ STOXX 600 Construction & Materials DJ STOXX 600 Financial Services DJ STOXX 600 Food & Beverage DJ STOXX 600 Healthcare DJ STOXX 600 I ndustrial Goods & Services DJ STOXX 600 I nsurance DJ STOXX 600 Media DJ STOXX 600 Oil & Gas DJ STOXX 600 Retail DJ STOXX 600 Technology DJ STOXX 600 Telecom DJ STOXX 600 Travel & Leisure DJ STOXX 600 Utilities DJ STOXX Mid 200 I ndex Swiss Market I ndex (SMI ) Swiss Market I ndex (SMI ) - 1st Friday Swiss Market I ndex (SMI ) - 2nd Friday Swiss Market I ndex (SMI ) - 4th Friday Swiss Market I ndex (SMI ) - 5th Friday Swiss Market I ndex Mid-Cap (SMI M) Euro-BUND Euro-SCHATZ Euro-BOBL All Options on I ndividual SMI Component Equities All Options on Nordic Equities All Options on Dutch Equities All Options on Exchange Traded Funds All Options on French Equities All Options on German Equities All Options on I talian Equities All Options on Spanish Equities All Options on US Equities Total Options

52T

2006 61,411,659 148,881 100,406 122,774 49,821 10,543 1,075 33,025 10 150,049,918 90,475 79,783 76,568 48,623 40,516 105,512 50 1,540 6,520 2,000 2,000 2,460 3,150 36,561 7,300 108,053 906 1,300 68,125 49,856 15,552 87,546 63,064 4,208 3,100 30,701 94,486 1,610 305 3,600 568 18,971 41,602 11,604 5,206 55,822 320 4,081 52,023 18,761 23,308 52,899 3,948,593 4,810 7,342 4,424 4,017 14,616 41,764,550 17,344,245 17,220,011 57,323,550 16,396,662 10,420,237 15,732 6,667,994 180,695,967 1,006,419 22,988 9,235 566,120,139

2005 53,633,130

2004 42,184,611

2003 41,521,920

2002 44,027,830

1,201 23,923 15 90,808,086

1,050 27,370 29 71,406,377

7,128 13,477 48 61,794,673

14 40 39,477,430

35,719 119,125

24,536 150,913

50,673 413,834

35,303 898,989

458

2

2

250 17,910 5,250 1,050 46,600 22,492 90,726

160 300 600

307

146

19

2,456

91,371 799 46,243

269,736

114,021

63,427

64,012

28,102 39,396

86,830 110,664

382,141 314,976

14,952

55,417

39,594

45,040

2,500 58,830 113,758 18,700 33,230 29,052

10,887 13,966

1,865 3,850

32,984 1,360 8,399 310 29,824

20,017

11,270

600 27,723 486 13,679 1,584 4,134,470

1,000 3,405

4 2

1,000

1,633

3,645,596

3,983,918

4,230,082

39,014,844 11,546,405 7,990,587 58,463,793 16,109,249 12,834,633 42,278 4,867,961 162,437,728 785,918

30,896,920 9,782,863 10,829,250 47,714,268 17,836,215 8,364,977 85,478 2,743,950 134,857,678 187,948

27,316,536 11,723,090 10,498,534 46,302,221 13,265,471 6,862,703 70,350 1,487,428 120,211,761 80,041

18,125,981 8,954,263 4,529,387 34,496,338 20,601,113 2,708,256 6,069 246,562 85,111,674 16,675

419,511 463,851,198

15,207 381,008,508

30,198 346,282,284

123,966 265,186,953

VOLUME WORLDWIDE EURONEXT, Amsterdam (Formerly EOE, AFM and AEX, Netherlands) Potatoes (FAP) AEX Stock I ndex (FTI ) Light AEX Stock I ndex (FTI L) Euro/US Dollar (FED) US Dollar/Euro (FDE) Total Futures Potato (OPA) Euro / US Dollar (EDX) US Dollar / Euro EOE Stock I ndex AEX I ndex Weekly (AX1) AEX I ndex Weekly (AX2) AEX I ndex Weekly (AX4) AEX I ndex Weekly (AX5) Light AEX Stock I ndex (AEXL) All Options on I ndividual Equities Total Options

2006 14,517 11,165,258 1,599 7,474 1,333 11,190,181 2,639 651,810 81,229 23,694,580 627,717 598,614 619,673 233,221 18,148 89,115,941 115,643,572

2005 27,867 7,397,665 14,704 5,640 1,795 7,447,671 7,104 290,839 113,118 19,753,393

2004 11,876 5,651,747 5,827 2,026 1,959 5,701,122 2,426 139,758 99,322 17,093,573

2003

2002

5,215,465 6,639 1,405 1,088 5,298,861

4,231,053 12,401 568 1,077 4,328,952

74,279 64,045 14,120,099

21,692 40,677 9,133,875

23,934 71,297,264 91,485,652

34,539 60,196,898 77,566,516

131,209 59,754,703 74,145,895

86,403 64,076,106 73,368,051

2006 654,520 654,520 127,000 518,489 645,489

2005 603,069 603,069 117,795 392,377 510,172

2004 759,710 759,710 271,717 326,844 598,561

2003 328,673 328,673 320,540 319,850 640,390

2002 507,229 2,653,399 747,161 450,734 1,197,895

2006 83,003,622 10,743,902 99,543 5 202,091,612 69,760 22,009,284 274,459 401,365 405,011 14,898 140,487 25,120,880 32,694 789,255 48,598 18,036 701,066 62,304 19,033 3,095,346 3,550,938 76,239 1,668,674 28,930,769 383,367,780 34,231,229 3,212,817 9,897 48,176,163 7,355,609 15,717,186 20 1,979,620 16,700 102,819 467,706 2,320 81,647 20,757,421 132,111,154

2005 68,029,052 8,286,258 22 2,640 166,682,115 5,662,806 17,760,359 322,212 387,005 434,759 63,566 101,127 21,522,583 74,667 539,802 68,036 21,114 521,591 39,238

2004 51,324,125 7,296,932 736 35,152 157,746,684 4,666,508 14,045,404 458,492 688,952 653,046 2,968 80,569 20,772,878 88,475 814,030 277,661 60,414 474,949 32,896

2003 42,323,094 5,009,460

2002 34,307,727 4,976,206

58,341 137,692,190

105,756,584

2,690,105 3,263,253 65,324 1,497,150 11,744,778 309,779,562 25,096,889 3,173,334 44,103 44,138,922 7,017,840 14,473,441 485 1,189,652 95,814 237,544 3,070 81,598 9,085,505 104,649,117

EURONEXT, Brussels (Formerly BELFOX) Bel 20 I ndex (BXF) Total Futures Bel 20 I ndex All Options on I ndividual Equities Total Options

EURONEXT, United Kingdom (LCE merged w ith LIFFE in 1996) 3-Month Short Sterling 3-Month Euroswiss 3-Month Euroyen Tibor 1-Month Eonia 3-Month Euribor 3-Month Eurodollar Long Gilt 2-Year Swapnote EUR 5-Year Swapnote EUR 10-Year Swapnote EUR 10-Year Swapnote USD Japanese Government Bond FTSE 100 I ndex FTSE Eurotop 100 I ndex FTSE Eurotop 300 I ndex FTSEurofirst 80 I ndex MSCI Euro I ndex MSCI Pan-Euro I ndex FTSE Mid 250 I ndex Other Bclear Cocoa #7 Robusta Coffee W h ea t White Sugar All Futures on I ndividual Equities Total Futures 3-Month Short Sterling 3-Month Sterling Mid-curve 3-Month Euroswiss 3-Month Euribor 3-Month Euribor Mid Curve FTSE 100 I ndex (ESX) FTSEurofirst 80 I ndex FTSE 100 I ndex FLEX Other Bclear Cocoa US Dollar Coffee W h ea t White Sugar All Options on I ndividual Equities Total Options

10,150,267 580,516 1,022,358 1,031,016 28,595 44,613 20,252,114 109,846 344,100 210,171 107,207 563,944 5,422

7,789,011 977,127 1,437,955 1,613,672 50,102 37,723 17,238,726 129,414

2,643,199 3,054,386 75,455 1,251,233 12,929,406 279,474,981 16,139,006 1,461,723 49,251 52,245,463 6,433,100 17,866,310 521 1,178,067

2,328,609 2,320,831 91,387 1,062,494 6,349,198 231,708,154 14,162,149 967,384 65,925 57,733,239 4,907,879 14,619,893 1,841 1,066,997

1,802,142 1,905,319 80,784 1,044,806 3,935,121 184,026,644 7,364,057 346,001 81,467 33,481,758 1,419,271 13,263,116

170,079 248,990 2,387 94,705 11,578,961 107,484,253

188,822 143,148 3,262 66,561 10,108,068 104,117,793

194,682 139,394 8,092 43,900 12,889,422 69,954,984

114,576 552,460 804

595,486

53T

VOLUME WORLDWIDE EURONEXT, Paris (Formerly MATIF and MONEP, France) W h ea t # 2 Corn Rapeseed CAC 40 Stock I ndex 10 Euro FTSEurofirst 80 FTSEurofirst 100 Total Futures Rapeseed W h ea t Corn CAC 40 I ndex, 1 EUR CAC 40 I ndex, 10 EUR All Options on I ndividual Equities* Total Options

2006 407,843 72,044 238,594 33,405,804 26,412 990 34,151,687 26,843 41,398 1,818 1,376 6,633,635 45,160,159 51,865,229

2005 217,171 81,965 211,281 25,011,372

2004 160,200 71,124 191,644 24,058,528

2003 114,758 90,973 174,538 29,319,624

2002 107,602 98,654 165,462 26,411,321

25,521,789 8,192 9,810 1,622 31,069,890 2,802,039 183,560,708 217,452,261

24,481,496 8,075 7,109

29,711,816 7,003 7,643

26,991,450 9,834 1,679

63,152,339

73,668,131

84,342,670

230,863,609 294,031,132

174,487,319 248,170,096

246,165,884 330,520,413

2006 44,345,927 150 18,289,877 300 42,660 16,080 15 543,550 452,359 28,672,639 15 9,692 199,187 45 630 30 120 60 15 3,155 930 3,870 490 345 780 92,582,921 33,249 560 104,320 138,129

2005 30,412,027

2004 25,458,259

2003 24,012,969

2002 21,493,486

10,971,719

9,355,767

8,429,981

8,156,358

11,520 9,045 50 423,565 94,348

15,090 24,045 90 609,350

600 1,590 74,180 737,610

450 4,155 180 578,925

2,500 1,380 8,190 420 30 1,680 41,936,609 44,421

1,070 900 2,280

35,466,941 28,688

33,258,385 49,520

30,233,664 146,809

74,055 118,476

45,154 73,842

33,339 82,859

61,001 207,810

2006 10,343,605 1,807 101 414 46,611,008 107,538 3,104,641 60,169,114 2,414,422,952 1,195 2,414,424,147

2005 11,223,244 567

2004 7,352,307 61

2003 10,285,042 171,538

2002 12,777,991

2,757 43,848,706 103,619 2,667,005 57,883,098 2,535,201,692 3,655 2,535,205,347

2,621 55,608,856

207,209 62,204,783

1,688 42,868,164

2,090,291 65,261,326 2,521,557,274 1 2,521,557,276

1,506,123 75,159,690 2,837,724,953 8,159 2,837,734,344

1,434,591 57,465,025 1,889,823,786 57,918 1,889,908,138

2004 3,331,843 1,485,112 1,734,256 6,551,211 2,220,807 9,500,498 11,721,305

2003 4,263,886 2,570,238 468,083 7,302,565 2,505,351 7,924,078 10,429,429

2002 4,877,464 2,132,937 59,853 7,071,028 2,588,402 7,587,199 10,175,601

Intercontinental Exchange (ICE), United Kingdom Crude Oil, Brent Crude Oil, Brent - Quarters Gas Oil Gas Oil - Quarters Natural Gas - Seasons Natural Gas - Quarters Natural Gas Daily (NBP) Natural Gas Monthly (NBP) ECX European Emissions - Monthly WTI Crude - Monthly WTI Crude - Quarters Gasoline - Monthly Heating Oil - Monthly Rotterdam Coal - Monthly Rotterdam Coal - Quarters Rotterdam Coal - Seasons Rotterdam Coal - Calendar Richards Bay Coal - Monthly Richards Bay Coal - Quarters Electricity Baseload - Monthly Electricity Baseload - Quarters Electricity Baseload - Seasons Electricity Peak - Monthly Electricity Peak - Quarters Electricity Peak - Seasons Total Futures Crude Oil E C X C FI Gasoil Total Options

Korea Futures Exchange (KFE), Korea * Transferred from KSE Korea Treasury Bonds 5-Year Treasury Bond CD Monetary Stabilization Bond *KOPSI 200 STAR I ndex US Dollar Total Futures *KOPSI 200 I ndex *All Options on I ndividual Equities Total Options

Italian Derivatives Market of the Italian Stock Exchange, Italy MI B 30 I ndex Mini FI B 30 I ndex All Futures on I ndividual Equities Total Futures MI B 30 I ndex All Options on I ndividual Equities Total Options

54T

2006 4,037,973 1,659,649 7,031,974 12,729,596 2,819,916 16,056,751 18,876,667

2005 3,580,695 1,294,606 5,957,674 10,832,975 2,597,830 12,439,716 15,037,546

VOLUME WORLDWIDE London Metal Exchange (LME), United Kingdom High Grade Primary Aluminium Aluminium Alloy North American Special Aluminium Alloy Copper - Grade A Standard Lead Primary Nickel Special High Grade Zinc Tin LMEX LMEmini Copper Grade A LMEmini Primary Aluminium LMEmini Special High Grade Zinc Polypropylene Linear Low Total Futures High Grade Primary Aluminium Aluminium Alloy North American Special Aluminium Alloy Copper - Grade A Standard Lead Primary Nickel Special High Grade Zinc Tin Primary Aluminium TAPOS Aluminium Alloy TAPOS Copper Grade A TAPOS Lead TAPOS Nickel TAPOS Tin TAPOS NASAA TAPOS Special High Grade Zinc TAPOS Total Options

2006 36,418,131 444,738 1,031,411 18,864,246 4,568,140 4,177,557 11,706,008 1,283,897 1,496 1,411 1,987 283 13,303 15,231 78,527,839 4,690,867 315 4,420 1,850,993 164,410 158,496 1,335,184 17,315 93,540 2,141 45,346 3,335 14,502 850 1,170 29,466 8,412,350

2005 30,426,465 501,960 1,001,412 19,231,371 4,061,819 3,482,593 10,620,618 1,095,031

2004 29,232,921 429,459 1,192,100 18,171,204 3,786,375 3,177,206 10,211,096 971,612

2003 26,953,102 703,356 833,022 19,437,740 4,504,246 4,220,434 10,470,171 1,448,083

2002 22,330,491 895,726 173,127 16,579,090 3,411,156 3,187,275 8,100,114 1,625,470

15,770 7,626 70,444,665 4,107,102 369,068 10,069 2,091,198 128,283 189,903 1,011,429 14,012 129,657

67,171,973 2,217,021 288 2,385 1,721,914 76,342 119,942 471,097 3,227 55,539

68,570,154 1,618,895 541 50 1,239,523 95,967 144,489 386,652 8,070 137,598

56,303,779 877,429 379 22 888,068 50,413 67,781 300,347 14,671 74,943

55,907 8,116 12,610 2,014 33,194 21,625 8,184,187

37,438 10,653 4,014 475 1,632 12,571 4,734,928

90,381 1,551 4,950

32,939 1,697 6,642

768 8,738 3,738,173

14,884 2,330,225

2005 2,934,658 125 410,565 4,509,002 99,830,916

2004 1,289,386

2003 81,395

2002 52,108

327,942 2,418,381 206,027,203

220,731 11,398,544 162,077,312

49,243 3,568,951 80,595,463

284,460 19,400 107,989,126

278,644 13,455 210,355,031

38,279

38,329 149,091 188,150

35,943 4,290 40,233

Mexican Derivatives Exchange (MEXDER), Mexico US Dollar Euro FX I PC Stock I ndex C E T E 91 T I I E 28 M3 Bond M10 Bond All Futures on I ndividual Equities Total Futures MXN / USD I PC Stock I ndex All Options on I ndividual Equities Total Options

2006 6,026,940 50,469 620,557 3,290,100 264,160,131 28,600 471,879 3,000 274,651,676 2,343 115,531 448,120 565,994

173,820,944

84,274,979

Montreal Exchange (ME), Canada 3-Month Bankers Acceptance (BAX) 2-Year Canadian Gov't Bond (CGZ) 10-Year Canadian Gov't Bond (CGB) S&P Canada 60 I ndex (SXF) Gold I ndex (SXA) Banking I ndex (SXB) I nformation Technology I ndex (SXH) Energy I ndex (SXY) Total Futures 3-Month Bankers Acceptance (OBX) Canadian Government Bond (OGB) US Dollar (USX) S&P Canada 60 I ndex (SXO) i60 I ndex (XI U) CDN S&P/TSX Capped Gold I ndex Fund (XGD) CDN S&P/TSX Capped Financials I ndex Fund (XFN) CDN S&P/TSX Capped I T I ndex Fund (XI T) CDN S&P/TSX Capped Materials I ndex Fund (XMA) CDN S&P/TSX Capped Energy I ndex Fund (XEG) All Options on I ndividual Equities Total Options

2006 16,702,302 85,301 7,691,797 3,064,695 23,645 140 22 10,157 27,578,059 605,806 2,275 31,262 57,974 317,637 144,695 130,730 10,018 11,012 234,611 11,416,758 12,962,778

2005 11,157,298 132,637 4,692,287 2,234,406 9,898 266 172 13,662 18,240,633 377,370

2004 7,765,060 218,069 3,005,359 1,906,038 774 186 726 2,524 12,900,821 265,937

2003 6,578,451

2002 4,789,319

2,397,119 1,681,994 1,454 110 6,890 452 10,676,279 341,245

1,803,420 1,450,860 739 187 7,071 85 8,058,498 57,950

7,264 27,897 176,498 111,502 99,079 7,942

38,892 120,502 54,561 73,006 11,800

38,221 130,508 18,199 101,914 9,721

47,749 237,325

227,268 9,409,938 10,444,758

37,783 8,311,818 8,914,307

10,917 6,355,251 7,006,720

6,086,675 6,433,473

55T

VOLUME WORLDWIDE New Zealand Futures Exchange (NZFOE), New Zealand 10-Year Government Stock 90-Day Bank Bill Total Futures 90-Day Bank Bill All Options on I ndividual Equities Total Options

2006 594 1,801,132 1,801,726 24,190 111 24,301

2005 891 982,302 983,223 2,850

2004 788 491,706 492,666 4,515

2003 735 484,263 486,120 7,130

2,850

4,515

7,130

2002 2,000 607,453 614,831 8,909 1,428 12,187

OMX Exchanges (OMX), Sw eden (formerly Copenhagen (FUTOP), FOME, Helsinki, Stockholm) I nterest Rate OMX I ndex All Futures on I ndividual Equities Total Futures OMX I ndex All Options on I ndividual Equities Total Options

2006 12,205,955 24,374,765 8,459,165 45,039,885 13,613,210 64,514,641 78,127,851

2005 8,223,372 20,259,029 5,659,824 34,142,225 12,229,146 57,138,565 69,367,711

2004 6,546,035 16,460,920 4,257,168 27,819,175 8,946,939 58,171,571 67,267,464

2003 6,674,408 14,567,900 1,424,890 24,926,194 6,371,381 43,098,768 49,941,546

2002 5,586,173 13,331,795 1,290,181 22,799,941 4,916,726 35,795,942 41,302,030

Shanghai Metal Exchange, China Copper Aluminum R u b b er Fuel Oil Total Futures

2006 5,393,419 13,931,476 26,047,061 12,734,045 58,106,001

2005 12,352,026 2,125,020 9,503,158 9,809,550 33,789,754

2004 21,248,370 6,829,499 9,680,649 2,818,855 40,577,373

2003 11,166,288 2,155,498 26,757,964

2002 5,796,300 2,355,796 4,020,987

40,079,750

12,173,083

2006 26,569 5,978 18,017,221 871 4 8,932 134,445 2,214,521 10,824,249 3,538,237 2,881 4 1,427,458 36,201,370 8,700 29,642 358,031 396,373

2005 88,393 18,680 11,916,557

2004 8,241,545 42,486 7,769,675

2003 18,802,104 58,353 7,098,920

2002 19,504,044 128,034 4,857,565

546

1,830

6,601

7,329

9,910 1,707,865 8,100,202 2,774,916 8,740 236 1,241,616 25,867,661

38 1,658,600 6,998,626 2,490,390 34,547 86 931,110 28,169,379

1,046,326 5,455,812 2,015,211 110,529 92 745,091 35,356,776

711,687 4,628,247 1,812,175 255,256 360 630,761 32,623,190

1,293 156,449 158,467

41,971 205,417 249,378

40,274 249,087 291,448

47,897 201,206 264,205

2006 9,914,999 1,760,583 1,459,821 786,477 332 9,894 40,675 1,022 32,484 14,006,287 96,929,940 773,353 937,044 867,597 1,089,158 100,597,092

2005 6,917,375 1,088,523 1,179,643 909,621 9,483

2004 8,861,278 1,943,269 1,568,391 2,255,478 6,157

2003 6,514,691 1,316,712 990,752 1,126,895 4,068

2002 4,132,040 1,044,058 834,920 366,790

2,887 217

67,705 209,561

10,107,749 80,096,506 680,026 756,570

14,911,839 43,824,511

9,953,118 21,720,083

6,377,808 15,664,464

1,018,917 82,552,019

6,237,079 50,061,590

201,733 21,921,816

15,664,464

Singapore Exchange (SGX), Singapore Eurodollar Singapore Dollar I nterest Rate Nikkei 225 I ndex USD 'Nikkei 225 I ndex Straits Times I ndex FTSE/China A50 I ndex S&P CNX Nifty I ndex MSCI Singapore I ndex MSCI Taiwan I ndex Euroyen TI BOR Euroyen LI BOR 10-Year Japanese Gov't Bond Mini Japanese Gov't Bond Total Futures EuroYen Tibor MSCI Taiwan I ndex Nikkei 225 I ndex Total Options

Taiw an Futures Exchange, Taiw an TAI EX Mini TAI EX Taiwan Stock Exchange Electronic Sector I ndex Taiwan Stock Exchange Bank & I nsurance Sector I ndex Taiwan 50 I ndex MSCI Taiwan I ndex (MSF) 10-Year Government Bond 30-Day Commercial Paper I nterest Rate Gold (GDF) Total Futures TAI EX TSE Electronic Sector I ndex TSE Financial Sector I ndex MSCI Taiwan I ndex (MSO) All Options on I ndividual Equities Total Options

56T

VOLUME WORLDWIDE Sydney Futures Exchange (SFE), Australia SPI 200 Listed Property I ndex Australian Dollar 30-Day I nterbank Cash Rate 90-Day Bank Bills 3-Year Treasury Bonds 10-Year Treasury Bonds d-cypha NSW Base Load Electricity d-cypha VI C Base Load Electricity d-cypha QLD Base Load Electricity d-cypha SA Base Load Electricity d-cypha NSW Peak Period Electricity d-cypha VI C Peak Period Electricity d-cypha QLD Peak Period Electricity d-cypha SA Peak Period Electricity d-cypha NSW Base $300 CAP d-cypha SA Base $300 CAP d-cypha QLD Base $300 CAP d-cypha VI C Base $300 CAP Fine Wool Broad Wool Greasy Wool MLA/SFE Cattle All Futures on I ndividual Equities Total Futures SPI 200 SPI 200 I ntra Day Cash Settled 90-Day Bank Bills 3-Year Treasury Bond Overnight 3-Year Treasury Bond 3-Year Bonds I ntra-Day 10-Year Treasury Bonds 10-Year Bonds I ntra-Day Overnight 10-Year Treasury Bond d-cypha VI C Peak Period Electricity Greasy Wool Total Options

2006 6,516,247 25,385 1,361 2,009,291 19,501,781 31,017,644 15,051,399 10,707 13,581 9,532 2,127 1,926 5,038 1,981 110 1,276 62 986 1,590 2,686 53 16,869 1,860 10,843 74,204,335 636,033 10,594 182,663 856,723 1,522,000 576,935 52,623 1,266 76,909 5 20 3,915,771

2005 5,597,066 10,300 3,446 1,399,499 16,119,237 22,862,363 11,021,452 5,692 2,341 2,956 1,322 1,254 4,104 793 161 52 595 308 2,207 409 15,767 1,167 38,156 57,091,807 673,899 6,404 244,940 477,764 1,212,700 508,754 40,041 10,700 57,700

2004 4,622,139

2003 4,288,848

2002 3,761,904

41,862 659,926 14,213,188 22,805,279 8,557,437 3,700 2,693 1,378 1,630 1,142 1,466 994 358

25,566 53,141 11,435,471 19,246,934 6,705,904 2,730 2,766 1,335 1,420 1,927 1,762 660 235

29,076 8,486,560 16,459,043 5,200,290 160 100 80 310 160 230 45

197 3,233,159

10 2,013 826 9,520 1,354 29,986 50,968,901 518,511 4,917 175,286 369,708 1,262,942 534,302 60,619 1,845 71,140 65 1,159 3,000,544

2005 87,634 1,822,985 136,564 2,047,183 876 27,111 29,447

2004 87,758 1,737,972 204,635 2,030,455 3,273 20,568 23,841

2003 59,194 1,547,283 200,701 1,811,616 2,778 28,368 31,160

2002 89,136 1,828,122 212,019 2,155,796 1,819 35,470 37,487

2004 8,601,559 1,457,681 1,743,700

2003 6,800,360 1,248,295 47,941

2002 4,802,422 1,107,964

733 58,307 17,274 11,884,152 2,029,068 26,882

310 47,799 18,654 8,174,652 2,118,792 32,131

970 280,257 21,056 6,228,037 1,070,431 6,176

77,758 5,611,832 7,745,540

4,220,638 6,371,561

3,724,760 4,801,367

2003

2002

2,467 2,003 9,095 1,175 47,822 41,831,862 585,620

1,755 2,756 14,180 175 29,286 33,987,967 414,598

250,876 220,382 1,151,097 583,719 38,972 6,307 86,313 5 177 2,923,478

227,208 237,509 1,048,753 277,905 24,037 1,880 22,629 1,038 2,255,557

Winnipeg Commodity Exchange (WCE), Canada W h ea t Canola (Rapeseed) Western Barley Total Futures Western Barley Canola Total Options

2006 66,555 2,607,354 195,024 2,868,933 1,080 26,523 27,603

Hong Kong Futures Exchange (HKFE), Hong Kong Hang Seng I ndex Mini Hang Seng I ndex H-Shares I ndex FTSE/Xinhua China 25 I ndex 1-Month HI BOR 3-Month HI BOR All Futures on I ndividual Equities Total Futures Hang Seng I ndex Mini Hang Seng I ndex FTSE/Xinhua China 25 I ndex H-Shares I ndex All Options on I ndividual Equities Total Options

2006 12,718,380 2,140,242 4,880,470 8,154 155 13,888 102,010 19,863,299 4,095,679 53,456 7,881 758,247 18,127,353 23,042,616

2005 9,910,565 1,501,342 1,978,673 2,882 246 24,935 13,069 13,433,386 3,071,822 30,595 7,386 257,425 8,722,393 12,089,621

Cotton #1 White Sugar PTA Strong Gluten Wheat Hard White Winter Wheat Total Futures

2006 2,084,541 29,342,066 167,220 14,676,238 28,052 46,298,117

2005 10,870,825

2004 2,994,046

16,620,096 981,649 28,472,570

11,587,269 9,655,959 24,237,274

Zhengz hou Commodity Exchange (ZCE), China

57T

VOLUME WORLDWIDE Kansai Commodities Exchange (KCE), Japan (Formerly KANEX, FFE, OGE, OSE, and KGE) R ed B ea n s I mported Soybeans Non-GMO Soybeans Corn Refined Sugar Broiler Raw Sugar Soybean Meal Raw Silk Frozen Shrimp Corn 75 I ndex Coffee I ndex Total Futures Raw Sugar Total Options

2006 8,491 1,497 19,460 121,135 4,225 5,786 7,671 8,425 1,446 66,651 11,087 59,627 315,501 2,982 2,982

2005 13,760 10,264 98,435 765,921 4,290 16,873 8,181 29,516 6,346 511,944 91,007 269,269 1,825,806 2,944 2,944

2004 21,148 31,310 585,339 2,406,808 4,287 92,022 36,822 187,926 6,665 1,385,143 350,029 726,741 5,840,545 2,928 2,928

2003 52,755 28,938 1,121,863 1,881,771 4,263 44,376 18,956 242,676 8,009 1,144,264 317,561 1,274,190 6,180,748 2,931 2,931

2002 88,436 30,108 1,591,835 1,331,933 4,296 754,626 42,736 185,608 69,609 1,937,842 499,912 961,715 7,659,900 3,040 3,040

2006 12,275 4,953,168 8,882 4,027,192 17,899 9,019,416

2005 65,142 11,972,407 37,087 9,790,465 84,465 21,949,566

2004 798,308 15,869,951 1,056,257 15,454,906

2003 399,167 16,705,638

2002 338,291 15,212,512

13,984,740

14,338,356

33,193,259

31,538,530

30,011,863

2006 24,823,682 6,215,507 124,913 6,252 31,170,354 28,456,731 510 759,780 29,217,021

2005 17,909,404

2004 14,415,884

2003 13,058,425

2002 10,841,300

141,534 19,414 18,070,352 24,894,389 536 1,206,987 26,101,912

167,399

172,862

293,438

14,583,283 16,560,874 491 1,481,415 18,042,780

13,231,287 14,958,100 234 45,412 15,003,746

11,134,754 9,428,235 568 21,415 9,450,218

2006 314,914 34,031 180,654 75,659 11,014 616,272

2005 581,293 212,805 320,871 459,244 28,044 1,602,257

2004 756,411 826,045 814,328 1,101,198 344,571 3,842,553

2003 1,550,423 1,985,225 1,423,491 963,464 220,618 6,162,589

2002 1,300,492 587,641 1,885,262 1,285,419 69,133 5,207,652

2006 22,228,198 858,153 11,018,069 361,478 157,781 12,932,848 4,492,904 1,961,190 2 9,661,388 63,672,011 14,690 14,690

2005 17,958,240 817,624 8,573,313 323,347 219,694 17,448,561 7,295,741 1,981,389 6,312 7,156,225 61,780,446 33,843 33,843

2004 17,385,766 1,473,370 13,890,300 438,934 321,131 23,648,587 13,036,277 2,284,572 235,844 1,732,645 74,447,426 64,308 64,308

2003 26,637,897 1,160,565 14,211,824 275,322 329,565 25,677,079 13,208,350 1,809,711 372,977 3,568,929 87,252,219

2002 20,506,652 930,886 14,436,155 87,883 513,892 20,866,237 10,482,433 2,037,215

2004 7,259,779 245,049 147,482 7,655,510

2003 4,155,800 205,092 408,025 4,771,917

2002 4,470,763

Central Japan Commodity Exchange (CJCE), Japan (Formerly CCE, NGSE, NTE, and TDCE) Hen Egg Gasoline Gas Oil Kerosene Ferrous Scrap Total Futures

Osaka Securities Exchange(OSE), Japan Nikkei 225 I ndex Nikkei 225 I ndex, Mini Nikkei 300 I ndex Russell/Nomura Prime I ndex Total Futures Nikkei 225 I ndex Nikkei 300 I ndex All Options on I ndividual Equities Total Options

Osaka Mercantile Exchange (OME), Japan (formerly KRE and OTE) Rubber (RSS3) Rubber (TSR20) Rubber I ndex Aluminum Nickel Total Futures

Tokyo Commodity Exchange (TOCOM), Japan Gold Silver Platinum Palladium Aluminum Gasoline Kerosene Crude Oil Gas Oil R u b b er Total Futures Gold Total Options

5,551,837 75,413,190

Tokyo International Financial Futures Exchange (TIFFE), Japan 3-Month Euroyen TI BOR 5-Year Yen Swapnote 10-Year Yen Swapnote Total Futures

58T

2006 31,495,084 8,430 5,250 31,508,764

2005 10,977,591 42,500 36,443 11,057,134

4,470,763

VOLUME WORLDWIDE Tokyo Grain Exchange (TGE), Japan (Formerly YCE, TGE and TSE) American Soybeans Non-GMO Soybeans Soybean Meal Arabic Coffee R ed B ea n s Corn Raw Silk Refined Sugar Robusta Coffee Raw Sugar Japan Raw Silk Potato Vegetables Total Futures American Soybean Corn Raw Sugar Total Options

2006 1,259,515 9,885,557 5,677 1,669,181 478,379 4,656,352 9,430 2,896 206,546 928,316 4,740 336 9,823 19,116,748 15,260 9,806 2,196 27,262

2005 2,050,803 10,964,812 9,503 5,591,946 659,002 5,165,693

2004 2,125,458 9,971,499 43,553 4,293,422 363,328 8,122,448

2003 1,745,697 6,735,421 52,039 5,019,572 555,190 5,984,743

2002 1,001,747 3,416,660 210,829 4,844,715 593,087 7,431,128

2,860 662,994 465,625 113,938 95,392 173,098 25,957,307 16,678 7,467 2,956 27,101

2,854 427,466 355,659 239,446 869,589 47,215 26,870,498 17,758 16,072 5,405 39,235

2,842 617,327 371,896 919,049 894,160

2,864 460,507 709,394 698,321 738,569

22,936,885 17,548 12,214 5,979 35,741

20,178,141 21,515 16,511 19,309 57,335

2006 12,049,979 14,907,723 26,957,702 18,354 2,060,624 190,876 2,269,854

2005 9,844,617 12,785,962 22,630,719 20,004 1,699,037

2004 8,025,268 10,305,318 18,331,928 17,643 1,262,994

2003 6,465,073 9,359,047 15,965,175 98,137 972,518

2002 6,356,612 7,131,178 13,630,046 93,249 1,036,395

1,719,041

1,280,637

1,070,655

1,129,644

Tokyo Stock Exchange (TSE), Japan 10-Year Government Yen Bond TOPI X Stock I ndex Total Futures TOPI X 10-Year Government Yen Bond All Options on I ndividual Equities Total Options

Total Worldw ide Volume Total Futures Percent Change Total Options Percent Change Total Futures and Options Percent Change

2006

2005

2004

2003

2002

3,235,742,882

2,378,883,321

2,167,519,755

1,927,572,094

1,473,598,607

36.02%

9.75%

12.45%

30.81%

25.62%

4,050,264,365

4,066,769,167

3,907,845,226

4,012,631,132

2,912,881,726

-0.41%

4.07%

-2.61%

37.75%

78.68%

7,286,007,247

6,445,652,488

6,075,364,981

5,940,203,226

4,386,480,333

13.04%

6.09%

2.28%

35.42%

56.48%

59T

Conversion Factors Commonly Used Agricultural Weights and Measurements Bushel Weights: wheat and soybeans = 60 lbs. corn, sorghum and rye = 56 lbs. barley grain = 48 lbs. barley malt = 34 lbs. oats = 32 lbs.

1 tonne (metric ton) equals: 36.7437 bushels of wheat or soybeans 39.3679 bushels of corn, sorghum or rye 45.9296 bushels of barley grain 68.8944 bushels of oats 4.5929 cotton bales (the statistical bale used by the USDA and ICAC contains a net weight of 480 pounds of lint)

Bushels to tonnes: wheat and soybeans = bushels X 0.027216 barley grain = bushels X 0.021772 corn, sorghum and rye = bushels X 0.0254 oats = bushels X 0.014515

Area Measurements: 1 acre = 43,560 square feet = 0.040694 hectare 1 hectare = 2.4710 acres = 10,000 square meters 640 acres = 1 square mile = 259 hectares

1 tonne (metric ton) equals: 2204.622 lbs. 1,000 kilograms 22.046 hundredweight 10 quintals

Yields: wheat: bushels per acre X 0.6725 = quintals per hectare rye, corn: bushels per acre X 0.6277 = quintals per hectare barley grain: bushels per acre X 0.538 = quintals per hectare oats: bushels per acre X 0.3587 = quintals per hectare

Commonly Used Weights The troy, avoirdupois and apothecaries’ grains are identical in U.S. and British weight systems, equal to 0.0648 gram in the metric system. One avoirdupois ounce equals 437.5 grains. The troy and apothecaries’ ounces equal 480 grains, and their pounds contain 12 ounces. Troy weights and conversions:100 kilograms = 1 quintal 24 grains = 1 pennyweight 20 pennyweights = 1 ounce 12 ounces = 1 pound 1 troy ounce = 31.103 grams 1 troy ounce = 0.0311033 kilogram 1 troy pound = 0.37224 kilogram 1 kilogram = 32.1507 troy ounces 1 tonne = 32,151 troy ounces Avoirdupois weights and conversions: 27 11/32 grains = 1 dram 16 drams = 1 ounce 16 ounces = 1 lb. 1 lb. = 7,000 grains 14 lbs. = 1 stone (British) 100 lbs. = 1 hundredweight (U.S.) 112 lbs. = 8 stone = 1 hundredweight (British) 2,000 lbs. = 1 short ton (U.S. ton) 2,240 lbs. = 1 long ton (British ton) 160 stone = 1 long ton 20 hundredweight = 1 ton 1 lb. = 0.4536 kilogram 1 hundredweight (cwt.) = 45.359 kilograms 1 short ton = 907.18 kilograms 1 long ton = 1,016.05 kilograms

60T

Metric weights and conversions: 1,000 grams = 1 kilogram 1 tonne = 1,000 kilograms = 10 quintals 1 kilogram = 2.204622 lbs. 1 quintal = 220.462 lbs. 1 tonne = 2204.6 lbs. 1 tonne = 1.102 short tons 1 tonne = 0.9842 long ton U.S. dry volumes and conversions: 1 pint = 33.6 cubic inches = 0.5506 liter 2 pints = 1 quart = 1.1012 liters 8 quarts = 1 peck = 8.8098 liters 4 pecks = 1 bushel = 35.2391 liters 1 cubic foot = 28.3169 liters U.S. liquid volumes and conversions: 1 ounce = 1.8047 cubic inches = 29.6 milliliters 1 cup = 8 ounces = 0.24 liter = 237 milliliters 1 pint = 16 ounces = 0.48 liter = 473 milliliters 1 quart = 2 pints = 0.946 liter = 946 milliliters 1 gallon = 4 quarts = 231 cubic inches = 3.785 liters 1 milliliter = 0.033815 fluid ounce 1 liter = 1.0567 quarts = 1,000 milliliters 1 liter = 33.815 fluid ounces 1 imperial gallon = 277.42 cubic inches = 1.2 U.S. gallons = 4.546 liters

ENERGY CONVERSION FACTORS U.S. Crude Oil (average gravity) 1 U.S. barrel = 42 U.S. gallons 1 short ton = 6.65 barrels 1 tonne = 7.33 barrels

residual fuel oil lubricating oil grease white spirits paraffin oil paraffin wax petrolatum asphalt and road oil petroleum coke bitumen LPG

Barrels per tonne for various origins Abu Dhabi 7.624 Algeria 7.661 Angola 7.206 Australia 7.775 Bahrain 7.335 Brunei 7.334 Canada 7.428 Dubai 7.295 Ecuador 7.58 Gabon 7.245 Indonesia 7.348 Iran 7.37 Iraq 7.453 Kuwait 7.261 Libya 7.615 Mexico 7.104 Neutral Zone 6.825 Nigeria 7.41 Norway 7.444 Oman 7.39 Qatar 7.573 Romania 7.453 Saudi Arabia 7.338 Trinidad 6.989 Tunisia 7.709 United Arab Emirates 7.522 United Kingdom 7.279 United States 7.418 Former Soviet Union 7.35 Venezuela 7.005 Zaire 7.206

6.45 7 6.3 8.5 7.14 7.87 7.87 6.06 5.5 6.06 11.6

Approximate heat content of refined products: (Million Btu per barrel, 1 British thermal unit is the amount of heat required to raise the temperature of 1 pound of water 1 degree F.) Petroleum Product Heat Content asphalt 6.636 aviation gasoline 5.048 butane 4.326 distillate fuel oil 5.825 ethane 3.082 isobutane 3.974 jet fuel, kerosene 5.67 jet fuel, naptha 5.355 kerosene 5.67 lubricants 6.065 motor gasoline 5.253 natural gasoline 4.62 pentanes plus 4.62 Petrochemical feedstocks: naptha less than 401*F 5.248 other oils equal to or greater than 401*F 5.825 still gas 6 petroleum coke 6.024 plant condensate 5.418 propane 3.836 residual fuel oil 6.287 special napthas 5.248 unfinished oils 5.825 unfractionated steam 5.418 waxes 5.537 Source: U.S. Department of Energy

Barrels per tonne of refined products: aviation gasoline 8.9 motor gasoline 8.5 kerosene 7.75 jet fuel 8 distillate, including diesel 7.46 (continued above)

Natural Gas Conversions Although there are approximately 1,031 Btu in a cubic foot of gas, for most applications, the following conversions are sufficient: Cubic Feet 1,000 1,000,000 10,000,000 1,000,000,000 1,000,000,000,000

MMBtu (one thousand cubic feet) (one million cubic feet) (ten million cubic feet) (one billion cubic feet) (one trillion cubic feet)

= = = = =

1 Mcf 1 MMcf 10 MMcf 1 Bcf 1 Tcf

= = = = =

1 1,000 10,000 1,000,000 1,000,000,000

61T

CRB Futures Market Service CRB's "Futures Market Service" is a weekly publication designed to make you a more powerful trader through an understanding of the fundamental factors moving the commodity and financial futures markets. The CRB Futures Market Service has stood the test of time with its status as the industry's oldest and most respected fundamental newsletter. The first edition was published on February 3, 1934. Most traders make their trading decisions based on technical analysis and technical trading systems. However, combining both fundamentals and technicals gives you an even more powerful trading approach to the markets. Understanding the fundamentals helps you to gauge market direction, how far the market may move, and when the market may move. We help you to understand these factors through our fundamental commentary and our weekly commodity and financial calendars. We analyze factors such as Fed policy, inflation, interest rates, stock market earnings and valuation, the dollar, metal and petroleum fundamentals, crop reports and global crop conditions, and livestock and softs fundamentals. We also use the Commitment of Traders to analyze how the big funds are impacting the markets. Also included in the service is a weekly version of CRB's Electronic Futures Trend Analyzer, which is an automated trading system providing specific trade recommendations with exact market entry and exit points. For more information, visit www.crbtrader.com, or call 800.621.5271 Commodity Research Bureau • 330 South Wells Street, Suite 612 • Chicago IL, 60606 USA Phone: 312.554.8456 or 800.621.5271 • Fax: 312.939.4135 • [email protected] • www.crbtrader.com

Aluminum Aluminum (symbol Al) is a silvery, lightweight metal that is the most abundant metallic element in the earth’s crust. Aluminum was first isolated in 1825 by a Danish chemist, Hans Christian Oersted, using a chemical process involving a potassium amalgam. A German chemist, Friedrich Woehler, improved Oersted’s process by using metallic potassium in 1827. He was the first to show aluminum’s lightness. In France, Henri Sainte-Claire Deville isolated the metal by reducing aluminum chloride with sodium and established a large-scale experimental plant in 1854. He displayed pure aluminum at the Paris Exposition of 1855. In 1886, Charles Martin Hall in the US and Paul L.T. Heroult in France simultaneously discovered the first practical method for producing aluminum through electrolytic reduction, which is still the primary method of aluminum production today. By volume, aluminum weighs less than a third as much as steel. This high strength-to-weight ratio makes aluminum a good choice for construction of aircraft, railroad cars, and automobiles. Aluminum is used in cooking utensils and the pistons of internal-combustion engines because of its high heat conductivity. Aluminum foil, siding, and storm windows make excellent insulators. Because it absorbs relatively few neutrons, aluminum is used in lowtemperature nuclear reactors. Aluminum is also useful in boat hulls and various marine devices due to its resistance to corrosion in salt water. Aluminum futures and options are traded on the New York Mercantile Exchange (NYMEX) and the London Metal Exchange. Aluminum futures are traded on the Tokyo Commodity Exchange (TOCOM), the Osaka Mercantile Exchange (OME), and the Shanghai Futures Exchange (SHFE). The NYMEX aluminum futures contract calls for the delivery of 44,000 pounds of aluminum and the contract

World Production of Primary Aluminum Year

Prices – NYMEX aluminum futures prices showed modest overall strength in 2006. Aluminum opened the year at about 120 cents per pound, rallied to 146 cents per pound in May, and then settled into a range of 110-130 cents per pound for the rest of the year. Aluminum at the end of 2006 was about 128 cents per pound. Supply – World production of aluminum rose +6.7% yr/yr in 2005, the latest reporting year, to a record high of 31.900 million metric tons. The world’s largest producers of aluminum are China with 25% of world production in 2005, Russia (11%), Canada (9%), US (8%), and Australia (6%). US production of primary aluminum in 2006 (through November, annualized) fell –1.0% yr/yr to 2.228 million metric tons, which was only about one-half of the record high of 4.654 million metric tons produced in 1980. US production of aluminum from secondary sources in 2005 fell –1.0% yr/yr to 3.000 million metric tons. Demand – World consumption of aluminum in 2001, the latest reporting year for the series, fell -4.8% yr/yr to 23.613 million metric tons, which was moderately below the record high of 24.811 million metric tons consumed in 2000. US consumption of aluminum in 2005 rose +3.2% yr/yr to 6.800 million metric tons, up from 2003’s 12-year low of 6.130 metric tons. Trade – US exports in 2005 (the latest reporting year for the series) rose +30.2% yr/yr to a new record high of 2.370 million metric tons. US imports of aluminum in 2005 rose +12.9% yr/yr to a record high of 5.330 million metric tons. The US relied on imports for 44% of its consumption in 2006.

In Thousands of Metric Tons

Australia

Brazil

Canada

China

France

Germany

Norway

Russia

Spain

United Kingdom

United States

Venezuela

World Total

1,495 1,627 1,718 1,769 1,797 1,836 1,857 1,894 1,903

1,200 1,208 1,250 1,277 1,140 1,318 1,381 1,457 1,499

2,327 2,374 2,390 2,373 2,583 2,709 2,792 2,592 2,894

1,960 2,340 2,530 2,800 3,250 4,300 5,450 6,670 7,800

399 424 455 441 462 463 443 451 442

572 612 634 644 652 653 661 668 668

919 996 1,020 1,026 1,068 1,096 1,192 1,322 1,372

2,906 3,005 3,146 3,245 3,300 3,347 3,478 3,592 3,647

360 362 364 366 376 380 389 398 395

248 258 272 305 341 344 343 360 360

3,603 3,713 3,779 3,668 2,637 2,707 2,703 2,516 2,481

634 585 570 571 571 605 601 624 610

21,700 22,600 23,600 24,300 24,300 26,100 28,000 29,900 31,900

1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

is priced in terms of cents per pound.

Preliminary.

2

Estimate.

Source: U.S. Geological Survey (USGS)

Production of Primary Aluminum (Domestic and Foreign Ores) in the U.S.

In Thousands of Metric Tons

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

305 309 315 329 256 210 242 216 209 197

277 280 287 308 220 197 220 202 191 179

307 312 320 327 232 220 238 217 214 198

295 305 309 316 225 216 225 209 211 190

304 316 319 327 229 228 228 217 214 197

296 307 310 299 215 225 221 204 206 189

305 319 319 296 214 238 226 209 210 192

304 318 324 296 212 237 225 210 208 185

294 309 310 291 206 227 217 203 199 183

307 315 323 300 214 235 224 211 207 190

298 307 316 289 208 232 215 207 204 188

310 317 328 291 205 241 221 211 208

3,603 3,713 3,779 3,668 2,637 2,707 2,702 2,516 2,481 2,278

1

Preliminary.

Source: U.S. Geological Survey (USGS)

1

ALUMINUM

Cents Per Pound ----- Pig Ingots, New York (Jan. 1910 - Nov. 1986) Pig Ingots, Midwest ( Dec. 1986 - date) ----- Scrap Clippings, New York (Jan. 1929 - Dec. 1984) Scrap Clippings, Midwest (Jan. 1985 - date) - - - Scrap, Old Sheet, Cast, New York (Jan. 1929 - Dec. 1984) Scrap, Old Sheet, Cast, Midwest (Jan. 1985 - date)

Salient Statistics of Aluminum in the United States

In Thousands of Metric Tons ---------------------------------- Net Shipments5 by Producers ---------------------------------

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

Net Import ----------- Wrought Products ----------- ----------------- Castings ----------------Reliance Total P r o d u c t i o n R e c o v e r y f r o m Plate, Rolled as a % of ExPermaPrimary Apparent All Net Apparent Secondtruded nent Ship- ------ Scrap -----Con- Sheet, Structural ShipFoil Shapes3 Shapes4 Consumption Primary ary OLd New sumption All Mold Die Sand All ments ments

22 23 25 30 33 35 39 41 41 47

3,577 3,603 3,713 3,779 3,668 2,637 2,707 2,703 2,516 2,481

3,310 8,330 3,550 8,880 3,440 9,260 3,700 9,840 3,450 9,830 2,970 9,310 2,930 9,640 2,820 9,760 3,030 10,400 3,000 10,600

1,570 1,530 1,500 1,570 1,370 1,210 1,170 1,070 1,160 1,940

1,730 2,020 1,950 2,120 2,080 1,760 1,750 1,750 1,870 1,060

6,610 6,720 7,090 7,770 7,530 6,230 6,320 6,130 6,590 6,800

4,430 4,710 4,760 5,000 4,840 4,370 4,450 4,370 4,750 4,680

350 315 551 549 592 512 559 531 579 590

1,540 1,610 1,560 1,640 1,640 1,550 1,550 1,670 1,810 1,900

6,480 6,800 7,040 7,360 7,240 6,580 6,710 6,580 7,140 7,160

473 468 511 484 549 484 693 719 735 780

612 670 584 1,020 991 873 1,280 1,210 1,250 1,100

180 153 134 158 152 251 279 285 221 287

1,390 1,410 1,350 1,790 1,850 1,760 2,450 2,400 2,370 2,280

7,860 8,210 8,390 9,150 9,080 8,340 9,160 8,970 9,510 9,440

Preliminary. 2 To domestic industry. 3 Also rod, bar & wire. 4 Also rod, bar, tube, blooms & tubing. 5 Consists of total shipments less shipments to other mills for further fabrication. NA = Not available. E = Net exporter. Source: U.S. Geological Survey (USGS)

1

Supply and Distribution of Aluminum in the United States

Year

1994 1995 1996 1997 1998 1999 1

2

Apparent Consumption

6,879 6,295 6,610 6,720 7,090 7,770

Preliminary.

2

---- Production ---From Primary Old Scrap

3,299 3,375 3,577 3,603 3,713 3,779 Estimate.

1,503 1,505 1,570 1,530 1,500 1,570 3

Inventories -- December 31 -GovernImports Exports Private ment2

3,382 2,975 2,810 3,080 3,550 4,000

1,365 1,610 1,500 1,570 1,590 1,650

National Defense Stockpile.

2,149 2,099 1,860 1,860 1,930 1,870 4

57 57 57 4

-------

In Thousands of Metric Tons

Inventories Apparent ---- Production ----- December 31 -ConsumpFrom Governtion Primary Old Scrap Imports Exports Private Year ment2

2000 2001 2002 2003 20041 20052

Less than 1/2 unit.

7,530 6,230 6,320 6,130 6,590 6,800

3,668 2,637 2,707 2,703 2,516 2,481

1,370 1,210 1,170 1,070 1,160 1,940

3,910 3,740 4,060 4,130 4,720 5,330

Source: U.S. Geological Survey (USGS)

1,760 1,590 1,590 1,540 1,820 2,370

1,550 1,300 1,320 1,400 1,470 1,430

-------------------

ALUMINUM Aluminum Products Distribution of End-Use Shipments in the United States Year

Building & Construction

Consumer Durables

Containers & Packaging

Electrical

1,330 1,320 1,390 1,470 1,450 1,500 1,560 1,560 1,680 1,680

655 694 725 760 767 681 722 689 713 708

2,180 2,220 2,270 2,320 2,260 2,250 2,260 2,240 2,310 2,320

671 708 714 739 771 686 677 653 720 752

1996 1997 1998 1999 2000 2001 2002 2003 2004 2 0 0 51 1

Preliminary.

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 1 1

Exports

Transportaion

Other

Total

1,290 1,360 1,260 1,330 1,280 902 1,070 905 930 484

569 626 629 661 679 641 616 659 730 755

2,640 2,990 3,250 3,600 3,600 3,190 3,410 3,540 3,860 3,940

291 318 273 293 293 367 390 415 416 424

9,610 10,200 10,500 11,200 11,100 10,200 10,700 10,700 11,400 11,100

Source: U.S. Geological Survey (USGS)

Wo rld C o n su mp tio n o f P rimary Alu min u m Year

In Thousands of Metric Tons

Machinery & Equipment

In Thousands of Metric Tons

Brazil

Canada

Chi na

France

Germany

India

Italy

Japan

Rep. of Korea

Russia

Uni ted Ki ngdom

Uni ted States

World Total

377.1 378.9 414.1 500.6 497.0 478.6 521.4 463.1 513.8 550.8

420.4 492.5 559.0 611.9 619.9 628.2 720.6 777.2 798.7 759.6

1,253.8 1,339.9 1,500.1 1,941.6 2,135.3 2,260.3 2,425.4 2,925.9 3,499.1 3,545.4

730.5 667.2 736.3 743.8 671.7 724.2 733.8 774.2 780.4 772.9

1,457.1 1,150.7 1,370.3 1,491.3 1,355.4 1,558.4 1,519.0 1,438.6 1,490.3 1,590.9

414.3 475.3 475.0 581.0 584.8 553.4 566.5 569.5 602.4 558.0

660.0 554.0 660.0 665.4 585.1 671.0 675.4 735.3 780.3 770.4

2,271.6 2,138.3 2,344.8 2,335.6 2,392.6 2,434.3 2,082.0 2,112.3 2,224.9 2,014.0

397.0 524.8 603.9 675.4 674.3 666.3 505.7 814.0 822.6 849.6

1,242.0 657.0 470.0 476.0 443.8 469.2 489.2 562.8 748.4 786.2

550.0 540.0 570.0 620.0 571.0 583.0 579.0 496.8 575.5 433.3

4,616.9 4,877.1 5,407.1 5,054.8 5,348.0 5,390.0 5,813.6 6,203.3 6,079.5 5,117.0

18,529.5 18,122.6 19,670.8 20,480.9 20,596.4 21,721.8 21,797.2 23,323.0 24,811.4 23,612.8

P reliminary.

S ource: American Met al Market (AMM)

Salient Statistics of Recycling Aluminum in the United States Year

New Old Recycled Apparent Scrap1 Scrap2 Metal3 Supply -------------------- In Thousands of Metric Tons -------------------

Percent Recycled

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

40 41 38 37 36 37 36 36 36 36

1,730 2,020 1,950 2,120 2,080 1,760 1,750 1,750 1,870 1,930

1,570 1,530 1,500 1,570 1,370 1,210 1,170 1,070 1,160 1,060

Scrap that results from the manufacturing process. Source: U.S. Geological Survey (USGS)

1

2

3,310 3,550 3,440 3,700 3,450 2,970 2,930 2,820 3,030 2,990

8,340 8,740 9,040 9,890 9,610 7,990 8,070 7,880 8,460 8,390

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

2,730 3,430 2,810 3,070 3,420 2,670 2,510 2,620 3,640 3,870

Scrap that results from consumer products.

Producer Prices for Aluminum Used Beverage Can Scrap Year

New Old Recycled Apparent Scrap1 Scrap2 Metal3 Supply -------------------- Value in Millions of Dollars -------------------

3

2,480 2,590 2,160 2,280 2,260 1,830 1,680 1,610 2,140 2,140

5,200 6,020 4,970 5,350 5,670 4,500 4,190 4,230 5,600 6,000

13,100 14,800 13,100 14,300 15,800 12,100 11,500 11,800 15,700 16,800

Metal recovered from new plus old scrap.

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

56.98 54.53 44.50 58.58 54.26 44.50 50.50 57.44 64.80 81.03

59.00 57.00 44.50 62.90 55.50 44.66 52.30 61.64 65.79 85.76

59.00 57.00 44.20 61.50 55.45 47.21 52.45 61.65 71.91 85.13

58.27 52.95 45.68 56.85 54.50 49.41 49.43 63.00 71.40 91.08

58.05 49.85 47.45 54.50 54.23 48.68 50.17 57.85 64.75 99.41

58.05 47.09 46.50 54.50 50.79 48.50 49.75 60.00 62.23 83.50

58.32 45.50 48.40 56.50 46.93 46.89 49.22 62.23 60.05 83.40

59.60 44.50 49.00 57.00 45.50 45.06 49.83 60.57 62.96 82.74

59.50 46.21 49.00 57.00 45.50 46.36 47.43 59.48 60.40 80.70

59.13 44.50 53.79 56.20 44.63 47.07 50.17 62.07 61.76 79.66

59.00 44.50 55.50 53.50 44.50 49.76 52.00 61.45 65.25 83.90

57.12 46.14 57.64 53.50 44.50 50.29 53.73 63.81 72.90 85.00

58.50 49.15 48.84 56.88 49.71 47.37 50.58 60.93 65.35 85.11

Source: American Metal Market (AMM)

3

ALUMINUM Average Price of Cast Aluminum Scrap (Crank Cases) in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

36.09 37.50 25.50 37.50 31.00 26.00 28.10 30.00 29.00 42.50

36.50 37.50 25.50 37.50 31.00 27.47 30.00 31.26 29.00 42.50

36.50 37.50 25.50 37.50 31.00 28.95 30.00 36.00 31.61 43.80

36.50 35.95 25.50 35.55 31.00 30.00 29.00 36.00 33.00 47.50

36.50 35.50 26.45 31.09 31.00 30.00 29.00 33.00 31.33 47.50

36.50 31.59 29.23 30.32 31.00 30.00 27.90 29.00 28.00 55.91

36.50 25.50 36.83 30.30 28.29 30.00 26.68 29.00 28.00 46.48

39.36 25.50 37.50 32.00 28.00 29.64 26.00 29.00 28.00 45.46

38.60 25.50 37.50 32.00 28.00 28.00 26.00 29.00 28.00 44.50

38.50 25.50 37.50 31.09 28.00 28.00 26.00 29.00 28.00 46.45

38.50 25.50 37.50 31.00 26.40 28.00 26.00 29.00 28.00 51.15

38.07 25.50 37.50 31.00 26.00 28.00 26.00 29.00 39.71 51.10

37.34 30.71 31.87 33.04 29.25 28.67 27.56 30.77 30.14 47.07

Source: American Metal Market (AMM)

Aluminum Exports of Crude Metal and Alloys from the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

31.0 21.2 18.6 18.7 19.6 17.1 14.3 18.2 26.5 40.0

25.5 21.4 26.7 27.2 16.1 15.2 14.8 20.8 23.4 26.0

22.5 21.8 23.9 30.2 18.9 15.6 14.5 24.3 24.3 30.5

33.0 17.4 22.7 21.9 14.7 16.4 16.9 25.2 27.0 29.4

24.1 22.6 25.2 24.4 16.8 19.4 17.0 25.1 28.9 38.8

34.9 21.8 27.7 22.4 15.6 18.3 17.8 27.6 29.6 25.3

23.9 20.9 23.7 20.5 12.4 15.0 16.5 23.7 25.9 23.7

33.2 21.5 27.5 24.2 14.5 15.5 20.4 23.0 33.1 32.0

34.4 28.0 26.1 20.5 12.6 17.5 18.7 28.3 27.2 26.1

26.5 23.9 31.4 20.7 18.9 19.8 22.9 26.9 29.5 25.8

33.0 20.4 30.3 20.7 16.7 19.4 20.4 28.0 29.6

30.0 24.7 34.8 21.6 15.1 16.4 19.7 27.4 23.9

352.0 265.6 318.6 273.0 191.9 205.6 213.9 298.5 328.9 357.1

Source: U.S. Geological Survey (USGS)

Aluminum General Imports of Crude Metal and Alloys into the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

145.0 220.0 191.0 246.0 193.0 272.0 215.0 211.0 334.0 348.0

147.0 204.0 200.0 213.0 200.0 205.0 246.0 288.0 289.0 247.0

209.0 202.0 240.0 206.0 237.0 223.0 350.0 248.0 262.0 289.0

196.0 200.0 311.0 211.0 197.0 221.0 202.0 254.0 372.0 353.0

198.0 189.0 281.0 233.0 209.0 221.0 265.0 282.0 372.0 315.0

167.0 243.0 258.0 234.0 179.0 263.0 261.0 309.0 324.0 298.0

157.0 170.0 213.0 250.0 201.0 228.0 233.0 297.0 324.0 249.0

152.0 204.0 219.0 206.0 198.0 279.0 194.0 225.0 264.0 315.0

150.0 198.0 178.0 189.0 252.0 235.0 215.0 279.0 282.0 289.0

175.0 198.0 202.0 186.0 220.0 196.0 210.0 286.0 298.0 259.0

146.0 189.0 178.0 181.0 248.0 264.0 233.0 272.0 240.0

222.0 177.0 180.0 137.0 227.0 186.0 243.0 294.0 299.0

2,060.0 2,394.0 2,651.0 2,490.0 2,561.0 2,793.0 2,867.0 3,245.0 3,660.0 3,554.4

Preliminary.

Source: U.S. Geological Survey (USGS)

Average Open Interest of Aluminum Futures in New York Year

1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Metric Tons

Jan.

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

---794 2,446 3,277 9,573 8,815 8,183 1,066

---580 3,173 2,744 9,163 7,384 8,487 708

---254 3,450 2,738 6,960 9,666 7,464 482

---326 3,529 2,250 7,190 10,575 6,612 1,110

1,032 965 3,269 2,397 7,686 10,363 5,654 948

1,461 2,035 3,724 2,902 8,529 10,370 5,061 816

1,875 3,938 3,891 3,903 8,402 9,626 4,359 1,068

1,984 4,803 3,459 4,618 8,445 10,287 3,223 1,125

1,767 4,580 2,753 4,643 7,655 10,292 3,225 1,116

1,244 4,598 3,728 5,139 7,283 10,035 2,676 865

625 3,587 3,644 8,057 8,434 9,706 2,232 994

615 2,046 3,276 10,479 9,427 8,879 1,670 950

Source: New York Mercantile Exchange (NYMEX), COMEX Division

Volume of Trading of Aluminum Futures in New York

In Contracts

Year

1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

---1,224 7,361 2,774 12,565 9,425 5,294 633

---2,394 1,694 4,635 9,625 9,621 2,829 245

---1,664 4,410 4,924 8,163 9,548 3,244 1,343

---1,901 2,822 2,593 5,440 9,770 2,627 1,558

6,179 3,859 2,853 5,388 10,567 5,438 2,613 210

5,875 3,566 4,634 5,389 8,463 5,453 1,832 471

5,275 6,295 4,404 8,953 11,797 5,280 1,247 1,046

3,373 3,767 3,794 4,194 9,451 2,063 902 1,546

3,114 5,993 1,428 2,571 5,119 5,533 1,625 662

2,801 6,365 2,887 7,328 6,222 4,822 623 323

639 5,055 4,251 16,185 8,536 2,525 3,135 842

722 4,016 2,551 9,066 11,542 2,691 2,520 270

27,978 46,099 43,089 74,000 107,490 72,169 28,491 9,149

Source: New York Mercantile Exchange (NYMEX), COMEX Division

4

Antimony Antimony (symbol Sb) is a lustrous, extremely brittle and hard crystalline semi-metal that is silvery white in its most common allotropic form. Antimony is a poor conductor of heat and electricity. In nature, antimony has a strong affinity for sulfur and for such metals as lead, silver, and copper. Antimony is primarily a byproduct of the mining, smelting and refining of lead, silver, and copper ores. There is no longer any mine production of antimony in the US.

tons. China accounted for 86% of world antimony production in 2005, down from 91% in 2002. After China, the only significant producers were South Africa (3.6% of world production) and Bolivia (2.2%). China’s production level rose +9.1% in 2005 to offset all of the decreases in South Africa and Bolivia. Estimated US secondary production of antimony in 2005 rose by +0.5% yr/yr to 3,670 metric tons from 3,650 metric tons in 2004.

The most common use of antimony is in antimony trioxide, a chemical that is used as a flame retardant in textiles, plastics, adhesives and building materials. Antimony trioxide is also used in battery components, ceramics, bearings, chemicals, glass, and ammunition.

Demand – US industrial consumption of antimony in 2005 fell –21.8% to 8,910 metric tons from 11,400 metric tons in 2004. Of the consumption in the US in 2005, 40% was used for flame-retardants, 33% was used for metal products, and 27% was used for non-metal products.

Prices – Antimony prices in 2006 rallied very sharply by 49.7% to a record high average of 233.30 cents per pound. Antimony prices in 2006 were more than three and a half times the 33-year low of 66.05 cents posted as recently as 1999. Bullish factors included stronger US and global economic growth, the weak dollar, and tight supplies.

Trade – US imports of antimony ore in 2005 fell more than 88% from 2004, which had been the highest year since 2000. (Gross weight fell 89% to 207 metric tons and antimony content fell 88% to 204 metric tons). Imports of antimony oxide in 2005 fell by –3.5% to 27,300 metric tons from 28,300 metric tons in 2004. US exports of antimony oxide fell by – 56.8% to 1,400 metric tons from 3,240 metric tons in 2003.

Supply – World mine production of antimony in 2005 (the latest year available) rose by +7.8% to 139,000 metric

World Mine Production of Antimony (Content of Ore) Year

2002 2003 20041 20052

Australia

Bolivia

Canada

China2

Guatemala

1,200 1,300 1,800 1,900

2,336 2,911 3,118 3,100

173 153 112 120

100,000 100,000 110,000 120,000

20 2,686 2,700

Kyrgyzstan

150 40 20 10

In Metric Tons Mexico3

Peru4

Russia

South Africa

Thailand

Turkey

World Total

356 356 356 360

1,000 2,000 3,000 3,000

5,746 5,291 4,967 5,000

1 38 52 50

250 650 900 900

114,000 115,000 129,000 139,000

Preliminary. 2 Estimate. 3 I ncludes antimony content of miscellaneous smelter products. Source: U.S. Geological Survey (USGS)

1

Salient Statistics of Antimony in the United States

Year

Avg. Price cents/lb. CIF U.S. Ports

2002 2003 20041 20052

88.4 107.5 130.3 160.5

----------- Production3 ---------------- Primary2 ------ Secondary (Alloys)2 Mine Smelter

W W W W

5,350 5,600 3,650 3,670

Preliminary. 2 Estimate. 3 Antimony content. Source: U.S. Geological Survey (USGS)

1

In Metric Tons

4

-------------- Industry Stocks, December 313 --------------

Gross Weight

Antimony Content

Oxide (Gross Weight)

Exports (Oxide)

Metallic

Oxide

Sulfide

Other

Total4

1,320 428 1,820 207

1,310 412 1,750 204

27,900 26,000 28,300 27,300

3,260 2,910 3,240 1,400

729 578 483 425

4,080 3,540 2,330 1,690

W W W W

254 2,200 16 17

5,060 6,320 2,830 2,130

I ncluding primary antimony residues & slag.

Industrial Consumption of Primary Antimony in the United States ---------------------------------- Metal Products ----------------------------------

Year

Ammu- Antimonial nition Lead

2002 2003 2004 20051 1

W W W W

Preliminary.

2

887 910 1,200 W

Sheet & P i pe

Bearing Metal & Bearings

Solder

Total All Metal Products

W W W W

42 43 51 33

89 85 85 81

2,760 2,410 3,020 2,940

Estimated coverage based on 77% of the industry.

Average Price of Antimony1 in the United States Year

2003 2004 2005 2006 1

Recoverable.

-- Imports for Consumption ------------ Ore ---------

-------------

4

W = Withheld proprietary data.

In Metric Tons (Antimony Content) ----------------------- Non-Metal Products -----------------------

Flame ----- Retardents ----- Ceramics Plastics Total & Glass Pigments

4,930 3,680 4,680 2,650

6,310 4,720 5,910 3,600

505 487 535 421

W=Withheld proprietary data.

565 597 536 535

Plastics

Total

Grand Total

837 532 W W

2,460 2,100 2,480 2,360

11,500 9,230 11,400 8,910

Source: U.S. Geological Survey (USGS)

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

121.53 110.10 138.35 172.99

109.15 122.47 138.35 183.14

118.48 132.83 146.63 212.50

119.49 133.81 147.42 242.22

119.77 133.81 147.42 244.94

119.07 126.23 148.66 238.86

107.86 125.87 156.49 241.81

105.01 133.81 157.48 252.39

105.01 138.35 168.96 255.15

105.01 138.35 174.63 250.30

102.76 138.35 174.63 252.47

97.52 138.35 170.72 252.88

110.89 131.03 155.81 233.30

Prices are for antimony metal (99.65%) merchants, minimum 18-ton containers, c.i.f. U.S. Ports.

Source: American Metal Market (AMM)

5

Apples The apple tree is the common name of trees from the rose family, Rosaceae, and the fruit that comes from them. The apple tree is a deciduous plant and grows mainly in the temperate areas of the world. The apple tree is believed to have originated in the Caspian and Black Sea area. Apples were the favorite fruit of the ancient Greeks and Romans. The early settlers brought apple seeds with them and introduced them to America. John Champman, also known as Johnny Appleseed, was responsible for extensive planting of apple trees in the Midwestern United States. Prices – The average monthly price of apples received by growers in the US rose by +35.0% yr/yr to 29.6 cents per pound in 2006.

Supply – World apple production in the 2005-6 marketing year fell –8.8% yr/yr to 41.837 million metric tons, which was a 10-year low. The world’s largest apple producers in 2005-06 were the US (with 11% of world production), Turkey (6%), Italy (5%), and Germany (3%). US apple production in 2005-06 fell –5.5% yr/yr to 4.474 million metric tons, but remained above the 2-decade low of 3.866 million metric tons posted in 2002-03. Demand – The utilization breakdown of the 2005 apple crop showed that 63% of apples were for fresh consumption, 18% for juice and cider, 12% for canning, 3% for frozen apples, and 2% for dried apples. US per capita apple consumption in 2005 was 16.9 pounds.

World Production of Apples, Fresh (Dessert & Cooking) Argentina

Year

2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

900 1,000 900 1,200 1,040

Preliminary.

2

In Thousands of Metric Tons

Canada

France

Germany

Hungary

Italy

Ja p a n

467 402 379 381 394 360

2,055 2,060 2,080

1,522 1,563 1,518 1,945 1,405 1,905

605 540 500 680 466 550

2,220 2,206 1,878 2,058 2,097 1,974

931 926 842 755 819 860

Estimate.

Netherlands

South Africa

500 370 385

591 682 769 659 720

Spain

Turkey

United States

World Total

962 651 888 603 770 716

2,450 2,200 2,600 2,100 2,570 2,000

4,274 3,866 3,988 4,735 4,474 4,464

45,440 43,629 45,079 45,885 41,837 42,343

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Salient Statistics of Apples2 in the United States ------ Foreign Trade4 -------

--------------- Utiliz ation of Quantities Sold ----------------- Production -- - Grow ers Prices -

Total

Fresh Utilized cents/lb.

Processing $/ton

--------------------- Processed --------------------5

Fresh Canned

Dried Frozen

Juice & Cider Other3

---------------------------------------- Millions of Pounds ----------------------------------------

Year

2000 2001 2002 2003 2004 20051

10,581 10,320 9,423 9,209 8,524 8,374 8,793 8,703 10,441 10,361 9,865 9,763

17.8 22.9 25.8 29.4 21.8 27.6

101.0 108.0 130.0 131.0 107.0 105.0

6,266 5,468 5,366 5,462 6,638 6,183

1,184 1,257 1,079 1,236 1,258 1,202

248 221 208 182 201 201

196 249 192 283 256 244

2,334 1,945 1,479 1,435 1,876 1,782

93 71 51 106 79 79

Imports Farm Fresh Value Exports Dried5 & Dried5 Million Fresh ------ Metric Tons -----$

12.8 15.8 18.9 20.9 13.5 17.5

Preliminary. 2 Commercial crop. 3 Mostly crushed for vinegar, jam, etc. 4 Year beginning July. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

---- Domestic ----

Avg. Farm Price cents /lb.

5

1,320.8 1,453.1 1,572.2 1,817.2 1,403.0 1,680.7

2001 2002 2003 2004 2005 2006 1 1

Preliminary.

180.6 193.9 231.5 186.6 207.4 122.8

17.5 15.6 16.0 16.9 18.8 16.9

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

15.8 22.1 25.8 30.4 21.6 21.7

15.2 21.6 24.6 30.0 20.3 20.6

14.6 22.0 22.6 30.4 18.4 25.6

15.7 21.8 23.4 29.8 17.3 24.7

15.2 21.5 21.8 29.6 17.4 23.8

14.9 22.0 22.4 30.1 16.2 27.7

15.2 20.6 20.8 30.0 15.7 33.6

17.3 24.5 34.6 26.8 21.1 39.9

21.2 30.0 27.1 26.8 30.9 39.9

24.8 30.1 27.9 26.1 28.8 37.3

23.5 26.8 29.7 24.5 29.4 34.1

23.1 26.3 27.9 22.2 25.8 26.1

18.0 24.1 25.7 28.1 21.9 29.6

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Cents Per Pound ----- Average Received by Growers, US (Jan. 1947 - date)

6

33.3 21.2 26.3 33.0 32.4

Fresh weight basis.

Price of Apples Received by Grow ers (for Fresh Use) in the United States Year

743.6 593.0 522.5 528.3 474.5 679.1

Fresh P er Capita Consumption L b s.

Arsenic semiconductor materials. Since roughly 75% of US arsenic production used to be used for wood preservative treatments, the demand for arsenic was closely tied to new home construction, home renovation, and deck construction. However, future demand for arsenic is questionable given its toxicity and the possibility of tighter environmental regulations in the future. In fact, in 2005 the percent of arsenic used for wood preservative treatments was down to 65%. Supply – World production of white arsenic (arsenic trioxide) in 2005 fell by –0.4% to 52,500 metric tons from last year’s level of 52,700 metric tons. The world’s largest producer is China with about 57% of world production, followed by Chile with 22% of world production, Peru with 7%, Mexico with 3%, and Russia with 3%. China’s production of arsenic was fairly constant at about 40,000 metric tons per year but that has dropped to about 30,000 in the last two years. The US supply of arsenic in 2005 rose by 32.2% to 9,142 metric tons from last year’s 30-year low of 7,022 metric tons. Demand – US demand for arsenic in 2004 fell by –68% to a record low of 6,800 metric tons from last year’s level of 21,600 metric tons. Of that demand, 65% was for wood preservatives, 13% was for non-ferrous alloys and electric usage, 11% was for agricultural use, 8% was for glass, and 3% was for other uses. Trade – US imports of trioxide arsenic in 2005 rose by 36% to 11,000 metric tons from 8,090 metric tons in 2004. US exports of trioxide arsenic were low at 327 metric tons, but still up +49% from the 220 metric tons in 2004.

Arsenic (symbol As) is a silver-gray, extremely poisonous, semi-metallic element. Arsenic, which is odorless and flavorless, has been known since ancient times, but it wasn’t until the Middle Ages that its poisonous characteristics first became known. Metallic arsenic was first produced in the 17th century by heating arsenic with potash and soap. Arsenic is rarely found in nature in its elemental form and is generally recovered as a by-product of ore processing. Recently, small doses of arsenic have been found to put some forms of cancer into remission. It can also help thin blood. Homoeopathists have successfully used undetectable amounts of arsenic to cure stomach cramps. The US does not produce any arsenic and instead imports all its consumption needs for arsenic metals and compounds. More than 95 percent of the arsenic consumed in the US is in compound form, mostly as arsenic trioxide, which in turn is converted into arsenic acid. Production of chromated copper arsenate, a wood preservative, accounts for about 90% of the domestic consumption of arsenic trioxide. Three companies in the US manufacture chromate copper arsenate. Another company used arsenic acid to produce an arsenical herbicide. Arsenic metal is used to produce nonferrous alloys, primarily for lead-acid batteries. One area where there is increased consumption of arsenic is in the semiconductor industry. Very high-purity arsenic is used in the production of gallium arsenide. High speed and high frequency integrated circuits that use gallium arsenide have better signal reception and lower power consumption. An estimated 30 metric tons per year of high-purity arsenic is used in the production of

World Production of White Arsenic (Arsenic Trioxide) Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 1 5

In Metric Tons

Belgium

Bolivia

Canada4

Chile

China

France

Germany

Mexico

Namibia3

Peru

Phillippines

Russia5

World Total

2,000 2,000 1,500 1,500 1,500 1,000 1,000 1,000 1,000 1,000

255 282 284 437 318 846 237 276 168 150

250 250 250 250 250 250 250 250 250 250

8,000 8,350 8,400 8,000 8,000 11,500 11,400 11,600 11,600 11,500

15,000 15,000 15,500 16,000 40,000 39,500 40,000 40,000 30,000 30,000

3,000 2,500 2,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

250 250 200 200 200 200 200 200 200 200

2,942 2,999 2,573 2,419 2,522 2,381 1,946 1,729 1,829 1,650

1,559 1,297 175 ----------------------

111 637 624 1,611 2,495 2,800 2,970 3,000 3,500 3,600

-------------------------------

1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500

42,900 42,000 40,300 41,800 62,800 63,000 62,500 62,400 52,700 52,500

Preliminary. 2 Estimate. 3 Output of Tsumeb Corp. Ltd. only. Formerly part of the U.S.S.R.; not reported separately until 1992.

4 I ncludes low-grade dusts that were exported to the U.S. for further refining. Source: U.S. Geological Survey (USGS)

Salient Statistics of Arsenic in the United States

In Metric Tons (Arsenic Content)

Year

------------------ Supply ------------------ -- Distribution -- ------------------- Estimated Demand Pattern ------------------- -- Average Price -NonTrioxide Metal Wood Ferrous AgriculIndustry ---- Imports ---- Industry Mexican Chinese Imports Com- Stocks Apparent Stocks Preserv- Alloys & tural Metal pounds Jan. 1 Total Demand Dec.31 Chemicals Total -- Cents/Pound -- Trioxide3 Exports atives Electric Other Glass

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

252 909 997 1,300 830 1,030 879 990 872 812

1

Preliminary.

2

21,200 22,800 29,300 22,100 23,600 23,900 18,800 20,800 6,150 8,330

---- 21,400 ---- 23,700 ---- 30,300 ---- 23,400 ---- 24,430 ---- 24,930 ---- 19,679 ---- 21,790 ---- 7,022 ---- 9,142

Estimate.

3

21,400 23,700 30,100 22,000 24,400 24,900 19,600 21,600 6,800 8,820

For Consumption.

-------------------------------

950 1,400 1,500 1,100 -------------------

700 700 900 600 700 750 700 660 650 700

19,200 20,000 26,500 19,500 21,800 21,900 17,300 19,200 4,450 5,760

250 900 1,200 850 700 1,000 650 660 650 1,100

300 300 300 200 250 250 200 200 200 250

21,400 23,700 30,100 22,000 24,400 24,900 19,600 21,600 6,800 8,810

33 31 30 ----------------------

40 32 40 ----------------------

28,000 36 30,000 61 38,600 177 29,100 1,350 31,100 41 31,500 57 24,700 100 27,300 173 8,090 220 11,000 327

Source: U.S. Geological Survey (USGS)

7

Barley Barley is the common name for the genus of cereal grass and is native to Asia and Ethiopia. Barley is an ancient crop and was grown by the Egyptians, Greek, Romans and Chinese. Barley is now the world’s fourth largest grain crop, after wheat, rice, and corn. Barley is planted in the spring in most of Europe, Canada and the United States. The U.S. barley crop year begins June 1. It is planted in the autumn in parts of California, Arizona and along the Mediterranean Sea. Barley is hardy and drought resistant and can be grown on marginal cropland. Salt-resistant strains are being developed for use in coastal regions. Barley grain, along with hay, straw, and several by-products are used for animal feed. Barley is used for malt beverages and in cooking. Barley, like other cereals, contains a large proportion of carbohydrate (67%) and protein (12.8%). Barley futures are traded on the Winnipeg Commodity Exchange (WCE), the London International Financial Futures and Options Exchange (LIFFE) and the Budapest Commodity Exchange. Prices – The monthly average price for all barley received by US farmers in the 2006-07 marketing year (through February 2007) rose by +14.6% yr/yr to $2.83 per bushel. Supply – World barley production in the 2006-07 marketing year rose +0.4%yr/yr to 138.678 million metric tons. The world’s largest barley crop of 179.038 million metric tons occurred in 1990-91. The world’s largest barley producers are the European Union with 39.6% of world

World Barley Supply and Demand

Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

2,838 4,241 2,870 3,924 4,590 2,159 6,104 4,481 5,231 2,300

Trade – World exports of barley in 2006-07 fell by – 11.5% yr/yr to 15.755 million metric tons, but was still better than the 7-year low of 15.311 million metric tons seen in 2003-04. The largest world exporters of barley in 2006-07 were Australia with 17% of world exports, the European Union with 22%, Canada with 9%, and the US with only 3%. The single largest importer of barley is Saudi Arabia with 6.000 million metric tons of imports in 2006-07.

2

Estimate.

12,826 17,785 18,780 16,915 17,600 16,764 14,830 17,315 17,807 15,755

4,026 5,814 5,900 5,100 6,000 7,502 5,508 6,420 7,000 6,000

483 809 110 537 489 225 226 451 566 275

12,826 17,785 18,780 16,544 17,159 16,539 14,604 16,864 17,241 15,530

16,494 12,900 11,441 12,700 14,250 15,500 18,600 16,500 15,500 16,100

6,879 7,195 6,571 6,407 5,661 5,179 4,990 5,672 4,571 4,246

145,266 139,032 132,196 133,730 135,654 136,810 146,185 144,368 141,275 145,724

2,459 2,596 32,137 2,737 3,084 28,870 2,838 2,424 24,047 2,516 2,314 22,752 2,047 2,006 28,738 1,475 1,510 27,202 2,102 2,619 22,561 3,435 2,796 33,300 3,289 2,350 29,127 1,639 1,807 21,939

Source: Foreign Agricutural Service, U.S. Department of Agriculture (FAS-USDA)

In Thousands of Metric Tons

Australia

Belarus

Canada

China

European Union

India

Iran

Kazakstan

Russia

Turkey

Ukraine

United States

World Total

6,482 5,987 5,032 6,743 8,280 3,865 10,387 7,708 9,869 4,200

2,359 1,623 1,181 1,378 1,700 1,681 1,800 2,000 1,800 1,350

13,527 12,709 13,196 13,172 10,846 7,489 12,328 13,186 12,481 10,000

4,000 2,656 2,970 2,646 2,893 3,322 2,717 3,222 3,400 3,500

52,608 51,907 57,538 58,816 56,962 56,509 54,826 61,753 52,917 54,863

1,462 1,680 1,470 1,447 1,432 1,500 1,410 1,310 1,080 1,400

2,500 2,300 1,600 1,400 2,423 3,085 2,900 2,900 2,900 2,900

2,670 1,100 2,250 1,675 2,200 2,200 2,100 1,500 1,500 1,500

20,800 9,800 10,600 14,100 19,500 18,700 18,000 17,200 15,800 18,500

7,300 7,500 6,600 7,400 6,900 7,200 6,900 7,400 7,600 7,200

7,407 5,870 6,425 6,872 10,186 10,364 6,850 11,100 9,000 11,800

7,835 7,655 5,922 6,919 5,407 4,940 6,059 6,091 4,613 3,920

154,315 135,659 127,490 132,785 142,327 134,847 142,906 154,220 138,140 138,678

Year

8

Demand – U.S. total barley disappearance in 2006-07 fell –3.2% yr/yr to 230.0 million bushels, which is down from 2004-05 4-year high of 284 million bushels. About 65% of barley is used for food and alcoholic beverages, 22% for animal feed, and 3% for seed.

In Thousands of Metric Tons

1,897 2,990 11,750 1,076 1,185 8,894 17,234 551 1,806 10,738 17,927 853 1,956 6,275 15,847 1,068 1,126 3,236 17,083 517 304 6,307 16,212 552 1,937 984 14,446 384 1,476 3,881 16,544 771 1,876 2,500 17,450 357 1,500 3,500 15,255 500

World Production of Barley

1

US barley production in the 2006-07 marketing year fell by –15.0% yr/yr to 180.051 million bushels. That was only about 30% of the record US barley crop of 608.532 million bushels seen in 1986-87. US farmers harvested 2.951 million acres of barley in 2006-07, which was the lowest acreage since the late 1800s (specifically, 1894-95). Furthermore, the barley yield in 2006-07 fell to 61.0 bushels per acre from the 2004-05 record high of 69.6. Ending stocks for the 2006-07 marketing year fell to 73 million bushels which was 43.2% below the 12-year high of 128.4 million bushels in 2004-05.

---------------------------------- Exports ---------------------------------- ------------- Imports ------------- ------------- Utiliz ation ------------- -------- Ending Stocks -------Total UtilTotal AusCanTotal Total Saudi UnacTotal ization Canada U.S. Stocks tralia ada EC-15 Non-US U.S. Exports Arabia ounted Imports Russia U.S.

Preliminary.

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

production in 2006-07, Russia (13.3%), Ukraine (8.5%), Canada (7.2%), Turkey (5.2%), Australia (3.0%), and the US (2.8%).

Preliminary.

2

Estimate.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

BARLEY Barley Acreage and Prices in the United States ---------------------- Seasonal Prices ---------------------- ------ Government Price Support Operations -----Year Beginning June 1

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

Acreage ----- 1,000 Acres ----Planted

Harvested for Grain

Yield Per Harvested Acre -- Bushels --

5,194 5,864 4,967 5,008 5,348 4,527 3,875 3,452

4,734 5,213 4,289 4,123 4,727 4,021 3,269 2,951

59.2 61.1 58.2 55.0 58.9 69.6 64.8 61.0

National Portland Average No. 2 Target Western Loan Rate All F eed4 Price Malting4 --------------------------------------- Dollars per Bushel ------------------------------------------------ Received by Farmers3 ---------

2.13 2.11 2.18 2.68 2.81 2.46 2.55 2.83

1 Preliminary. 2 Estimate. 3 Excludes support payments. U.S. Department of Agriculture (ERS-USDA)

4

1.65 1.74 1.74 2.16 2.27 1.76 1.89 2.56

2.50 2.36 2.58 2.96 3.07 2.79 2.81 2.96

2.11 2.25 2.31 2.71 2.74 2.39 2.44

Duluth through May 1998.

Salient Statistics of Barley in the United States

1.59 1.62 1.65 1.88 1.88 1.85 1.85

NA NA NA 2.21 2.21 2.24 2.24

Put Under Support (mil. Bu.)

% of Production

13.6 16.0 10.6 10.4 17.9 8.3

4.9 5.0 4.2 4.6 6.4 3.0

Source: Economic Research Service,

In Millions of Bushels

------------------------------------ Disappearance ----------------------------------Year Beginning June 1

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

-------------------- Domestic Use -------------------F ood & -------------------- Supply -------------------Beginning ProducTotal F eed & Acohol Stocks tion Imports Supply Beverages Seed Residual Total

141.7 111.0 106.3 92.1 69.3 120.3 128.4 108.0

280.3 318.7 248.3 226.9 278.3 279.7 211.9 180.1

25.0 29.0 23.9 18.5 20.6 12.1 5.4 15.0

448.5 459.0 378.5 337.5 368.3 412.2 345.7 303.0

Preliminary. 2 Estimate. 3 Uncommitted inventory. Service, U.S. Department of Agriculture (ERS-USDA)

1

162.5 164.0 147.3 145.7 147.5 150.8 152.2 148.4 4

9.5 8.0 8.3 8.7 7.4 6.4 5.8 6.6

136.0 122.0 104.3 83.6 74.3 103.3 52.0 50.0

308.0 294.0 260.0 237.9 229.2 260.5 210.8 195.0

Total D i sa p Exports pearance

30.0 58.0 26.4 30.3 18.8 23.3 28.0 25.0

338.0 353.0 286.4 268.2 247.9 283.8 237.7 230.0

I ncludes quantity under loan & farmer-owned reserve.

---------- Ending Stocks --------Gov't Privately Total Owned3 Owned4 Stocks

0 0 0 0 0 0 0 0

111.0 106.0 92.1 69.3 120.3 128.4 108.0 73.0

111.0 106.0 92.1 69.3 120.3 128.4 108.0 73.0

Source: Economic Research

Cents Per Bushel ----- Malting, Top Quality, Mpls. (Jan. 1972 - date) ----- No. 2 Mpls. (Jan. 1909 - June 1925) No. 3 Mpls. (July 1925 - June 1976) No. 2 Feed, Mpls. (July 1976 - Dec. 1986) No. 2 Feed, Duluth (Mar. 1987 - Dec. 1990) - - - No. 1 Western Feed, Lethbridge (Aug. 1991 - date)

9

BARLEY Average Price Received by Farmers for All Barley in the United States

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

1.70 2.04 1.98 2.09 2.99 2.63 2.54 2.78

2.04 2.70 2.00 2.14 2.74 2.54 2.37 2.70

2.37 2.23 2.41 2.68 2.91 2.77 2.50 2.70

2.03 1.81 2.24 2.64 2.88 2.43 2.36 2.56

1.96 1.97 2.29 2.64 2.74 2.29 2.41 2.76

2.14 2.15 2.30 2.79 2.83 2.45 2.58 2.92

2.25 2.22 2.21 2.91 2.93 2.49 2.48 2.95

2.04 2.00 2.09 2.85 2.69 2.41 2.42 3.03

2.13 2.10 2.17 2.87 2.73 2.31 2.55 3.10

2.23 2.07 2.17 2.83 2.77 2.49 2.71

2.09 2.05 2.09 2.85 2.78 2.26 2.67

2.19 2.12 2.24 2.91 2.78 2.46 2.97

2.10 2.12 2.18 2.68 2.81 2.46 2.55 2.83

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price Received by Farmers for Feed Barley in the United States

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

1.55 1.73 1.77 1.83 2.33 2.20 1.91 2.08

1.48 1.71 1.63 1.88 2.22 2.21 1.88 2.04

1.50 1.50 1.54 2.05 2.39 1.83 1.77 2.06

1.64 1.54 1.71 2.23 2.27 1.64 1.84 2.33

1.61 1.71 1.86 2.26 2.24 1.58 1.81 2.67

1.66 1.87 1.79 2.32 2.43 1.78 1.91 2.85

1.64 1.90 1.77 2.14 2.26 1.66 1.76 2.79

1.63 1.80 1.67 2.17 2.15 1.65 1.94 3.12

1.68 1.77 1.69 2.20 2.16 1.60 1.83 3.13

1.78 1.76 1.75 2.30 2.19 1.67 1.80

1.68 1.73 1.79 2.20 2.17 1.56 1.83

1.94 1.91 1.89 2.33 2.39 1.71 2.45

1.65 1.74 1.74 2.16 2.27 1.76 1.89 2.56

1

Preliminary.

Source: National Agricultural Statistical Service, U.S. Department of Agriculture (NASS-USDA)

Average Open Interest of Western Feed Barley Futures in Winnipeg Year

1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

8,231 16,709 19,453 9,771 8,559 6,731 9,321 8,179

10,635 20,500 20,515 10,653 8,203 6,881 8,164 10,505

10,579 21,100 19,163 11,255 8,546 6,262 9,144 10,719

9,713 22,501 19,458 11,113 9,028 9,779 9,476 12,131

8,333 20,299 16,020 11,141 9,631 10,497 9,475 12,543

8,993 17,402 15,778 11,068 10,290 9,930 9,140 12,762

10,348 15,128 16,475 11,271 10,676 9,992 6,481 12,948

11,959 15,095 17,202 13,046 9,580 9,743 6,880 13,680

13,206 15,885 16,926 13,845 8,409 11,140 6,046 14,938

15,014 14,921 13,577 12,172 7,154 11,956 5,839 16,026

15,662 17,192 11,407 9,000 7,524 12,786 6,538 13,803

15,031 19,605 10,480 8,027 5,346 10,916 7,281 14,620

Source: Winnipeg Commodity Exchange (WCE)

Volume of Trading of Western Barley Futures in Winnipeg Year

1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

15,463 23,371 26,836 14,268 10,555 11,405 15,452 16,241

17,539 22,598 18,732 16,370 18,933 16,265 12,171 9,238

13,853 21,563 16,962 15,924 13,069 12,784 19,849 23,987

17,179 23,631 24,993 17,663 18,879 23,806 9,325 9,361

8,911 19,816 26,361 21,440 13,900 13,179 16,469 26,466

16,294 24,298 20,465 18,349 15,153 27,081 14,741 8,083

17,936 15,230 20,849 19,860 13,293 15,326 4,100 4,294

15,837 11,981 20,137 23,436 29,799 14,933 11,815 25,858

29,141 23,105 19,735 22,431 19,438 23,072 7,573 14,903

16,662 23,447 21,276 14,471 18,937 15,790 12,665 37,489

26,445 42,529 14,926 17,035 17,768 22,516 8,452 12,620

16,117 14,508 6,302 10,772 10,977 8,478 3,952 6,484

211,377 266,077 237,574 212,019 200,701 204,635 136,564 195,024

Source: Winnipeg Commodity Exchange (WCE)

10

In Contracts

Jan.

Bauxite Bauxite is a naturally occurring, heterogeneous material comprised of one or more aluminum hydroxide minerals plus various mixtures of silica, iron oxide, titanium, alumina-silicates, and other impurities in trace amounts. Bauxite is an important ore of aluminum and forms by the rapid weathering of granite rocks in warm, humid climates. It is easily purified and can be converted directly into either alum or metallic aluminum. It is a soft mineral with hardness varying from 1 to 3, and specific gravity from 2 to 2.55. Bauxite is dull in appearance and may vary in color from white to brown. It usually occurs in aggregates in pea-sized lumps.

world’s largest producer of bauxite is Australia with 35.5% of world production in 2005, followed by Brazil (11.7%), China (10.7%), Guinea (8.9%), Jamaica (8.4%), and India (7.1%). Chinese production of bauxite has quadrupled in the past 10 years. India’s bauxite production has also risen rapidly and is more than triple the amount seen 15 years ago. Demand – US consumption of bauxite in 2005 fell by – 2.9% yr/yr to 13.200 million metric tons from 13.600 million metric tons in 2004, which was still well below the record high of 15.962 million metric tons seen in 1980. The alumina industry took 92% of bauxite production in 2005, or 12.200 million metric tons. The refractory industry took only 1.4% of the US bauxite supply in 2005 (187,000 metric tons), the abrasive industry took 0.2% (26,000 metric tons), and the chemical industry took the remainder.

Bauxite is the only raw material used in the production of alumina on a commercial scale in the United States. Bauxite is classified according to the intended commercial application, such as abrasive, cement, chemical, metallurgical, and refractory. Of all the bauxite mined, about 95 percent is converted to alumina for the production of aluminum metal with some smaller amounts going to nonmetal uses as various forms of specialty alumina. Small amounts are used in non-metallurgical bauxite applications. Bauxite is also used to produce aluminum chemicals and is used in the steel industry.

Trade – The US relies on imports for almost 100% of its consumption needs. Domestic ore, which provides less than 1 percent of the US requirement for bauxite, was mined by one company from surface mines in the states of Alabama and Georgia. US imports of bauxite fell –1.5% yr/yr to 9,850 million metric tons in 2005, which was well below the record of 14.976 million metric tons seen in 1974. US exports of bauxite in 2005 were negligible at 34,000 metric tons.

Supply – World production of bauxite rose 5.6% yr/yr in 2005 to a new record high 169 million metric tons. The

World Production of Bauxite

In Thousands of Metric Tons

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

Australia

Brazil

China

Greece

Guinea

Guyana2

Hungary

India

Jamai ca 3

Russia3

Sierra Leone

Suriname

World Total

43,063 44,465 44,553 48,416 53,802 53,799 54,135 55,602 56,593 59,959

10,998 11,671 11,961 14,372 13,866 13,032 13,260 17,363 19,700 19,800

6,200 8,000 8,200 8,500 9,000 9,800 12,000 13,000 15,000 18,000

2,452 1,877 1,823 1,883 1,991 2,052 2,492 2,418 2,444 2,450

15,600 16,359 15,570 15,590 15,700 15,100 15,300 15,000 15,000 15,000

2,475 2,467 2,267 2,359 2,471 1,950 1,690 1,701 1,466 1,500

1,044 743 1,138 935 1,047 1,000 720 666 647 511

5,757 6,019 6,102 6,712 7,562 7,864 9,647 10,414 11,285 11,957

11,863 11,987 12,646 11,688 11,127 12,370 13,120 13,444 13,296 14,118

3,300 3,350 3,450 3,750 4,200 4,000 4,500 5,500 6,000 6,400

-------------------------------

3,695 3,877 3,931 3,715 3,610 4,394 4,002 4,215 4,052 4,584

117,000 122,000 123,000 129,000 136,000 137,000 144,000 153,000 160,000 169,000

Preliminary.

2

Estimate.

3

Dry Bauxite equivalent of ore processed.

Salient Statistics of Bauxite in the United States

Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

In Thousands of Metric Tons

Net Import ----------- Dry Equivalent ----------- ------- Stocks, December 31 ------Reliance Average Price ------------------ Consumption by Industry -----------------Imports3 Producers as a % of & ConApparent FOB Mine (for ConConGovernTotal Alumina Abrasive Chemical Refractory sumption) Exports3 sumption sumers Consumption $ per Ton ment Total

100 100 100 100 100 100 100 100 100 100

15-18 15-18 25 23 23 23 20 19 22 25

11,000 11,500 12,700 11,700 10,800 9,770 9,980 11,300 13,600 13,200

10,300 10,700 12,000 11,100 10,100 9,010 9,290 10,600 12,500 12,200

Preliminary. 2 Estimate. 3 I ncluding concentrates. Source: U.S. Geological Survey (USGS)

1

Source: U.S. Geological Survey (USGS)

117 98 135 113 111 61 52 53 53 26

W W W W W W W W W W

380 466 332 251 160 175 115 150 260 187

10,552 11,069 11,393 10,189 8,550 8,300 7,340 8,390 10,000 9,850

132 85 99 149 133 67 27 55 42 34

11,000 11,500 12,700 11,700 10,800 9,770 9,980 11,300 13,600 13,200

1,930 2,260 1,860 1,440 1,300 1,740 1,280 3,830 3,120 2,730

15,700 14,300 11,000 6,800 5,710 2,070 1,770 66 -------

17,600 16,500 12,800 8,250 7,000 3,810 3,050 3,900 3,120 2,730

W = Withheld to avoid disclosing company proprietary data.

11

Bismuth Bismuth (symbol Bi) is a rare metallic element with a pinkish tinge. Bismuth has been known since ancient times, but it was confused with lead, tin, and zinc until the middle of the 18th century. Among the elements in the earth’s crust, bismuth is ranked about 73rd in natural abundance. This makes bismuth about as rare as silver. Most industrial bismuth is obtained as a by-product of ore extraction. Bismuth is useful for castings because of the unusual way that it expands after solidifying. Some of bismuth’s alloys have unusually low melting points. Bismuth is one of the most difficult of all substances to magnetize. It tends to turn at right angles to a magnetic field. Because of this property, it is used in instruments for measuring the strength of magnetic fields. Bismuth finds a wide variety of uses such as pharmaceutical compounds, ceramic glazes, crystal ware, and chemicals and pigments. Bismuth is found in household pharmaceuticals and is used to treat stomach ulcers. Bismuth is opaque to X-rays and can be used in fluoroscopy. Bismuth has also found new use as a nontoxic substitute for lead in various applications such as brass plumbing fixtures, crystal ware, lubricating greases, pigments, and solders. There has been environmental interest in the use of bismuth as a replacement for lead used in shot for waterfowl hunting and in fishing sinkers. Another use has been for galvanizing to improve drainage characteristics of

World Production of Bismuth

In Metric Tons (Mine Output=Metal Content)

-------------------------- Mine Output, Metal Content -------------------------Year

Canada

China

Ja p a n

Mexico

Peru

Total

186 311 243 258 189 145 145 190

240 2,680 1,120 2,000 2,000 2,500 3,000 3,000

24 24 26 28 24 26 23 27

1,204 548 1,112 1,390 1,126 1,064 1,064 970

1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

3,980 4,860 3,800 5,100 4,700 5,100 5,600 5,500

1998 1999 2000 2001 2002 2003 20041 20052 1

Preliminary.

2

Estimate.

galvanizing alloys. Zinc-bismuth alloys have the same drainage properties as zinc-lead without being as hazardous. Prices – The average price of bismuth (99.99% pure) in the US in 2005 (the latest data available) rose 19.7% to $3.57 per pound from $2.98 per pound in 2004. The increase is due primarily to the strengthening global economy over the past few years. Supply – World mine production of bismuth in 2005 fell –1.8% to 5,500 metric tons from last year’s record of 5,600 metric tons. The world’s largest producer in 2005 was China with 55% of world production, followed by Mexico with 18%, Peru with 18%, and Canada with 3%. Regarding production of the refined metal, China had 71% of production, Mexico had 8%, Belgium had 7%, and Peru had 5% in 2004. The US does not have any significant domestic refinery production of bismuth. Demand – US consumption of bismuth in 2005 fell – 3.3% to 2,340 metric tons, down from the record high of 2,420 metric tons in 2003. Of that consumption, 49% went for metallurgical additives, 29% for fusible alloys, 21% for chemicals, and 1% for other uses. Trade – US imports of bismuth rose 27.8% to 2,530 metric tons which was a 7-year high. Of US imports, 42% came from Belgium and 19% came from Mexico. US exports of bismuth and alloys were negligible in 2005 at 142 metric tons, but up 30% from the 109 metric tons in 2004.

------------------------------------------------- Refined Metal --------------------------------------KazakBelgium China hastan Ja p a n Mexico Peru Total

700 700 700 700 1,000 1,000 800 800

820 860 770 2,000 3,000 5,000 7,000 8,500

50 55 55 130 130 130 130 120

479 481 520 551 474 513 522 530

1,030 412 1,083 1,390 1,126 1,064 1,064 970

832 705 744 640 568 600 600 600

Source U.S. Geological Survey (USGS)

Salient Statistics of Bismuth in the United States

In Metric Tons

---------------------------- Bismuth Consumed, By Uses -----------------------------

Year

1998 1999 2000 2001 2002 2003 20041 20052 1

Metallurgical Additives

Other Alloys & Uses

Fusible Alloys

335 340 346 369 388 833 1,110 1,150

32 31 34 45 50 25 22 14

741 823 889 981 1,070 646 703 685

Preliminary.

2

Estimate.

4,330 3,570 4,200 5,800 6,700 8,700 10,000 12,000

3

Chemicals3

Total Consumption

Consumer Stocks D e c. 3 1

Exports of Metal & Alloys

Belgium

Mexico

Peru

Total

Dealer Price $ P er Pound

884 855 861 805 813 616 584 498

1,990 2,050 2,130 2,200 2,320 2,120 2,420 2,340

175 130 118 95 111 279 134 136

245 257 491 541 131 108 109 142

739.0 742.0 832.0 728.0 724.0 778.0 793.0 1,050.0

807.0 277.0 516.0 605.0 518.0 532.0 495.0 480.0

68.8 6.8 20.4 ---19.5 0.1 39.8 ----

2,720 2,110 2,410 2,220 1,930 2,320 1,980 2,530

3.60 3.85 3.70 3.74 3.14 2.87 3.35 3.91

I ncludes pharmaceuticals.

Imports from --------------- Metallic Bismuth from ---------------

Source: U.S. Geological Survey (USGS)

Average Price of Bismuth (99.99% ) in the United States

In Dollars Per Pound

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

2003 2004 2005 2006

2.90 2.98 2.98 4.63

2.90 2.98 2.98 4.63

2.90 2.98 2.98 4.63

2.92 2.98 2.98 4.63

2.98 2.98 2.98

2.98 2.98 2.98

2.98 2.98 3.20

2.98 2.98 4.10

2.98 2.98 4.17

2.98 2.98 4.30

2.98 2.98 4.54

2.98 2.98 4.63

2.96 2.98 3.57 4.63

Source: American Metal Market (AMM)

12

Broilers Broiler chickens are raised for meat rather than for eggs. The broiler industry was started in the late 1950’s when chickens were selectively bred for meat production. Broiler chickens are housed in massive flocks mainly between 20,000 and 50,000 birds, with some flocks reaching over 100,000 birds. Broiler chicken farmers usually rear five or six batches of chickens per year. After just six or seven weeks, broiler chickens are slaughtered (a chicken’s natural lifespan is around seven years). Chickens marketed as pouissons, or spring chickens, are slaughtered after four weeks. A few are kept longer than seven weeks to be sold as the larger roasting chickens. Prices – The average monthly price received by farmers for broilers (live weight) fell in 2006 by –10.8% yr/yr to 38.7 cents per pound from the 2004 record high of 45.2. The average monthly price for wholesale broilers (ready-to-cook) in 2006 fell –9.2% to 64.34 cents per pound, from the 2004 record high of 74.12.

Supply – Total production of broilers in 2006 rose by +2.3% yr/yr to 36.100 billion pounds, which was a new record high. The number of broilers raised for commercial production in 2006 fell by –0.1% yr/yr to 8.834 billion from 2005’s record high of 8.842 billion birds. The average weight per bird rose by 1.8% to 5.47 pounds, which was a new record high and was nearly 50% heavier than the average bird weight of 3.62 pounds seen in 1970, attesting to the increased efficiency of the industry. Demand – US per capita consumption of broilers in 2006 rose to a new record high of 87.2 pounds (ready-tocook) per person per year. US consumption of chicken has nearly doubled in the past two decades, up from 47.0 pounds in 1980, as consumers have increased their consumption of chicken because of the focus on low-carb diets and because chicken is a leaner and healthier meat than either beef or pork.

Broiler Supply and Prices in the United States ---------------------- Federally Inspected Slaughter ---------------------Certified Liveweight Average RTC Weight Pounds Weight Number (Mil. Lbs.) (Mil. Lbs.) (Pounds) (Millions)

Year & Quarters

2001 2002 2003 2004 20051 20062

8,387 8,511 8,522 8,762 8,842 8,835 2,201 2,245 2,222 2,167

I II III IV Preliminary. condemnation.

1

2

5.04 5.12 5.19 5.26 5.37 5.47 5.46 5.47 5.42 5.52

42,337 43,529 44,247 46,097 47,475 48,309 12,023 12,269 12,038 11,978

31,257 32,190 32,700 34,064 35,238 35,730 8,937 9,129 8,883 8,780

Total Production RTC3 (Mil. Lbs.)

Per Capita Consumption RTC Basis (Mil. Lbs.)

31,266 32,240 32,749 34,063 35,293 36,100 8,825 9,125 9,100 9,050

76.6 80.5 81.6 84.3 85.6 87.2 21.7 22.2 21.9 21.3

------------------ Prices -----------------Farm

Geogia Dock4

---------- Cents per Pound ----------

39.58 30.42 35.33 45.17 43.33 38.67 37.67 35.67 41.33 40.00

62.08 61.65 64.80 74.69 72.83 68.25 68.09 66.87 69.52 68.50

Estimate. 3 Total production equals federal inspected slaughter plus other slaughter minus cut-up & further processing Ready-to-cook basis. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

4

Salient Statistics of Broilers in the United States ------------------------------------- Total Chickens3 Supply and Distribution --------------------------------

Year

2000 2001 2002 2003 2004 20051 20062 1

-------- Average -------------------- Production ------------Commercial Storage ----- Production ----- Liveweight Average Other Stocks Broiler ------ Consumption -----Value of Federally Total January 1 Exports Feed Ratio Number Liveweight Per Bird Total Per Capita4 Price Production Inspected Chickens (Mil. Lbs.) (Mil. Lbs.) (Pounds) (Cents/Lb.) (Mil. $) ----------------------- In Millions of Pounds ----------------------- (Pounds) (Mil. Lbs.) (Pounds)

8,284 8,390 8,591 8,493 8,741 8,854 8,835

Preliminary.

2

41,626 42,452 44,059 43,958 45,796 47,579 48,309

Estimate.

3

5.03 5.06 5.13 5.18 5.24 5.37 5.47 Ready-to-cook.

33.6 39.3 30.5 34.6 44.6 43.6 4

13,989 16,696 13,437 15,215 20,446 20,902

Retail weight basis.

Average Wholesale Broiler1 Prices RTC Year

2000 2001 2002 2003 2004 2005 2006 2 1

30,209 30,938 31,895 32,399 33,699 34,816 35,936

531 515 547 502 504 515 525

31,740 31,453 32,442 32,901 34,203 35,331 35,461

804 807 720 768 611 716 926

5,138 5,737 4,941 4,920 4,768 5,211 5,405

6.7 7.8 5.5 5.4 5.9 7.0 6.2

25,606 25,819 27,467 32,749 34,063 35,293 36,325

77.40 76.60 80.50 81.60 84.30 85.60 87.90

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

(Ready-to-Cook)

(In Cents Per Pound)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

55.43 56.87 56.86 60.46 68.66 71.40 63.13

53.84 57.47 55.91 60.49 74.96 71.43 63.19

54.48 58.95 55.17 60.02 75.94 72.81 61.77

55.39 58.46 53.47 57.78 76.40 73.21 58.91

55.71 59.40 56.42 59.44 79.54 72.54 59.57

56.01 59.88 58.44 61.56 82.00 72.19 64.44

56.61 60.43 57.47 62.80 81.59 72.47 67.10

55.47 60.90 55.72 63.20 75.44 71.45 68.26

58.35 61.93 55.88 64.08 70.07 72.51 68.18

57.22 60.17 52.97 63.59 68.79 69.02 65.16

58.22 58.89 53.42 64.45 68.08 66.95 65.93

57.23 55.98 54.74 65.71 68.01 63.98 66.48

56.16 59.11 55.54 61.97 74.12 70.83 64.34

12-city composite wholesale price.

2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

13

Butter Butter is a dairy product produced by churning the fat from milk, usually cow’s milk, until it solidifies. In some parts of the world, butter is also made from the milk of goats, sheep, and even horses. Butter has been in use since at least 2,000 BC. Today butter is used principally as a food item, but in ancient times it was used more as an ointment, medicine, or illuminating oil. Butter was first churned in skin pouches thrown back and forth over the backs of trotting horses. It takes about 10 quarts of milk to produce 1 pound of butter. The manufacture of butter is the third largest use of milk in the US. California is generally the largest producing state, followed closely by Wisconsin, with Washington as a distant third. Commercially finished butter is comprised of milk fat (80% to 85%), water (12% to 16%), and salt (about 2%). Although the price of butter is highly correlated with the price of milk, it also has its own supply and demand dynamics. The consumption of butter has dropped in recent decades because pure butter has a high level of animal fat and cholesterol that have been linked to obesity and heart disease. The primary substitute for butter is margarine, which is produced from vegetable oil rather than milk fat. US per capita consumption of margarine has risen from 2.6 pounds in 1930 to recent levels near 8.3 pounds, much higher than US butter consumption. Futures on butter are traded at the Chicago Mercantile Exchange (CME). The CME’s butter futures contract calls for the delivery of 40,000 pounds of Grade AA butter and is

Supply and Distribution of Butter in the United States

Year

------------------------ Supply -----------------------Cold Storage Stocks3 ProTotal Imports duction Supply Jan. 15

1997 1998 1999 2000 2001 2002 2003 20041 20052

1,151 1,082 1,167 1,274 1,237 1,355 1,242 1,250 1,347

14 21 26 25 24 56 158 100 45

24.154 70.369 39.813 32.400 75.000 34.800 32.200 50.600 31.418

1,177 1,243 1,337 1,331 1,336 1,446 1,432 1,400 1,424

priced in cents per pound. Prices – The average monthly price of butter at the Chicago Mercantile Exchange in 2006 fell by -20.2% to 123.64 cents/pound, down from the 2004 record high of 181.66. That was, however, still higher than the 8-year low of 110.59 cents posted in 2002. Supply – World production of butter in 2006 rose +4.4% yr/yr to 7.036 million metric tons, which is the highest production level since the record high of 7.217 million metric tons in 1986. The world’s largest producers of butter are India with 46% of the world production in 2006, the European Union with 28%, the United States with 9%, New Zealand with 5%, and Russia with 4%. Production of creamery butter by US factories in 2006 rose +7.2% to1.444 billion pounds. That was the highest level since 1954. Demand – US usage of butter in 2005 (the latest data available) rose by +0.7% yr/yr to 1.335 billion pounds. That was only about two thirds of the usage levels of over 2 billion pounds seen back in the 1930s and 1940s, illustrating the downtrend in US butter consumption. Per capita consumption of butter in the US in 2004, the latest reporting year for the series, was 4.6 pounds per person per year, little changed from 1980 but sharply lower than the 7.5 pounds in 1960 and the 17.3 pounds back in the 1930’s. Trade – US imports of butter in 2005 (the latest data available) fell sharply by –37.9% yr/yr to 31.42 million pounds. US butter exports in 2004 (latest data available) rose +201% to a 6-year high of 26 million pounds.

In Millions of Pounds

------------------------------------- Distribution -------------------------------------

-------- 93 Score --------

-- Domestic Disappearance -- --- Department of Agriculture --P er Removed Capita Jan. 1 Dec. 31 by USDA Stocks4 Total (Pounds) Exports Stocks4 Programs

AA Wholesale Price

1,115 1,220 1,307 1,329 1,268 1,293 1,307 1,326 1,335

4.1 4.4 4.7 4.5 4.4 4.4 4.5 4.6

46 33 20 7 18 8 9 26

Preliminary. 2 Estimates. 3 I ncludes butter-equivalent. 4 I ncludes butteroil. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

0 0 0 0 0 0 1 6 0 5

Year

Second Quarter

Third Quarter

Fourth Quarter

Total

1995 1996 1997 1998 1999 2000

335.7 325.6 302.7 289.0 299.3 300.8

269.0 301.8 250.7 276.3 316.4 286.9

261.2 237.5 265.8 255.3 318.3 332.3

304.9 310.3 287.6 308.6 374.8 380.6

1,186.0 1,180.0 1,109.0 1,137.0 1,308.8 1,300.6

1

Preliminary.

14

38.4 12.6 3.7 8.9

29.1 -6.6

1,156 1,229 1,314 1,289 1,275 1,288 1,332 1,356

----------------------------

1.1625 1.7685 1.2396 1.1768 1.6630 1.1059 1.1450 1.8166 1.5484

I ncludes stocks held by USDA.

Commercial Disappearance of Creamery Butter in the United States First Quarter

0 0 0 0 0 1 6 0

California Chicago Total Use ----- $ per Pound -----

In Millions of Pounds

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

2001 2002 2003 2004 2005 20061

290.9 313.5 304.2 286.3 287.1 320.2

278.4 263.5 275.4 303.2 276.7 322.6

316.1 317.4 317.2 340.8 349.6 333.2

397.0 393.4 411.8 421.1 423.1 397.4

1,282.4 1,287.8 1,308.6 1,351.4 1,336.5 1,373.4

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

BUTTER World (Total) Butter3 Production Year

Australia

2000 2001 2002 2003 2004 2005 2006 1 20072

180 160 164 163 132 131 129 124

In Thousands of Metric Tons

France

Germany

India

Ireland

Netherlands

New Zealand

Poland

Russia

Ukraine

United Kingdom

United States

World Total

72 78 70 72 75 77 78 79

77 84 77 84 84 84 81 82

10 12 12 13 12 12 10 10

1,995 2,021 2,226 2,226 2,154 2,155 2,065 2,050

1,950 2,250 2,400 2,450 2,600 2,749 3,050 3,425

88 80 83 80 80 84 84 85

70 70 70 77 88 93 92 93

344 352 380 405 418 341 390 395

265 270 280 280 270 275 290 300

135 156 131 148 138 118 105 110

570 559 615 563 566 611 650 655

5,814 6,145 6,565 6,612 6,626 6,741 7,036 7,420

1 Preliminary. 2 Forecast. 3 Factory (including creameries and dairies) & farm. U.S. Department of Agriculture (FAS-USDA)

Source: Foreign Agricultural Service,

Production of Creamery Butter in Factories in the United States Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

123.3 139.9 127.4 140.1 141.9 129.3 128.0 147.3

111.5 128.2 111.8 124.2 128.1 108.6 116.9 137.0

113.7 121.0 111.4 127.7 126.4 100.4 122.4 142.0

106.4 111.7 109.0 131.6 122.8 100.3 117.1 128.5

104.7 108.9 111.0 125.5 114.9 110.1 120.7 128.1

86.0 89.1 86.8 95.8 84.2 99.2 106.6 100.8

75.8 85.4 84.2 94.4 80.1 92.6 95.9 94.6

66.1 83.7 75.6 88.9 70.9 90.3 93.2 88.3

78.8 89.9 86.7 92.8 73.3 94.2 100.6 103.8

93.0 103.9 109.9 102.6 96.8 104.4 108.9 118.6

90.4 100.4 100.1 103.9 88.4 101.4 110.9 117.6

117.2 111.6 123.0 127.6 114.6 118.8 126.0 137.9

1,166.8 1,273.6 1,236.8 1,355.1 1,242.4 1,249.7 1,347.2 1,444.3

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Cold Storage Holdings of Creamery Butter on First of Month in the United States Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

25.9 25.1 24.1 55.9 157.8 99.6 45.0 58.6

60.8 82.4 68.4 99.2 204.8 152.4 77.2 125.3

95.0 107.8 86.1 130.1 239.9 159.1 110.9 148.5

108.4 114.0 96.2 145.2 249.0 158.1 132.4 170.3

125.5 126.9 112.3 196.6 263.7 155.7 164.5 200.2

136.6 138.2 138.0 226.8 298.0 178.7 178.0 229.9

120.6 145.8 153.5 243.0 301.4 189.2 179.6 230.4

123.6 136.9 151.1 245.3 283.9 193.5 176.7 228.4

90.7 101.3 118.0 229.5 253.9 161.0 148.9 188.8

71.5 85.0 110.9 209.1 207.2 133.0 124.1 167.5

64.2 58.3 100.8 164.6 170.2 107.2 98.1 137.8

30.2 27.3 57.9 135.6 122.5 57.2 60.4 94.3

Preliminary.

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

Average Price of Butter at Chicago Mercantile Exchange1 Year

1999 2000 2001 2002 2003 2004 2005 2006

In Millions of Pounds

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

144.4 91.6 122.3 134.5 108.2 143.2 157.8 133.7

133.1 92.9 138.1 124.3 104.1 171.3 161.5 119.3

130.3 99.7 154.9 124.7 109.2 213.5 155.3 116.6

103.9 108.7 174.7 117.1 109.1 222.0 149.3 116.3

111.0 122.2 190.4 105.9 109.2 203.6 140.4 117.6

147.7 128.6 197.4 104.3 111.4 193.0 153.1 116.4

134.7 120.3 192.4 103.0 119.9 174.6 162.1 116.5

141.4 120.3 204.5 97.5 117.1 154.1 168.6 130.4

135.8 119.1 219.7 96.4 117.3 176.6 169.9 131.7

113.8 116.9 151.9 103.2 118.5 164.8 162.0 132.1

109.6 151.7 135.2 104.3 120.6 192.4 142.6 129.2

94.2 150.0 130.2 112.0 129.7 170.8 135.5 124.1

125.0 118.5 167.6 110.6 114.5 181.7 154.8 123.6

Data through December 2001 are for Wholesale Price of 92 Score Creamery (Grade A) Butter, Central States; Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Cents Per Pound ----- New York (1831 - 1928) Grade AA, Chicago (Jan. 1929 - May 1998) 92 Score Creamery (Grade A), Central States (June 1998 - Dec. 2001) Chicago Mercantile Exchange (Jan. 2002 - date)

15

Cadmium Cadmium (symbol Cd) is a soft, bluish-white, metallic element that can easily be shaped and cut with a knife. Cadmium melts at 321 degrees Celsius and boils at 765 degrees Celsius. Cadmium burns brightly in air when heated, forming the oxide CdO. In 1871, the German chemist Friedrich Stromeyer discovered cadmium in incrustations in zinc furnaces. Rare greenockite is the only mineral bearing cadmium. Cadmium occurs most often in small quantities associated with zinc ores, such as sphalerite. Electrolysis or fractional distillation is used to separate the cadmium and zinc. About 80% of world cadmium output is a by-product from zinc refining. The remaining 20% comes from secondary sources and recycling of cadmium products. Cadmium recycling is practical only from nickel-cadmium batteries and from some alloys and dust from electric-arc furnaces. Cadmium is used primarily for metal plating and coating operations in transportation equipment, machinery, baking enamels, photography, and television phosphors. It is also used in pigments and lasers, and in nickel-cadmium and solar batteries. Prices – Cadmium prices in the past 8 years have been at severely depressed levels, reflecting the decreased demand for the substance. However, in 2005 cadmium prices rose very sharply by +172.7% to $1.50 cents per pound from 55 cents per pound in 2004. That was far above the record low of 14 cents in 1999 and only a little below the 20-

World Refinery Production of Cadmium Year

In Metric Tons

Australia

Belgium

Canada

China

Finland

Germany

Italy

Ja p a n

Kazakhstan

Mexico

United Kingdom

United States3

World Total

585 462 552 378 350 350 350 374

1,318 1,235 1,148 1,236 117 ----------

2,090 1,911 1,941 1,493 1,706 1,759 1,880 1,703

2,130 2,150 2,370 2,510 2,440 2,710 2,800 3,000

520 700 683 604 4 ----------

1,020 1,145 458 539 422 640 640 640

328 360 284 312 391 22 -------

2,337 2,567 2,472 2,460 2,444 2,497 2,233 2,297

1,622 1,246 1,250 1,250 1,300 1,351 1,900 2,000

1,218 1,275 1,268 1,421 1,382 1,590 1,594 1,600

440 547 503 485 422 529 532 481

1,240 1,190 1,890 1,450 1,430 1,420 1,010 1,070

20,200 20,000 20,300 20,000 18,000 18,500 18,700 19,400

1998 1999 2000 2001 2002 2003 20041 20052 Preliminary.

1

2

Estimate.

3

Primary and secondary metal.

Source: U.S. Geological Survey (USGS)

Salient Statistics of Cadmium in the United States

Year

1998 1999 2000 2001 2002 2003 2 0 0 41 20052 1 6

year average of $1.59 per pound. The record high of $6.91 per pound was posted in 1988. Supply – World cadmium production in 2005 rose +3.7% yr/yr to 19,400 metric tons, up from the 22-year low of 18,000 metric tons in 2002. The largest producer was China with 16% of total world production followed by Japan with 12%. US production of both primary and secondary cadmium in 2005 rose +5.9% yr/yr to 1,070 metric tons, up from the 22-year low of 1,010 metric tones posted in 2004. The US in 2005 accounted for 5.5% of world cadmium production. Demand – Consumption of cadmium has been declining fairly steeply in the last few years due to environmental concerns. US cadmium consumption fell by –43.9% yr/yr in 2005 to 656 metric tons, only slightly above the 7-decade low of 637 metric tons in 2003. Of the total apparent consumption, about 75% is used for batteries, 12% for pigments, 8% for coatings and plating, 4% for nonferrous alloys, and 1% for other uses. Trade – The US in 2006 relied on imports for 29% of its cadmium usage, down from 38% as recently as 1996. US imports of cadmium have plunged in the past 10 years but imports in 2005 rose +9.5% to 288 metric tons, up from only 81metric tons in 2003, but down sharply from levels above 1,000 metric tons seen as recently as 1994. US exports of cadmium in 2005 rose very sharply by +350.0% to 686 metric tons.

Net Import Reliance as a % of Apparent Consumption

Production (Metal)

Producer Shipments

Cadmium Sulfide Production

1,240 1,190 1,890 680 700 1,420 1,010 1,070

1,570 1,020 1,580 954 776 995 1,060 1,050

125 64 42 31 33 ----------

38 9 6 3 0 0 0 0

In Metric Tons of Contained Cadmium

Production Other Compounds

Imports of Cadmium Metal3

Exports4

Apparent Consumption

638 604 417 ----------------

514 294 425 107 25 112 263 288

180 20 314 272 194 615 154 686

2,100 1,850 2,010 659 561 637 1,170 656

Industry Stocks D e c. 3 1 5

729 893 1,200 1,090 1,750 1,460 1,420

New York Dealer Price $ per Pound

.28 .14 .16 .23 .29 .59 .55 1.50

Preliminary. 2 Estimate. 3 For consumption. 4 Cadmium metal, alloys, dross, flue dust. 5 Metallic, Compounds, Distributors. Sticks & Balls in 1 to 5 short ton lots. E = Net exporter. Source: U.S. Geological Survey (USGS)

Average Price of Cadmium (99.95% ) in the United States Year

2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

57.50 62.50 162.75

62.24 62.50 140.00

62.50 79.46 140.00

62.50 92.50 140.00

62.50 92.50 144.55

62.50 110.80 171.36

62.50 159.50 175.00

62.50 200.76 169.78

62.50 205.00 155.00

62.50 194.76 136.36

62.50 195.00 145.00

62.50 195.00 167.75

62.06 137.52 153.96

Source: American Metal Market (AMM)

16

In Dollars Per Pound

Jan.

Canola (Rapeseed) Canola is a genetic variation of rapeseed that was developed by Canadian plant breeders specifically for its nutritional qualities and its low level of saturated fat. The term Canola is a contraction of “Canadian oil.” The history of canola oil begins with the rapeseed plant, a member of the mustard family. The rape plant is grown both as feed for livestock and birdfeed. For 4,000 years, the oil from the rapeseed was used in China and India for cooking and as lamp oil. During World War II, rapeseed oil was used as a marine and industrial lubricant. After the war, the market for rapeseed oil plummeted. Rapeseed growers needed other uses for their crop, and that stimulated the research that led to the development of canola. In 1974, Canadian plant breeders from the University of Manitoba produced canola by genetically altering rapeseed. Each canola plant produces yellow flowers, which then produce pods. The tiny round seeds within each pod are crushed to produce canola oil. Each canola seed contains approximately 40% oil. Canola oil is the world’s third largest source of vegetable oil accounting for 13% of world vegetable oils, following soybean oil at 32%, and palm oil at 28%. The rest of the seed is processed into canola meal, which is used as high protein livestock feed. The climate in Canada is especially suitable for canola plant growth. Today, over 13 million acres of Canadian soil are dedicated to canola production. Canola oil is Canada’s leading vegetable oil. Due to strong demand from the US for canola oil, approximately 70% of Canada’s canola oil is exported to the US. Canola oil is used as a salad oil, cooking oil, and for margarine as well as in the manufacture of inks, biodegradable greases, pharmaceuticals, fuel, soap, and cosmetics. Canola futures and options are traded at the Winnipeg Exchange. The futures contract calls for the delivery of 20 metric tons of canola and 5 contracts are together called a “1 board lot.” The futures contract is priced in Canadian dollars per metric ton. Prices – Canola prices on the Winnipeg nearest-futures chart started 2006 at about CD$240 per metric ton and then rallied almost the entire year to end the year at about CD$380 per metric ton.

World Production of Canola (Rapeseed) Year

Australia

Canada

China

Banglad e sh

557 624 856 1,690 2,460 1,775 1,756 871 1,703 1,496 1,441 450

6,436 5,062 6,392 7,643 8,798 7,205 5,017 4,178 6,771 7,728 9,660 9,100

9,777 9,200 9,578 8,300 10,132 11,381 11,331 10,552 11,420 13,182 13,050 12,500

239 246 249 254 254 249 238 233 218 230 248 255

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

Preliminary.

2

Estimate.

3

Forecast.

The average monthly wholesale price of canola oil in the Midwest in 2005 fell –7.5% yr/yr to 30.73 cents per pound, down from last year’s 7-year high of 33.21. The average monthly wholesale price of canola meal (delivery Pacific Northwest) in the 2005/06-crop year rose by 0.6% to $140.52 per short ton, up slightly from the 5-year low of $139.75 per short ton in the 2004-05-crop year. By early in 2007, however, the price was up into the $150 to $170 range so that for the first four months of the 2006/07-crop year the average price was up to an average monthly price of $163.26 per short ton. Supply – World canola production in the 2006/07 marketing year fell by –4.0% yr/yr to 46.612, down from the 2005/06 record high of 48.549 million metric tons. The world’s largest canola producers were the European Union with 34% of world production in 2006/07, China (27%), Canada (20%), and India (13%). US production of canola in 2006/07 fell –11.8% yr/yr to 633,000 metric tons. Regarding canola products, world production of canola oil in 2006/07 rose +4.9% to 18.018 million metric tons, which was a record high. US production of canola oil in 2006/07 rose +12.2% to 461,000 metric tons, which was a record high. World production of canola meal in 2006/07 rose +4.1% to a record high of 27.255 million metric tons. Demand – World crush demand for canola in 2006/07 rose +4.4% yr/yr to 46.082 million metric tons, which was a record high. World consumption of canola oil in 2006/07 rose +5.3% yr/yr to a new record high of 17.826 million metric tons. World consumption of canola meal in 2006/07 rose +4.6% to a record high of 27.412 million metric tons. Trade – World canola exports in 2006/07 rose +6.5% to 7.454 million metric tons, world canola oil exports rose +11.8% to 1.917 million metric tons, and world canola meal exports rose +3.0% yr/yr to 2.646 million metric tons. World canola imports in 2006/07 rose +11.4% to 7.471 million metric tons, world canola oil imports rose +9.1% to 1.605 million metric tons, and world canola meal imports rose 1.4% to 2.54 million metric tons. Regarding US canola trade, US canola imports in 2006/07 rose +44.8% to 750,000 metric tons and US exports were unchanged at 155,000 metric tons.

In Thousands of Metric Tons

Belarus

EU-25

India

Pakistan

Romania

Russia

Ukraine

United States

World Total

25 19 21 52 57 73 95 60 55 143 120 60

8,271 7,330 8,636 9,517 14,253 11,288 11,483 11,652 11,174 15,336 15,396 15,696

6,000 6,942 4,935 4,900 5,110 3,725 4,500 4,050 6,800 6,500 6,800 6,200

255 255 286 292 279 297 231 221 235 241 260 260

1 2 12 29 108 76 102 100 20 101 90 110

125 110 71 125 135 148 140 115 192 276 303 500

17 13 44 67 148 132 135 61 51 149 285 600

250 219 355 710 621 909 908 697 686 613 718 633

34,435 31,489 33,161 35,812 42,483 37,413 36,033 32,908 39,434 46,143 48,549 46,612

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA); The Oil World

17

CANOLA

Volume of Trading of Canola Futures in Winnipeg Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

121,433 100,926 129,758 137,528 196,137 164,945 129,903 145,339 116,678 195,189

133,056 144,309 59,772 182,744 292,226 179,753 152,738 204,567 207,198 240,070

131,473 110,708 132,732 163,038 286,463 166,889 108,991 178,516 141,717 237,537

148,647 140,789 143,282 169,807 247,744 159,981 153,528 192,429 124,636 229,470

117,219 130,551 102,838 168,164 205,798 133,202 120,178 120,218 102,424 211,688

116,117 121,829 134,179 152,358 188,175 139,256 152,979 128,843 178,001 238,967

80,867 107,816 94,256 79,071 163,901 132,524 90,909 73,417 87,724 129,433

72,602 89,457 113,913 91,762 155,531 174,527 66,768 97,483 121,749 145,133

93,967 121,573 130,505 146,890 143,220 131,034 109,760 113,368 138,701 212,164

150,065 181,002 184,973 208,639 205,016 170,873 217,310 175,776 200,004 284,033

97,984 127,120 157,428 154,727 174,910 105,661 90,950 110,922 145,231 191,676

124,245 181,278 179,798 204,045 165,852 169,477 153,269 196,094 258,922 291,994

1,387,675 1,557,358 1,563,434 1,858,773 2,424,973 1,828,122 1,547,283 1,736,972 1,822,985 2,607,354

Source: Winnipeg Commodity Exchange (WCE)

Average Open Interest of Canola Futures in Winnipeg Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

48,681 35,864 57,958 59,057 57,537 57,821 52,818 54,524 64,147 82,651

48,281 46,678 64,014 65,545 73,539 56,443 54,749 57,944 75,090 88,576

50,815 49,161 57,851 65,296 88,111 53,321 55,369 71,624 65,205 84,828

50,025 48,683 57,351 66,253 78,143 56,830 53,480 77,357 63,514 88,970

49,212 56,163 51,808 65,855 77,425 50,924 50,549 69,783 54,341 84,710

43,941 60,285 53,039 59,673 84,315 38,901 49,930 59,012 53,390 81,561

35,496 57,627 49,273 46,813 72,430 48,329 47,479 50,669 57,706 81,243

30,039 51,462 41,819 51,367 70,137 54,286 45,314 51,009 56,305 77,356

25,255 53,919 53,425 59,342 67,275 53,630 44,510 49,659 65,700 81,597

36,674 56,651 67,244 72,618 71,651 50,379 49,008 53,855 68,186 80,800

38,702 51,426 63,780 64,862 65,580 56,896 45,423 65,215 66,117 90,694

42,510 60,663 64,286 65,170 66,884 57,983 48,655 68,719 87,246 102,651

Source: Winnipeg Commodity Exchange (WCE)

18

In Contracts

Jan.

CANOLA World Supply and Distribution of Canola and Products Year

1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

In Thousands of Metric Tons

---------------------------- Canola ---------------------------- ------------------------ Canola Meal -----------------------ProEnding ProCon- Ending duction Exports Imports Crush Stocks duction Exports Imports sumption Stocks

42,483 8,207 37,413 7,205 36,033 4,927 32,908 4,134 39,434 5,484 46,143 4,900 48,549 6,998 46,612 7,454

Preliminary.

2

Estimate.

8,170 7,018 4,978 4,039 5,147 5,049 6,709 7,471 3

37,138 35,427 33,486 31,592 36,424 40,653 44,140 46,082

Forecast.

4,204 2,689 2,776 1,809 1,835 4,466 5,395 3,011

22,090 21,134 19,946 18,801 21,756 24,162 26,178 27,255

2,315 1,834 1,486 1,606 2,474 2,229 2,570 2,646

2,260 1,919 1,535 1,726 2,430 2,282 2,505 2,540

21,988 21,314 19,981 18,945 21,355 24,258 26,154 27,412

13,839 13,332 13,225 12,242 14,432 15,670 16,922 17,826

550 576 499 497 402 495 504 384

In Thousands of Metric Tons

------------------------- Supply ---------------------------- Disappearance ---------

--------- Disappearance ---------

Stocks June 1

Production

Imports

Total

Crush

Exports

Total3

Stocks June 1

Production

Imports

77 50 39 68 72 40 60 87

621 909 908 697 686 613 718 633

242 217 125 197 244 467 518 750

940 1,176 1,072 962 1,002 1,120 1,296 1,470

722 773 757 575 630 901 1,032 1,205

136 220 218 287 305 139 155 155

858 993 975 862 935 1,040 1,187 1,360

79 96 51 24 35 41 58 119

281 292 265 226 274 363 411 461

534 545 503 445 555 514 728 730

Year

2

Forecast.

3

I ncludes planting seed and residual.

Total Domestic

894 933 819 695 864 918 1,197 1,310

Exports

Total

129 85 116 73 126 122 214 275

798 882 795 660 823 860 1,078 1,255

669 797 679 587 697 738 864 980

Source: Economic Research Service, U.S. Department of Agriculture

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

28.00 25.31 17.31 14.81 20.81 24.30 33.44 29.80

29.00 21.44 16.50 15.19 21.31 28.88 37.19 28.88

30.30 20.69 17.25 16.69 27.44 27.63 38.19 31.38

30.58 21.50 18.69 16.69 21.94 27.44 36.81 31.00

31.13 20.38 17.75 18.00 21.95 28.13 35.60 31.25

28.45 20.58 16.45 19.25 23.19 27.13 32.88 33.00

28.44 19.33 15.50 22.50 25.06 26.56 31.63 31.95

26.85 19.75 15.69 21.80 28.45 26.30 29.50 29.75

29.75 19.25 15.60 19.94 29.81 28.44 31.38 30.50

28.20 18.44 15.00 19.00 30.75 31.88 28.35 31.50

27.19 18.19 15.31 20.56 34.19 32.67 31.75 30.88

26.10 17.95 15.50 21.88 41.19 33.92 31.75 28.81

28.67 20.23 16.38 18.86 27.17 28.61 33.21 30.73

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price of Canola in Vancouver Year

1999 2000 2001 2002 2003 2004 2005 2006

1,739 1,232 1,108 909 1,351 1,171 1,471 1,605

------------------------ Supply -------------------

Wholesale Price of Canola Oil in Midw est

1

1,738 1,158 1,006 907 1,149 1,149 1,715 1,917

---------------------------------------- Canola Oil ---------------------------------------------

Preliminary.

1998 1999 2000 2001 2002 2003 2004 2005 1

13,940 13,284 13,046 12,238 14,135 15,741 17,175 18,018

--------------------------------------------- Canola ---------------------------------------------

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

384 289 303 279 636 593 552 289

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA); The Oil World

Salient Statistics of Canola and Canola Oil in the United States

Year

------------------------- Canola Oil ------------------------ProCon- Ending duction Exports Imports sumption Stocks

In Canadian Dollars Per Metric Ton

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

402.74 286.09 279.07 329.23 396.78 345.51 261.56 230.48

368.17 277.92 285.05 328.38 380.81 370.53 250.02 231.43

363.24 280.97 302.04 329.39 351.97 402.02 270.29 241.57

362.16 287.34 299.59 316.74 362.89 395.92 273.13 248.63

353.21 284.59 310.00 318.67 344.59 384.09 275.58 267.11

356.53 274.12 320.79 330.21 333.48 378.62 286.78 263.66

317.36 265.32 356.98 369.42 322.64 360.93 279.45 277.90

305.73 262.24 368.33 401.78 319.37 349.57 259.58 265.70

302.93 269.17 351.01 408.43 324.07 341.29 240.30 265.20

302.68 265.32 332.16 413.64 338.93 288.64 235.00 295.90

297.76 267.75 328.99 436.25 343.65 275.37 233.21 335.39

287.62 278.59 334.53 418.74 338.57 265.15 226.39 348.60

335.01 274.95 322.38 366.74 346.48 346.47 257.61 272.63

Source: Winnipeg Commodity Exchange (WCE)

Average Wholesale Price of Canola Meal, 36% Pacific Northw est

In Dollars Per Short Ton

Crop Year

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Average

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

---122.58 142.85 131.50 169.65 133.39 130.13 149.77

---132.30 142.44 134.70 187.19 138.81 139.55 166.80

---142.34 129.48 142.17 181.35 135.13 158.06 163.17

---140.53 135.34 154.10 201.07 129.21 150.05 173.30

---132.90 137.33 155.80 205.50 139.55 143.94

---132.01 150.15 147.55 228.65 146.08 134.74

---140.25 146.60 145.60 214.40 140.85 136.04

---144.00 141.90 148.50 200.03 139.25 136.59

---149.30 142.10 146.95 189.00 153.98 139.63

---154.29 153.40 137.10 192.09 150.48 137.83

---142.60 149.10 135.50 146.99 138.12 143.28

---137.27 149.30 149.20 145.55 132.10 136.38

117.07 139.20 143.33 144.06 188.46 139.75 140.52 163.26

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

19

Cassava Cassava is a perennial woody shrub with an edible root. Cassava, which is also called manioc, mandioca, or yucca, grows in tropical and subtropical areas of the world. Cassava has been known since the 1500s and originates in Latin America. The cassava’s starchy roots are a major source of dietary energy for more than 500 million people. Cassava is the highest producer of carbohydrates among staple crops, and it ranks fourth in food crops in developing countries. The leaves of the cassava plant are also edible and are relatively rich in protein and vitamins A and B. Cassava is drought-tolerant and needs less soil preparation and weeding than other crops. Because cassava can be stored in the ground for up to 3 years, it also serves as a reserve food when other crops fail. The cassava is propagated by cuttings of the woody stem, thereby resulting in a low multiplication rate compared to crops propagated by true seeds. One problem with cassava is the poisonous cyanides, which need to be destroyed before consumption. The cyanide content differs with each variety of cassava, but higher cyanide is usually correlated to high yields. The cyanide content can be destroyed through heat and various processing methods such as grating, sun drying, and fermenting.

World Cassava Production

1

Prices – The price of tapioca (hard pellets, FOB Rotterdam) rose by 16% in the first four months of 2005 to a 9-year high of $149 per metric ton. The 2005 price was 82% higher than the record low of $82 in 2001. Supply – World production of cassava in 2002, the latest full reporting year for that series, rose by +0.9% to 184.853 million metric tons from 183.289 million in 2001. The world’s largest producers of cassava in 2002 were Nigeria (with 18.7% of world production), Brazil (12.5%), Thailand (9.1%), and Indonesia (9.0%). Trade – World exports of tapioca in 2005 fell –29.6% to 3.954 million metric tons from 5.616 million in 2004. Thailand accounted for 77% of world exports in 2005, followed by Vietnam with 16% of world exports and Indonesia with 6%. The world’s two main importers of tapioca in 2005 were China with 82% of world imports and the European Union with 9% of world imports.

In Thousands of Metric Tons

Brazil

China

Ghana

India

Indonesia

Mozambique

Nigeria

Paraguay

Tanzania

Thailand

Uganda

Dem. Rep. Congo2

World Total

25,423 24,584 24,305 19,503 20,864 23,336 22,479 23,108

3,501 3,601 3,651 3,701 3,751 3,801 3,851 3,851

6,612 7,111 7,000 7,227 7,845 8,107 8,966 9,731

5,929 5,443 5,868 6,000 6,700 6,800 6,900 6,900

15,442 17,002 15,134 14,696 16,438 16,089 17,055 16,723

4,178 4,734 5,337 5,639 5,353 5,362 5,400 5,400

31,404 31,418 30,409 32,695 32,697 32,010 32,586 34,476

3,054 2,648 3,155 3,300 3,694 2,719 3,568 4,142

5,969 5,992 5,700 6,128 7,182 7,120 6,884 6,888

17,388 17,388 18,084 15,591 16,507 19,064 18,396 16,870

2,224 2,245 2,291 3,204 4,875 4,966 5,265 5,300

17,500 18,000 16,973 17,060 16,500 15,959 15,436 14,929

165,436 164,711 164,373 162,856 171,918 178,567 183,289 184,853

Year

1995 1996 1997 1998 1999 2000 2001 2002 1

Cassava is the primary source of tapioca. Cassava is also eaten raw or boiled, and is processed into livestock feed, starch and glucose, flour, and pharmaceuticals. One species of cassava has been successfully grown for its rubber.

Estimate.

2

Formerly Zaire.

Source: Food and Agriculture Organization of the United Nations (FAO-UN)

Prices of Tapioca, Hard Pellets, F.O.B. Rotterdam

U.S. Dollars Per Tonne

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1997 1998 1999 2000 2001 2002 2003 2004 2005

133 96 104 94 83 86 91 138 147

118 100 102 90 80 82 92 132 149

112 98 101 88 77 82 95 121 153

108 104 102 92 78 84 96 118 145

114 106 108 85 80 87 101 117

110 104 104 88 82 91 101 118

100 105 99 88 84 96 103 120

97 106 102 81 84 97 108 122

100 112 100 78 87 95 114 128

102 122 99 74 83 93 134 134

102 124 100 76 84 93 138 139

100 109 97 79 84 89 143 148

108 107 102 84 82 90 110 128 149

Source: The Oil World

World Trade in Tapioca

In Thousands of Metric Tons

------------------------ Exports -----------------------Year

China

Indonesia

Thailand

Viet Nam

Total World Exports

5 7 7 9 12 14 17 18

221 340 151 177 130 42 234 230

3,199 4,341 3,915 4,494 3,067 3,994 4,579 3,028

87 117 215 409 308 681 730 620

3,555 4,857 4,334 5,140 3,556 4,785 5,616 3,954

1998 1999 2000 2001 2002 2003 2004 20051 1

Estimate.

20

2

I ntra-EU trade is excluded.

Source: The Oil World

------------------------------------------- Imports ------------------------------------------Rep. of United Former Ja p a n Korea States USSR China EC-122

250 381 170 1,950 1,760 2,368 3,442 3,335

2,620 3,781 3,765 2,154 1,560 1,869 2,075 362

19 18 19 20 14 21 30 23

463 212 292 445 157 247 460 265

11 1 12 17 10 6 12 ÑÑ

18 18 20 19 19 19 19 21

Total World Imports

3,536 4,501 4,543 4,714 3,588 4,626 6,133 4,062

Castor Beans Castor bean plants are native to the Ethiopian region of tropical east Africa. The seeds of the castor bean are used to produce castor oil. The average castor bean seed contains 35% to 55% oil. The oil is removed from the bean seeds by either pressing or solvent extraction. Castor oil is used in many products. In the US, the paint and varnish industry is the single largest market for castor oil. Castor oil is also used for coating fabrics, insulation, cosmetics, skin emollients, hair oils, inks, nylon plastics, greases, and hydraulic fluids.

envelope in February 2004. One non-deadly use for ricin is for medical research where it is being studied for use as a potential treatment for cancer. Supply – World production of castor-seed beans in the 2005-06 marketing year rose by +5.7% to a record high of 1.425 million metric tons. The world’s largest producer of castor-seed beans by far is India with 64% of world production in 2005-06 at 910,000 metric tons. The second and third largest producers are China with 18% of world production (250,000 metric tons) and Brazil with 12% of world production (162,000 metric tons).

Ricin is found in all parts of the castor bean plant, but the most concentrated amounts are found in the cake byproduct after oil extraction. Ricin is one of the most deadly, naturally occurring poisons known. Ricin received attention when it was used in a subway attack in Japan in 1995 and again when it was sent to a Congressional office in an

World Production of Castorseed Beans Crop Year

1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

Preliminary.

In Thousands of Metric Tons

Brazil

China

Ecuador

India

Mexico

Paraguay

Pakistan

Philippines

Sudan

Tanzania

Thailand

Former U.S.S.R.

World Total

33 116 100 72 78 129 162

250 300 260 265 258 250 250

4 4 4 4 4 4 4

910 867 610 640 700 870 910

1 1 1 1 1 1 1

8 11 13 7 11 11 10

3 1 2 1 9 5 8

4 4 4 4 4 4 4

1 1 1 1 1 1 1

3 3 3 3 3 3 3

7 9 9 9 9 9 9

2 2 2 2 2 2 2

1,261 1,353 1,043 1,043 1,133 1,348 1,425

2

Estimate.

3

Forecast.

Sources: Foreign Agricultural Service, U.S.Department of Agriculture (FAS-USDA); The Oil World

Castor Oil Consumption2 in the United States Year

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Demand – US consumption of castor oil in 2005-06 fell by –10.5% to 19.227 million pounds. In 2006-07, however, it is forecasted to rise +9.2% to 21.004 million pounds.

In Thousands of Pounds

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Total

2,694 4,127 3,281 2,072 2,155 1,389 1,583

4,601 2,346 1,887 1,836 1,391 1,761 2,026

2,386 1,650 1,528 1,779 1,581 1,654 1,642

3,975 3,012 1,641 1,526 1,365 1,602

2,896 3,703 1,642 1,251 1,915 1,610

3,209 3,129 1,629 2,241 1,992 1,426

3,159 3,062 1,123 2,396 2,175 1,457

3,840 3,096 1,315 2,250 2,211 1,766

3,112 1,243 1,518 1,905 1,827 1,899

3,050 2,992 1,839 1,542 1,689 1,516

4,686 2,872 1,449 2,382 2,021 1,768

2,257 2,867 2,119 2,366 1,162 1,379

39,865 34,099 20,971 23,546 21,484 19,227 21,004

Preliminary.

2

I n inedible products (Resins, Plastics, etc.).

Source: Bureau of the Census, U.S. Department of Commerce

Castor Oil Stocks in the United States, on First of Month Year

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

In Thousands of Pounds

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

32,585 53,083 41,322 26,463 34,525 38,357 39,635

35,858 45,933 37,282 17,753 31,608 45,720 24,055

30,058 23,973 33,195 16,630 24,287 37,111 18,780

24,728 38,459 32,983 18,582 19,476 29,428 44,560

32,566 31,058 25,926 14,097 32,641 21,047

35,186 36,743 20,551 13,985 25,318 25,076

24,808 39,591 22,460 7,507 27,876 15,756

51,808 39,528 15,337 22,751 19,098 25,543

57,910 43,227 23,212 W 31,493 25,070

48,415 50,814 24,138 25,593 22,919 22,165

40,279 49,283 32,110 18,381 15,963 21,329

59,461 53,075 27,827 14,922 35,604 14,389

Preliminary.

Source: Bureau of the Census, U.S. Department of Commerce

Average Wholesale Price of Castor Oil No. 1, Braz ilian Tanks in New York Year

1999 2000 2001 2002 2003 2004 2005

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

48.00 47.00 48.00 47.50 47.00 47.00 50.00

48.00 47.00 48.00 47.50 47.00 47.00 50.00

48.00 47.00 48.00 47.50 47.00 47.00 50.00

48.00 47.00 48.00 47.50 47.00 47.00 50.00

48.00 47.00 48.00 47.50 47.00 47.00 50.00

48.00 47.00 48.00 47.50 47.00 47.00 50.00

48.00 47.00 48.00 47.00 47.00 47.00 50.00

48.00 48.00 48.00 47.00 47.00 47.00 49.00

48.00 48.00 48.00 47.00 47.00 47.00 49.00

48.00 48.00 48.00 47.00 47.00 47.00 47.00

48.00 48.00 47.50 47.00 47.00 47.00 45.50

48.00 48.00 47.50 47.00 47.00 48.00 45.00

48.00 47.42 47.92 47.25 47.00 47.08 48.79

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

21

Cattle and Calves The beef cycle begins with the cow-calf operation, which breeds the new calves. Most ranchers breed their herds of cows in summer, thus producing the new crop of calves in spring (the gestation period is about nine months). This allows the calves to be born during the milder weather of spring and provides the calves with ample forage through the summer and early autumn. The calves are weaned from the mother after 6-8 months and most are then moved into the “stocker” operation. The calves usually spend 6-10 months in the stocker operation, growing to near full-sized by foraging for summer grass or winter wheat. When the cattle reach 600-800 pounds, they are typically sent to a feedlot and become “feeder cattle.” In the feedlot, the cattle are fed a special food mix to encourage rapid weight gain. The mix includes grain (corn, milo, or wheat), a protein supplement (soybean, cottonseed, or linseed meal), and roughage (alfalfa, silage, prairie hay, or an agricultural byproduct such as sugar beet pulp). The animal is considered “finished” when it reaches full weight and is ready for slaughter, typically at around 1,200 pounds, which produces a dressed carcass of around 745 pounds. After reaching full weight, the cattle are sold for slaughter to a meat packing plant. Futures and options on live cattle and feeder cattle are traded at the Chicago Mercantile Exchange. Both the live and feeder cattle futures contracts trade in terms of cents per pound. Prices – Live cattle futures prices in the first half of the year 2006 extended the decline seen in late 2005 but then rebounded in the latter half of the year, finally closing 2006 at 133.93 cents per pound, down –2.5% versus 2005. Cattle prices fell in early 2006 as US beef exports remained weak and as beef supplies were plentiful. Even though key countries dropped their bans on US beef in late 2005 and early 2006, US beef exports had difficulty getting restarted because of hyper-sensitive testing requirements and because Australia had taken over much of the premium beef market previously held by the US. Japan dropped its ban in December 2005 but then quickly reinstituted its ban in January 2006 when some bone fragments were found in a US beef shipment. Japan in July 2006 finally dropped its ban on US beef exports after an extended inspection process for US beef packing houses. Cattle prices rallied in the latter half of 2006 on continued firm US domestic demand and on

World Cattle and Buffalo Numbers as of January 1 Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 20072 1

Argentina

49,238 49,437 49,832 50,167 50,369 50,869 50,768 50,167 50,166 50,766

Preliminary.

22

2

Australia

Brazil

Canada

26,710 144,670 26,688 143,893 27,588 146,272 27,720 150,382 27,870 156,314 27,870 161,463 26,640 165,492 27,270 169,567 27,782 173,816 28,600 180,103

13,360 13,211 13,201 13,608 13,762 13,488 14,653 15,063 14,830 14,400

Forecast.

European China Union

121,757 124,354 126,983 128,663 128,242 130,848 134,672 137,818 141,575 145,349

83,271 94,570 93,772 91,419 90,339 88,719 87,478 86,412 85,806 85,150

higher corn prices starting in September 2006, which increased feed costs and raised the breakeven price for cattle prices. Supply – The world cattle and buffalo figures showed a small +0.7% increase in 2006 (as of Jan 1) to 995 million head, which is just slightly above the 3-decade low of 935 million head seen in 1995. As of January 1, 2006 there were 97.102 million cattle and calves on US farms, up +1.7% y/yr and slightly above 94.888 million in 2004, which was the lowest level since 1959. World production of beef and veal in 2006 rose +2.2% to 53.511 million metric tons (carcass weight equivalent) and USDA is forecasting a further rise of +2.2% to 54.717 million metric tons in 2007. US commercial production of beef in 2006 rose +5.6% to 26.075 billion pounds and the USDA is forecasting a further rise of +2.4% to 26.700 billion pounds in 2007. Demand – World consumption of beef and veal in 2006 rose +14.6% to 52.509 million metric tons and the USDA is forecasting a further rise of +2.1% in 2007 to 52.580 million metric tons. US consumption of beef and veal in 2006 rose by +1.0% to 12.800 million metric tons and the USDA is forecasting a further rise of +1.75% in 2007 to 13.024 million metric tons. Trade – US imports of live cattle in 2006 rose by +14.2% to 2.072 million head, recovering from the low levels seen when mad cow disease caused the US to close the Canadian border to live cattle in 2003. US exports of live cattle in 2006 rose by +107.7% yr/yr to 43,948 head, up sharply from the multi-decade low of 21,155 in 2005 caused by to cattle trading bans by key US trading partners. By weight, US imports of beef in 2006 fell –14.6% to 3.073 billion pounds but the USDA is forecasting an increase of +6.7% to 3.280 billion pounds in 2007. US exports of beef in 2006 rose steeply by +66.9% to 1.150 billion pounds and the USDA is forecasting a further rise of +25.2% to 1.440 billion pounds in 2007. That, however, remains far below the levels of about 2.5 billion pounds seen before mad cow disease hit in December 2003 and largely shut down US beef exports.

In Thousands of Head India

Mexico

Russia

South Africa

288,799 286,569 285,220 284,822 285,124 286,079 283,103 282,500 282,300 282,000

29,051 29,246 28,313 28,449 28,481 29,224 28,437 27,572 26,949 26,644

31,500 28,600 27,000 25,500 24,510 23,500 22,285 21,100 19,850 18,695

13,667 13,772 13,580 13,460 13,505 13,635 13,540 13,510 13,790 14,200

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Ukraine

12,579 11,722 10,627 9,424 9,433 9,108 7,712 6,992 6,704 6,570

World Total United States (Mil. Head)

99,744 99,115 98,199 97,298 96,723 96,100 94,888 95,438 97,102 98,400

1,031.6 934.6 1,026.6 1,020.0 1,026.0 989.7 986.9 988.0 994.7 1,004.2

CATTLE AND CALVES Cattle Supply and Distribution in the United States

Year

Imports

Calves Born

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062

101,656 99,744 99,115 98,198 97,277 96,704 96,100 94,888 95,438 96,702

2,046 2,034 1,945 2,187 2,437 2,503 1,752 1,374 1,815 2,073

38,961 38,812 38,796 38,631 38,280 38,224 37,903 37,505 37,575 37,567

1

Preliminary.

2

In Thousands of Head

------------ Livestock Slaughter - Cattle and Calves ------------

Cattle & Calves on Farms January 1

Estimate.

3

---------------- Commercial ---------------Total Federally All Supply Inspected Other3 Commercial

142,663 140,590 139,856 139,016 137,994 137,431 135,754 133,767 134,828 136,341

Wholesale and retail.

37,101 36,209 36,738 36,720 35,751 36,139 35,883 32,979 32,549 33,843

792 714 695 658 625 641 611 592 573 555

37,893 36,923 37,432 37,378 36,377 36,780 36,494 33,571 33,122 34,396

Farm

218 215 210 210 200 190 192 189 184

Total Deaths Slaughter on Farms

38,111 37,138 37,642 37,588 36,577 36,970 36,686 33,760 33,306

Exports

4,676 4,210 4,114 4,097 4,209 4,076 4,030 4,003 4,052

282 285 329 481 678 243 100 31 21 44

Total D i sa p pearance

43,069 41,633 42,085 42,166 41,464 41,289 40,816 37,794 37,379

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Beef Supply and Utiliz ation in the United States Year/ Quarter

Total - Per Capita Disappearance --------- Production ---------Beginning Total Ending Carcass Retail D i sa p Stocks Commercial Total Imports Supply Exports Stocks Weight Weight pearance ------------------------------------------------------------------- Million Pounds ------------------------------------------------------------------------ -------------- Pounds --------------

2003

26,238 6,282 6,902 7,081 5,973 24,548 5,838 6,253 6,360 6,097 24,683 5,725 6,189 6,560 6,209 26,075 6,078 6,699 6,808 6,490 26,700 6,375 6,800 7,000 6,525

I II III IV 2004 I II III IV 2005 I II III IV 20061 I II III IV 20072 I II III IV 1

Preliminary.

2

Forecast.

26,238 6,282 6,902 7,081 5,973 24,548 5,838 6,253 6,360 6,097 24,683 5,725 6,189 6,560 6,209 26,075 6,078 6,699 6,808 6,490 26,700 6,375 6,800 7,000 6,525

3,006 810 741 619 836 3,679 873 929 940 937 3,599 831 1,065 906 797 3,073 843 789 731 710 3,280 760 880 830 810

2003 I II III IV 2004 I II III IV 1

Preliminary.

2,518 582 678 680 578 461 36 120 138 167 689 130 189 150 220 1,150 223 315 307 305 1,440 325 350 380 385

64.9 16.2 16.9 16.9 15.0 66.1 16.0 16.9 16.9 16.3 65.5 15.6 16.8 17.0 16.0 65.6 15.8 16.8 16.8 16.2 66.4 16.0 17.1 17.3 16.0

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

United States Cattle on Feed in 13 States Year/ Quarter

29,244 7,092 7,643 7,700 6,809 28,227 6,711 7,182 7,300 7,034 28,282 6,556 7,254 7,466 7,006 29,148 6,921 7,488 7,539 7,200 29,980 7,135 7,680 7,830 7,335

In Thousands of Head

Number on F eed3

Placed on F eed

Marketings

Other Disappearance

Year/ Quarter

Number on F eed3

Placed on F eed

Marketings

Other Disappearance

10,658 10,658 10,713 9,923 10,218 11,253 11,253 10,763 10,132 10,502

24,930 5,771 5,849 6,855 6,455 23,267 5,176 5,617 6,196 6,278

23,467 5,508 6,450 6,377 5,132 22,849 5,436 6,002 6,196 5,215

868 208 189 183 288 917 230 246 175 266

20051 I II III IV 20062 I II III IV

11,299 11,299 10,873 10,394 10,482 11,804 11,804 11,812 10,872 11,385

23,556 5,161 5,652 6,026 6,717 23,640 5,634 5,488 6,490 6,028

22,172 5,369 5,881 5,767 5,155 22,532 5,380 6,163 5,792 5,197

879 218 250 171 240 948 246 265 185 252

2

Estimate.

3

Beginning of period.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

23

CATTLE AND CALVES

Cents Per Pound ----- All Grades, Chicago (Jan. 1909 - Dec. 1947) Good, Chicago (Jan. 1948 - Dec. 1964) Choice, Chicago (Jan. 1965 - July 1971) Choice, Average, Omaha (Aug. 1971 - Aug. 1987) Average, Texas-Oklahoma (Sept. 1987 - date)

United States Cattle on Feed, 1000+ Capacity Feedlots2, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

8,943 9,455 9,021 9,752 11,798 11,565 10,658 11,253 11,299 11,804

8,813 9,180 8,917 9,885 11,941 11,572 10,700 11,138 11,342 12,110

8,769 8,835 8,878 9,695 11,695 11,518 10,546 10,987 11,154 12,023

8,904 8,607 8,899 9,593 11,523 11,587 10,713 10,763 10,873 11,812

8,484 8,295 8,583 9,391 11,170 10,971 10,535 10,375 10,641 11,559

8,231 8,289 8,547 9,411 11,245 10,990 10,539 10,640 10,771 11,187

7,679 7,825 8,183 8,959 11,011 10,507 9,923 10,132 10,394 10,872

7,536 7,706 7,889 8,812 10,891 10,109 9,590 9,868 10,093 10,822

7,850 7,750 8,185 8,972 10,855 10,159 9,839 9,988 10,000 10,986

8,558 8,376 8,793 9,502 11,125 10,452 10,218 10,502 10,482 11,385

9,390 9,190 9,789 10,192 11,863 10,785 11,043 11,334 11,473 11,969

9,718 9,404 10,020 10,213 11,891 10,946 11,335 11,334 11,726 11,973

Preliminary.

2

7 States through 2000.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

United States Cattle Placed on Feed, 1000+ Capacity Feedlots2 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands of Head

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,663 1,492 1,681 1,931 2,263 2,179 2,089 1,754 1,888 2,199

1,552 1,290 1,563 1,606 1,580 1,810 1,650 1,612 1,523 1,598

1,694 1,421 1,741 1,736 1,842 1,963 2,032 1,810 1,750 1,837

1,296 1,358 1,443 1,470 1,551 1,463 1,870 1,600 1,660 1,629

1,612 1,740 1,733 1,998 2,372 2,267 2,307 2,370 2,223 1,913

1,224 1,314 1,515 1,413 1,965 1,644 1,672 1,647 1,769 1,946

1,751 1,677 1,565 1,674 1,986 1,840 1,997 1,719 1,678 1,963

2,111 1,773 2,085 2,091 2,204 2,228 2,384 2,102 1,993 2,300

2,278 2,254 2,345 2,286 2,141 2,194 2,474 2,375 2,355 2,227

2,454 2,396 2,629 2,387 2,702 2,396 2,781 2,701 2,788 2,425

1,826 1,732 1,823 1,678 1,908 1,982 1,926 1,743 2,045 1,889

1,304 1,250 1,408 1,440 1,578 1,610 1,748 1,834 1,884 1,714

20,765 19,697 21,531 21,710 24,092 23,576 24,930 23,267 23,556 23,640

Preliminary.

24

In Thousands of Head

2

7 States through 2000.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

CATTLE AND CALVES

United States Cattle Marketings, 1000+ Capacity Feedlots2 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,728 1,689 1,738 1,747 2,042 2,083 1,972 1,775 1,772 1,810

1,554 1,579 1,560 1,749 1,745 1,801 1,733 1,694 1,634 1,612

1,497 1,580 1,668 1,764 1,916 1,825 1,803 1,967 1,963 1,958

1,648 1,609 1,681 1,601 1,815 1,996 1,985 1,891 1,801 1,795

1,785 1,681 1,696 1,863 2,196 2,171 2,238 2,026 1,997 2,170

1,732 1,727 1,835 1,828 2,122 2,076 2,227 2,085 2,083 2,198

1,852 1,755 1,816 1,784 2,047 2,193 2,270 1,925 1,918 1,955

1,755 1,687 1,747 1,895 2,186 2,135 2,075 1,926 2,033 2,077

1,528 1,577 1,682 1,708 1,825 1,848 2,032 1,800 1,816 1,760

1,545 1,537 1,570 1,647 1,896 1,979 1,855 1,803 1,739 1,770

1,429 1,455 1,530 1,568 1,800 1,731 1,537 1,635 1,701 1,802

1,499 1,564 1,601 1,500 1,811 1,799 1,740 1,777 1,715 1,625

19,552 19,440 20,124 20,654 23,401 23,637 23,467 22,304 22,172 22,532

Preliminary.

2

7 States through 2000.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Quarterly Trade of Live Cattle in the United States

1

In Head

---------------------------------------- Imports ---------------------------------------First Second Third Fourth Quarter Quarter Quarter Quarter Annual

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2 0 0 61

In Thousands of Head

494,637 538,018 549,847 580,174 700,239 785,559 630,303 309,712 335,687 708,579

Preliminary.

500,052 503,547 424,182 537,009 612,645 398,072 408,833 315,800 348,897 470,073

423,838 373,451 313,211 346,087 444,637 474,128 142,780 281,020 341,834 375,744

627,825 618,993 657,836 724,016 679,194 845,214 569,669 467,236 788,270

2,046,352 2,034,009 1,945,076 2,187,286 2,436,715 2,502,973 1,751,585 1,373,768 1,814,688 2,072,528

---------------------------------------- Exports ---------------------------------------First Second Third Fourth Quarter Quarter Quarter Quarter Annual

63,217 69,824 51,830 117,889 111,549 73,401 38,246 4,091 5,128 8,721

58,153 63,459 59,195 67,895 75,152 62,140 34,145 20,955 6,446 12,465

81,095 53,145 47,049 72,028 297,069 49,930 10,953 2,216 5,977 11,775

79,879 98,781 171,245 223,430 194,683 57,472 16,926 3,652 3,604

282,344 285,209 329,319 481,242 678,453 242,943 100,270 30,914 21,155 43,948

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

25

CATTLE AND CALVES

Cents Per Pound ----- Oklahoma City (Jan. 1971 - date)

Average Slaughter Steer Price, Choice 2-4, Texas, 1100-1300 Lb. Year

2000 2001 2002 2003 2004 2005 2006

In Dollars Per 100 Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

69.07 78.79 67.25 77.18 80.36 87.77 92.90

68.88 79.40 70.72 78.77 79.15 87.73 89.09

71.74 79.44 72.59 77.52 86.96 91.78 85.73

73.13 76.50 67.79 79.24 87.04 91.98 81.30

71.28 74.93 65.32 79.50 88.22 88.83 79.02

69.41 72.64 63.64 76.73 89.19 83.06 80.85

67.22 70.71 62.49 76.89 84.27 79.37 81.14

65.02 69.07 62.96 81.74 84.15 80.80 85.87

65.43 68.75 64.43 90.59 82.33 85.19 89.18

68.51 66.30 64.93 105.50 84.03 87.40 87.43

72.19 63.60 70.12 101.88 84.64 90.32 86.56

76.41 63.62 72.24 90.75 86.60 93.08 85.83

69.86 71.98 67.04 84.69 84.75 87.28 85.41

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price of Feeder Steers in Oklahoma City Year

2000 2001 2002 2003 2004 2005 2006

In Dollars Per 100 Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

96.49 93.08 92.43 87.76 79.35 112.40 125.49

97.21 86.63 93.66 88.84 80.18 116.87 123.56

101.16 94.17 94.06 91.31 107.35 120.48 121.41

99.01 105.06 91.76 92.94 109.99 126.77 122.29

95.88 99.71 90.78 93.58 115.40 127.13 119.35

97.01 102.16 85.68 96.04 121.10 126.91 122.29

102.11 100.39 83.29 99.28 124.63 122.73 124.55

99.05 96.74 85.19 99.15 124.65 119.96 120.35

93.41 98.31 84.71 102.68 116.97 119.61 123.90

90.84 91.06 84.23 102.63 116.96 120.29 114.85

96.19 90.83 85.69 106.87 117.13 122.84 100.78

97.40 94.51 89.43 98.09 113.01 122.75 99.80

97.15 96.05 88.41 96.60 110.56 121.56 118.22

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Federally Inspected Slaughter of Cattle in the United States Year

2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

2,878 2,947 2,999 2,950 2,527 2,477 2,591

2,883 2,533 2,564 2,519 2,381 2,297 2,301

3,078 2,867 2,688 2,725 2,818 2,675 2,806

2,735 2,667 2,899 2,918 2,654 2,517 2,566

3,128 3,152 3,098 3,201 2,792 2,751 2,994

3,191 3,075 3,017 3,208 2,949 2,894 3,116

2,918 2,898 3,141 3,245 2,745 2,677 2,795

3,211 3,193 3,163 3,094 2,775 2,948 3,089

2,984 2,758 2,816 3,082 2,689 2,729 2,721

3,082 3,103 3,205 2,953 2,693 2,625 2,803

2,879 2,854 2,812 2,387 2,492 2,623 2,797

2,665 2,726 2,719 2,626 2,642 2,619 2,566

35,631 34,771 35,120 34,907 32,156 31,831 33,145

Preliminary.

26

In Thousands of Head

Jan.

Source: National Agricultural Statistics Board, U.S. Department of Agriculture (NASS-USDA)

CATTLE AND CALVES

Average Open Interest of Live Cattle Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

97,014 105,559 115,254 128,918 132,298 93,589 111,874 98,752 142,333 225,313

103,437 102,036 115,283 123,980 132,866 91,566 105,882 99,491 140,869 220,947

108,157 101,264 115,410 123,925 131,312 98,176 98,943 112,449 146,062 220,042

98,354 88,257 104,482 122,596 123,075 98,343 96,875 124,930 141,610 240,567

99,640 88,167 103,290 117,834 112,180 98,846 107,193 128,727 145,235 261,496

96,279 87,493 101,078 106,196 114,970 91,129 111,397 126,481 133,768 235,783

99,042 86,776 96,843 116,266 116,162 93,541 113,324 114,656 135,971 231,914

98,590 86,874 101,858 120,526 105,252 92,966 115,417 109,588 134,329 213,918

94,137 95,013 121,305 123,945 114,214 109,651 130,836 104,928 148,094 214,583

93,579 102,636 123,466 123,517 109,677 111,338 124,525 109,832 167,175 205,776

100,368 108,263 126,040 131,773 108,574 121,671 113,224 112,709 174,496 211,814

102,741 106,156 120,204 132,239 95,182 116,588 106,522 123,483 197,090 224,501

Source: Chicago Mercantile Exchange (CME)

Volume of Trading of Live Cattle Futures Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

361,620 355,728 298,814 347,290 511,050 331,026 378,862 362,295 519,794 783,018

352,173 400,210 342,572 323,524 357,474 275,699 343,931 265,370 395,847 498,779

312,113 327,169 338,076 356,258 385,581 387,115 334,007 442,636 598,171 849,546

331,948 400,584 320,457 236,494 302,829 448,508 306,713 353,886 377,494 570,015

285,885 296,651 296,512 302,001 348,294 304,900 391,477 419,888 503,753 817,491

303,369 321,370 342,854 244,755 289,093 247,940 311,239 345,611 405,687 709,706

387,526 334,424 287,557 248,377 318,564 286,248 449,966 381,151 506,253 718,772

324,943 369,604 266,544 293,450 324,614 288,525 319,677 340,973 406,010 670,410

316,822 370,282 371,735 277,913 340,969 314,927 473,218 382,536 569,040 698,285

374,632 373,207 345,269 293,972 403,101 352,487 469,405 344,517 438,631 631,911

238,003 318,152 375,960 397,879 403,009 315,658 324,732 511,516 627,585 757,795

330,608 349,125 253,198 359,599 294,695 298,703 332,862 359,749 485,291 503,970

3,919,642 4,216,506 3,839,548 3,681,512 4,279,273 3,851,736 4,436,089 4,510,128 5,833,556 8,209,698

Source: Chicago Mercantile Exchange (CME)

27

CATTLE AND CALVES Beef Steer-Corn Price Ratio in the United States Year

1999 2000 2001 2002 2003 2004 2005 2006 2

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

30.2 37.5 40.1 36.1 33.4 35.7 44.5 51.0

31.0 35.9 40.2 38.1 33.4 31.5 47.7 48.3

31.8 36.2 41.1 38.2 32.9 32.0 47.1 45.1

32.4 37.0 42.1 37.0 33.7 30.8 49.1 42.3

32.8 34.7 42.5 35.3 33.4 32.3 48.5 39.9

33.9 37.4 43.6 34.0 33.6 33.6 45.3 41.4

37.5 42.9 40.1 31.2 36.4 36.4 41.8 42.2

37.8 44.7 38.7 28.3 38.6 38.9 45.0 44.0

38.3 42.6 37.7 27.4 40.6 40.7 48.5 43.5

41.5 40.5 38.1 29.3 46.1 42.6 52.8 37.0

41.7 39.7 36.6 31.5 45.4 44.0 54.9 31.4

38.9 39.0 34.6 32.3 41.4 45.0 51.9 29.7

35.7 39.0 39.6 33.2 37.4 37.0 48.1 41.3

1 Bushels of corn equal in value to 100 pounds of steers and heifers. U.S. Department of Agriculture

2

Preliminary.

Source: Economic Research Service,

Farm Value, Income and Wholesale Prices of Cattle and Calves in the United States ----- January 1 ----Year

2000 2001 2002 2003 2004 2005 20061

Per Head Dollars

Total Million $

683 725 747 728 818 916 1,008

67,099 70,495 72,284 69,949 77,595 87,386 97,873

Gross Income From C & C2 Million $

41,078 40,903 38,429 45,465 47,935 49,668

Cows, Cows, F eeder Wholesale Prices, Central U.S. Boning ComHeifers at ------- Steers3 ------- ------ Heifers4 ------ Oklahoma Utility mercial Choice Select Cow6, Choice Select Select Choice City5 Sioux Falls6 Sioux Falls 700-850 lb. 700-850 lb. Canner7 ------------------------------------------------------------ Dollars per 100 Pounds ------------------------------------------------------------------------------ At Oham a-------------------

69.52 67.68 66.39 82.37 84.78 86.54

69.55 67.81 67.39 82.06 84.40 87.35

82.23 84.19 76.70 85.88 100.09 106.87 102.08

41.71 44.39 40.47 49.74 55.20 55.52 50.50

44.45 52.20 39.63 46.62 52.35 54.36 47.56

117.45 122.17 113.59 143.20 141.33 145.78 146.82

108.83 114.42 107.66 130.07 132.65 136.36 133.09

1 Preliminary. 2 Excludes interfarm sales & Gov't. payments. Cash receipts from farm marketings + value of farm home consumption. 4 5 6 1,100 lb. 1,000 to 1,200 lb. 1992 to date are 700 to 750 lb., 1987 thru 1991 are 600 to 700 lb. All weights. 7 & Cutter. Source: Economic Research Service, U.S. Department of Agriculture (NASS-USDA)

Average Price Received by Farmers for Beef Cattle in the United States Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

3

In Dollars Per 100 Pounds

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

59.00 67.80 74.80 67.10 73.20 80.90 89.40 95.10

60.60 67.60 74.70 70.00 73.90 78.50 88.80 92.40

62.40 69.80 76.00 70.60 72.60 83.70 91.00 88.10

62.70 71.30 75.40 67.30 74.50 85.00 93.70 84.80

62.10 69.40 73.60 65.10 75.50 88.50 92.10 82.20

63.70 68.50 73.60 64.00 74.90 89.80 88.00 84.20

62.60 67.50 71.80 63.70 75.80 88.10 85.00 86.10

63.50 65.50 70.60 64.40 79.30 87.70 84.40 87.70

63.80 65.30 69.00 64.50 84.90 85.90 88.00 90.80

66.20 66.70 66.50 64.60 91.50 86.50 90.40 88.50

66.20 69.10 64.00 67.30 93.40 85.40 90.80 84.70

66.60 71.90 64.80 70.40 90.40 86.80 93.30 83.60

63.28 68.37 71.23 66.58 79.99 85.57 89.58 87.35

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Average Price Received by Farmers for Calves in the United States

In Dollars Per 100 Pounds

Year

1

1,000 to

Jan.

Preliminary.

1999 2000 2001 2002 2003 2004 2005 2006 1

72.57 55.32 NA NA NA NA NA

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

83.20 103.00 108.00 102.00 96.80 110.00 125.00 141.00

86.90 105.00 109.00 105.00 97.20 111.00 129.00 143.00

87.30 109.00 112.00 105.00 96.70 115.00 136.00 138.00

88.20 111.00 112.00 101.00 98.90 117.00 141.00 135.00

87.60 107.00 111.00 99.50 100.00 121.00 143.00 132.00

89.00 104.00 110.00 96.50 101.00 125.00 140.00 133.00

89.20 106.00 108.00 92.40 102.00 130.00 133.00 136.00

89.60 106.00 106.00 94.90 106.00 131.00 133.00 134.00

90.90 103.00 107.00 92.40 109.00 128.00 135.00 135.00

91.90 102.00 99.70 92.00 112.00 126.00 135.00 127.00

93.00 106.00 96.70 91.90 111.00 123.00 137.00 118.00

98.60 106.00 101.00 95.30 112.00 122.00 137.00 115.00

89.62 105.67 106.70 97.33 103.55 121.58 135.33 132.25

Preliminary.

Source: National Agricultural Statistics Board, U.S. Department of Agriculture (NASS-USDA)

Federally Inspected Slaughter of Calves and Vealers in the United States

In Thousands of Head

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1999 2000 2001 2002 2003 2004 2005 2006 1

103 91 89 86 92 77 66 54

98 92 77 71 81 70 61 52

115 97 82 76 83 75 67 58

95 75 72 80 77 69 60 46

87 86 77 76 74 63 57 56

102 91 75 74 72 65 58 58

109 92 81 94 83 67 57 57

115 98 92 94 78 71 64 66

117 91 77 87 80 66 60 57

102 95 91 98 85 61 54 62

100 91 85 88 76 66 55 66

110 90 82 96 95 73 59 67

1,252 1,088 981 1,019 976 823 718 699

1

Preliminary.

28

Source: Crop Reporting Board, U.S. Department of Agriculture (CRB-USDA)

Cement Cement is made in a wide variety of compositions and is used in many different ways. The best-known cement is Portland cement, which is bound with sand and gravel to create concrete. Concrete is used to unite the surfaces of various materials and to coat surfaces to protect them from various chemicals. Portland cement is almost universally used for structural concrete. It is manufactured from limebearing materials, usually limestone, together with clays, blast-furnace slag containing alumina and silica or shale. The combination is usually approximately 60 percent lime, 19 percent silica, 8 percent alumina, 5 percent iron, 5 percent magnesia, and 3 percent sulfur trioxide. To slow the hardening process, gypsum is often added. In 1924, the name “Portland cement” was coined by Joseph Aspdin, a British cement maker, because of the resemblance between concrete made from his cement and Portland stone. The United States did not start producing Portland cement in any great quantity until the 20th century. Hydraulic cements are those that set and harden in water. Clinker cement is an intermediate product in cement manufacture. The production and consumption of cement is directly related to the level of activity in the construction industry.

World Production of Hydraulic Cement Year

1998 1999 2000 2001 2002 2003 20041 20052 1

Prices – The average value (F.O.B. mill) of Portland cement in 2005 rose +14.5% yr/yr to $91.00 per ton, which was a new record. Supply – World production of hydraulic cement in 2005 rose +5.5% yr/yr to a new record high of 2.310 billion metric tons. The world’s largest hydraulic cement producers are China with 45% of world production in 2004, India (6%), US (4%), and Japan (3%). US production of Portland cement in 2005 rose +1.6% yr/yr to a new record high of 93.904 million tons. US shipments of finished Portland cement from mills in the US in 2006 (through November, annualized) rose +0.7% to 98.744 million metric tons, which was a new record high. Demand – US consumption of cement in 2005 rose +5.2% to 128.280 million tons, which was a new record high. Trade – The US relied on imports for 24% of its cement consumption in 2006. The two main suppliers of cement to the US are Canada and Mexico. US exports of cement in 2005 rose 2.3% yr/yr to 766,000 tons.

In Thousands of Short Tons

China

France

Germany

India

Italy

Ja p a n

Rep. of Korea

Russia

Spain

39,942 536,000 40,270 573,000 39,208 597,000 38,927 661,040 38,027 725,000 34,010 862,080 34,413 970,000 36,673 1,038,300

19,500 20,219 20,137 19,839 19,437 19,655 20,962 21,277

36,610 35,912 35,414 32,118 31,009 32,749 31,854 30,629

85,000 90,000 95,000 105,000 115,000 123,000 130,000 145,000

35,512 37,299 38,925 39,804 41,416 43,433 46,045 46,404

81,328 80,120 81,097 76,550 71,828 68,766 67,376 69,629

46,091 48,157 51,255 52,046 55,514 59,194 54,330 51,391

26,000 28,400 32,400 35,300 37,700 41,000 45,700 48,700

33,080 35,782 38,154 40,512 42,417 44,747 46,593 50,347

Brazil

Preliminary.

2

Estimate.

United States

World Total

38,200 85,522 34,258 87,777 35,825 89,510 30,125 90,450 32,577 91,266 35,077 94,329 38,796 99,015 42,787 100,903

1,540,000 1,600,000 1,660,000 1,740,000 1,850,000 2,030,000 2,190,000 2,310,000

Turkey

Source: U.S. Geological Survey (USGS)

Salient Statistics of Cement in the United States

Year

Net Import Average Capacity Reliance Shipments Imports for Consumption5 Apparent Value Stocks Used at as a % of ----------- Production -------------- From Mills ---Con- -------------------- by Country --------------------(F.O.B. at Mills (Portland Apparent 3 Total Total Mill) $ Dec. 31 Exports sumption Canada Japan Mexico Spain Mills) Con- Portland Others Total Value4 % sumption ------ 1,000 Metric Tons -----Mil. MT Mil. $ per MT ----- 1,000 Metric Tons ----- --------------- 1,000 Metric Tons ----------------

1998 1999 2000 2001 2002 2003 20041 20052

19 23 20 21 19 20 23 25

79,942 81,577 83,514 84,450 85,283 88,106 92,434 93,904

3,989 4,375 4,332 4,450 4,449 4,737 5,000 5,415

83,931 85,952 87,846 88,900 89,732 92,843 97,434 99,319

84.9 83.6 80.7 79.1 78.7 78.5 81.6 82.3

96,857 7,404 103,271 8,083 105,557 8,293 113,136 8,600 108,778 8,250 111,000 8,340 120,000 9,520 127,000 11,600

76.45 78.27 78.56 76.50 76.00 75.00 79.50 91.00

5,393 6,367 7,566 6,600 7,680 6,610 6,710 7,390

743 694 738 746 834 837 749 766

103,460 5,957 108,862 5,511 110,470 4,948 112,810 5,110 110,020 5,181 114,090 6,319 121,980 5,753 128,280 5,404

2 4

1,280 2,204 24,086 1,286 1,900 29,351 1,409 1,177 28,683 1,645 651 25,861 1,228 327 24,169 891 355 23,959 1,429 408 27,305 2,173 236 33,652

Preliminary. 2 Estimate. 3 Masonry, natural & pozzolan (slag-line). 4 Value received F.O.B. mill, excluding cost of containers. clinker cement for consumption. 6 Less than 1/2 unit. Source: U.S. Geological Survey (USGS)

1

Shipments of Finished Portland Cement from Mills in the United States Year

2000 2001 2002 2003 2004 2005 2006 1 1

5

Hydraulic &

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

4,765.5 5,107.6 5,554.3 5,485.6 5,240.7 5,337.1 6,560.5

5,343.1 5,088.8 5,369.3 4,559.9 5,145.5 5,731.9 6,116.4

7,196.9 6,684.5 6,133.9 6,482.6 8,059.2 7,497.9 7,747.2

6,930.2 7,799.4 7,859.7 8,008.5 8,837.4 8,316.4 7,801.7

8,448.2 8,507.9 8,291.4 8,288.4 8,623.8 9,101.7 8,916.3

8,391.5 8,385.8 8,135.6 8,492.2 9,103.2 9,595.5 9,276.9

7,843.8 8,333.2 8,466.9 9,063.8 9,134.3 8,305.1 7,951.7

8,982.3 8,851.2 8,676.2 8,829.1 9,325.6 9,603.6 9,185.7

7,860.8 7,512.2 7,909.7 8,755.3 8,883.4 8,847.0 8,057.2

8,474.2 8,953.3 8,326.1 9,780.8 8,608.9 8,869.7 8,582.5

6,587.0 7,353.3 6,956.3 6,987.5 7,417.2 8,064.8 7,569.3

4,865.5 5,548.0 5,293.4 6,348.3 6,528.4 6,316.9

84,980.3 88,124.9 86,972.9 91,081.9 94,907.6 95,587.6 95,743.9

Preliminary.

Source: U.S. Geological Survey (USGS)

29

Cheese Since prehistoric times, humans have been making and eating cheese. Dating back as far as 6,000 BC, archaeologists have discovered that cheese had been made from cow and goat milk and stored in tall jars. The Romans turned cheese making into a culinary art, mixing sheep and goat milk and adding herbs and spices for flavoring. By 300 AD, cheese was being exported regularly to countries along the Mediterranean coast.

that easily exceeds American cheeses.

Cheese is made from the milk of cows and other mammals such as sheep, goats, buffalo, reindeer, camels, yaks, and mares. More than 400 varieties of cheese exist. There are three basic steps common to all cheese making. First, proteins in milk are transformed into curds, or solid lumps. Second, the curds are separated from the milky liquid (or whey) and shaped or pressed into molds. Finally, the shaped curds are ripened according to a variety of aging and curing techniques. Cheeses are usually grouped according to their moisture content into fresh, soft, semisoft, hard, and very hard. Many classifications overlap due to texture changes with aging.

Supply – World production of cheese in 2006 rose +2.0% yr/yr to 14.128 million metric tons, which was a new record high. The European Union is the world’s largest producer of cheese with 47% of the total world production. The US production was the next largest in 2006 with 30% of the total. US production of cheese in 2006 rose +3.6% to 9.459 billion pounds, which was a new record high.

Cheese is a multi-billion-dollar a year industry in the US. Cheddar cheese is the most common natural cheese produced in the US, accounting for 35% of US production. Cheeses originating in America include Colby, cream cheese, and Monterey Jack. Varieties other than American cheeses, mostly Italian, now have had a combined level of production

Prices – Average monthly cheese prices at the Chicago Mercantile Exchange in 2006 (through December) fell by – 14.9% yr/yr to 123.85 cents per pound, down from 2004’s 24-year high of 164.92 cents per pound. The all time record monthly average high of 168.40 cents per pound was posted in 1982.

Demand – US consumption of cheese in 2005 fell – 2.2% to 8.741 billion pounds. US per capita cheese consumption in 2002, the latest reporting year for this series, rose to 30.60 pounds per person per year to a new record high. Trade – US imports of cheese in 2005 fell –52.6% to 225 million pounds. US exports of cheese in 2005 fell – 10.3% to 115 million pounds, down from 2004’s record high of 128 million pounds.

World Production of Cheese

In Thousands of Metric Tons

Year

Argentina

Australia

Brazil

Canada

Egypt

European Union

Ja p a n

Mexico

Zealand

Russia

Ukraine

United States

World Total

415 407 446 445 440 370 325 370 400 425

285 305 320 373 374 413 368 389 376 395

405 421 434 445 460 470 460 470 480 495

329 330 329 328 329 350 342 305 307 308

370 380 382 380 395 410 450 455 460 462

5,047 5,291 5,711 5,861 5,865 5,993 6,100 6,430 6,515 6,580

34 35 35 34 34 36 35 35 37 38

112 127 126 134 140 145 126 134 136 138

240 266 245 297 281 312 301 308 300 295

165 170 185 220 260 340 335 350 355 360

45 52 53 67 105 129 169 224 270 290

3,325 3,398 3,581 3,746 3,747 3,877 3,881 4,026 4,145 4,275

11,100 11,518 12,016 12,499 12,602 13,019 13,013 13,561 13,847 14,128

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062 1

Preliminary.

2

Estimate.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Supply and Distribution of All Cheese in the United States

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1 1 5

Cheese ---------------------------------- Supply ----------------------------- 40-lb. Blocks January 1 Wisconsin ComAssembly ----- Production ----mercial Whole Points All Total Stocks Imports4 Milk2 Cheese3 cents/lb. Supply

3,281 3,286 3,315 3,533 3,642 3,544 3,691 3,622 3,739 3,813

Preliminary. Commercial.

30

7,218 7,330 7,492 7,894 8,258 8,261 8,547 8,557 8,873 9,127

412 487 481 518 621 706 659 730 715 701

338 7,968 312 8,130 371 8,344 436 8,847 416 9,295 445 9,412 475 9,681 476 9,763 474 10,062 225 10,053

146.80 132.40 158.10 142.28 116.14 144.93 118.22 131.24 164.92 145.53

In Millions of Pounds

--------------------------------------------- Distribution ---------------------------------------------

Exports & Shipments5

72 83 81 85 105 115 119 115 128 115

American --- Domestic Disappearance --Cheese Total American - Gov't - Removed Cheese D i sa p Dec. 31 by USDA P er Stocks Programs pearance Donated Total Capita

.3 .5 .6 1.0 2.3 4.0 2.7 27.4 9.0

4.6 11.3 8.2 4.6 28.0 3.9 15.8 41.3 5.9

2 Whole milk American cheddar. 3 All types of cheese except cottage, pot and baker's cheese. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

7,478 7,646 7,797 8,219 8,580 8,744 9,001 9,007 8,933 8,741 4

0 0 0 0

7,365 7,510 7,664 8,086 8,406 8,586 8,819

I mports for consumption.

27.30 27.50 27.70 29.00 29.80 30.00 30.60

CHEESE Production of Cheese in the United States

In Millions of Pounds

----------- American ----------Year

Whole Milk

Part S ki m

1996 1997 1998 1999 2000 2001 2002 2003 2004 20051

3,281 3,286 3,315 3,533 3,642 3,544 3,691 3,622 3,739 3,813

NA NA NA NA NA NA NA NA NA NA

Swiss, Including Total Block Munster

3,281 3,286 3,315 3,533 3,642 3,544 3,691 3,622 3,739 3,813

219.0 207.6 206.4 221.0 229.3 245.5 254.1 264.7 281.3 294.0

Brick

106.8 100.2 94.6 80.3 85.5 82.2 81.1 79.4 72.8 77.9

Cream & Lim- Neufchatel Cheese burger

10.6 8.5 7.6 8.1 8.6 8.7 10.0 9.8 8.1 8.9

.7 .7 .9 .7 .6 .7 .7 .7 .9 .8

574.7 614.9 621.3 639.3 687.4 645.1 686.2 676.7 699.1 692.4

Italian Varieties

2,812.4 2,881.4 3,004.7 3,144.7 3,288.9 3,425.9 3,470.0 3,524.0 3,661.6 3,804.7

Total of All Blue All Other Mond Varieties Cheese2

38.3 42.8 5 5 5 5 5 5 5 5

106.7 119.8 166.0 181.0 219.7 199.6 229.8 246.7 268.1 268.1

------- Cottage Cheese ------Lowfat

7,218 7,330 7,492 7,894 8,258 8,261 8,547 8,557 8,873 9,127

Curd3 Creamed4

329.9 346.7 361.2 359.3 363.7 370.2 374.3 384.4 396.4 396.1

448.3 458.5 465.8 464.8 461.0 453.2 436.6 448.0 464.0 457.4

360.4 359.5 366.8 360.6 371.5 371.6 374.2 385.2 382.4 368.2

Preliminary. 2 Excludes full-skim cheddar and cottage cheese. 3 I ncludes cottage, pot, and baker's cheese with a butterfat content of less than 4%. 4 I ncludes cheese with a butterfat content of 4 to 19 %. 5 I ncluded in All Other Varieties. Source: Economic Research Service, U.S. Department of Agriculture ERS-USDA) 1

Average Price of Cheese, 40-lb. Blocks, Chicago Mercantile Exchange2 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

127.9 144.5 162.4 114.6 110.3 132.4 109.3 130.6 162.7 133.4

132.3 144.7 131.5 111.6 120.0 120.8 109.2 139.6 149.3 119.9

134.0 138.8 134.0 112.2 131.9 121.3 108.2 182.0 153.2 116.4

125.6 129.7 133.6 110.7 140.5 124.5 112.3 216.9 154.1 116.5

116.5 123.0 124.8 110.6 160.3 120.1 114.2 199.3 147.7 118.6

117.9 151.3 138.1 120.0 166.8 113.0 118.6 171.1 150.7 119.2

123.3 162.6 159.7 125.2 168.5 108.9 151.2 144.9 105.4 116.3

137.6 166.9 189.0 125.5 171.8 115.8 160.0 157.3 142.5 123.5

141.4 171.0 167.3 133.4 173.9 120.4 160.0 157.0 156.4 129.3

142.4 183.5 134.0 109.4 139.7 119.5 158.8 151.7 144.7 123.5

143.8 188.7 117.3 107.5 126.4 108.9 139.3 169.6 137.6 137.5

146.1 192.5 115.7 113.0 129.1 113.1 133.8 159.2 142.2 132.2

132.4 158.1 142.3 116.1 144.9 118.2 131.2 164.9 145.5 123.8

Preliminary. 2 Data through December 2001 are for Wholesale Price of Cheese, 40-lb. Blocks, Wisconsin Assembly Points. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Production2 of Cheese in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

598.1 617.2 631.6 692.9 680.3 717.5 714.8 738.0 754.0 772.3

577.1 574.3 591.7 649.5 625.3 667.9 648.6 705.5 704.6 721.0

638.0 646.7 698.2 714.8 713.7 742.8 730.3 785.6 797.5 812.6

598.5 636.9 663.8 694.0 670.2 719.2 718.8 761.0 754.8 786.5

642.0 650.4 668.9 730.4 706.8 748.3 737.0 752.1 783.9 811.6

623.4 639.9 664.4 695.7 678.5 708.3 712.3 715.3 764.5 793.9

613.2 607.9 641.3 687.6 676.0 692.2 718.3 708.7 739.5 767.4

596.5 596.4 642.6 683.8 660.0 714.3 700.1 719.5 757.4 788.9

604.3 583.8 637.6 653.8 641.8 683.9 708.7 714.4 745.5 784.3

615.5 633.2 666.5 688.5 682.1 732.2 740.0 748.0 760.4 800.3

594.5 637.8 683.4 675.0 691.2 725.4 710.0 754.3 766.1 791.1

627.9 667.4 704.2 688.4 703.1 747.2 758.9 773.9 798.9 829.0

7,329 7,492 7,894 8,255 8,129 8,599 8,598 8,876 9,127 9,459

Preliminary.

2

Excludes cottage cheese.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Cold Storage Holdings of All Varieties of Cheese in the United States, on First of Month Millions of Pounds Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

487.0 480.4 517.2 621.3 707.8 660.0 730.1 724.4 705.8 758.2

501.5 509.3 622.4 728.1 709.9 693.6 761.2 756.9 713.8 765.0

494.6 521.5 635.9 757.2 723.9 720.3 770.0 766.1 723.7 771.0

517.0 533.1 645.1 765.1 711.6 731.7 771.3 759.5 749.2 799.2

555.4 557.6 688.7 794.0 711.8 765.6 781.1 767.6 780.8 820.0

584.3 568.5 741.3 811.4 712.1 789.0 791.0 804.5 815.6 846.3

604.8 583.7 728.4 828.1 739.2 797.6 800.1 842.0 823.4 863.5

604.9 595.8 748.7 870.3 752.6 833.6 809.0 870.0 837.2 892.6

582.3 576.8 694.7 839.9 721.2 801.5 794.2 811.5 812.9 862.0

543.7 553.0 651.3 780.9 708.7 753.9 762.2 790.7 769.0 831.3

505.0 522.7 622.0 732.0 672.2 720.4 722.4 756.1 755.9 794.9

474.4 494.5 591.7 696.0 631.3 697.1 695.5 704.3 720.8 764.5

Quantities are given in net weight.

1

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

31

Chromium far behind with 4% each. India has emerged as a major producer of chromium in the past two decades. India’s 2005 production level of 3.255 million metric tons was more than 8 times the level of 360,000 metric tons seen 20 years earlier. South Africa’s production in 2005 fell slightly to 7.502 million metric tons from last year’s record 7.635 million metric tons, but that is still more than double the levels seen as recently as the early-1990s. Kazakhstan’s production in 2005 of 3.579 million was a 13-year high. Zimbabwe’s chromium production in 2005 was a record high of 819.9 metric tons. US Government stocks of chromium as of Dec 31, 2005 fell –46% yr/yr to a record low of 73.4 metric tons.

Chromium (symbol Cr) is a steel-gray, hard, and brittle, metallic element that can take on a high polish. Chromium and its compounds are toxic. Discovered in 1797 by Louis Vauquelin, chromium is named after the Greek word for color, khroma. Vauquelin also discovered that an emerald’s green color is due to the presence of chromium. Many precious stones owe their color to the presence of chromium compounds. Chromium is primarily found in chromite ore. The primary use of chromium is to form alloys with iron, nickel, or cobalt. Chromium improves hardness and resistance to corrosion and oxidation in iron, steel, and nonferrous alloys. It is a critical alloying ingredient in the production of stainless steel, making up 10% or more of the final composition. More than half of the chromium consumed is used in metallic products, and about one-third is used in refractories. Chromium is also used as a lustrous decorative plating agent, in pigments, leather processing, plating of metals, and catalysts.

Demand – Based on the most recently available data, the metallurgical and chemical industry accounts for 94% of chromium usage in the US, with the remaining 6% used by the refractory industry. Trade – The US relied on imports for 75% of its chromium consumption in 2006, up from the record low of 63% seen in 2002. That is well below the record high of 91% posted back in the 1970s. US chromium imports in 2005 rose +8.3% yr/yr to 353,300 metric tons. US exports of chromium in 2005 rose a sharp +64.9% yr/yr to 64.9 metric tons.

Supply – World production of chromium in 2005 rose +9.0% yr/yr to 19.300 million metric tons, which was up sharply from the 9-year low of 12.100 million metric tons in 2001. The world’s largest producers of chromium in 2005 were South Africa with 39% of world production, Kazakhstan with 19%, India with 17%, and with Turkey and Zimbabwe

World Mine Production of Chromite

In Thousands of Metric Tons (Gross Weight)

Year

Albania

Brazil

Cuba

Finland

India

Iran

Kazakhstan

Madag a sca r

Philippines

South Africa

Turkey

Zimbabwe

World Total

144 106 102 71 120 130 73 98 54 66

408 301 537 458 550 409 284 404 593 677

37 44 46 52 56 50 20 33 40 40

582 589 498 597 628 575 566 549 580 598

1,363 1,363 1,311 1,473 1,947 1,678 2,699 2,210 2,949 3,255

130 169 212 255 153 145 513 97 139 224

1,190 1,796 1,603 2,406 2,607 2,046 2,369 2,928 3,267 3,579

137 140 104 ---131 24 11 45 77 141

107 88 54 20 26 27 24 13 70 60

5,078 6,162 6,480 6,817 6,622 5,502 6,436 7,405 7,677 7,503

1,279 1,703 1,404 770 546 390 314 229 506 859

697 640 605 653 668 780 749 637 668 820

11,600 13,600 13,700 14,200 14,700 12,200 14,600 15,400 17,700 19,300

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 1

Preliminary.

2

Estimate.

Source: U.S. Geological Survey (USGS)

Salient Statistics of Chromite in the United States

Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

Net Import Reliance as a % of Apparent Production Con- of Ferrosumption chromium

79 75 80 80 78 78 63 74 72 69

37 61 W W W W W W W W

Consumption by - Primary Conumer Groups - - Government5 Stocks, Dec. 31--

Exports

47 27 55 53 86 43 29 46 35 57

Imports for Consumption Reexports

361 349 383 475 453 239 263 317 326 353

Preliminary. 2 Estimate. 3 Cr2O3, 44% (Transvaal). Source: U.S. Geological Survey (USGS)

1

32

In Thousands of Metric Tons (Gross Weight)

Metallurgical & Chemical Refractory

Total

W W W W W W W W W W 4

48% Cr2O3.

W W W W W W W W W W 5

W W W W W W W W W W

Metallurgical & Chemical Refractory

165 167 W W 396 396 78 79 46 4

Data through 1999 are for Consumer.

8 8 W W 241 241 126 156 88 70

Total Stocks

173 175 159 130 637 637 204 235 135 73

W = Withheld.

- $ per Metric Ton South Africa3

Turkish4

80 230 75 150 68 145 63 145 60-65 140-150 NA NA NA NA NA NA NA NA NA NA

Coal Coal is a sedimentary rock composed primarily of carbon, hydrogen, and oxygen. Coal is a fossil fuel formed from ancient plants buried deep in the Earth’s crust over 300 million years ago. Historians believe coal was first used commercially in China for smelting copper and for casting coins around 1,000 BC. Almost 92% of all coal consumed in the US is burned by electric power plants, and coal accounts for about 55% of total electricity output. Coal is also used in the manufacture of steel. The steel industry first converts coal into coke, then combines the coke with iron ore and limestone, and finally heats the mixture to produce iron. Other industries use coal to make fertilizers, solvents, medicine, pesticides, and synthetic fuels. There are four types of mined coal: anthracite (used in high-grade steel production), bituminous (used for electricity generation and for making coke), sub-bituminous, and lignite (both used primarily for electricity generation).

World Production3 of Coal (Monthly Average) Year

Australia

Canada

China

CzechRep.

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062

17,235 18,424 18,643 19,958 22,018 23,123 30,000 31,250 32,750 32,334

3,435 3,190 3,043 2,817 2,845 5,573 5,177 5,499 5,445 5,232

114,402 94,806 80,200 70,782 80,040 92,339 109,602 130,434 150,891 166,190

1,339 1,343 1,193 1,238 1,261 1,206 1,137 1,109 1,104 1,118

Coal futures trade at the New York Mercantile Exchange (NYMEX). The contract trades in units of 1,550 tons and is priced in terms of dollars and cents per ton. Supply – US production of bituminous coal in 2006 (annualized through Dec) rose by +3.6% yr/yr to a record high of 1.172 billion short tons. Demand – US consumption of coal in 2005, the latest reporting year for the series, rose by +1.19% to 1.128 billion tons, which was a new record high. Trade – US exports of coal in 2005 fell –3.9% yr/yr to 47.998 million tons, and imports rose +11.7% yr/yr to 30.460 million tons. The major exporting destinations for the US are Canada and Europe.

In Thousands of Metric Tons

Germany

India

Indonesia

Kazakhstan

Poland

Russia

Ukraine

United Kingdom

United States

4,267 3,776 3,657 3,111 2,406 2,197 2,396 2,429 2,335 1,926

24,764 24,356 25,004 25,802 26,563 27,938 29,036 31,438 33,129 34,443

4,340 5,027 5,892 6,402 7,554 8,588 9,551 11,021 11,510 11,546

6,268 5,672 4,644 5,960 6,810 6,493 7,060 6,795 6,855 6,428

11,427 9,644 9,301 8,598 8,658 8,676 8,529 8,414 8,154 8,041

13,317 12,779 13,799 14,292 15,507 15,198 16,329 17,495 18,472 19,121

6,293 6,431 6,804 6,749 6,908 5,163 5,354 4,965 4,999 5,114

4,041 3,431 3,090 2,600 2,677 2,499 2,353 2,089 1,668 1,713

82,398 84,484 66,796 65,220 68,666 66,565 81,023 92,953 94,439 97,286

Preliminary. 2 Estimate. 3 All grades of anthracite and bituminous coal, but excludes recovered slurries, lignite and brown coal.. NA = Not avaliable. Source: United Nations

1

Production of Bituminous & Lignite Coal in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062 1

Alabama

Colorado

Illinois

Indiana

Kentucky

Montana

Ohio

24,468 23,224 19,504 19,324 19,513 19,062 20,207 22,329 21,453 20,065

27,449 30,825 29,989 29,137 33,372 35,103 35,831 39,870 38,510 36,846

41,159 38,182 40,417 33,444 33,783 33,358 31,760 31,912 32,014 32,343

35,497 36,297 34,004 27,965 36,738 35,513 35,512 35,206 34,457 35,244

155,853 145,609 139,626 130,688 134,298 124,388 113,126 114,743 120,029 119,683

41,005 42,092 41,102 38,352 39,143 37,386 36,994 39,989 40,354 40,778

29,154 28,600 22,480 22,269 25,400 21,157 22,009 23,222 24,718 23,111

76,198 76,519 76,368 74,619 74,784 67,104 63,792 66,023 65,852 63,534

Preliminary.

2

Estimate.

Production of Bituminous Coal in the United States Year

1

Jan.

92,425 97,012 90,928 87,222 96,721 101,939 92,649 93,182 92,804 98,385

Preliminary.

2

F eb.

Texas

Virginia

West Virginia

Wyoming

Total

53,328 53,578 53,071 49,498 45,042 45,247 47,517 45,863 45,939 45,770

35,837 34,059 32,181 32,834 33,060 30,126 31,771 31,647 27,964 31,731

173,743 175,794 157,919 158,257 162,631 150,222 139,755 148,017 153,655 151,191

281,881 313,983 337,119 338,900 368,749 373,161 376,270 396,493 404,319 446,152

1,089,932 1,109,768 1,095,474 1,073,612 1,125,749 1,092,916 1,071,753 1,110,393 1,129,794 1,158,435

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

2

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Thousands of Short Tons

Pennsylvania

Mar.

88,028 92,265 86,167 95,091 92,015 98,672 86,846 99,045 86,802 99,176 90,208 90,108 82,130 88,976 86,306 94,876 89,039 102,178 89,720 102,415

Apr.

May

June

87,909 94,296 91,735 90,397 88,630 84,436 81,793 88,715 89,954 94,840 90,039 91,673 89,202 90,435 91,739 87,210 93,296 90,168 97,694 102,427

86,382 92,099 89,734 90,583 92,657 85,555 88,348 94,835 95,374 99,436

I ncludes small amount of lignite.

In Thousands of Short Tons Aug.

Sept.

Oct.

Nov.

D e c.

Total

88,666 89,319 90,497 91,212 87,759 92,600 84,442 96,361 89,037 99,048 86,190 92,054 88,301 89,355 92,260 95,209 91,930 97,907 96,014 102,017

July

92,298 95,442 92,248 88,848 88,985 92,212 90,344 93,525 95,493 95,177

94,562 96,723 89,146 92,542 99,529 94,033 93,928 92,618 93,532 97,988

83,344 90,544 90,885 94,035 93,736 87,836 84,155 92,268 94,842 95,725

94,913 94,567 92,450 87,272 88,234 91,058 94,154 95,478 92,774 95,148

1,085,254 1,106,128 1,089,503 1,077,704 1,118,719 1,092,905 1,071,977 1,109,506 1,129,337 1,172,146

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

33

COAL Production2 of Pennsylvania Anthracite Coal

In Thousands of Short Tons

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

351 306 355 271 302 131 108 197 131 142

366 305 369 283 275 117 98 183 127 163

492 309 389 382 323 116 98 147 149 197

374 405 354 342 283 121 115 111 137 179

351 384 459 375 300 122 114 101 135 195

390 388 402 383 297 240 107 214 157 192

407 525 343 366 328 116 97 141 125 173

423 454 436 430 358 126 95 145 140 195

415 452 479 412 318 119 101 150 135 160

448 533 414 417 375 130 130 145 156 100

384 167 407 402 349 120 111 151 179 94

415 167 406 366 173 126 116 127 127 93

4,678 4,612 4,808 4,432 3,681 1,584 1,290 1,812 1,698 1,883

1

Preliminary.

2

Represents production in Pennsylvania only.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Salient Statistics of Coal in the United States

In Thousands of Short Tons

------------------------------------- Exports ------------------------------------Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2 0 0 51

Production

Imports

Consumption

Brazil

Canada

Europe

A si a

Total

Total Ending Stocks2

1,063,856 1,089,932 1,117,535 1,100,431 1,073,612 1,127,689 1,094,283 1,071,753 1,112,099 1,133,253

7,126 7,487 8,724 9,089 12,513 19,787 16,875 25,044 27,280 30,460

1,005,573 1,030,453 1,038,972 1,038,648 1,084,094 1,060,146 1,066,355 1,094,861 1,107,255 1,128,299

6,540 7,455 6,475 4,442 4,536 4,574 3,538 3,514 4,199 4,361

12,029 14,975 19,901 19,826 18,769 17,633 16,686 20,760 19,466 17,760

47,193 41,331 33,773 22,508 24,969 20,821 15,574 15,148 18,825 15,211

17,980 14,498 12,311 9,157 6,702 3,246 1,735 266 5,082 7,475

90,473 83,545 77,295 58,476 58,489 48,666 39,601 43,014 49,942 47,998

151,627 140,374 164,602 188,590 140,282 181,912 192,127 165,468 154,006 143,999

L o sse s & Unaccounted For3

-7,366 -4,418 -13,118 -11,592 -8,150 -2,966 -5,012 -14,419 -4,412 -4,520

Preliminary. 2 Producer & distributor and consumer stocks, excludes stocks held by retail dealers for consumption by the residential and commercial sector. 3 Equals production plus imports minus the change in producer & distributor and consumer stocks minus consumption minus exports. Source: Energy I nformation Administraion, U.S. Department of Energy (EI A-DOE)

1

Consumption and Stocks of Coal in the United States

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 20051

In Thousands of Short Tons

------------------------------------------------------- Consumption ------------------------------------------------------------------------------------ Electric Utilities ------------------------- Industrial ------ Residential C o ke Other and Anthracite Bituminous Lignite Total Plants Industrial2 Commercial Total

1,009 1,014 867 686 NA NA NA NA NA NA

795,252 821,823 832,094 815,909 781,821 NA NA NA NA NA

78,421 896,921 77,524 921,364 77,906 936,619 77,525 940,922 75,794 985,821 NA 964,433 NA 977,507 NA 1,005,116 NA 1,016,268 NA 1,038,962

31,706 30,203 28,189 28,108 28,939 26,075 23,656 24,248 23,670 23,434

71,689 71,515 67,439 64,738 65,208 65,268 60,747 61,261 62,195 60,781

6,006 6,463 4,856 4,878 4,127 4,369 4,445 4,236 5,122 5,121

1,006,321 1,029,544 1,037,103 1,038,647 1,084,095 1,060,146 1,066,355 1,094,861 1,107,255 1,128,299

------------------- Stocks, Dec. 313 ------------------Producers -------------- Consumer -------------and Electric C o ke Other Utilities Plants Industrials Distributors

114,623 98,826 120,501 141,604 102,296 138,496 141,714 121,567 106,669 101,237

2,667 1,978 2,026 1,943 1,494 1,510 1,364 905 1,344 2,615

5,688 5,597 5,545 5,569 4,587 6,006 5,792 4,718 4,842 5,582

28,648 33,973 36,530 39,475 31,905 35,900 43,257 38,277 41,151 34,565

Preliminary. 2 I ncluding transportation. 3 Excludes stocks held at retail dealers for consumption by the residential and commercial sector. Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

1

Average Prices of Coal in the United States

Year

1996 1997 1998 1999 2000

------- End-Use-Sector ------Other IndustElectric C o ke rial2 Imports3 Utilities Plants

26.45 26.16 25.64 24.72 24.28

47.33 47.36 46.06 45.85 44.38

32.32 32.41 32.30 31.59 31.46

33.78 34.32 32.18 30.77 30.10

In Dollars Per Short Ton

------------- Exports ------------MetalTotal Steam lurgical Average3

34.09 32.45 30.27 29.91 29.67

45.49 45.47 44.53 41.91 38.99

40.76 40.55 38.89 36.50 34.89

------- End-Use-Sector ------Other IndustElectric C o ke rial2 Imports3 Year Utilities Plants

2001 2002 2003 2004 20051

24.68 24.74 25.29 NA NA

Preliminary. 2 Manufacturing plants only. 3 Based on the free alongside ship (F.A.S.) value. Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

1

34

46.42 50.67 50.63 61.50 83.79

32.26 35.49 34.70 39.30 47.63

34.00 35.51 31.45 37.52 46.71

------------ Exports -----------MetalTotal Steam lurgical Average3

31.88 34.51 26.94 42.03 47.64

41.63 45.41 44.55 63.63 81.56

36.97 40.44 35.98 54.11 67.10

COAL Trends in Bituminous Coal, Lignite and Pennsylvania Anthracite in the U.S. ----------------------------------- Bituminous Coal and Lignite -----------------------------------

In Thousands of Short Tons

------------------ Pennsylvania Anthracite ------------------

All Mines Labor Labor Product. Product. Miners1 Short Tons Short Tons Total Employed Miner/Hr. Miner/Hr.

------------ Labor Productivity --------------------------------- Production ----------------------Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Undergound

Surface

409,849 420,657 417,728 391,790 373,659 380,627 357,385 352,785 367,557 368,612

654,007 669,274 699,807 708,642 699,953 745,308 735,910 717,870 743,552 762,190

Underground Surface Average Miners1 Total Employed - Short Tons Per Miner Per Hour -

1,063,856 1,089,932 1,117,535 1,100,431 1,073,612 1,127,689 1,094,283 1,071,753 1,112,099 1,131,498

83,462 81,516 85,418 78,723 72,748 77,088 75,466 71,023 73,912 79,283

3.57 3.83 3.90 3.99 4.15 4.02 3.98 4.04 3.96 3.62

9.05 9.46 9.58 10.39 11.01 10.60 10.38 10.76 10.57 10.04

1 Excludes miners employed at mines producing less than 10,000 tons. U.S. Department of Energy (EI A-DOE)

Average Mine Prices of Coal in the United States ----- Average Mine Price by Method -----

Underground

Surface

391 419 408 377 301 341 305 282 271 264

4,360 4,259 4,823 4,376 4,271 1,143 998 961 1,408 1,296

5.69 6.04 6.20 6.61 6.99 6.82 6.80 6.95 6.80 6.36

4,751 4,678 5,231 4,753 4,572 1,484 1,303 1,243 1,679 1,560

1.92 1.76 2.04 1.76 1.89 .81 .78 .82 .97 .95

5.69 6.04 6.20 6.61 6.99 6.82 6.80 6.95 6.80 6.36

Source: Energy I nformation Administration,

In Dollars Per Short Ton

--------------- Average Mine Prices by Rank ---------------

Year

Underground

Surface

Total

Lignite

Subbituminous

Bituminous

Anthracite1

Bituminous & Lignite FOB Mines2

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

25.96 25.68 25.64 24.33 23.84 25.37 26.68 26.71 30.36 36.42

13.82 13.39 12.92 12.37 12.26 13.18 13.65 13.42 14.75 17.37

18.50 18.14 17.67 16.63 16.44 17.38 17.98 17.85 19.93 23.59

10.92 10.91 10.80 11.04 11.41 11.52 11.07 11.20 12.27 13.49

7.87 7.42 6.96 6.87 7.12 6.67 7.34 7.73 8.12 8.68

25.17 24.64 24.87 23.92 24.15 25.36 26.57 26.73 30.56 36.80

36.78 35.12 42.91 35.13 40.90 47.67 47.78 49.55 39.77 41.00

25.17 24.64 24.87 23.92 24.15 25.36 26.57 26.73 30.56 36.80

Produced in Pennsylvania. 2 FOB = free on board. 3 CI F = cost, insurance and freight. Source: Energy I nformation Adminstration, U.S. Department of Energy (EI A-DOE)

1

1,171 1,287 1,281 1,326 1,272 955 872 814 890 891

Anthracite FOB Mines2

All Coal CIF3 Electric Utility Plants

36.78 35.12 42.91 35.13 40.90 47.67 47.78 49.55 39.77 41.00

26.45 26.16 25.64 24.72 24.28 24.68 24.74 25.29 27.30 31.22

W = Withheld data.

Dollars Per Short Ton ----- Bituminous, F.O.B. Mines (1949 - date) - - - Anthracite, F.O.B. Preparation Plants (1949 - 1978) Anthracite, F.O.B. Mines (1979 - date)

35

Cobalt Cobalt (symbol Co) is a lustrous, silvery-white, magnetic, metallic element used chiefly for making alloys. Cobalt was known in ancient times and used by the Persians in 2250 BC to color glass. The name cobalt comes from the German word kobalt or kobold, meaning evil spirit. Miners gave cobalt its name because it was poisonous and troublesome since it polluted and degraded other mined elements, like nickel. In the 1730s, George Brandt first isolated metallic cobalt and was able to show that cobalt was the source of the blue color in glasses. In 1780, it was recognized as an element. Cobalt is generally not found in nature as a free metal and is instead found in ores. Cobalt is generally produced as a by-product of nickel and copper mining. Cobalt is used in a variety of applications: high temperature steel alloys; fasteners in gas turbine engines; magnets and magnetic recording media; drying agents for paints and pigments; and steel-belted radial tires. Cobalt60, an important radioactive tracer and cancer-treatment agent, is an artificially produced radioactive isotope of cobalt. Prices – The price of cobalt fell sharply by –33.3% in 2005 to $15.96 per pound. That is still more than double the 18-year low of $6.91 per pound in 2002 but well below the record high of $29.21 per pound posted in 1995. Supply – World production of cobalt in 2005 rose by +1.4% to a record high of 57,900 metric tons. The world’s largest cobalt mine producers are the Congo with 38% of world production in 2005, Zambia (16%), Australia (10%), and Canada (10%).

World Mine Production of Cobalt Year

Australia

Botswana

Canada

2,800 3,000 3,300 4,100 5,600 6,300 6,700 6,900 6,700 6,000

408 334 335 331 308 325 269 294 223 200

5,714 5,709 5,861 5,323 5,298 5,326 5,148 4,327 5,060 5,533

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

Preliminary.

2

Estimate.

3

In Metric Tons (Cobalt Content) Finland France Ja p a n New Norway Cuba (Refinery) (Refinery) (Refinery) Caledonia (Refinery)

2,011 2,358 2,665 2,537 2,852 3,425 3,442 3,274 3,554 3,600

Formerly Zaire.

4,160 5,000 10,600 10,000 7,700 8,100 8,200 7,990 7,893

Year

36

258 264 480 480 311 350 354 379 429

1,100 1,000 1,000 1,100 1,200 1,400 1,400 1,400 1,400 1,200

3,098 3,417 4,500 4,500 3,433 3,314 3,994 4,556 4,670

Congo3

Zambia

World Total

3,300 3,300 3,600 3,900 4,000 4,600 4,600 4,800 4,700 5,000

2,000 3,500 5,000 7,000 11,000 12,000 14,500 14,500 20,500 22,000

6,959 6,037 11,900 5,640 4,600 8,000 10,000 11,300 10,000 9,300

26,200 27,400 35,300 32,700 37,900 44,800 50,600 50,800 57,100 57,900

In Metric Tons (Cobalt Content)

Net Import ------------------------------------------------- Consumption by End Uses -----------------------------------------------Reliance Cobalt Processors and Imports as a % of SeconCutting Drier in & WearMagfor Ground Stainless Price dary Consumer Total Apparent netic Pig- Paints, Resistant Welding Apparent Coat & Heat Cata- Super- Tool ConStocks $ P er ProConetc.3 Material Materials lysts alloys Steel Alloys ments Frit Resisting Dec. 31 sumption Uses Pound4 sumption duction

76 76 73 73 74 78 75 78 76 78

2,280 2,750 3,080 2,720 2,550 2,780 2,800 2,130 2,300 2,030

770 6,710 763 8,430 750 7,670 738 8,150 820 8,770 852 9,410 917 8,450 649 8,080 719 8,720 664 11,100

Preliminary. 2 Estimate. 3 Or related usage. Source: U.S. Geological Survey (USGS)

1

174 159 300 300 204 199 176 181 199

Russia

Source: U.S. Geological Survey (USGS)

Salient Statistics of Cobalt in the United States

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

The US does not specifically mine or refine cobalt although some cobalt is produced as a by-product of mining operations. Imports, stock releases, and secondary materials comprise the US cobalt supply. Secondary production includes extraction from super-alloy scrap, cemented carbide scrap, and spent catalysts. In the US, there are two domestic producers of extra-fine cobalt powder. One company produces the powder from imported primary metal and the other from recycled materials. There are seven companies that produce cobalt compounds. US secondary production of cobalt in 2005 fell –11.7% yr/yr to 2,030 metric tons and is still well below the record high of 3,080 metric tons seen in 1998. Demand – US consumption of cobalt in 2005 rose by +20.0% yr/yr to 11,900 metric tons, which was a new record high. The largest use of cobalt by far was for super-alloys with 4,140 metric tons of consumption in 2005. Other smaller-scaled applications for cobalt include cutting and wear-resistant materials (763 metric tons), welding materials (227 metric tons), and magnetic alloys (337 metric tons). Trade – US imports of cobalt in 2005 rose by +27.3% to 11,100 metric tons, which was not far below the record high of 11,481 metric tons seen in 1984. In 2005 the US relied on imports for 81% of its cobalt consumption, which is down from the 99% level seen in the early 1970s.

391 490 W W W W W W W W 4

38 38 38 W W W W W W W

652 734 W W W W W W W W

3,360 4,170 4,060 3,830 4,070 4,850 3,700 3,400 3,650 4,140

Annual spot for cathodes.

95 112 96 W W W W W W W

719 879 771 794 625 472 416 282 396 337

191 201 W W W W W W W W

733 556 W W W W W W W W

W = Withheld proprietary data.

722 789 844 755 760 720 618 662 765 763

347 342 421 291 867 661 634 632 627 227

9,380 11,200 11,500 10,700 11,600 11,800 9,830 10,000 9,920 11,900

25.50 23.34 21.43 17.02 15.16 10.55 6.91 10.60 23.93 15.96

Cocoa Cocoa is the common name for a powder derived from the fruit seeds of the cacao tree. The Spanish called cocoa “the food of the gods” when they found it in South America 500 years ago. Today, it remains a valued commodity. Dating back to the time of the Aztecs, cocoa was mainly used as a beverage. The processing of the cacao seeds, also known as cocoa beans, begins when the harvested fruit is fermented or cured into a pulpy state for three to nine days. The cocoa beans are then dried in the sun and cleaned in special machines before they are roasted to bring out the chocolate flavor. After roasting, they are put into a crushing machine and ground into cocoa powder. Cocoa has a high food value because it contains as much as 20 percent protein, 40 percent carbohydrate, and 40 percent fat. It is also mildly stimulating because of the presence of theobromine, an alkaloid that is closely related to caffeine. Roughly twothirds of cocoa bean production is used to make chocolate and one-third to make cocoa powder. Four major West African cocoa producers, the Ivory Coast, Ghana, Nigeria and Cameroon, together account for about two-thirds of world cocoa production. Outside of West Africa, the major producers of cocoa are Indonesia, Brazil, Malaysia, Ecuador, and the Dominican Republic. Cocoa producers like Ghana and Indonesia have been making efforts to increase cocoa production while producers like Malaysia have been switching to other crops. Ghana has had an ongoing problem with black pod disease and with smuggling of the crop into neighboring Ivory Coast. Brazil was once one of the largest producers of cocoa but has had problems with witches’ broom disease. In West Africa, the main crop harvest starts in the September-October period and can be extended into the January-March period. Cocoa trees reach maturity in 5-6 years but can live to be 50 years old or more. During the course of a growing season, the cocoa tree will produce thousands of flowers but only a few will develop into cocoa pods. Cocoa futures and options are traded at the CSCE Division of the New York Board of Trade (NYBOT) and on the London International Financial Futures and Options Exchange (LIFFE). The futures contracts call for the delivery of 10 metric tons of cocoa and the contract is priced in US dollars per metric ton. Prices – Cocoa prices on the CSCE nearest-futures chart in 2006 remained within the 2004-05 consolidation range that developed near the middle of the range established by the sharp rally from the 3-decade low near

World Supply and Demand Cocoa

$674 per metric ton posted in December 2000 to the 2-decade high of $2,420 posted in early 2003. Cocoa futures closed 2006 at $1,635 per metric ton, up +8.7% from the close of $1504 in 2005. Bullish factors for cocoa in 2006 included (1) a 2% decline in the size of the 2005-06 cocoa crop, which added to the 6% decline seen in 2004-05, (2) relatively strong world cocoa demand which produced a net deficit for the 2005-06 marketing year, and (3) generally strong commodity prices stemming from the weak dollar. There were minimal disruptions of cocoa production in the Ivory Coast as the conflict settled down between the government and rebels in the north. The Ivory Coast is the world’s largest cocoa producer with 40% of world production. Supply – The world net cocoa crop in 2005-06 fell – 2.8% yr/yr to 3.190 million metric tons from the record high of 3.492 million metric tons seen in 2003-04. The drop in production caused closing stocks in 2005-06 to fall –15.3% yr/yr to 1.227 million metric tons, and the stocks/ consumption ratio to fall to a low level of 36%. World grindings in 2005-06 rose by +2.7% yr/yr to 3.411 million metric tons, which was a new record high. The world’s largest cocoa producer by far is the Ivory Coast where production in 2005-06 fell –6.1% yr/yr to 1.195 million metric tons from the record high of 1.386 million metric tons in 2003-04. The Ivory Coast accounted for 37% of world cocoa production in 2005-06. Other major cocoa producers included Ghana with 20% of world production, Indonesia with 14%, Cameroon with 5%, Brazil with 5%, and Nigeria with 5.0%. Demand – World consumption of cocoa in 2004-05 (latest data available) rose +2.8% yr/yr to a new record high of 3.321 million metric tons. The world’s largest cocoa consumers are the European Union with 40% of world consumption in 2004-05, followed by the US with 12% of world consumption. US consumption of cocoa in 2004-05 rose by +2.0% to 409,000 metric tons. There were large consumption increases in 2004-05 in Malaysia (+14%), in Russia (+8%), and in the European Union (+6%). There were large consumption decreases in Turkey (–18%), in Canada (–10%) and in Japan (–7%). Trade – US imports of cocoa and cocoa products in 2005 rose sharply by +11.5% yr/yr to 1.306 million metric tons, which was a new record high. US imports of cocoa have soared in the past 15 years and are roughly 6 times the average of 225,000 metric tons of cocoa seen in the 1980s.

In Thousands of Metric Tons

Crop Year Beginning October

Stocks Oct. 1

Net World Production4

Total Availability

Seasonal Grindings

Closing Stocks

Stock Change

Stock/ Consumption Ratio %

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063

1,602 1,562 1,394 1,423 1,478 1,172 1,123 1,224 1,486 1,448

2,690 2,605 2,786 3,030 2,766 2,793 3,115 3,492 3,283 3,190

4,292 4,167 4,180 4,453 4,244 3,965 4,238 4,716 4,769 4,638

2,730 2,773 2,757 2,975 3,072 2,843 3,014 3,230 3,321 3,411

1,562 1,394 1,423 1,478 1,172 1,123 1,224 1,486 1,448 1,227

-40 -168 29 55 -306 -49 101 262 -38 -221

57.2 50.3 51.6 49.7 38.2 39.5 40.6 46.0 43.6 36.0

Preliminary. 2 Estimate. 3 Forecast. Source: ED&F Man Cocoa Ltd.

1

4

Obtained by adjusting the gross world crop for a one percent loss in weight.

37

COCOA World Production of Cocoa Beans Crop Year Beginning October

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

Preliminary.

Brazil

Cameroon

Colombi a

Domini ca n Republic

183 173 138 124 163 124 163 163 171 165

121 114 123 115 133 131 155 165 185 170

39 38 39 37 36 34 36 37 37 37

47 60 22 28 37 45 45 46 33 44

2

Estimate.

3

Forecast.

Canada

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-031 2003-042 2004-053

39 35 53 42 56 58 56 57 72 65

European Brazil Union

183 180 188 191 202 195 173 196 207 209

Preliminary. 2 Estimate. Source: ED&F Man Cocoa Ltd

1

3

1,225 1,203 1,228 1,186 1,235 1,263 1,159 1,190 1,256 1,328 Forecast.

Ecuador

101 28 72 92 81 72 81 111 110 120

Nigeria

Papua New Guinea

World Total

35 30 25 31 33 29 35 27 36 28

160 165 200 180 180 195 180 190 180 150

28 26 35 46 39 38 43 39 40 40

2,712 2,626 2,808 3,054 2,788 2,816 3,140 3,520 3,309 3,216

Ghana

Indonesia

Ivory C o a st

Malaysia

Mexico

323 409 398 435 395 340 497 737 583 630

327 322 396 428 381 459 418 464 471 450

1,130 1,090 1,175 1,404 1,185 1,240 1,360 1,386 1,273 1,195

102 57 79 37 29 10 10 10 10 10

Source: ED&F Man Cocoa Ltd

World Consumption of Cocoa4 Year

In Thousands of Metric Tons

4

In Thousands of Metric Tons Ghana

Indonesia

Cote d'Ivoire

Ja p a n

Malaysia

Singapore

Turkey

United States

Russia

World Total

60 68 67 65 75 80 80 69 78 76

60 72 74 83 88 91 108 115 122 111

130 145 195 210 230 285 265 290 321 320

49 53 43 47 48 49 50 64 57 53

96 103 94 109 117 121 93 129 200 228

63 61 68 63 60 59 62 71 59 57

16 16 22 22 25 39 39 50 71 58

345 394 399 406 439 445 393 400 401 409

75 74 50 48 62 67 69 60 63 68

2,655 2,730 2,773 2,757 2,975 3,072 2,843 3,014 3,230 3,321

Figures represent the grindings of cocoa beans in each country.

Imports of Cocoa Butter in Selected Countries

NA = Not available.

In Metric Tons

Year

Australia

Austria

Belgium

Canada

France

Germany

Italy

Ja p a n

NetherLands

Sweden

Switzerland

United Kingdom

United States

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1

12,150 14,316 14,896 16,305 22,573 20,591 20,634 20,800 22,307 23,516

7,425 7,124 6,922 5,984 5,363 4,425 3,814 3,638 3,963 4,467

26,185 23,771 34,222 25,722 42,278 52,917 51,576 49,467 58,076 55,840

11,146 12,166 16,782 16,941 17,323 22,005 23,307 24,397 26,314 27,632

40,245 47,349 46,516 43,610 49,722 48,033 51,029 58,949 58,651 61,613

69,928 69,298 71,094 76,057 70,323 71,985 80,839 82,313 77,880 84,269

12,027 11,178 9,706 8,957 8,281 11,106 11,764 12,101 13,343 13,966

12,898 16,096 16,609 15,363 17,824 21,696 21,663 20,212 22,579 22,164

38,300 39,193 29,023 28,523 35,602 27,253 36,643 37,569 55,820 50,097

7,078 5,698 6,937 7,403 6,884 5,986 6,350 6,401 6,564 6,667

17,835 18,690 19,058 19,857 21,278 19,923 18,901 20,187 21,455 22,960

30,654 32,781 37,021 32,951 39,648 36,360 40,668 39,117 38,799 47,979

57,210 68,761 87,687 65,306 80,475 94,649 80,808 54,788 78,315 94,891

1

Preliminary.

NA = Not available.

Source: ED&F Man Cocoa Ltd

Imports of Cocoa Liquor and Cocoa Pow der in Selected Countries Year

----------------------------------- Cocoa Liqour ----------------------------------NetherUnited United France Germany Ja p a n lands Kingdom States

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1

46,570 62,938 61,148 70,883 74,721 67,812 67,500 64,820 71,337 72,057

1

Preliminary.

38

5,083 7,437 10,299 9,121 13,833 14,295 17,548 28,100 31,391 42,975

6,822 9,926 8,401 12,534 1,421 1,618 1,553 1,193 1,764 2,773

NA = Not available.

1,832 2,133 1,393 1,144 25,639 33,815 41,913 46,369 35,089 40,847

5,030 5,069 5,860 3,813 4,396 8,529 10,289 14,038 20,154 17,753

19,192 15,357 17,850 21,894 12,823 10,902 17,940 22,215 20,018 20,758

Source: ED&F Man Cocoa Ltd

In Metric Tons

------------------------------------------- Cocoa Pow der -------------------------------------------NetherUnited Denmark France Germany Italy Ja p a n lands States

3,229 3,711 4,189 3,865 3,676 3,348 4,014 NA NA NA

17,081 18,398 19,555 19,533 19,342 21,932 25,736 24,445 31,933 33,148

32,247 36,211 35,069 32,479 33,404 34,601 32,621 36,583 32,805 42,732

15,265 15,006 15,872 17,122 16,464 18,261 20,164 19,201 18,573 19,637

6,310 13,069 8,941 8,779 9,779 11,245 11,949 10,299 12,895 14,393

10,048 66,075 6,678 68,658 4,424 71,024 3,746 84,211 8,405 84,975 22,492 86,908 30,149 113,593 26,021 95,499 35,275 99,977 35,263 104,880

COCOA Imports of Cocoa and Products in the United States

In Thousands of Metric Tons

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

90 80 86 100 111 108 87 115 110 129

87 47 105 79 128 97 74 74 82 109

90 77 90 81 101 77 73 92 130 156

80 71 71 93 91 47 61 71 100 108

55 64 55 51 70 68 76 68 101 104

49 54 65 60 67 61 72 74 103 93

62 59 65 77 70 80 87 95 94 91

53 47 62 62 70 78 98 82 94 103

53 64 72 68 86 76 61 79 100 86

60 61 63 67 76 86 66 95 90 87

60 56 54 82 59 92 90 85 80 112

86 88 77 102 69 118 72 116 89 129

821 768 865 922 999 989 916 1,046 1,171 1,308

1

Preliminary.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Visible Stocks of Cocoa in Port of Hampton Road Warehouses1, at End of Month Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

1,439.8 1,128.3 726.5 661.6 469.7 741.9 504.7 149.9 48.6 31.1

1,492.8 1,132.1 693.4 693.2 448.4 657.4 462.8 121.7 47.8 30.9

1,458.0 1,133.0 841.9 642.5 571.7 632.0 436.7 103.1 47.5 28.6

1,549.6 1,094.0 842.5 579.7 583.4 607.7 424.0 102.3 47.5 28.0

1,561.7 1,010.5 811.6 536.9 711.1 577.3 383.8 80.5 44.3 28.0

1,493.9 970.2 764.7 500.7 672.4 518.8 353.4 71.9 43.9 27.4

1,412.3 872.4 714.3 489.0 720.3 498.2 327.4 69.2 41.2 27.4

1,315.4 840.1 712.3 472.7 925.2 487.5 273.3 67.7 40.4 27.4

1,239.6 727.3 795.4 473.4 921.4 475.2 255.4 56.9 40.1 27.4

1,338.9 763.9 801.9 451.8 839.7 506.8 194.8 53.0 38.0 27.4

1,108.1 695.7 705.9 438.9 762.9 509.0 181.5 49.6 38.0 27.4

1,116.2 704.8 673.0 421.2 816.0 511.4 169.9 49.3 36.8 27.4

Licensed and unlicensed warehouses approved by the CSCE.

Source: New York Board of Trade (NYBOT)

Visible Stocks of Cocoa in Philadelphia (Del. River) Warehouses1, at End of Month Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

960.2 1,753.0 1,420.3 1,763.0 1,619.0 1,844.0 1,701.5 1,347.2 1,294.9 1,588.9

1,005.2 1,634.4 1,435.7 1,832.8 1,801.7 2,082.3 1,876.7 1,422.0 1,061.5 1,809.8

1,205.6 1,579.6 1,592.6 1,982.7 2,466.4 2,173.3 1,849.3 1,327.9 1,259.1 2,066.3

1,658.8 1,641.0 1,555.3 2,217.8 2,582.0 1,960.0 1,708.0 1,326.5 1,187.1 2,264.5

1,871.3 1,578.7 1,398.5 2,019.4 2,581.6 1,785.9 1,746.4 1,217.2 1,238.8 2,439.3

1,851.7 1,625.9 1,287.8 1,999.6 2,363.7 1,610.4 1,689.5 1,202.3 1,342.0 2,258.3

1,969.1 1,696.2 1,279.8 2,084.6 2,168.3 1,391.6 1,793.1 1,229.2 1,432.6 2,465.0

1,816.2 1,637.6 1,376.9 2,133.4 2,101.6 1,543.0 1,832.7 1,123.7 1,529.3 2,481.0

1,851.1 1,530.9 1,373.7 2,144.1 2,105.1 1,391.3 1,750.9 930.6 1,366.4 2,470.5

1,705.1 1,491.8 1,260.6 2,015.5 2,039.1 1,131.4 1,334.5 798.9 1,569.4 2,373.5

1,671.7 1,414.2 1,406.7 1,774.4 1,697.4 1,303.2 1,162.7 723.7 1,312.8 2,635.5

1,696.5 1,394.0 1,637.1 1,608.5 1,589.4 1,682.1 1,250.6 806.0 1,335.7 2,712.8

Source: New York Board of Trade (NYBOT)

Visible Stocks of Cocoa in New York Warehouses1, at End of Month 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

In Thousands of Bags

Jan.

Licensed and unlicensed warehouses approved by the CSCE.

Year

In Thousands of Bags

Jan.

In Thousands of Bags

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

667.6 984.7 973.9 1,085.0 1,633.7 1,005.6 1,088.9 614.6 229.9 201.2

646.1 981.3 1,342.7 1,089.3 1,689.5 1,173.8 870.8 625.4 415.2 446.3

632.7 945.0 1,271.3 1,083.1 1,926.9 1,119.6 892.0 593.7 616.1 495.9

627.2 1,250.0 1,675.7 1,134.1 2,049.8 1,024.9 816.1 612.9 579.9 677.7

656.1 1,574.4 1,552.3 1,139.4 1,926.7 967.5 739.1 515.1 712.7 806.6

633.5 1,524.7 1,516.7 1,114.3 1,789.6 906.6 736.0 476.1 680.1 916.5

1,191.7 1,512.8 1,404.6 1,093.5 1,632.2 776.2 640.9 423.6 676.3 805.2

1,154.2 1,348.0 1,293.1 974.5 1,383.7 758.5 553.6 388.2 596.1 625.2

1,121.4 1,217.3 1,300.1 941.9 1,323.7 657.6 670.1 483.4 486.3 457.2

973.2 1,073.7 1,126.4 821.7 1,234.8 687.4 525.7 301.9 334.5 430.3

950.1 1,020.0 989.2 847.5 1,100.0 750.8 473.1 391.3 272.0 388.3

919.0 980.4 1,031.6 1,573.1 1,019.4 1,196.2 554.8 342.9 209.6 599.2

Licensed and unlicensed warehouses approved by the CSCE.

Source: New York Board of Trade (NYBOT)

39

COCOA

USD Per Metruc Ton ----- Ivory Coast (Oct. 1980 - date) ----- Caracas, Philadelphia (1825 - 1854) Guayaquil, Philadelphia (1855 - 1897) Guayaquil, London (1898 - 1906) Bahia, New York (1907- 1912) Accra, New York (1913 - 1925) Exchange Standard, New York (Dec. 1926 - Dec. 1947) Accra, New York (Jan. 1948 - Dec. 1984)

Average Cash Price of Cocoa, Ivory Coast in New York Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1,455 1,517 1,750 1,565 1,027 1,093 1,586 2,483 1,840 1,740

1,476 1,452 1,721 1,498 962 1,299 1,674 2,506 1,763 1,827

1,421 1,591 1,812 1,415 1,025 1,290 1,794 2,258 1,695 1,950

1,536 1,628 1,835 1,276 993 1,244 1,800 2,232 1,610 1,744

1,558 1,624 1,902 1,144 998 1,281 1,814 1,996 1,588 1,656

1,577 1,748 1,812 1,263 1,033 1,146 1,836 1,818 1,571 1,687

1,556 1,736 1,792 1,209 1,034 1,152 2,081 1,803 1,733 1,625

1,563 1,743 1,761 1,154 980 1,200 2,191 1,843 1,889 1,626

1,559 1,864 1,767 1,156 988 1,183 2,391 1,877 1,698 1,640

1,578 1,832 1,750 1,133 991 1,288 2,471 1,713 1,654 1,598

1,546 1,770 1,694 1,037 905 1,439 2,123 1,737 1,867 1,585

1,560 1,819 1,630 1,027 911 1,543 2,322 1,832 1,848 1,670

1,532 1,694 1,769 1,240 987 1,263 2,007 2,008 1,730 1,696

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

40

In Dollars Per Metric Ton

COCOA

Average Open Interest of Cocoa Futures in New York Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

90,478 86,960 90,574 77,067 100,540 132,711 97,563 96,375 88,879 117,091

93,533 90,589 82,205 72,324 110,316 119,459 98,169 91,944 84,078 115,007

98,049 96,771 78,022 69,221 106,056 114,036 96,336 83,625 99,918 144,055

95,390 96,956 73,237 65,856 102,382 102,275 98,851 83,230 100,429 124,417

96,346 94,651 79,294 71,990 113,239 107,008 103,746 95,307 108,150 124,925

88,232 97,385 74,347 75,195 111,948 111,224 100,701 96,813 99,476 128,203

80,873 101,815 74,295 70,787 112,864 104,473 107,080 89,846 103,350 126,388

77,134 101,138 73,975 69,939 117,260 99,280 102,441 78,197 111,318 129,562

77,942 106,487 71,978 74,572 123,463 92,235 107,294 76,468 101,998 118,468

79,572 108,263 74,139 79,770 138,523 96,204 107,880 86,392 119,033 132,629

77,139 99,544 74,127 89,035 139,141 93,088 82,236 99,038 117,876 131,733

78,592 97,009 73,480 92,609 138,266 92,326 82,844 94,010 118,769 123,302

Source: New York Board of Trade (NYBOT)

Volume of Trading of Cocoa Futures in New York Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

177,720 180,669 175,844 136,109 156,812 311,900 155,699 172,845 174,684 185,624

226,701 172,510 145,311 155,090 231,562 168,587 187,550 215,240 180,693 239,511

213,189 219,896 171,333 141,090 232,803 164,131 129,833 136,564 181,667 231,917

242,988 235,020 192,120 180,837 186,837 136,021 217,590 179,956 244,946 249,209

164,749 130,041 143,602 130,019 147,072 154,397 160,364 176,969 174,452 134,330

183,544 251,471 183,719 230,925 267,470 201,299 220,289 207,255 238,201 288,809

159,070 186,280 131,642 125,360 124,906 108,189 176,450 143,888 219,018 151,339

164,719 200,707 156,737 144,290 191,849 207,569 209,249 206,428 260,025 252,868

107,634 168,981 115,066 147,124 111,740 118,428 138,394 146,113 146,090 222,122

167,227 204,394 125,320 143,335 174,216 124,884 207,310 197,316 150,443 182,337

185,226 180,805 155,280 209,608 186,515 202,847 162,982 209,775 290,227 283,663

128,809 143,735 114,606 124,249 98,266 107,565 114,270 135,857 128,604 191,198

2,121,576 2,274,509 1,810,580 1,868,036 2,110,048 2,005,817 2,079,980 2,128,206 2,389,050 2,612,927

Source: New York Board of Trade (NYBOT)

41

Coconut Oil and Copra Coconut oil and copra come from the fruit of the coconut palm tree, which originated in Southeast Asia. Coconut oil has been used for thousands of years as cooking oil, and is still a staple in the diets of many people living in tropical areas. Until shortages of imported oil developed during WWII, Americans also used coconut oil for cooking. Copra is the meaty inner lining of the coconut. It is an oil-rich pulp with a light, slightly sweet, nutty flavor. Copra is used mainly as a source of coconut oil and is also used shredded for baking. High-quality copra contains about 65% to 72% oil, and oil made from the copra is called crude coconut oil. Crude coconut oil is processed from copra by expeller press and solvent extraction. It is not considered fit for human consumption until it has been refined, which consists of neutralizing, bleaching and deodorizing it at high heat with a vacuum. The remaining oil cake obtained as a by-product is used for livestock feed. Premium grade coconut oil, also called virgin coconut oil, is oil made from the first pressing without the addition of any chemicals. Premium grade coconut oil is more expensive than refined or crude oil because the producers use only selected raw materials and there is a lower production yield due to only one pressing. Coconut oil accounts for approximately 20% of all vegetable oils used worldwide. Coconut oil is used in margarines, vegetable shortening, salad oils, confections, and in sports drinks to boost energy and enhance athletic

World Production of Copra Year

India Indonesia

1997 1998 1999 2000 2001 2002 2003 20041 20052 20063

720 735 718 700 690 713 690 700 660 670

1

Preliminary.

2

3

Year

1

Preliminary.

42

2

756 652 458 787 700 773 758 731 881 844

Estimate.

Trade – Copra is generally crushed in the country of origin, meaning that less than 4% of copra itself is exported; the rest is exported in the form of coconut oil. World exports of coconut oil in 2005-06 rose by +3.0% yr/yr to a record high of 2.615 million metric tons.

Mexico

Mozambique

New Guinea

Philippines

Sri Lanka

Thailand

Vanuatu

Vietnam

World Total

45 43 36 45 45 45 45 45 45 45

60 50 48 49 47 50 51 51 48 48

217 237 199 202 198 203 183 182 184 185

76 76 73 75 75 75 72 75 75 75

159 143 146 152 95 71 85 90 112 115

2,210 2,270 1,250 2,140 2,790 2,065 2,390 1,980 2,100 2,150

67 71 68 98 113 70 75 85 67 68

61 61 65 69 60 61 65 70 65 65

34 43 30 27 30 16 29 39 30 30

96 68 72 45 41 46 49 49 50 51

5,363 5,077 3,874 5,248 5,662 5,004 5,297 4,972 5,218 5,245

Forecast.

35 39 51 54 48 45 41 41 42 42 3

Demand – Virtually all of world production of copra in 2005-06 went for crushing into coconut meal and oil (over 99%). World consumption of coconut oil in 2005-06 rose +5.4% yr/yr to 3.263 million metric tons, not far below the record of 3.349 million metric tons in 2000-01.

Malaysia

Source: The Oil World

--------------------- Production --------------------IndoMalPhilipIndia nesia aysia pines Total

424 442 431 421 419 421 417 419 402 401

Supply – World production of copra in 2006 rose slightly by +0.5% yr/yr to 5.245 million metric tons but that was still well below the record high of 5.662 million metric tons posted in 2001. The world’s largest producers of copra are the Philippines with 41% of world production, Indonesia with 27%, India with 13%, and Mexico with 4%. World production of coconut oil in the 2005-06 marketing year rose +3.8% yr/yr to 3.283 million metric tons.

In Thousands of Metric Tons

World Supply and Distribution of Coconut Oil

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063

Prices – The average monthly price of coconut oil (crude) in 2005 fell –14.7% to 32.44 cents per pound, up from the 15-year low of 21.94 cents posted in 2002. The record high of 60.21 cents per pound was posted in 1984.

Ivory C o a st

1,300 965 860 1,330 1,185 1,290 1,260 1,300 1,470 1,430

Estimate.

performance. It is also used in the manufacture of soaps, detergents, shampoos, cosmetics, candles, glycerin and synthetic rubber. Coconut oil is very healthy, unless it is hydrogenated, and is easily digested.

1,257 1,628 783 1,198 1,731 1,441 1,428 1,379 1,257 1,410

Forecast.

3,150 3,411 2,370 3,084 3,496 3,242 3,209 3,135 3,162 3,283

Exports

1,726 2,125 1,040 1,788 2,159 1,850 1,966 1,856 2,102 2,165

Source: The Oil World

In Thousands of Metric Tons --------------------------- Consumption --------------------------- ------ Ending Stocks -----European Indo- PhilipUnited Philip- United Imports Union India nesia pines States Total pines States Total

1,658 2,111 1,142 1,718 2,173 1,884 1,983 1,854 2,066 2,171

688 432 771 440 578 446 770 435 751 439 706 448 781 454 708 434 809 425 830 432

213 211 110 110 277 278 273 246 173 191

339 302 295 299 348 370 356 311 247 258

504 540 461 420 437 516 372 412 358 434

3,067 3,184 2,750 2,921 3,349 3,341 3,315 3,181 3,095 3,263

92 32 58 112 60 62 53 58 73 75

68 178 69 62 118 103 98 60 110 100

384 598 319 411 572 507 418 370 401 427

COCONUT OIL AND COPRA Supply and Distribution of Coconut Oil in the United States

In Millions of Pounds

----- Rotterdam -----

Year

Copra Coconut Tonne Oil, CIF --------- $ U.S. --------

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 1

452 391 468 357 208 245 286 424 431 382

Preliminary.

2

693 625 748 539 323 388 450 630 636 577

Estimate.

---------- Disappearance ---------- -------- Production of Coconut Oil (Refined) --------

Imports For Consumption

Stocks Oct. 1

Total Supply

1,188 1,440 791 926 1,100 1,150 838 840 929 970

83 149 392 152 136 260 226 219 131 163

1,271 1,589 1,183 1,078 1,236 1,410 1,065 1,058 1,061 1,133

Total Exports Domestic

11 7 11 14 8 11 29 17 29 35

Edible Products

Inedible Products

Total

Oct.D e c.

Jan.Mar.

AprilJune

JulySept.

120 141 144 221 237 294 305 330 341 366

471 472 380 371 297 302 310 274 280 270

324.2 397.8 363.2 442.3 534.9 501.8 546.7 594.9 623.3 599.9

77.0 113.4 89.6 69.1 135.7 139.5 128.8 160.7 153.7 141.9

61.5 103.6 82.9 117.0 128.3 126.1 137.0 132.8 157.5 156.2

101.5 100.4 99.3 129.6 146.9 115.4 155.6 162.8 160.8 160.5

84.2 80.4 91.4 126.7 124.0 120.8 125.2 138.6 151.3 141.4

1,111 1,190 1,021 927 968 1,100 1,205 1,312 1,374 1,323

Source: Bureau of Census, U.S. Department of Commerce

Consumption of Coconut Oil in End Products (Edible and Inedible) in the U.S. Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

44.1 51.5 39.9 49.4 49.3 55.4 51.2 50.0 46.7 70.4

44.8 48.1 44.7 44.0 40.6 41.3 49.3 51.7 52.0 62.7

52.8 59.4 50.8 52.7 45.5 50.8 56.8 58.5 47.9 50.4

46.1 54.3 43.0 54.6 42.5 59.3 50.6 54.6 48.8 47.5

41.9 54.5 41.4 51.4 48.3 53.9 52.3 48.5 51.4 50.7

49.4 47.0 45.4 56.5 43.3 46.4 46.7 55.6 55.5 51.6

49.9 49.3 36.9 49.1 46.5 50.7 48.9 52.9 47.2 43.1

48.3 50.3 33.3 56.2 45.6 51.8 49.6 55.1 58.1 51.6

66.9 53.7 46.2 54.7 48.4 45.9 50.3 48.9 49.2 43.8

53.4 49.4 41.5 44.1 50.3 54.3 47.8 48.2 52.8 49.6

43.9 50.0 43.6 44.3 44.4 56.1 41.8 64.3 53.4 44.4

48.0 42.1 38.8 43.0 45.5 49.4 38.5 51.7 58.1 40.9

589.5 609.6 505.5 600.0 550.2 615.4 583.7 640.0 621.1 606.6

Source: Bureau of Census, U.S. Department of Commerce

Stocks of Coconut Oil (Crude and Refined) in the U.S., on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

125.9 274.2 401.7 93.6 245.4 245.9 195.2 167.2 225.9 268.3

147.4 332.4 446.5 123.6 280.3 238.8 194.0 160.3 163.7 236.9

141.1 344.5 387.5 100.1 357.8 249.6 214.3 192.6 188.4 224.5

204.5 337.4 366.3 99.6 276.5 251.3 224.9 181.7 191.0 227.3

174.5 318.8 309.8 102.3 286.9 233.5 223.7 131.4 170.6 260.2

161.3 300.6 240.5 104.0 194.3 231.6 187.8 108.7 187.7 229.1

143.8 366.3 134.7 137.7 254.4 303.3 162.2 90.6 263.5 213.8

143.4 424.6 197.5 163.6 260.9 301.6 202.9 132.8 250.4 214.4

154.3 434.4 191.8 161.4 246.4 245.8 195.6 149.2 253.7 204.7

149.6 392.6 152.0 136.4 259.7 226.5 218.9 131.3 242.1 224.5

162.1 431.8 106.4 178.1 234.1 273.8 184.6 147.7 252.3 179.2

194.2 447.3 142.2 161.6 231.3 264.1 186.1 182.5 273.3 180.2

NA = Not available.

Source: Bureau of Census, U.S. Department of Commerce

Average Price of Coconut Oil (Crude) Tank Cars in New York Year

1

In Millions of Pounds

Jan.

Preliminary.

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

In Millions of Pounds

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

35.80 44.20 37.25 35.38 40.88 26.00 16.38 26.00 32.00 31.05

36.63 44.00 37.25 35.00 32.94 24.00 17.38 26.00 33.38 31.00

36.75 42.88 37.25 34.00 28.81 22.75 17.25 24.60 34.56 32.67

38.75 42.50 37.25 34.06 26.63 22.50 18.75 24.50 39.20 35.00

39.50 42.50 37.25 38.25 24.25 21.00 20.05 24.50 45.00 34.67

42.25 35.00 37.00 42.13 21.90 21.00 21.13 25.00 46.00 34.00

41.80 36.50 36.50 39.83 19.63 24.00 21.06 25.00 46.00 33.00

42.80 36.50 35.50 36.08 18.58 26.50 21.35 25.00 46.00 33.00

47.20 37.00 36.50 46.00 16.40 26.50 28.50 25.00 39.25 33.00

48.00 37.25 39.00 46.00 16.81 26.50 28.25 25.00 32.65 35.00

49.50 37.25 37.50 46.00 17.50 24.50 27.13 28.75 31.25 29.13

50.00 37.25 38.50 46.00 15.70 24.50 26.00 31.00 31.25 27.75

42.42 39.40 37.23 39.89 23.34 24.15 21.94 25.86 38.05 32.44

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

43

Coffee Coffee is one of the world’s most important cash commodities. Coffee is the common name for any type of tree in the genus madder family. It is actually a tropical evergreen shrub that has the potential to grow 100 feet tall. The coffee tree grows in tropical regions between the Tropics of Cancer and Capricorn in areas with abundant rainfall, year-round warm temperatures averaging about 70 degrees Fahrenheit, and no frost. In the US, the only areas that produce any significant amount of coffee are Puerto Rico and Hawaii. The coffee plant will produce its first full crop of beans at about 5 years old and then be productive for about 15 years. The average coffee tree produces enough beans to make about 1 to 1 ½ pounds of roasted coffee per year. It takes approximately 4,000 handpicked green coffee beans to make a pound of coffee. Wine was actually the first drink made from the coffee tree using the coffee cherries, honey, and water. In the 17th century, the first coffee house, also known as a “penny university” because of the price per cup, opened in London. The London Stock Exchange grew from one of these first coffee houses. Coffee is generally classified into two types of beans: arabica and robusta. The most widely produced coffee is arabica, which makes up about 70 percent of total production. It grows mostly at high altitudes of 600 to 2,000 meters, with Brazil and Colombia being the largest producers. Arabic coffee is traded on the New York Board of Trade. The stronger of the two types is robusta. It is grown at lower altitudes with the largest producers being Indonesia, West Africa, Brazil, and Vietnam. Robusta coffee is traded on the LIFFE exchange. Ninety percent of the world coffee trade is in green (unroasted) coffee beans. Seasonal factors have a significant influence on the price of coffee. There is no extreme peak in world production at any one time of the year, although coffee consumption declines by 12 percent or more below the year’s average in the warm summer months. Therefore, coffee imports and roasts both tend to decline in spring and summer and pick up again in fall and winter. The very low prices for coffee in 2000-03 created serious problems for coffee producers. When prices fall below the costs of production, there is little or no economic incentive to produce coffee. The result is that coffee trees are neglected or completely abandoned. When prices are low, producers cannot afford to hire the labor needed to maintain the trees and pick the crop at harvest. The result is that trees yield less due to reduced use of fertilizer and fewer employed coffee workers. One effect is a decline in the quality of the coffee that is produced. Higher quality Arabica coffee is often produced at higher altitudes, which entails higher costs. It is this coffee that is often abandoned. Although the pressure on producers can be severe, the market eventually comes back into balance as supply declines in response to low prices. Coffee prices are subject to upward spikes in June, July and August due to possible freeze scares in Brazil during the winter months in the Southern Hemisphere. The Brazilian coffee crop is harvested starting in May and extending for several weeks into what are the winter months in Brazil. A major freeze in Brazil occurs roughly every five years on average.

44

Coffee futures are traded on the Bolsa de Mercadorias & Futuros (BM&F), the Tokyo Grain Exchange (TGE), the London International Financial Futures and Options Exchange (LIFFE), and the CSCE Division of the New York Board of Trade (NYBOT). Options are traded on the BM&F, the LIFFE and the CSCE. Prices – Nybot Arabica coffee futures prices in 2006 traded near the top of the rally seen in 2002-05 and closed 2006 at 126.20 cents per pound, up +18% from the 2005 close of 107.10 cents per pound. Coffee prices were supported in the latter half of 2006 by a dry flowering season in Brazil which, along with the biennial cycle, will likely cut the Brazilian 2007-08 coffee crop by 26% to 31.5 mln bags from 42.5 mln bags in 2006-07. Lower Brazilian production is expected to help push the world 2007-08 (Oct-Sep) coffee crop lower by –9% to 109-112 million bags from 122 million bags in 2006-07, according to the International Coffee Organization. The world coffee market in 2007-08 is likely to see a production deficit relative to demand after a small surplus in 2006-07, thus providing support for coffee prices. World coffee ending stocks remained tight in 2006-07 at 23.0 mln bags, just slightly above the recent record low of 19.8 mln seen in 2005-06, according to the USDA. Coffee prices in 2006 were supported by the El Nino conditions, which caused dry conditions in some key coffee producing countries. Supply – World coffee production in the 2006-07 marketing year (July-June) rose +13.1% yr/yr to 128.561 million bags (1 bag equals 60 kilograms or 132.3 pounds). The 2006-07 production level of 128.561 million bags was a new record high. The increase in production caused the 200607 ending stocks to rise +16.2% to 22.961 million bags. Brazil is the world’s largest coffee producer by far with 46.5 million bags of production in 2006-07, accounting for 36% of total world production. Other key producers include Vietnam with 13% of the world’s production and Columbia with 10%. Brazil’s coffee production in 2006-07, however, rose by +28.8% to 46.500 million bags. Vietnam in recent years has become a major coffee producer, boosting its production to 16.5 million bags in 2006-07 from less than a million bags in 1990. Demand – US coffee consumption rose slightly by +3.9% to 22.649 million bags in 2006, mildly below the 4decade high of 22.8 million bags seen in 2000. Trade – World coffee exports in 2006-07 rose +9.8% yr/yr to 95.986 million bags, which was a record high. The world’s largest exporters of coffee are Brazil with 28% of world exports in 2005-06, Vietnam with 15%, and Columbia with 12%. US coffee imports in 2006 rose +3.9% to 22.649 million bags, which was a 4-decade high. The all-time high of 24.549 million bags was posted in 1962. The key countries from which the US imported coffee in 2006 were Brazil (which accounted for 28% of US imports), Columbia (12%), Mexico (4%), and Guatemala (4%).

COFFEE World Supply and Distribution of Coffee Crop Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

Preliminary.

Production

Imports

Supply

Total Exports

B ean Exports

Rst/Grn Exports

Soluble Exports

Domestic Use

Ending Stocks

29,095 24,883 24,400 20,875 23,063 20,631 29,512 20,830 21,856 19,758

97,687 108,953 113,553 117,521 111,507 126,450 109,048 120,178 113,661 128,561

1,220 1,435 1,303 1,478 1,652 1,550 1,765 2,527 2,807 2,713

128,002 135,271 139,256 139,874 136,222 148,631 140,325 143,535 138,324 151,032

77,939 85,133 92,733 90,492 87,811 91,721 91,099 91,456 87,451 95,986

73,249 80,855 87,572 84,408 81,256 85,028 83,658 83,597 79,589 88,243

193 269 288 289 339 292 314 278 345 356

4,497 4,009 4,873 5,795 6,216 6,401 7,127 7,581 7,517 7,387

25,180 25,738 25,648 26,319 27,780 27,398 28,396 30,223 31,115 32,085

24,883 24,400 20,875 23,063 20,631 29,512 20,830 21,856 19,758 22,961

2

Estimate.

3

Forecast.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Production of Green Coffee Crop Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

Brazil Colombia

23,500 35,600 30,800 34,100 35,100 53,600 33,200 43,600 36,100 46,500

Preliminary.

In Thousands of 60 Kilogram Bags (132.276 Lbs. Per Bag)

Beginning Stocks

2

12,043 10,868 9,512 10,500 11,950 11,712 11,053 11,532 11,953 12,200

Estimate.

3

Costa El Rica Salvador

2,455 2,459 2,688 2,502 2,338 2,207 2,106 1,907 1,776 1,950 Forecast.

2,040 1,860 2,612 1,624 1,610 1,351 1,343 1,329 1,359 1,400

In Thousands of 60 Kilogram Bags (132.276 Lbs. Per Bag) Ethiopia

Guatemala

India

Indonesia

Ivory C o a st

Mexico

Uganda

Vietnam

World Total

3,833 3,867 3,505 2,768 3,756 3,693 3,874 5,000 5,500 5,500

4,200 4,300 4,364 4,564 3,530 3,802 3,671 3,817 3,589 3,817

3,805 4,415 4,870 5,020 5,010 4,588 4,500 4,590 4,400 4,665

7,000 6,950 6,660 6,495 6,160 6,140 6,000 6,600 6,750 7,080

4,080 2,217 5,700 5,100 3,568 2,119 1,610 1,750 2,500 2,200

4,950 5,010 6,193 4,800 4,200 4,350 4,428 3,900 4,000 4,200

3,032 3,640 3,097 3,401 3,158 2,890 2,598 2,593 2,366 2,300

7,000 7,500 11,010 15,333 12,833 11,167 15,000 14,500 13,500 16,500

97,687 108,953 113,553 117,521 111,507 126,450 109,048 120,178 113,661 128,561

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Exportable4 Production of Green Coffee Crop Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073

Brazil Colombia

14,850 22,908 20,164 19,676 24,795 29,396 24,920 27,920 24,538 27,000

10,863 10,304 9,060 9,460 10,665 10,478 10,154 11,032 10,840 11,200

Costa Rica

El Salvador

Ethiopia

2,083 1,750 2,005 1,418 1,939 2,277 2,374 2,620 2,675 3,650

3,940 4,141 4,234 4,414 3,330 3,500 3,314 3,451 3,350 3,400

2,554 2,255 2,825 2,470 2,617 2,438 2,794 2,397 2,930 2,500

In Thousands of 60 Kilogram Bags (132.276 Lbs. Per Bag) Guatemala Indonesia

Ivory C o a st

Kenya

Mexico

Uganda

Vietnam

World Total

3,400 3,450 4,250 3,702 3,442 3,553 3,822 3,305 3,455 3,455

5,055 2,540 5,797 4,045 3,058 2,522 2,604 1,958 2,084 2,100

4,072 4,170 5,138 3,822 3,200 3,400 3,550 2,107 2,600 3,500

1,630 1,820 2,380 2,664 2,360 2,575 2,685 3,306 2,225 3,290

3,032 3,648 2,917 3,075 3,153 2,810 2,523 2,489 2,002 2,200

6,500 6,667 11,433 14,667 12,000 11,176 14,500 13,992 12,975 15,334

77,939 85,133 92,733 90,492 87,811 91,721 91,099 91,456 87,451 95,986

5,040 6,038 5,657 5,536 4,729 4,801 4,408 4,600 5,070 5,115

Preliminary. 2 Estimate. 3 Forecast. 4 Marketing year begins in October in some countries and April or July in others. Exportable production represents total harvested production minus estimated domestic consumption. Source: Foreign Agricultural Service, U.S. Department of Agriculture

1

Coffee Imports in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Brazil Colombia

2,446 2,804 4,847 2,747 3,007 5,060 5,321 4,475 4,464 4,792

Preliminary.

3,260 3,510 3,418 3,191 3,272 3,596 3,883 3,714 4,090 3,903

Costa Dominican Rica Republic

609 776 783 780 915 987 914 957 920 751

155 165 80 73 50 51 80 2 2 60

In Thousands of 60 Kilogram Bags (132.276 Lbs. Per Bag) Ecuador

El Salvador

Ethiopia

442 377 461 177 230 145 133 157 74 147

501 501 550 1,209 507 470 569 524 406 435

308 184 77 91 80 74 101 121 177 250

Guatemala Indonesia

Mexico

Peru

Venezuela

Grand Total

1,922 1,565 2,149 2,380 2,040 1,626 2,023 1,624 1,752 1,654

3,039 2,589 3,276 3,725 2,057 2,034 1,510 1,477 1,285 1,529

652 774 766 868 692 842 807 788 587 850

65 146 372 32 4 170 180 103 0 2

19,673 20,101 21,787 22,840 20,490 20,631 21,694 22,046 21,791 22,649

1,328 1,274 724 693 887 759 966 1,636 1,599 1,676

Source: Bureau of Census, U.S. Department of Commerce

45

COFFEE Monthly Coffee Imports in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands of 60 Kilogram Bags2

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,582 1,747 1,742 2,189 1,747 1,652 1,994 1,813 1,939 1,850

1,837 1,893 1,866 2,092 1,690 1,364 1,755 1,635 1,942 1,649

1,966 1,827 2,243 2,416 1,906 1,613 2,007 1,967 2,072 2,042

1,792 1,587 1,787 2,003 1,825 1,697 1,916 1,862 1,965 1,671

1,738 1,540 1,602 2,199 1,823 1,672 1,715 2,049 1,893 2,006

1,583 1,412 1,691 1,960 1,685 1,547 1,710 2,034 1,891 1,913

1,783 1,386 1,488 1,912 1,863 1,802 2,015 1,784 1,781 1,786

1,391 1,478 1,639 1,815 1,605 1,794 1,732 1,766 1,606 2,083

1,147 1,369 1,491 1,598 1,430 1,850 1,712 1,708 1,481 2,098

1,215 1,499 1,470 1,583 1,502 1,877 1,750 1,684 1,718 1,892

1,184 1,423 1,639 1,546 1,581 1,807 1,525 1,798 1,699 1,833

1,629 1,837 1,903 1,527 1,833 1,958 1,863 1,947 1,803 1,826

18,848 18,998 20,561 22,840 20,490 20,631 21,694 22,047 21,791 22,649

Preliminary.

2

132.276 pounds per bag.

Source: Bureau of the Census, U.S. Department of Commerce

Average Price of Braz ilian1 Coffee in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

127.28 179.83 99.43 97.68 62.38 42.56 49.14 64.32 94.00 115.89

160.21 177.78 91.72 91.51 62.50 42.79 48.54 66.08 108.05 109.51

179.75 154.84 88.90 89.93 60.35 48.79 43.77 65.79 117.03 103.52

183.73 141.11 86.14 86.46 55.11 49.90 48.71 62.89 112.82 105.89

209.62 124.89 96.29 87.23 57.19 45.19 51.06 64.31 111.89 99.00

184.21 104.09 91.69 78.32 51.86 42.96 47.11 67.62 105.08 91.26

158.52 96.04 78.13 79.89 46.43 43.58 49.64 59.39 94.66 91.01

158.25 101.92 76.67 70.57 46.49 40.55 52.88 60.25 95.66 98.90

167.77 92.76 70.43 71.14 42.42 44.46 55.19 69.46 87.02 97.36

152.12 91.32 78.74 72.28 38.63 45.28 53.51 68.63 94.54 97.39

149.07 96.67 98.41 68.95 42.28 48.37 54.15 80.20 99.35 109.34

171.12 100.28 109.47 64.39 41.60 46.70 56.92 89.17 96.23 115.60

166.80 121.81 88.84 79.86 50.60 45.09 50.89 68.18 101.36 102.89

And other Arabicas.

Source: Coffee Publications, I nc.

Cents Per Pound ----- Spot, New York (1826 - 1900) Santos No. 4 (Jan. 1901 - July 1975) Brazilian, New York (Aug. 1975 - date) - - - Colombian Maniz, New York (Jan. 1948 - July 1953) Colombian Medellin, New York (Aug. 1953 - Dec. 1977) Colombian, New York (Jan. 1978 - date)

Exchange Closed Sep. 1941 - Sep. 1946

46

COFFEE Average Monthly Retail 1 Price of Coffee in the United States Year

1999 2000 2001 2002 2003 2004 2005 2006 1

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

343.5 365.4 322.4 293.6 299.9 289.2 304.9 323.2

342.8 367.7 321.7 294.6 292.4 285.6 294.0 317.4

347.6 363.3 320.5 285.9 293.3 293.2 300.9 330.1

346.6 358.4 312.8 297.6 300.8 290.8 324.0 329.2

349.5 353.1 309.7 301.1 293.7 283.1 332.9 334.9

342.1 343.1 315.6 293.8 293.1 275.0 341.6 315.8

342.0 344.6 309.7 297.7 294.4 287.8 333.4 315.4

342.8 344.4 304.6 292.9 292.1 287.8 342.8 319.6

339.3 333.9 302.5 292.1 291.9 287.4 337.6 317.3

348.2 331.7 301.5 287.2 282.5 284.0 344.7 313.8

333.7 324.3 298.8 288.2 277.9 277.8 329.3 315.8

334.7 321.2 291.3 283.8 287.5 277.6 323.5

342.7 345.9 309.3 292.4 291.6 284.9 325.8 321.1

Roasted in 13.1 to 20 ounce cans.

Source: Coffee Publications, I nc.

Average Price of Colombian Mild Arabicas1 in the United States Year

1999 2000 2001 2002 2003 2004 2005 2006 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

123.07 130.13 75.33 63.46 69.68 76.61 110.03 129.64

116.92 124.73 76.70 65.64 69.60 79.34 124.34 123.17

117.05 119.51 76.94 71.16 61.82 80.12 137.10 117.00

114.02 112.67 78.25 70.17 66.12 77.08 129.80 119.87

123.95 110.31 80.92 63.44 67.56 80.61 128.36 113.03

121.45 100.30 74.38 60.86 65.01 85.62 122.47 106.84

107.05 101.67 69.70 59.60 67.84 78.27 112.48 109.45

105.28 91.87 73.50 58.98 68.65 78.85 111.21 116.22

97.77 89.98 68.80 62.49 68.37 85.71 101.31 112.26

103.69 90.25 62.88 66.54 66.59 85.52 108.77 113.73

126.76 84.01 65.72 72.83 67.04 95.63 111.66 126.23

140.35 75.81 62.57 67.92 69.38 106.48 106.54 132.85

116.45 102.60 72.14 65.26 67.31 84.15 117.01 118.36

I CO monthly and composite indicator prices on the New York Market, 1979 I CA Agreement basis.

Average Price of Other Mild Arabicas1 in the United States Year

1999 2000 2001 2002 2003 2004 2005 2006 1

1999 2000 2001 2002 2003 2004 2005 2006

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

110.99 109.17 64.98 57.34 65.22 74.25 107.07 124.26

103.24 101.17 67.00 60.51 67.60 77.51 122.20 118.46

103.23 98.26 65.88 66.38 61.66 77.29 134.81 112.20

99.69 92.76 65.68 65.78 65.35 74.24 128.80 114.65

109.10 91.76 68.94 58.45 66.47 76.40 126.21 107.96

104.21 84.10 63.79 55.12 61.34 82.24 119.87 101.21

90.85 85.20 58.47 53.07 62.32 73.64 108.45 102.77

87.64 74.52 59.68 52.02 63.60 72.99 108.43 112.13

81.06 73.83 57.71 57.58 65.50 81.22 98.17 109.36

92.22 75.43 56.23 64.05 62.58 79.90 106.09 110.91

112.74 70.47 58.96 70.15 62.36 89.88 108.81 123.57

123.56 64.81 55.63 64.75 65.01 102.19 102.68 129.93

101.54 85.12 61.91 60.43 64.08 80.15 114.30 113.95

In Cents Per Pound

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

81.65 53.62 31.00 22.88 42.75 41.32 39.63 66.46

77.68 49.41 31.96 24.46 42.35 39.10 44.61 65.50

72.70 47.26 30.96 29.77 38.26 38.61 50.70 62.92

68.89 45.21 28.59 30.35 38.68 38.02 53.32 64.45

68.28 45.19 29.71 29.43 38.90 38.04 58.66 63.97

66.20 43.72 29.33 29.26 35.33 41.09 62.96 64.14

62.28 41.93 27.59 29.31 36.71 36.44 60.57 68.66

63.80 38.94 25.86 28.74 37.92 34.81 55.60 75.73

60.44 39.47 23.79 33.31 38.76 35.10 50.07 77.88

59.25 36.55 21.26 34.44 37.32 31.77 50.84 76.26

64.10 33.34 22.03 39.38 36.05 34.07 54.72 79.67

66.40 30.78 23.57 38.68 37.59 38.98 58.79 77.71

67.64 42.12 27.14 30.83 38.39 37.28 53.37 70.28

I CO monthly and composite indicator prices on the New York Market, 1979 I CA Agreement basis.

Year

1999 2000 2001 2002 2003 2004 2005 2006

Source: Coffee Publications, I nc.

Jan.

Average Price of Composite 19791 in the United States

1

In Cents Per Pound

F eb.

I CO monthly and composite indicator prices on the New York Market, 1979 I CA Agreement basis.

Year

Source: Coffee Publications, I nc.

Jan.

Average Price of Robustas 19761 in the United States

1

In Cents Per Pound

Jan.

Source: Coffee Publications, I nc.

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

97.63 82.15 49.19 43.46 54.04 58.69 79.35 101.20

92.36 76.15 49.39 44.30 54.07 59.87 89.40 97.39

89.41 73.49 48.52 49.49 49.61 60.80 101.44 92.76

85.72 69.53 47.31 50.19 51.87 58.80 98.20 94.20

89.51 69.23 49.38 47.30 53.19 59.91 99.78 90.00

85.41 64.56 46.54 45.56 48.90 64.28 96.29 86.04

78.21 64.09 43.07 44.70 50.89 58.46 88.48 101.20

77.22 57.59 42.77 42.79 52.22 56.98 85.31 95.78

71.94 57.31 41.17 47.96 54.10 61.47 78.79 95.98

76.36 56.40 42.21 50.79 51.72 61.10 82.55 95.53

88.22 52.18 44.24 54.69 49.81 67.74 85.93 103.48

95.63 48.27 43.36 51.68 52.44 77.72 86.85 108.01

85.64 64.25 45.60 47.74 51.91 62.15 89.36 96.80

I CO monthly and composite indicator prices on the New York Market, 1979 I CA Agreement basis.

Source: Coffee Publications, I nc.

47

COFFEE Average Open Interest of Coffee 'C' Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

38,516 30,042 36,194 47,829 48,914 57,897 69,508 92,388 102,163 102,195

42,888 30,539 36,693 50,620 53,050 66,825 71,682 103,966 107,715 102,614

39,092 30,211 41,294 50,565 58,111 66,798 76,934 102,281 117,419 99,982

32,644 32,617 43,846 53,662 57,722 66,207 77,954 98,430 105,245 102,882

30,324 36,345 45,947 49,692 53,481 66,289 72,716 96,738 96,063 104,230

22,552 36,651 45,675 50,293 58,311 68,994 72,155 102,276 94,139 120,907

21,497 37,531 45,411 45,513 57,888 69,197 72,110 89,446 93,303 120,007

19,818 30,074 46,725 40,177 57,243 69,635 68,259 88,021 89,662 107,928

Oct.

Nov.

D e c.

22,788 25,109 30,429 32,940 46,255 47,956 40,133 42,906 55,674 58,345 70,079 73,753 73,809 79,038 83,001 78,047 85,518 86,489 105,175 111,392

Sept.

23,636 31,677 46,271 43,187 55,317 73,431 81,253 83,360 81,525 117,469

28,577 32,816 46,764 45,086 53,953 69,343 76,670 107,832 81,234 123,259

Source: New York Board of Trade (NYBOT)

Volume of Trading of Coffee 'C' Futures in New York

In Contracts

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

242,719 155,774 216,810 158,962 189,977 201,327 205,420 389,864 280,912 357,994

280,014 194,435 201,670 232,174 221,775 279,966 283,317 397,656 469,605 416,964

267,369 186,712 252,841 166,970 167,466 229,764 169,611 301,270 356,855 326,256

223,330 194,732 243,630 224,266 236,757 295,701 334,188 395,552 459,018 429,249

219,214 157,935 237,968 177,753 182,621 159,670 255,935 324,849 240,989 322,932

186,227 189,768 243,164 218,467 220,708 225,177 270,424 467,887 428,227 476,542

135,664 165,868 187,019 198,975 134,809 174,567 237,210 247,439 224,531 289,027

136,807 189,047 232,817 175,868 250,151 254,563 278,746 366,171 404,307 481,870

142,610 156,556 151,724 119,304 100,443 232,255 332,473 305,196 259,177 238,953

151,171 172,956 270,013 163,399 153,739 250,483 309,930 280,733 266,697 313,459

145,610 197,776 244,258 187,230 229,495 236,307 314,182 424,146 376,844 492,904

163,446 133,471 177,309 111,593 111,430 178,728 219,595 292,540 220,616 261,362

2,294,181 2,095,030 2,659,223 2,134,961 2,199,371 2,718,508 3,211,031 4,193,303 3,987,778 4,407,512

Source: New York Board of Trade (NYBOT)

48

Coke Coke is the hard and porous residue left after certain types of bituminous coals are heated to high temperatures (up to 2,000 degrees Fahrenheit) for about 17 hours. It is blackish-gray and has a metallic luster. The residue is mostly carbon. Coke is used as a reducing agent in the smelting of pig iron and the production of steel. Petroleum coke is made from the heavy tar-like residue of the petroleum refining process. It is used primarily to generate electricity.

barrels. That was a new 3-decade high but still far below the US production record of 369.305 million barrels posted back in 1957. US stocks at coke plants (Dec 31) in 2005 rose steeply by +123% yr/yr to 784,000 tons. Trade – US coke exports in 2005 rose by +32.5% to 1.747 million tons, and almost one-half of those exports were to Canada. US coke imports in 2005 fell sharply by –48.7% yr/yr to 3.529 million tons. About 20% of the imports were from Japan.

Supply – Petroleum coke production in the US in 2006 (annualized through Oct) rose +2.1% yr/yr to 310.124 million

Salient Statistics of Coke in the United States

In Thousands of Short Tons

---------------------- Coke and Breez e Production at Coke Plants -------------------------------------------- By Census Division ------------------------Year

2000 2001 2002 2003 2004 2005 1

Middle Atlantic

East North East South Central Central

6,095 W W W W W

10,835 10,272 8,287 8,642 8,614 8,448

2,558 1,979 1,925 2,068 2,104 W

Other

Total

C o ke Total

Breeze Total

Consumption2

2,608 7,893 7,712 7,738 7,356 9,456

22,096 20,144 17,924 18,448 18,074 17,904

20,808 18,949 16,778 17,173 16,909 16,719

1,289 1,195 1,146 1,275 1,165 1,184

23,242 20,202 19,603 19,436 22,492 18,239

Producer and Distributor -------- Exports -------- -------- Imports -------Stocks D e c. 3 1 Canada Total Ja p a n Total

1,054 981 606 380 351 614

795 793 610 436 596 764

1,146 1,069 792 722 1,319 1,747

1,884 1,508 1,554 1,395 943 699

3,781 2,340 3,242 2,759 6,873 3,529

Preliminary. 2 Equal to production plus imports minus the change in producer and distributor stocks minus exports. Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

1

Production of Petroleum Coke in the United States Year

2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands of Barrels

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

21,502 23,970 24,543 23,420 25,640 25,093 26,180

20,017 21,112 22,849 20,030 22,380 23,806 23,706

21,654 23,299 23,529 23,810 24,025 26,896 25,722

21,161 23,713 23,850 23,768 25,086 25,648 24,987

21,785 42,465 24,713 24,831 26,789 27,209 26,690

22,095 23,345 23,305 24,054 25,874 26,950 26,128

23,321 23,838 24,556 26,080 26,263 26,612 26,372

22,835 23,339 23,939 25,746 26,151 26,410 26,395

22,455 22,321 23,465 24,072 24,259 22,209 26,300

22,121 23,306 22,527 24,588 25,899 22,039 25,957

22,628 23,350 23,497 24,208 25,897 24,372 25,048

24,262 24,203 24,913 26,560 27,599 26,575

265,836 298,261 285,686 291,167 305,862 303,819 309,256

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Coal Receipts and Average Prices at Coke Plants in the United States

Year

---------------------------- Coal Receipts at Coke Plants ---------------------------

---------------- Average Price of Coal Receipts at Coke Plants -----------------

------------- By Census Division, In Thousands of Short Tons -----------Middle East North East South Atlantic Central Central Other Total

------------------ By Census Division, In Dollars per Short Ton ----------------Middle East North East South Atlantic Central Central Other Total

2000 2001 2002 2003 2004 20051 1

7,971 W W W W W

Preliminary.

14,020 13,084 11,184 11,252 11,591 11,523

3,209 2,678 2,335 2,452 2,710 W

W = Withheld proprietary data.

3,520 10,622 10,136 10,019 9,795 12,778

28,720 26,384 23,655 23,723 24,096 24,301

42.89 W W W W W

45.62 47.53 52.80 52.94 63.30 89.97

------------------- Coal Carboniz ed at Coke Plants -------------------

Preliminary.

8,129 W W W W W

13,971 12,981 11,154 11,410 11,322 11,064

3,290 2,608 2,319 2,541 2,644 W

W = Withheld proprietary data.

44.38 46.42 50.67 50.63 61.50 83.79

In Thousands of Short Tons

------------------------------------ Stocks at Coke Plants, Dec. 31 -----------------------------------

---------------------------- By Census Division ----------------------------- -------------------------- By Census Division ---------------------------Middle East North East South Middle East North East South Atlantic Central Central Other Total Atlantic Central Central Other Total

2000 2001 2002 2003 2004 20051 1

W W W W W W

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Coal Carboniz ed and Coke and Breez e Stocks at Coke Plants in the U.S.

Year

44.74 47.69 50.03 48.20 59.16 W

3,549 10,486 10,183 10,297 9,704 12,370

28,939 26,075 23,656 24,248 23,670 23,434

148 W W W W W

628 637 424 233 166 449

166 266 155 135 154 W

255 607 169 144 144 484

1,197 1,510 748 512 464 933

C o ke Total

Breeze Total

1,054 981 606 380 351 784

143 88 141 132 113 148

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

49

Copper closed +13% yr/yr at $2.85 per pound, more than triple the price of 75 cents seen as recently as 2003. Physical and speculative demand for copper was very strong early in 2006, but copper prices then fell back in the latter half of 2006 on long liquidation pressure and on the fact that mining supply caught up with demand. There was a net copper surplus of 84,000 tons in Jan-Aug 2006, according to the International Copper Study Group.

The word copper comes from name of the Mediterranean island Cyprus that was a primary source of the metal. Dating back more than 10,000 years, copper is the oldest metal used by humans. From the Pyramid of Cheops in Egypt, archeologists recovered a portion of a water plumbing system whose copper tubing was found in serviceable condition after more than 5,000 years. Copper is one of the most widely used industrial metals because it is an excellent conductor of electricity, has strong corrosion-resistance properties, and is very ductile. It is also used to produce the alloys of brass (a copper-zinc alloy) and bronze (a copper-tin alloy), both of which are far harder and stronger than pure copper. Electrical uses of copper account for about 75% of total copper usage, and building construction is the single largest market (the average US home contains 400 pounds of copper). Copper is biostatic, meaning that bacteria will not grow on its surface, and it is therefore used in air-conditioning systems, food processing surfaces, and doorknobs to prevent the spread of disease.

Supply – World production of copper in 2005 (the latest data available) rose by +2.1% yr/yr to 14.900 million metric tons, which was a new record high. US production of refined copper in 2006 (annualized through November) fell –0.8% yr/yr to 1.245 million short tons, which was far below the record US production level of 2.490 million short tons seen in 1998. Demand – US consumption of copper in 2004 (latest available data) rose +5.2% yr/yr to 2.410 million metric tons. The primary users of copper in the US in 2004 by class of consumer are wire rod mills with 74% of usage, brass mills with 24% of usage, and nominal use of 1% or less by foundries, ingot makers, and chemical plants.

Copper futures and options are traded on the London Metal Exchange (LME) and the COMEX Division of the New York Mercantile Exchange (Nymex). Copper futures are traded on the Shanghai Futures Exchange. The Nymex copper futures contract calls for the delivery of 25,000 pounds of Grade 1 electrolyte copper and is priced in terms of cents per pound.

Trade - US exports of copper in 2006 (annualized through October) rose sharply by +156.0% to 104,724 metric tons but remained below the 9-year high of 118,350 metric tons seen in 2004. US imports of copper in 2006 (annualized through October) rose by +17.6% yr/yr to 1.181 million metric tons, recovering from the 8-year low of 807,000 metric tons seen in 2004.

Prices – Nymex copper futures prices in 2006 peaked at a record $416 per pound in May 2006 but then fell sharply in the latter half of the year by 43%. Copper in 2006 still

World Mine Production of Copper (Content of Ore) Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052

Australia

Canada3

Chile

547.3 558.0 607.0 739.0 829.0 871.0 883.0 830.0 854.1 927.0

688.4 659.5 705.8 620.1 633.9 633.5 603.5 557.1 566.5 566.5

3,115.8 3,392.0 3,686.8 4,391.2 4,602.4 4,739.0 4,581.0 4,904.2 5,412.5 5,320.5

Preliminary. 2 Estimate. 3 Recoverable. Source: U.S. Geological Survey (USGS)

1

In Thousands of Metric Tons

China

Indonesia

Mexico

Peru

Poland

Russia4

South Africa

United States3

Zambia

World Total

439 511 504 533 613 605 593 620 752 755

507.5 529.1 780.8 766.0 1,012.1 1,081.0 1,171.7 1,005.8 840.3 1,065.0

340.7 390.5 384.6 381.2 364.6 371.1 329.9 355.7 405.5 425.0

484.2 506.5 483.3 536.4 553.9 722.3 843.2 831.2 1,035.6 1,009.9

421.9 414.8 436.2 463.2 454.1 474.0 502.8 495.0 531.0 523.0

523 505 500 530 570 600 695 675 675 700

152.6 153.1 166.0 144.3 137.1 141.9 129.6 120.8 120.6 103.9

1,920 1,940 1,860 1,600 1,440 1,340 1,140 1,120 1,160 1,140

334.0 352.9 315.0 280.0 249.1 312.0 330.0 349.0 426.9 436.0

11,000 11,500 12,100 12,800 13,200 13,700 13,700 13,700 14,700 15,100

4

Formerly part of the U.S.S.R.; data not reported separately until 1992.

Commodity Exchange Inc. Warehouse Stocks of Copper, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

29.5 91.5 93.9 91.6 64.7 269.2 399.3 280.9 48.2 6.8

19.0 100.7 101.8 95.6 79.3 284.8 395.2 262.7 45.8 11.7

24.8 112.3 112.3 95.6 90.0 304.0 373.7 241.9 46.8 30.4

43.6 112.6 123.1 95.9 105.1 314.1 362.7 213.3 43.3 20.7

49.5 107.6 132.6 865.2 126.5 326.0 351.2 171.7 30.1 16.7

43.0 84.8 131.7 75.0 150.9 337.4 336.7 130.7 22.0 9.5

46.3 63.5 133.7 73.6 165.1 355.7 320.5 95.1 15.3 7.9

30.0 55.7 120.2 73.2 176.1 374.6 310.6 79.0 11.0 6.8

46.5 56.6 108.8 62.8 186.8 375.9 303.9 62.3 9.3 12.4

61.5 67.7 97.5 62.3 199.6 380.3 299.0 49.2 7.2 22.3

67.8 69.4 90.9 63.4 211.0 381.6 294.4 45.5 3.7 23.2

79.8 74.7 90.9 64.9 236.5 382.8 288.1 42.4 3.7 31.3

Source: New York Mercantile Exchange (NYMEX), COMEX division

50

In Thousands of Short Tons

Jan.

COPPER Salient Statistics of Copper in the United States

In Thousands of Metric Tons -- Stocks, Dec 31 --

Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

1,920 1,940 1,860 1,600 1,450 1,340 1,140 1,120 1,160 1,140

1,300 1,440 1,490 1,090 W W W 539 542 523

1,290 1,370 1,290 1,110 865 808 725 532 531 524

147 113 238 196 163 192 116 130 140 130

2,010 2,070 2,140 1,890 1,580 1,630 1,440 1,250 1,260 1,180

428 498 466 381 358 316 190 207 191 182

961 999 1,190 1,280 1,350 1,400 1,230 1,140 1,060 1,230

543 632 683 837 1,060 991 927 882 807 1,000

195 127 37 63 107 45 23 10 24 110

169 93 86 25 94 23 27 93 118 40

27 83 85 83 59 244 362 255 44 6

146 314 532 565 345 952 1,030 657 134 66

Preliminary. 2 Estimate. 3 Also from matte, etc., refinery reports. 4 From old scrap only. 5 For consumption. (copper content). 7 I ngots, bars, etc. 8 Old scrap only. Source: U.S. Geological Survey (USGS)

1

Consumption of Refined Copper3 in the United States Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

Apparent

--------------- New Copper Produced --------------------- Imports5 ------ ------ Exports -----Blister & --- Consumption --Refined Primary SeconOre, Primary Material From --- From Domestic Ores --& Old C opper ConcenProducers in Refin- Foreign Total dary Re- Unmanutrate6 Refined7 COMEX (Refined) Solution (Reported) Copper8 Ores3 MInes Smelters eries New covered4 factured Refined

------------------------------------ By-Products -----------------------------------Wire Ingots & C a ke s Cathodes Bars Ingot Bars & Slabs Billets Other4

2,320.0 2,490.0 2,600.0 2,710.0 2,730.0 2,360.0 2,140.0 2,070.0 2,160.0 2,040.0

W W W W W W W W W W

26.8 29.4 30.7 24.4 23.8 24.0 22.8 22.3 21.4 28.8

80.8 81.1 76.2 79.3 101.0 95.9 72.6 41.8 57.0 35.3

W W W W W W W W W W

6

173 180 160 138 122 98 44 57 51 44

2,610 2,790 2,890 2,980 3,020 2,620 2,370 2,290 2,410 2,270

Blister

In Thousands of Metric Tons

------------------------------ By Class of Consumer -----------------------------Wire Rod Brass Chemical Ingot MiscelMills Mills Plants Makers Foundries laneous5

181.0 194.0 184.0 166.0 175.0 140.0 126.0 153.0 173.0 167.0

2,830 2,940 3,030 3,130 3,090 2,500 2,610 2,430 2,550 2,400

1,980.0 2,140.0 2,170.0 2,230.0 2,240.0 1,940.0 1,710.0 1,640.0 1,780.0 1,680.0

588.0 597.0 659.0 691.0 723.0 623.0 593.0 587.0 573.0 528.0

1.1 1.0 1.1 1.2 1.2 1.2 1.0 1.0 1.2 1.2

3.6 4.2 5.4 4.5 4.6 4.6 4.6 4.6 4.6 4.5

15.8 16.6 19.2 21.2 24.3 21.6 19.8 21.9 21.0 20.2

28.6 29.9 31.8 29.8 32.5 28.6 35.7 36.7 35.2 39.3

Total Consumption

2,610.0 2,790.0 2,890.0 2,980.0 3,030.0 2,620.0 2,370.0 2,290.0 2,410.0 2,270.0

Preliminary. 2 Estimate. 3 Primary & secondary. 4 1991 to date include Wirebars and Billets. 5 I ncludes iron and steel plants, primary smelters producing alloys other than copper, consumers of copper powder and copper shot, and other manufacturers. W - Withheld proprietary data. Source: U.S. Geological Survey (USGS)

1

London Metals Exchange Warehouse Stocks of Copper, at End of Month

In Thousands of Metric Tons

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

194.2 365.7 646.9 807.3 349.9 855.5 833.8 358.2 46.4 96.0

216.2 376.0 695.9 824.1 327.9 910.9 825.9 281.6 52.5 115.3

177.2 339.5 722.2 755.4 400.5 950.9 813.2 187.5 45.3 120.7

145.8 262.3 748.2 697.8 445.2 973.8 768.2 151.3 61.0 117.6

133.0 261.8 776.6 605.7 431.3 958.3 740.8 132.3 44.4 111.2

128.3 249.3 754.8 553.4 464.7 892.1 665.8 101.5 28.9 93.6

234.9 260.9 769.6 487.8 651.9 893.6 612.6 87.7 31.6 100.6

278.7 307.7 789.0 449.2 661.2 896.6 620.3 111.3 68.0 125.4

332.8 414.2 774.0 401.5 729.0 870.6 580.4 91.8 79.9 116.9

344.6 460.6 793.8 380.9 737.2 863.2 516.5 77.9 65.1 135.2

338.8 511.9 779.7 349.4 780.4 862.8 467.0 59.8 72.6 156.8

337.8 590.1 790.5 357.4 799.5 855.9 430.7 48.9 92.3 92.3

Preliminary.

Source: American Bureau of Metal Statistics (ABMS)

Copper Refined from Scrap in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

35.9 25.9 20.1 19.4 15.4 7.1 5.8 4.2 4.4 3.8

30.0 28.6 21.8 18.6 14.2 6.2 3.9 3.9 4.4 3.7

36.4 23.7 23.7 25.8 15.2 7.2 5.7 4.3 4.2 3.8

32.6 31.0 17.6 22.5 13.4 7.6 3.9 4.4 4.2 3.7

35.4 17.8 16.2 22.1 12.8 8.2 4.1 4.2 3.8 3.7

30.8 21.4 17.5 15.4 13.2 7.8 4.9 4.5 3.6 3.7

26.4 24.2 21.2 11.7 13.9 7.0 4.9 4.1 3.9 3.7

28.4 23.9 18.2 19.7 13.5 7.6 3.9 3.9 3.6 3.7

34.3 23.8 21.3 14.1 12.3 7.1 4.2 4.7 3.6 3.8

36.5 31.8 21.0 14.3 10.2 6.3 4.5 4.5 3.8 3.7

24.6 23.2 17.7 19.7 6.4 5.1 4.1 4.2 3.8 3.7

29.3 26.3 20.0 15.6 5.7 3.9 4.1 4.0 3.9

383.0 336.0 230.0 208.0 154.0 81.1 53.8 50.8 47.1 44.7

Source: U.S. Geological Survey (USGS)

51

COPPER

Average Open Interest of Copper Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

54,468 69,607 76,861 82,289 77,952 72,823 81,820 91,726 85,363 102,227

56,022 72,302 73,109 73,778 76,721 79,806 81,499 88,136 96,537 93,813

58,205 67,154 75,318 68,026 78,034 79,156 72,484 77,158 116,004 93,069

50,574 68,670 70,534 75,520 83,647 75,229 85,485 71,705 120,138 97,283

56,740 65,033 76,341 69,531 72,970 74,350 77,704 65,531 98,240 83,758

56,774 66,002 70,842 63,786 85,495 80,981 81,509 64,879 106,218 75,841

47,767 63,271 75,640 71,389 83,690 82,661 82,868 65,310 109,156 74,471

44,632 61,116 70,084 79,565 88,782 102,056 94,517 71,096 109,481 72,158

49,612 60,520 80,188 83,546 87,004 99,225 92,768 81,162 102,652 69,004

54,912 62,944 72,240 73,609 88,166 99,470 106,924 85,421 106,829 72,023

67,026 67,984 69,179 74,161 85,809 89,213 103,218 81,928 110,972 72,517

67,502 76,846 69,819 70,349 68,981 79,218 90,208 88,822 104,062 68,402

Source: New York Mercantile Exchange (NYMEX), COMEX division

Volume of Trading of Copper Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

193,543 172,133 159,147 220,488 240,588 217,598 232,921 213,536 199,938 234,295

221,504 223,117 288,394 276,374 246,052 233,704 269,806 385,848 391,949 401,404

190,000 197,652 230,716 195,668 247,722 164,747 249,306 265,312 298,181 284,478

218,607 264,061 296,162 261,971 279,348 254,259 274,079 340,236 469,849 406,984

164,728 175,956 224,221 232,971 260,697 218,091 221,364 203,906 288,399 260,422

238,918 217,316 319,157 241,854 317,001 267,201 301,709 280,882 475,756 321,626

191,609 202,596 244,567 187,453 159,394 263,395 252,713 208,415 227,917 182,175

198,156 213,541 267,325 283,328 298,639 303,642 324,175 310,299 435,848 310,023

197,746 196,355 220,958 171,080 129,622 195,637 196,481 212,082 252,733 189,405

202,615 195,255 193,628 243,342 190,469 232,731 230,413 245,011 265,234 216,369

203,376 250,986 231,399 266,051 337,589 276,492 363,865 317,220 458,258 320,780

135,368 174,642 177,288 197,544 149,520 179,789 172,438 207,878 186,780 153,351

2,356,170 2,483,610 2,852,962 2,778,124 2,856,641 2,807,286 3,089,270 3,190,625 3,950,842 3,281,312

Source: New York Mercantile Exchange (NYMEX), COMEX division

52

In Contracts

Jan.

COPPER

Cents Per Pound ----- Ingot, Philadelphia (1840 - 1859) Lake, New York (1860 - 1900) Electrolytic, New York (1901 - 199 Electrolytic, New York (Jan. 1910 - Dec. 1983) Electrolytic, United States (Jan. 1984 - date) - - - Scrap No. 1, New York (Jan. 1927 - Dec. 1955) Scrap No. 2, New York (Jan. 1956 - Apr. 1988) Scrap No. 2, Chicago (May 1988 - Mar. 2002)

Producers' Price of Electrolytic (Wirebar) Copper, Delivered to U.S. Destinations Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

120.29 88.88 77.07 96.83 95.70 81.79 78.62 113.93 151.25 225.07

121.02 87.52 75.96 94.41 94.01 84.23 80.21 129.91 152.89 230.74

126.50 91.69 74.50 91.63 92.07 86.60 78.87 139.96 154.68 238.31

121.70 93.54 78.79 89.32 88.27 85.11 75.60 135.82 155.42 302.74

127.25 90.02 81.07 94.80 88.85 85.22 78.56 129.44 154.19 382.65

129.57 86.90 77.23 92.74 84.58 88.23 80.44 129.11 168.31 346.65

121.94 87.37 88.02 95.81 81.44 84.44 81.55 134.34 169.62 368.49

114.11 85.30 87.88 98.67 79.34 79.82 83.51 135.50 178.39 359.91

107.14 87.62 92.89 103.49 77.41 79.71 85.34 138.74 182.00 353.01

105.08 84.26 91.26 99.63 75.21 80.16 91.50 142.01 197.61 345.83

99.53 83.51 91.10 95.25 78.13 84.57 96.47 147.99 208.60 322.45

91.39 78.30 93.35 98.92 79.83 75.56 103.72 151.88 224.25 307.00

115.55 87.09 84.09 95.96 84.57 82.62 84.53 135.72 174.77 315.24

Source: American Metal Market (AMM)

Dealers' Buying Price of No. 2 Heavy Copper Scrap in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

68.73 53.26 36.32 50.00 51.62 41.00 41.00 56.65 90.00 137.50

71.63 52.58 36.00 50.00 49.16 41.00 41.00 69.00 90.00 137.50

77.50 53.09 36.00 50.00 49.00 41.00 41.00 69.00 90.00 139.46

79.18 54.00 36.00 49.15 49.81 41.00 41.00 69.32 90.00 145.00

77.33 52.60 39.60 49.00 50.00 41.00 41.00 76.00 90.00 145.00

78.19 49.64 41.77 49.00 50.00 41.00 41.00 76.00 94.09 171.36

72.64 48.00 41.00 49.30 49.14 41.00 41.00 76.64 100.00 175.25

70.24 47.71 45.09 52.65 44.00 41.00 41.00 90.00 100.00 185.89

65.67 46.00 46.19 54.60 44.00 41.00 41.00 90.00 100.00 184.10

63.74 44.00 48.00 55.00 43.48 41.00 48.17 90.00 100.00 192.09

61.31 40.00 48.00 52.65 41.45 41.00 56.00 90.00 100.00 192.85

58.43 40.00 48.67 51.00 41.47 41.00 56.00 90.00 129.52 183.30

70.38 48.41 41.90 51.04 46.93 41.00 43.99 78.55 97.80 165.78

Source: American Metal Market (AMM)

53

COPPER Imports of Refined Copper into the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

55.4 62.8 64.7 84.9 105.0 82.5 60.7 55.4 85.2 138.0

48.0 49.6 53.2 67.8 91.6 87.8 87.8 48.8 66.5 108.0

43.6 59.9 68.1 85.5 90.1 53.0 69.9 70.7 75.8 80.1

43.6 64.7 59.9 92.1 94.4 92.6 78.5 59.3 63.7 69.1

61.0 57.6 62.3 83.6 70.3 59.9 72.7 70.8 107.0 100.0

42.0 52.8 63.8 84.5 72.7 76.2 62.3 51.3 64.7 94.1

53.1 45.0 73.0 89.4 61.7 80.3 74.0 83.9 75.8 91.4

73.3 51.7 84.5 83.0 66.3 90.5 78.1 78.7 79.4 101.0

53.8 71.1 90.3 98.6 83.5 69.9 81.7 91.7 79.4 106.0

55.0 52.7 81.0 112.0 71.0 79.0 82.0 68.4 99.4 96.4

53.4 62.0 59.0 100.0 110.0 82.0 73.2 77.0 101.0

42.0 63.4 77.5 73.7 74.4 73.0 61.1 51.1 106.0

632.0 683.0 837.0 1,060.0 991.0 927.0 882.0 807.1 1,003.9 1,180.9

Preliminary.

Source: U.S. Geological Survey (USGS)

Exports of Refined Copper from the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

11.1 6.2 2.4 1.6 1.2 .4 2.5 11.0 4.5 5.6

9.8 12.1 1.1 5.3 .9 .7 .8 18.5 3.2 7.3

6.5 12.2 1.8 22.0 .8 3.2 1.5 23.9 2.8 6.8

6.5 7.5 1.3 12.2 1.9 .7 .6 28.4 1.9 9.6

71.9 7.8 1.6 18.1 1.0 .8 15.9 3.7 7.2 6.3

8.2 6.4 4.2 12.8 .8 6.8 23.0 2.7 4.3 13.1

6.9 7.5 1.6 6.7 1.7 7.7 5.1 5.5 3.0 6.0

7.5 6.4 1.5 4.4 2.6 2.6 4.1 9.4 2.7 9.6

6.3 5.8 1.2 2.9 1.2 1.3 4.3 .6 1.8 9.3

7.4 5.0 1.4 4.3 4.6 .6 4.6 3.9 3.3 13.7

8.2 3.6 3.7 1.2 5.3 .5 8.5 2.5 3.3

8.5 6.2 3.3 2.1 .6 1.5 22.3 8.4 3.0

93.3 86.2 25.2 93.6 22.5 26.6 93.2 118.4 40.9 104.7

Preliminary.

Source: U.S. Geological Survey (USGS)

Stocks of Refined Copper in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Thousands of Short Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

88.2 281.5 562.6 619.2 383.8 1,045.1 1,119.8 733.8 145.8 66.8

98.8 282.2 593.1 620.8 408.4 1,096.2 109.7 646.3 151.0 76.9

104.4 312.7 614.6 619.5 416.2 1,132.4 1,038.8 566.7 143.4 103.3

116.0 315.7 653.5 582.9 481.9 1,155.3 1,042.1 463.9 134.4 109.0

117.9 304.5 676.6 537.0 552.6 1,175.0 998.3 367.0 129.3 88.2

121.7 308.6 687.8 508.8 585.7 1,158.8 959.8 311.8 116.2 84.5

122.9 306.2 668.4 467.8 626.7 1,126.7 891.8 247.8 105.3 68.3

148.8 319.0 657.2 418.0 733.1 1,132.2 848.9 218.3 98.5 76.4

177.1 334.1 639.7 397.7 767.4 1,123.0 855.6 194.5 83.0 80.1

197.9 367.4 611.2 394.3 895.6 1,123.7 825.5 169.2 68.2 88.4

227.6 407.2 626.5 379.1 916.6 1,110.5 761.2 158.9 56.8 103.5

253.3 444.6 608.2 344.2 985.7 1,109.0 768.0 147.4 59.4 59.4

Recoverable copper content.

1

Preliminary.

Source: American Bureau of Metal Statistics (ABMS)

Stocks of Refined Copper Outside the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

405.4 580.8 922.6 983.8 795.0 1,241.3 1,238.8 1,191.5 833.8 871.2

469.5 512.4 944.3 1,034.9 999.5 1,273.5 2,147.6 1,149.9 802.2 956.8

476.3 487.3 960.3 1,040.7 986.4 1,291.5 1,188.0 1,139.5 929.8 923.2

445.7 438.1 963.0 1,011.4 971.2 1,370.4 1,216.3 995.5 848.0 797.7

413.5 371.1 990.5 988.6 995.7 1,391.1 1,147.4 968.4 758.2 816.4

402.4 368.0 1,008.3 880.9 969.4 1,399.4 1,109.8 826.0 771.3 819.2

408.3 335.7 993.3 866.0 1,000.8 1,289.0 1,129.2 807.1 822.6 789.1

489.6 324.0 990.0 857.3 1,091.0 1,342.6 1,139.9 812.4 786.4 812.9

550.9 387.2 1,017.0 837.0 1,108.7 1,369.1 1,150.9 830.2 846.9 872.4

607.7 468.0 996.9 826.7 1,083.3 1,321.1 1,140.2 825.2 774.3 830.1

574.5 506.9 1,001.5 784.1 1,021.0 1,219.7 1,170.8 778.0 803.4 877.5

553.3 509.0 992.0 764.8 1,104.5 1,224.5 1,157.1 816.8 805.0 817.9

Recoverable copper content.

54

In Thousands of Short Tons

Jan.

1

Preliminary.

Source: American Bureau of Metal Statistics (ABMS)

COPPER Production of Refined Copper in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Thousands of Short Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

206.0 214.0 185.0 157.0 155.0 134.0 124.0 104.0 102.0 99.9

192.0 204.0 178.0 149.0 144.0 117.0 110.0 98.9 102.0 101.0

204.0 216.0 220.0 173.0 156.0 124.0 118.0 105.0 104.0 117.0

202.0 209.0 198.0 144.0 145.0 129.0 98.7 111.0 105.0 109.0

198.0 197.0 186.0 161.0 155.0 134.0 98.8 109.0 109.0 113.0

179.0 188.0 175.0 146.0 157.0 128.0 106.0 113.0 101.0 114.0

207.0 197.0 163.0 134.0 146.0 130.0 110.0 104.0 100.0 100.0

203.0 203.0 161.0 149.0 143.0 124.0 110.0 107.0 102.0 101.0

213.0 201.0 172.0 141.0 148.0 120.0 112.0 112.0 103.0 102.0

222.0 217.0 172.0 140.0 149.0 129.0 108.0 111.0 104.0 89.8

205.0 207.0 157.0 147.0 152.0 120.0 101.0 109.0 108.0 94.4

212.0 217.0 162.0 154.0 150.0 119.0 111.0 123.0 115.0

2,470 2,490 2,130 1,800 1,800 1,508 1,308 1,307 1,255 1,245

Recoverable copper content.

1

Preliminary.

Source: U.S. Geological Survey (USGS)

S to cks o f R efin ed C o p p er in th e U n ited S tates, o n F irst o f Mo n th Year

1992 1993 1994 1995 2 1996 1997 1998 1999 2000 20011

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

75.3 135.4 103.0 55.8 120.0 88.2 281.5 562.6 619.2 383.8

76.3 152.7 87.7 39.6 131.4 98.8 282.2 593.1 620.8 408.4

67.2 144.3 83.6 37.0 125.5 104.4 312.7 614.6 619.5 416.2

69.7 132.3 72.8 22.6 123.1 116.0 315.7 653.5 582.9 481.9

75.9 146.0 70.7 33.1 126.3 117.9 304.5 676.6 537.0 552.6

65.0 153.6 70.4 30.8 107.9 121.7 308.6 687.8 508.8 585.7

62.2 137.1 73.3 27.0 102.8 122.9 306.2 668.4 467.8 626.7

71.2 151.0 81.1 50.0 106.2 148.8 319.0 657.2 418.0 733.1

87.1 128.4 74.6 60.6 104.7 177.1 334.1 639.7 397.7 767.4

99.5 117.2 66.5 71.1 68.0 197.9 367.4 611.2 394.3 895.6

110.3 124.6 52.7 69.4 76.0 227.6 407.2 626.5 379.1

107.1 107.1 53.6 73.4 77.5 253.3 444.6 608.2 344.2

R ecov erable copper content. 1 P reliminary. B eg inning January 1999, includes C onsumers.

2

New reporting method beg inning January 1995, includes C omex , L ondon Metal E x chang e, and R efiners. S ource: American B ureau of Met al S t at ist ics (AB MS )

Deliveries of Refined Copper to Fabricators in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Thousands of Short Tons

Jan.

In Thousands of Short Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

246.3 284.5 199.6 166.8 166.1 152.1 136.4 126.4 120.1 124.8

234.5 248.4 202.8 161.3 150.8 126.0 123.4 131.1 120.0 110.3

240.6 288.1 235.0 176.3 167.4 140.7 124.6 137.6 131.2 131.5

247.4 289.2 221.4 157.0 148.4 149.3 106.6 137.7 125.4 121.9

254.9 278.7 206.3 173.7 167.6 148.6 107.7 130.9 125.7 121.8

228.1 258.0 201.9 161.3 165.2 136.2 117.0 143.5 119.2 132.7

241.1 252.4 188.0 145.2 162.7 147.9 127.1 133.3 106.9 117.5

258.2 242.1 186.8 149.7 154.0 141.1 120.6 132.9 112.8 119.9

252.3 260.7 193.7 150.6 151.6 129.5 125.8 136.8 108.0 112.7

259.2 232.0 182.3 154.8 160.7 141.6 127.9 129.3 110.9 95.4

256.0 251.9 182.4 149.8 154.7 124.5 114.4 128.8 112.6 95.6

236.6 220.0 175.2 162.7 147.5 129.7 133.8 137.5 115.9

2,959 3,106 2,375 1,909 1,897 1,667 1,465 1,606 1,409 1,401

Recoverable copper content.

1

Preliminary.

Source: American Bureau of Metal Statistics (ABMS)

D eliveries o f R efin ed C o p p er to F ab ricato rs Ou tsid e th e U n ited S tates Year

1990 1991 1992 1993 1994 1995 2 1996 1997 1998 1999 1

In Thousands of Short Tons

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Total

419.9 405.0 453.7 427.9 399.8 758.5 875.2 862.2 1,091.7 314.5

466.3 404.4 408.9 392.9 429.5 810.1 859.4 889.7 973.8 745.5

436.7 391.5 441.8 452.3 481.2 892.8 934.3 977.9 1,062.0

392.9 361.2 416.4 361.7 466.5 882.2 907.2 1,007.1 1,055.5

408.3 406.3 413.4 422.2 468.9 853.0 816.7 991.1 995.7

466.7 433.5 432.4 442.6 428.1 867.3 950.7 982.7 1,014.8

303.7 368.5 410.4 384.4 387.9 863.7 908.3 897.8 986.8

373.5 323.4 364.7 347.9 369.2 814.1 817.4 873.9 924.8

370.8 420.7 432.6 387.5 423.5 803.4 911.5 886.2 913.3

448.9 499.1 403.5 414.8 448.9 835.1 1,056.0 1,009.0 987.9

469.1 391.4 406.1 463.4 457.1 796.6 922.7 980.4 982.1

420.7 483.4 461.3 458.5 436.0 726.2 918.3 966.6 1,023.0

4,972 4,807 5,045 4,956 5,197 9,903 10,878 11,349 12,011 6,360

R ecov erable copper content. 1 P reliminary. 2 New reporting method beg inning January 1995, includes crude copper deliv eries. S ource: American B ureau of Met al S t at ist ics (AB MS )

55

Corn Corn is a member of the grass family of plants and is a native grain of the American continents. Fossils of corn pollen that are over 80,000 years old have been found in lake sediment under Mexico City. Archaeological discoveries show that cultivated corn existed in the southwestern US for at least 3,000 years, indicating that the indigenous people of the region cultivated corn as a food crop long before the Europeans reached the New World. Corn is a hardy plant that grows in many different areas of the world. It can grow at altitudes as low as sea level and as high as 12,000 feet in the South American Andes Mountains. Corn can also grow in tropical climates that receive up to 400 inches of rainfall per year, or in areas that receive only 12 inches of rainfall per year. Corn is used primarily as livestock feed in the United States and the rest of the world. Other uses for corn are alcohol additives for gasoline, adhesives, corn oil for cooking and margarine, sweeteners, and as food for humans. Corn is the largest crop in the US, both in terms of the value of the crop and of the acres planted.

two decades. While growing conditions as of early 2007 appeared favorable for the summer growing season, any glitches with hot or dry weather could caused prices to soar to new record highs above the current record high of $5.544 per bushel posted in 1996.

The largest futures market for corn is at the Chicago Board of Trade. Corn futures also trade at the Bolsa de Mercadorias & Futuros (BM&F) in Brazil, the Budapest Commodity Exchange, the Marche a Terme International de France (MATIF), the Mercado a Termino de Buenos Aires in Argentina, the Kanmon Commodity Exchange (KCE) in Korea, and the Tokyo Grain Exchange (TGE). The CBOT futures contract calls for the delivery of 5000 bushels of No. 2 yellow corn at par contract price, No. 1 yellow at 1-1/2 cents per bushel over the contract price, or No. 3 yellow at 1-1/2 cents per bushel below the contract price.

US corn production in the 2006-07 marketing year (SepAug) fell by –5.2% yr/yr to 10.535 billion bushels from the record level of 11.807 billion bushels seen in 2004-05. US farmers harvested 70.648 million acres of corn for grain usage in 2006-07, which was down –5.9% from 2005-06 which was a 26-year high. US Corn yield in 2006-07 rose +0.8% to 149.1 bushels per acre but still below the record high of 160.2 bushels per acre seen in 2004-05. US carryover stocks on Sep 1, 2006 fell –6.9% to 1.967 million bushels from 2.114 billion bushels in 2005. The largest corn producing states in the US are Iowa with 19.8% of US production in 2006, Illinois (18.1%), Nebraska (11.8%), Minnesota (10.7%), and Indiana (8.4%). The value of the US corn crop in 2005-06 was $21.041 billion.

Prices – Corn futures prices traded mildly higher in early 2006 but then soared starting in September 2006 to post a 10-year high of $4.37 per bushel by early 2007. Corn prices closed 2006 up +81% at $3.90 per bushel. The US corn crop size in 2006-07 was the third largest ever seen at 10.54 billion bushels, which was only 11% below the record high of 11.81 billion bushels seen in 2004-05. However, the main factor driving corn prices higher in late 2006 was very strong demand from US ethanol producers who were expected to take up to 18% of the corn crop in 2006-07. Strong demand from ethanol producers resulted in a sharp drawdown in 2006-07 US carry-over inventories to only 752 million bushels, which was the third tightest inventory level seen in the past two decades. Corn demand from ethanol producers was expected to strengthen even further in 2007 and 2008, which raised talk of corn rationing among corn consumers. As of March 2007, the market was worried about whether US farmers will boost their corn planting acreage by the 10-12 million acres that are necessary just for corn supply to keep pace with demand and prevent the US corn carry-over from dropping to even more dangerously low levels. The strong demand for corn from ethanol producers affected global carry-over stocks as well, pushing global 2006-07 carry-over of corn/maize down to the 92.7 million metric tons, which was the tightest level of global stocks in

56

Supply – World production of corn in the 2006-07 marketing year fell by –0.4% to 682.886 million metric tons from the record high of 712.782 million metric tons seen in 2004-05. The world’s largest corn producers are the US with 39% of world production, China (21%), and Brazil (6%). Corn production in both China and Brazil has nearly doubled since 1980. Production in the US over that time frame has risen by about 50%. The world area harvested with corn in 2006-07 rose +0.7% yr/yr to 303.5 million hectares, which was only mildly above the post-war record low of 293.0 million hectares seen in 2002-03. World ending stocks of corn and coarse grains in 2006-07 fell –28.3% to 119.3 million metric tons, which is a 3-decade low.

Demand – World consumption of corn and rough grains in 2006-07 rose by +2.42% yr/yr to 1,014.4 million metric tons, which was a new record high. The US distribution tables for corn show that the largest category of usage, aside from animal feed, is for ethanol production (alcohol fuel) with 2.150 billion bushels of usage in 2006-07, representing 51.2% of total non-feed usage. Corn usage for ethanol has more than tripled in the past 7 years, and that usage category is likely to grow due to the high prices of crude oil and gasoline. After ethanol, the largest non-feed usage categories are for high fructose corn syrup (HFCS) with 14.8% of US usage, corn starch (7.9%), glucose and dextrose sugars (6.8%), cereal and other corn products (5.4%), and alcoholic beverages (3.8%). Trade – US exports of corn in 2005-06 rose +24.0% yr/ yr to 56.134 million metric tons, which remained far below the record high of 61.417 million metric tons posted in 197980. The largest destination countries for US corn exports are Japan, which accounted for 29.4% of US corn exports in 2005-06, Mexico (12.0%), South Korea (10.3%), Taiwan (7.9%), Egypt (7.4%), and Canada (3.4%).

CORN World Production of Corn or Maiz e

In Thousands of Metric Tons

Crop Year

China

EU-25

Egypt

India

Mexico

Romania

South Africa

United States

Ukraine

World Total

104,309 132,954 128,086 106,000 114,088 121,300 115,830 130,290 139,365 143,000

38,165 34,920 45,229 44,529 50,142 49,360 39,876 53,478 48,318 44,385

6,010 5,605 5,678 5,636 6,160 6,000 5,740 5,840 5,860 5,870

10,852 10,680 11,470 12,068 13,510 11,100 14,720 14,180 15,090 14,500

17,368 17,789 19,240 17,917 20,400 19,280 21,800 22,050 19,500 22,000

12,680 8,000 10,500 4,800 7,000 7,300 7,020 12,000 10,300 8,500

7,693 7,946 11,455 8,040 10,050 9,675 9,700 11,716 6,935 10,000

233,864 247,882 239,549 251,854 241,377 227,767 256,278 299,914 282,260 272,931

5,340 2,301 1,737 3,848 3,641 4,180 6,850 8,800 7,150 6,500

573,800 605,725 607,462 590,488 599,722 602,974 625,690 712,782 695,225 692,886

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

Argentina

19,360 13,500 17,200 15,400 14,700 15,500 15,000 20,500 15,800 19,000

Preliminary.

2

Brazil Canada

30,100 32,393 31,641 41,536 35,501 44,500 42,000 35,000 41,700 42,000

Estimate.

7,180 8,952 9,161 6,827 8,389 8,999 9,600 8,840 9,461 9,300

3

Forecast.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Supply and Demand of Course Grains

In Millions of Metric Tons/Hectares

Crop Year Beginning Oct.1

Area Harvested

Yield

Production

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

311.2 308.5 299.7 296.7 301.4 293.0 306.9 300.4 301.3 303.5

2.80 2.90 2.90 2.90 3.00 3.00 3.00 3.40 3.20 3.20

881.2 890.9 877.6 862.3 893.7 875.1 915.9 1,014.1 977.6 967.2

World Trade

Total Consumption

Ending Stocks

Stocks as % of Consumption3

85.8 96.7 104.8 104.4 102.7 104.6 102.7 102.1 109.0 106.8

867.2 869.2 882.4 884.4 906.6 902.3 945.9 975.9 989.2 1,014.4

215.8 237.4 232.2 210.1 197.1 169.9 139.9 178.0 166.4 119.3

24.9 27.3 26.3 23.8 21.7 18.8 14.8 18.2 16.8 11.8

1 Preliminary. 2 Estimate. 3 Represents the ratio of marketing year ending stocks to total consumption. U.S. Department of Agriculture (FAS-USDA)

Acreage and Supply of Corn in the United States ------- Harvested -------

Crop Year Beginning Sept. 1

F or F or Planted Grain Silage --------- In Thousands of Acres ---------

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

79,537 80,165 77,386 79,551 75,752 78,894 78,603 80,930 81,759 78,327

1

Preliminary.

2

Estimate.

72,671 72,589 70,487 72,440 68,808 69,330 70,944 73,632 75,107 70,648

6,054 5,913 6,037 6,082 6,148 7,122 6,583 6,103 5,920 6,477

Yield Per Harvested Acre Bushels

In Millions of Bushels Carry-over,

----------- Sept. 1 -----------

126.7 134.4 133.8 136.9 138.2 129.3 142.2 160.4 147.9 149.1

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Off Farms

Beginning Stocks

Production

Imports

Total Supply

475.0 640.0 797.0 793.0 753.2 586.8 484.9 438.0 820.5 749.5

408.2 667.8 990.0 924.5 1,146.0 1,009.6 601.8 520.1 1,293.5 1,217.7

883 1,308 1,787 1,718 1,899 1,596 1,087 958 2,114 1,967

9,207 9,759 9,431 9,915 9,507 8,967 10,089 11,807 11,112 10,535

9 19 15 7 10 14 14 11 9 10

10,099 11,088 11,239 11,693 11,412 10,578 11,190 12,776 13,237 12,512

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Illinois

Indiana

Iowa

Kansas

Michi gan

1,425.5 1,473.5 1,491.0 1,668.6 1,649.2 1,471.5 1,812.2 2,088.0 1,708.9 1,906.7

701.5 760.4 748.4 815.9 884.5 631.6 786.9 929.0 888.6 882.8

1,642.2 1,769.0 1,758.2 1,740.0 1,664.4 1,931.6 1,868.3 2,244.4 2,162.5 2,083.2

371.8 419.0 420.2 416.0 387.4 301.6 300.0 432.0 465.8 387.5

255.1 227.6 253.5 244.3 199.5 234.0 259.8 257.3 288.9 289.1

Preliminary.

---------------------------------- Supply ----------------------------------

On Farms

Production of Corn (For Grain) in the United States, by State Year

Source: Foreign Agricultural Service,

In Million of Bushels

Minnesota

Missouri

Nebraska

Ohio

South Dakota

Texas

Wisconsin

Total

851.4 1,032.8 990.0 957.0 806.0 1,051.9 970.9 1,121.0 1,191.9 1,128.8

299.0 285.0 247.4 396.1 345.8 283.5 302.4 466.6 329.7 369.2

1,135.2 1,239.8 1,153.7 1,014.3 1,139.3 940.8 1,124.2 1,319.7 1,270.5 1,247.8

475.7 470.9 403.2 485.1 437.5 264.3 478.9 491.4 464.8 471.7

326.4 429.6 367.3 431.2 370.6 308.8 427.4 539.5 470.1 378.0

241.5 185.0 228.3 235.6 167.6 202.3 194.7 233.5 210.9 168.2

402.6 404.2 407.6 363.0 330.2 391.5 367.7 353.6 429.2 422.8

9,206.8 9,758.7 9,437.3 9,968.4 9,506.8 8,966.8 10,089.2 11,807.2 11,112.1 10,534.9

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

57

CORN Supply and Disappearance of Corn in the United States

In Millions of Bushels

---------------------------------- Disappearance ------------------------------------------------------ Domestic Use --------------------

Crop Year Beginning Sept. 1

F ood, ------------------------- Supply ------------------------Beginning ProTotal Alcohol & Stocks duction Imports Supply Industrial

2002-03 Sept.-Nov. Dec.-Feb. Mar.-May June-Aug. 2003-04 Sept.-Nov. Dec.-Feb. Mar.-May June-Aug. 2004-05 Sept.-Nov. Dec.-Feb. Mar.-May June-Aug. 2005-061 Sept.-Nov. Dec.-Feb. Mar.-May June-Aug. 2006-072 Sept.-Nov.

1,596 1,596 7,638 5,132 2,985 1,087 1,087 7,954 5,271 2,970 958 958 9,451 6,756 4,321 2,114 2,114 9,815 6,987 4,362 1,967 1,967

8,967 8,967 ---------10,114 10,114 ---------11,807 11,807 ---------11,114 11,114 ---------10,535 10,535

14.4 3.4 4.1 5.2 1.8 14.0 2.5 3.0 5.0 3.0 11.0 2.0 2.0 4.0 3.0 9.0 1.0 4.0 1.0 9.0 10.0 1.0

10,578 10,567 7,642 5,137 2,987 11,190 11,178 7,957 5,277 2,973 12,776 12,767 9,452 6,760 42,324 13,237 13,230 9,816 6,991 4,363 12,512 12,503

2,320 549 563 598 610 2,537 589 609 676 664 2,686 643 637 700 706 2,981 697 708 774 802 3,535 808

S eed

F eed & Residual

Total

20.1 0 0 19.0 1.1 20.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

5,558 1,986 1,547 1,141 884 5,795 2,166 1,571 1,166 892 6,158 2,175 1,620 1,611 1,053 6,141 2,241 1,636 1,291 974 5,975 2,173

7,899 2,535 2,110 1,759 1,494 8,352 2,755 2,180 1,842 1,556 8,844 2,818 2,257 2,311 1,759 9,122 2,938 2,344 2,065 1,776 9,510 2,981

Total --------- Ending Inventory --------D i sa p Gov't Privately Exports pearance Owned3 Owned4 Total

1,593 393 400 393 406 1,900 470 506 465 459 1,818 499 439 428 452 2,147 477 485 565 620 2,250 592

9,491 2,929 2,510 2,152 1,900 10,232 3,225 2,686 2,306 2,015 10,662 3,316 2,696 2,440 2,210 11,270 3,415 2,829 2,630 2,396 11,760 3,573

1,087 7,638 5,132 2,985 1,087 958 7,954 5,271 2,970 958 2,114 9,451 6,756 4,321 2,114 1,967 9,815 6,987 4,362 1,967 752 8,930

Preliminary. 2 Estimate. 3 Uncommitted inventory. 4 I ncludes quantity under loan and farmer-owned reserve. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Corn Production Estimates and Cash Price in the United States

Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

Gulf Kansas Average City Chicago Ports Omaha ----------------- Corn for Grain Production Estimates ----------------- St. Louis Farm No. 2 No. 2 No. 2 No. 2 No. 2 Price2 Yellow White Yellow Yellow Aug. 1 Sept. 1 Oct. 1 Nov. 1 Final Yellow -------------------------- In Thousands of Bushels -------------------------- ------------------------------ Dollars Per Bushel ------------------------------

9,592,089 9,560,919 10,369,369 9,266,397 8,886,009 10,064,452 10,923,099 10,349,841 10,975,740

9,737,949 9,380,947 10,362,374 9,238,356 8,848,529 9,944,418 10,960,710 10,638,661 11,113,766

9,743,399 9,466,977 10,191,817 9,429,543 8,969,836 10,207,141 11,613,226 10,857,440 10,905,194

9,836,069 9,537,137 10,053,942 9,545,513 9,003,364 10,277,932 11,740,920 11,032,105 10,744,806

9,758,685 9,430,612 9,915,051 9,506,840 8,966,787 10,089,222 11,807,217 11,112,072 10,534,860

1.99 2.02 2.01 2.15 2.49 2.49 2.73 2.13 2.19

1.88 1.80 1.82 1.95 2.29 2.23 2.50 1.82 1.88

1 Preliminary. 2 Season-average price based on monthly prices weighted by monthly marketings. U..S. Department of Agriculture (ERS-USDA)

Distribution of Corn in the United States Crop Year Beginning Sept. 1

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

2.51 1.98 2.06 2.20 2.94 2.66 2.01 2.11 3.55

----- Alcohol ----HFCS

Starch

531 540 530 541 532 530 521 529 520

219 222 218 217 219 228 222 229 240

240 251 247 246 256 271 277 275 279

1.94 1.82 1.85 1.98 2.32 2.50 2.05 2.01 2.83

18,922 17,104 18,499 18,888 20,882 24,477 24,381 22,198 33,837

Source: Economic Research Service,

------------------------------------------ Food, Seed and Industrial Use -----------------------------------------Glucose & Dextrose

2.06 1.97 1.99 2.13 2.46 2.66 2.08 2.10 3.21

In Millions of Bushels

Fuel

Beverage3

526 566 628 706 996 1,168 1,323 1,603 2,150

127 130 130 131 131 132 133 135 135

1 Preliminary. 2 Estimate. 3 Also includes nonfuel industrial alcohol. U.S. Department of Agriculture (ERS-USDA)

58

2.35 2.23 2.26 2.35 2.71 2.94 2.48 2.69 3.86

Value of Production (Million Dollars)

S eed

Cereal & Other Products

Total

Livestock F eed4

19.8 20.3 19.3 20.1 20.1 20.5 20.8 20.2 20.0

184 185 185 186 187 187 189 190 191

1,826 1,893 1,938 2,026 2,320 2,537 2,666 2,961 3,515

5,468 5,665 5,842 5,864 5,558 5,795 6,158 6,100 6,125

4

Exports (Including Grain Equiv. of Products)

Domestic D i sa p pearance

Total Utilization

1,984.2 1,936.6 1,941.3 1,904.8 1,592.5 1,899.8 1,818.1 2,100.0 2,150.0

7,314 7,578 7,799 7,911 7,899 8,332 8,844 9,075 9,665

9,298 9,515 9,740 9,815 9,491 10,232 10,662 11,175 11,815

Feed and waste (residual, mostly feed). Source: Economic Research Service,

CORN

Cents Per Bushel ----- Contract Grade or better, Chicago (1863 - 1900) No. 3 Yellow, Chicago (Jan. 1901 - Apr. 1947) No. 2 Yellow, Chicago (May 1947 - Mar. 1982) No. 2 Yellow, Central, IL (Apr. 1982 - date)

Average Cash Price of Corn, No. 2 Yellow in Central Illinois

In Dollars Per Bushel

Year

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

2.61 1.78 1.81 1.58 1.94 2.57 2.25 1.98 1.75 2.21

2.66 1.94 1.72 1.81 1.84 2.41 2.11 1.77 1.67 2.82

2.70 2.09 1.82 1.96 1.90 2.36 2.26 1.79 1.75 3.43

2.60 2.08 1.84 2.01 1.97 2.32 2.38 1.87 1.89 3.53

2.60 2.07 1.95 1.99 1.95 2.29 2.52 1.86 1.98

2.58 2.05 2.03 1.95 1.92 2.33 2.73 1.86 2.07

2.59 2.09 2.08 1.92 1.92 2.31 2.89 1.97 2.04

2.41 2.05 2.09 1.87 1.89 2.36 3.03 1.94 2.18

2.37 2.03 2.15 1.78 1.96 2.40 2.90 1.93 2.22

2.29 1.99 1.83 1.76 2.04 2.37 2.76 2.02 2.15

2.16 1.67 1.53 1.92 2.22 2.13 2.26 2.20 2.22

1.86 1.84 1.49 2.00 2.50 2.26 2.17 1.98 2.07

2.45 1.97 1.86 1.88 2.00 2.34 2.52 1.93 2.00 3.00

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Cash Price of Corn, No. 2 Yellow at Gulf Ports2

In Dollars Per Bushel

Year

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

2.88 2.18 2.21 2.03 2.27 2.89 2.63 2.49 2.47 3.05

3.05 2.43 2.17 2.15 2.19 2.79 2.65 2.37 2.58 3.82

2.98 2.47 2.17 2.26 2.28 2.77 2.75 2.39 2.44 4.17

2.89 2.42 2.21 2.45 2.35 2.71 2.84 2.43 2.61 4.08

2.90 2.48 2.36 2.40 2.34 2.69 2.95 2.44 2.61 4.19

2.88 2.40 2.42 2.35 2.30 2.69 3.12 2.40 2.72

2.89 2.45 2.42 2.32 2.28 2.67 3.26 2.54 2.67

2.71 2.39 2.43 2.22 2.21 2.67 3.39 2.45 2.74

2.69 2.35 2.43 2.14 2.29 2.74 3.28 2.42 2.81

2.64 2.36 2.13 2.11 2.37 2.72 3.13 2.49 2.78

2.55 2.12 1.91 2.30 2.53 2.72 2.65 2.69 2.90

2.24 2.20 1.91 2.36 2.79 2.44 2.64 2.59 2.92

2.78 2.35 2.23 2.26 2.35 2.71 2.94 2.48 2.69 3.86

1

Preliminary.

2

Barge delivered to Louisiana Gulf.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

59

CORN Weekly Outstanding Export Sales and Cumulative Exports of U.S. Corn Marketing Year 2004/05 Week Ending

Sep 02, 2004 Sep 09, 2004 Sep 16, 2004 Sep 23, 2004 Sep 30, 2004 Oct 07, 2004 Oct 14, 2004 Oct 21, 2004 Oct 28, 2004 Nov 04, 2004 Nov 11, 2004 Nov 18, 2004 Nov 25, 2004 Dec 02, 2004 Dec 09, 2004 Dec 16, 2004 Dec 23, 2004 Dec 30, 2004 Jan 06, 2005 Jan 13, 2005 Jan 20, 2005 Jan 27, 2005 F eb 0 3 , 2 0 0 5 F eb 1 0 , 2 0 0 5 F eb 1 7 , 2 0 0 5 F eb 2 4 , 2 0 0 5 Mar 03, 2005 Mar 10, 2005 Mar 17, 2005 Mar 24, 2005 Mar 31, 2005 Apr 07, 2005 Apr 14, 2005 Apr 21, 2005 Apr 28, 2005 May 05, 2005 May 12, 2005 May 19, 2005 May 26, 2005 Ju n 02, 2005 Ju n 09, 2005 Ju n 16, 2005 Ju n 23, 2005 Ju n 30, 2005 Ju l 07, 2005 Ju l 14, 2005 Ju l 21, 2005 Ju l 28, 2005 A u g 04, 2005 A u g 11, 2005 A u g 18, 2005 A u g 25, 2005

Outstanding Sales

Cumulative Exports

6,935.9 7,430.6 7,896.0 7,798.2 7,397.0 7,933.9 8,638.0 8,531.5 9,339.7 9,052.7 8,740.6 9,141.4 8,917.1 8,624.0 8,113.4 7,770.2 7,496.3 6,974.5 6,999.0 7,156.5 6,839.6 6,256.8 6,744.2 6,768.7 6,996.4 6,950.4 6,746.2 7,001.7 7,290.7 7,635.8 7,394.9 7,576.2 7,394.0 6,885.1 6,565.8 7,097.5 7,135.9 6,734.0 6,668.4 6,385.7 6,208.2 5,649.6 5,808.6 5,977.4 5,724.8 5,507.7 5,159.9 4,498.1 4,608.6 4,329.7 3,798.7 2,780.4

230.3 943.3 1,634.2 2,637.5 3,817.8 4,765.3 5,361.7 6,558.1 7,203.0 8,320.9 9,357.7 10,258.0 11,067.4 12,275.4 13,422.7 14,491.7 15,462.5 16,415.0 17,048.8 17,798.5 18,878.1 19,798.5 20,306.4 21,024.2 21,706.7 22,564.4 23,502.0 24,256.1 24,895.6 25,711.2 26,613.5 27,347.8 28,200.0 29,202.2 30,145.1 30,997.2 31,812.8 32,765.2 33,575.3 34,418.9 35,230.2 36,296.9 37,355.1 38,129.0 38,702.4 39,515.7 40,502.7 41,410.8 42,373.5 43,117.0 43,948.2 44,953.3

Marketing Year 2005/06 Week Ending

Sep 01, 2005 Sep 08, 2005 Sep 15, 2005 Sep 22, 2005 Sep 29, 2005 Oct 06, 2005 Oct 13, 2005 Oct 20, 2005 Oct 27, 2005 Nov 03, 2005 Nov 10, 2005 Nov 17, 2005 Nov 24, 2005 Dec 01, 2005 Dec 08, 2005 Dec 15, 2005 Dec 22, 2005 Dec 29, 2005 Jan 05, 2006 Jan 12, 2006 Jan 19, 2006 Jan 26, 2006 F eb 0 2 , 2 0 0 6 F eb 0 9 , 2 0 0 6 F eb 1 6 , 2 0 0 6 F eb 2 3 , 2 0 0 6 Mar 02, 2006 Mar 09, 2006 Mar 16, 2006 Mar 23, 2006 Mar 30, 2006 Apr 06, 2006 Apr 13, 2006 Apr 20, 2006 Apr 27, 2006 May 04, 2006 May 11, 2006 May 18, 2006 May 25, 2006 Ju n 01, 2006 Ju n 08, 2006 Ju n 15, 2006 Ju n 22, 2006 Ju n 29, 2006 Ju l 06, 2006 Ju l 13, 2006 Ju l 20, 2006 Ju l 27, 2006 A u g 03, 2006 A u g 10, 2006 A u g 17, 2006 A u g 24, 2006 A u g 31, 2006

Outstanding Sales

Cumulative Exports

7,863.6 7,985.8 7,817.6 7,564.1 7,735.2 7,645.1 7,379.6 7,149.9 7,353.7 7,315.0 7,748.1 7,813.5 7,759.2 7,432.4 7,334.4 7,037.3 6,618.9 5,991.3 5,905.2 6,184.1 7,115.7 7,858.4 8,455.0 8,829.4 9,280.8 8,934.8 9,246.3 9,442.6 9,141.4 9,285.0 8,754.8 8,687.4 8,888.4 8,475.4 8,702.5 8,702.9 9,156.9 8,815.5 8,717.4 8,420.4 8,745.9 9,037.3 9,213.5 8,999.8 8,655.6 7,794.0 7,387.1 7,113.7 6,961.4 6,305.9 5,304.9 3,470.1 2,454.2

10.3 436.0 1,350.7 2,307.1 3,088.6 4,111.8 5,343.4 6,291.6 7,303.4 8,220.8 9,284.0 10,251.3 10,917.4 11,938.5 12,955.0 14,137.5 14,916.1 16,013.8 16,713.4 17,656.8 18,582.6 19,502.3 20,517.6 21,340.4 22,379.6 23,328.2 24,379.9 25,213.1 26,425.7 27,320.9 28,510.5 29,392.6 30,281.8 31,477.3 32,532.4 33,637.1 34,723.0 36,200.8 37,454.9 38,619.2 39,758.4 41,042.2 42,219.8 43,223.2 44,156.6 45,358.3 46,741.0 47,911.4 49,226.2 50,450.2 51,632.3 53,120.3 54,353.6

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

60

In Thousands of Metric Tons Marketing Year 2006/07 Week Ending

Sep 07, 2006 Sep 14, 2006 Sep 21, 2006 Sep 28, 2006 Oct 05, 2006 Oct 12, 2006 Oct 19, 2006 Oct 26, 2006 Nov 02, 2006 Nov 09, 2006 Nov 16, 2006 Nov 23, 2006 Nov 30, 2006 Dec 07, 2006 Dec 14, 2006 Dec 21, 2006 Dec 28, 2006 Jan 04, 2007 Jan 11, 2007 Jan 18, 2007 Jan 25, 2007 F eb 0 1 , 2 0 0 7 F eb 0 8 , 2 0 0 7 F eb 1 5 , 2 0 0 7 F eb 2 2 , 2 0 0 7 Mar 01, 2007 Mar 08, 2007 Mar 15, 2007 Mar 22, 2007 Mar 29, 2007 Apr 05, 2007 Apr 12, 2007 Apr 19, 2007 Apr 26, 2007 May 03, 2007 May 10, 2007 May 17, 2007 May 24, 2007 May 31, 2007 Ju n 07, 2007 Ju n 14, 2007 Ju n 21, 2007 Ju n 28, 2007 Ju l 05, 2007 Ju l 12, 2007 Ju l 19, 2007 Ju l 26, 2007 A u g 02, 2007 A u g 09, 2007 A u g 16, 2007 A u g 23, 2007 A u g 30, 2007

Outstanding Sales

Cumulative Exports

11,500.7 11,138.2 10,731.6 10,706.6 10,893.3 10,625.6 10,871.5 10,796.9 11,552.1 11,943.8 11,765.1 11,889.0 11,329.3 11,493.0 11,854.8 11,890.1 11,503.1 11,827.1 12,245.8 12,204.2 11,799.6 11,687.2 12,076.9 11,657.4 11,083.8 10,730.9 10,329.7 10,065.6

1,103.2 2,478.4 3,714.7 4,897.9 5,998.0 7,086.0 7,886.0 8,987.8 10,161.8 11,165.7 12,386.6 13,283.9 14,656.3 15,892.9 16,792.6 17,911.0 18,871.5 19,724.4 20,729.5 21,755.3 22,957.2 23,987.0 24,983.6 26,214.1 27,105.8 28,531.5 29,682.2 30,587.2

CORN Average Price Received by Farmers for Corn in the United States

In Dollars Per Bushel

Year

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

2.52 1.83 1.75 1.61 1.91 2.47 2.20 2.20 1.90 2.20

2.54 1.91 1.69 1.74 1.84 2.34 2.12 2.14 1.82 2.54

2.51 1.93 1.70 1.86 1.85 2.28 2.20 2.05 1.77 2.87

2.52 2.00 1.82 1.97 1.98 2.32 2.31 2.04 1.92 3.01

2.56 2.06 1.91 1.98 1.97 2.33 2.39 2.12 2.00 3.05

2.55 2.05 1.98 1.96 1.93 2.34 2.61 1.95 2.02 3.32

2.54 2.06 2.03 1.96 1.94 2.33 2.75 2.02 2.06

2.41 2.04 2.03 1.89 1.91 2.34 2.89 2.00 2.11

2.34 1.99 2.11 1.82 1.93 2.38 2.87 1.98 2.17

2.28 1.97 1.91 1.76 1.97 2.34 2.79 2.03 2.14

2.19 1.74 1.64 1.87 2.13 2.17 2.51 2.11 2.14

1.89 1.75 1.52 1.90 2.38 2.15 2.34 1.95 2.09

2.40 1.94 1.84 1.86 1.98 2.32 2.50 2.05 2.01 2.83

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Corn Price Support Data in the United States Crop Year Beginning Sept. 1

CCC Inventory ------- As of Dec. 31 ------Owned Placed CCC Under by C C C Under % of ProAcquired Owned C C C Loan Aug. 31 Loan duction by C C C -------------------------------------------- Millions of Bushels --------------------------------------------

National Average Target Loan Rate3 Price --- Dollars Per Bushel ---

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052

1.89 1.89 1.89 1.89 1.89 1.89 1.89 1.98 1.98 1.95

Preliminary. (NASS-USDA)

1

2

2.75 NA NA NA NA NA NA 2.60 2.60 2.63

Estimate.

3

970 561 1,132 823

13.1 6.1 12.3 8.4

Findley or announced loan rate.

0 0 19 0

42 30 2 15 26 36 24 18 16

579 756 81

Quantity Pledged (Thousands of Bushels)

F a ce Amount (Thousands of Dollars)

677,115 970,590 1,129,915 1,129,915 1,420,878 1,393,947 1,394,561 1,366,513

1,232,669 1,764,291 2,062,308 2,062,308 2,590,443 2,562,172 2,557,874 2,622,823

Source: National Agricultural Statistics Service, U.S. Department of Agriculture

U.S. Exports1 of Corn (Including Seed), By Country of Destination

In Thousands of Metric Tons

Year Beginning Oct. 1

Algeria

Canada

Egypt

Irael

Ja p a n

Mexico

Rep. of Korea

Russia

Saudi Arabia

Spain

Taiwan

Venezuela

Total

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-062

862 829 947 1,099 1,180 1,343 1,009 1,158 1,036 1,255

879 1,404 898 1,080 2,797 3,979 3,811 2,014 2,210 1,908

2,364 1,951 2,954 3,542 4,116 4,283 2,904 3,120 3,738 4,156

556 141 395 748 621 847 313 1,154 393 725

15,425 13,957 15,375 14,939 14,091 14,817 14,384 14,968 15,036 16,521

3,141 4,423 5,576 4,910 5,928 4,025 5,220 5,730 5,935 6,759

5,404 3,364 6,659 2,822 3,109 1,085 272 3,942 2,210 5,802

88 1 405 491 26 86 0 70 13 15

1,025 883 1,175 1,197 1,003 670 222 402 126 619

1,080 141 92 16 0 5 0 5 14 8

5,609 3,488 4,538 4,989 4,894 4,599 4,139 4,757 4,446 4,456

730 645 1,329 1,146 1,152 502 651 669 90 133

46,638 37,755 51,949 49,378 48,192 47,058 40,780 48,724 45,262 56,134

1

Excludes exports of corn by-products.

2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Stocks of Corn (Shelled and Ear) in the United States ------------------------- On Farms ------------------------Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Bushels

------------------------ Off Farms -----------------------

-------------------------- Total Stocks -----------------------

Mar. 1

June 1

Sept. 1

D e c. 1

Mar. 1

June 1

Sept. 1

D e c. 1

Mar. 1

June 1

Sept. 1

D e c. 1

2,870.0 2,975.0 3,570.0 3,300.0 3,600.0 3,355.0 2,940.0 3,030.0 4,137.0 4,055.0

1,501.0 1,830.0 2,257.0 2,029.8 2,230.8 2,020.6 1,620.2 1,540.0 2,462.3 2,350.5

475.0 640.0 797.0 793.0 753.2 586.8 484.9 438.0 820.5 749.5

4,822.0 5,320.0 5,195.0 5,550.0 5,275.0 4,800.0 5,286.0 6,144.0 6,325.0 5,627.0

1,624.1 1,964.9 2,128.4 2,301.9 2,443.0 2,440.3 2,191.9 2,241.5 2,619.3 2,932.3

995.6 1,209.8 1,359.2 1,556.1 1,693.2 1,576.3 1,364.7 1,430.1 1,858.5 2,011.2

408.2 667.8 990.0 924.5 1,146.0 1,009.6 601.8 520.1 1,293.5 1,217.7

2,424.8 2,731.8 2,844.4 2,972.2 2,989.7 2,838.0 2,667.8 3,308.5 3,490.0 3,302.8

4,494.1 4,939.9 5,698.4 5,601.9 6,043.0 5,795.3 5,131.9 5,271.5 6,756.3 6,987.3

2,496.6 3,039.8 3,616.2 3,585.9 3,924.0 3,596.9 2,984.9 2,970.1 4,320.8 4,361.7

883.2 1,307.8 1,787.0 1,717.5 1,899.1 1,596.4 1,086.7 958.1 2,114.0 1,967.2

7,246.8 8,051.8 8,039.4 8,522.2 8,264.7 7,638.0 7,953.8 9,452.5 9,815.0 8,929.8

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

61

CORN

Volume of Trading of Corn Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,160.6 1,250.2 955.1 1,502.2 1,397.2 996.3 1,204.0 2,025.7 1,467.8 2,494.6

1,483.0 1,276.5 1,374.2 1,580.9 1,197.4 1,449.6 1,559.1 2,367.0 2,680.8 3,599.1

1,693.3 1,432.8 1,440.1 1,713.1 1,329.5 944.7 1,156.9 2,190.9 2,278.1 3,041.0

1,780.1 1,620.3 1,420.6 1,386.3 1,518.7 1,498.0 1,633.1 2,870.9 2,519.1 3,507.5

1,291.7 1,148.5 975.1 1,789.7 1,173.2 1,434.5 1,657.0 1,855.3 2,188.3 3,773.1

1,347.5 1,771.0 1,597.4 1,830.7 1,612.1 1,851.5 1,951.2 2,538.6 3,446.1 4,693.4

1,527.7 1,415.3 1,708.0 1,178.3 2,023.5 1,958.4 1,499.3 1,740.5 2,626.0 3,743.6

1,318.3 1,231.4 1,669.8 1,291.8 1,549.0 2,158.7 1,830.6 1,883.0 2,993.6 4,226.9

1,060.2 1,126.3 1,131.9 1,057.4 1,072.3 1,635.4 1,389.7 1,446.9 1,618.5 3,760.5

1,700.2 1,319.3 1,096.2 1,256.1 1,223.3 1,523.3 2,057.7 1,476.4 1,504.2 5,300.2

1,434.4 1,217.2 1,500.9 1,612.8 1,741.2 1,801.4 1,815.9 2,473.3 2,892.2 6,279.4

1,188.0 986.6 855.6 986.1 891.4 880.5 1,364.3 1,169.6 1,750.3 2,820.6

16,985.0 15,795.5 15,724.8 17,185.4 16,728.7 18,132.4 19,118.7 24,038.2 27,965.1 47,239.9

Aug.

Sept.

Source: Chicago Board of Trade (CBT)

Average Open Interest of Corn Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

Apr.

May

In Contracts June

July

Oct.

Nov.

D e c.

305,779 347,392 382,261 351,852 290,649 274,760 267,531 281,194 307,415 378,453 379,045 331,386 328,020 341,444 358,221 366,657 337,703 327,237 297,894 318,162 321,992 332,337 342,868 322,157 357,682 363,153 357,126 343,624 338,467 323,658 329,460 315,858 316,247 410,955 461,037 389,187 445,999 478,892 482,080 487,758 476,891 445,018 391,967 387,289 356,583 397,966 454,920 414,851 454,326 469,027 440,548 455,718 424,386 423,840 389,898 387,710 370,315 419,447 462,930 416,593 459,314 464,368 431,923 430,712 411,346 430,856 458,081 509,069 501,523 485,859 496,998 450,016 455,967 469,611 445,343 411,983 406,987 385,775 384,561 383,590 356,181 420,680 470,165 447,455 543,985 641,380 678,041 704,868 637,417 621,898 566,465 562,172 548,816 606,307 639,531 588,889 629,286 654,066 659,684 673,818 677,308 702,369 713,077 733,578 714,197 794,427 852,459 774,187 875,314 1,048,797 1,065,997 1,175,984 1,288,155 1,327,827 1,360,186 1,347,166 1,302,121 1,312,589 1,405,651 1,381,477

Source: Chicago Board of Trade (CBT)

62

Mar.

Corn Oil Corn oil is a bland, odorless oil produced by refining the crude corn oil that is mechanically extracted from the germ of the plant seed. High-oil corn, the most common type of corn used to make corn oil, typically has an oil content of 7% or higher compared to about 4% for normal corn. Corn oil is widely used as cooking oil, for making margarine and mayonnaise, and for making inedible products such as soap, paints, inks, varnishes, and cosmetics. For humans, studies have shown that no vegetable oil is more effective than corn oil in lowering blood cholesterol levels. Prices – The average monthly price of corn oil (wet mill price in Chicago) in the 2005-06 marketing year (OctSep) fell –9.6% yr/yr to 25.18 cents per pound, which was well below the record high of 36.50 cents posted in 1973-74. Seasonally, prices tend to be highest around March/April

and lowest late in the calendar year. Supply – US corn oil production in the 2005-06 marketing year rose by +2.4% yr/yr to 2.450 billion pounds, which was a 4 year high. Seasonally, production tends to peak around December and March and reaches a low in July. US stocks in the 2005-06 marketing year (Oct 1) rose +2.0% yr/yr to 156 million pounds. Demand – US usage (domestic disappearance) in 200506 rose +5.0% to 1.731 billion pounds. Exports – US corn oil exports in 2005-06 rose +1.4% to 800 million pounds. US corn oil imports in 2005-06 rose 22.4% to 60 million pounds.

Supply and Disappearance of Corn Oil in the United States Crop Year Beginning Oct. 1

----------------------------- Supply ----------------------------Stocks Oct. 1

Production

Imports

Total Supply

135 267 117 104 119 153 156

2,501 2,403 2,461 2,453 2,396 2,392 2,450

17.5 27.0 61.0 66.0 66.0 49.0 60.0

2,654 2,698 2,639 2,623 2,582 2,594 2,666

1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 1

Preliminary.

2

Estimate.

W = Withheld proprietary data.

W W W W W W W

Production of Crude Corn Oil in the United States 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

800 502 W W W 1,466 1,367

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

1,417 1,630 1,363 1,615 1,662 1,649 1,731

970 951 1,172 888 767 789 800

2,387 2,581 2,535 2,503 2,429 2,439 2,531

In Millions of Pounds

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Total

208.6 196.0 218.6 209.1 208.8 207.5 228.7

192.7 203.3 195.0 196.5 187.1 199.9 216.0

190.4 206.5 212.3 193.2 191.0 200.3 226.1

198.9 200.1 206.8 201.0 205.2 209.2 228.7

180.5 183.8 181.7 182.9 182.5 184.8

201.6 187.1 206.0 195.8 206.6 217.6

200.7 189.4 199.7 200.0 217.2 191.7

206.2 219.8 203.6 197.7 188.2 218.7

204.0 227.3 207.1 210.7 211.5 206.7

205.7 220.2 216.5 204.3 206.7 215.3

211.1 217.0 202.5 205.2 198.5 222.0

203.2 211.0 203.2 200.1 189.0 209.0

2,404 2,462 2,453 2,397 2,392 2,483 2,699

2

Not seasonally adjusted.

Source: Bureau of the Census, U.S. Department of Commerce

In Millions of Pounds

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Total

136.2 W W W W 148.4 143.6

112.2 W W W 165.4 140.4 146.7

129.3 W W W 131.6 140.3 152.9

106.7 W W W 140.3 148.4

122.6 W W W W 123.4

118.7 W W W 147.3 128.0

111.9 W W 134.6 132.2 110.8

140.4 W W W 124.8 145.2

W W W 152.8 149.0 138.9

W W W W 142.9 121.6

W W W W 142.4 131.6

W W W W 132.1 130.0

1,467 W W 1,724 1,690 1,607 1,773

W = Withheld proprietary data.

Source: Bureau of Census, U.S. Department of Commerce

Average Corn Oil Price, Wet Mill in Chicago Year

953 1,298 950 W 1,724 1,690 1,607

Oct.

Consumption Corn Oil, in Refining, in the United States Year

W 56 W W W W W

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

2

Year

In Millions of Pounds

------------------------------------------------------ Disappearance -----------------------------------------------------Salad Baking Total Domestic Total and and D i sa p D i sa p Edible Cooking MargFrying Exports pearance pearance Products Oil arine Fats

In Cents Per Pound

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Average

10.52 17.18 22.45 26.99 23.10 27.50 24.70

10.37 18.30 26.90 27.56 24.24 27.08 26.47

10.54 22.45 28.25 28.73 26.67 26.08 28.05

10.25 20.54 29.30 29.26 27.41 25.22 28.05

11.06 18.35 28.90 30.16 27.58 23.65

11.91 18.37 27.20 30.56 28.08 22.61

13.76 17.70 27.55 30.36 29.29 23.19

14.84 17.00 29.10 30.34 30.65 25.25

15.94 17.60 30.15 28.36 30.73 25.70

17.28 19.10 29.90 27.33 30.01 25.75

18.73 21.72 30.68 25.61 28.83 25.42

17.30 21.40 27.71 25.07 27.75 24.71

13.54 19.14 28.17 28.36 27.86 25.18 26.82

Source: Economic Research Service,U.S. Department of Agriculture (ERS-USDA)

63

Cotton Cotton is a natural vegetable fiber that comes from small trees and shrubs of a genus belonging to the mallow family, one of which is the common American Upland cotton plant. Cotton has been used in India for at least the last 5,000 years and probably much longer, and was also used by the ancient Chinese, Egyptians, and North and South Americans. Cotton was one of the earliest crops grown by European settlers in the US. Cotton requires a long growing season, plenty of sunshine and water during the growing season, and then dry weather for harvesting. In the United States, the Cotton Belt stretches from northern Florida to North Carolina and westward to California. In the US, planting time varies from the beginning of February in Southern Texas to the beginning of June in the northern sections of the Cotton Belt. The flower bud of the plant blossoms and develops into an oval boll that splits open at maturity. At maturity, cotton is most vulnerable to damage from wind and rain. Approximately 95% of the cotton in the US is now harvested mechanically with spindle-type pickers or strippers and then sent off to cotton gins for processing. There it is dried, cleaned, separated, and packed into bales.

any case, demand for US cotton dropped sharply in the 200607, mainly because China went to India for much of its cotton needs in 2006. The result was that the US cotton carryover in 2006-07 rose sharply by +20.7% yr/yr to 7.30 million bales, thus pressuring prices. Cotton prices were able to rally in late 2006 as the sharp 80% rally in corn prices in 2006 ensured that some US farmers would be planting corn instead of cotton in spring 2007, likely reducing the US cotton crop in 2007-08. Cotton supply and demand on a global basis was in relative balance in 2006-07 with a small decline in the global carry-over of –1.7% yr/yr to 52.920 million bales. Supply – World cotton production in 2006-07 rose +2.5% yr/yr to 116.750 million bales (480 pounds per bale) but still down from the record high of 120.120 million bales seen in 2004-05. The world’s largest cotton producers are China with 27% of world production in 2005-06, the US with 19%, India with 18%, and Pakistan with 8%. World beginning stocks in 2006-07 rose +0.1% yr/yr to 53.947 million bales, recovering further from the 9-year low of 43.031 million bales seen in 2004-05.

Cotton is used in a wide range of products from clothing to home furnishings to medical products. The value of cotton is determined according to the staple, grade, and character of each bale. Staple refers to short, medium, long, or extralong fiber length, with medium staple accounting for about 70% of all US cotton. Grade refers to the color, brightness, and amount of foreign matter and is established by the US Department of Agriculture. Character refers to the fiber’s diameter, strength, body, maturity (ratio of mature to immature fibers), uniformity, and smoothness. Cotton is the fifth leading cash crop in the US and is one of the nation’s principal agricultural exports. The weight of cotton is typically measured in terms of a “bale,” which is deemed to equal 480 pounds.

The US cotton crop in 2006-07 fell by –9.0% yr/yr to 21.729 million bales, down from the 2005-06 record high of 23.890 million bales. US farmers harvested 12.732 million acres of cotton in 2006-07, down –7.8% yr/yr. The US cotton yield in 2006-07 was 819 pounds per acre, down from the record of 855 pounds per acre in 2004-05 but still a very strong yield. The leading US producing states of Upland cotton are Texas with 27% of US production in 2005, Arkansas (12%), Mississippi (10%), Georgia (10%), and California (7%). US production of cotton cloth has fallen sharply by almost half in the past decade due to the movement of the textile industry out of the US to low-wage foreign countries. Specifically, US production of cotton cloth in 2006 fell –12.1% yr/yr to a record low of 2.312 billion square yards, less than one-fourth of the production level seen in 1950.

Cotton futures and options are traded on the New York Cotton Exchange, a division of the New York Board of Trade. Cotton futures are also traded on the Bolsa de Mercadorias & Futuros (BM&F). Cotton yarn futures are traded on the Central Japan Commodity Exchange (CCOM) and the Osaka Mercantile Exchange (OME). The New York Cotton Exchange’s futures contract calls for the delivery of 50,000 pounds net weight (approximately 100 bales) of No. 2 cotton with a quality rating of Strict Low Middling and a staple length of 1-and-2/32 inch. Delivery points include Texas (Galveston and Houston), New Orleans, Memphis, and Greenville/Spartanburg in South Carolina.

Demand – World consumption of cotton in 2006-07 rose by +4.9% yr/yr to 118.796 million bales, which was a new record high. Consumption of cotton continues to move toward countries with low wages, where the raw cotton is utilized to produce textiles and other cotton products. The largest consumers of cotton in 2005-06 were China (40%), India (15%), and Pakistan (10%). US consumption of cotton by mills in 2006-07 fell –11.7% yr/yr to 5.200 million bales, and accounted for 24% of US production. The remaining 76% of US cotton production went for exports.

Prices – Cotton prices on the New York Board of Trade nearest-futures chart in 2006 remained within the 3-year trading range, trading in a choppy range during the year and closing the year +3.7% at 56.19 cents per pound. Cotton prices were supported during 2006 by a –9.0% decline in the 2006-07 US cotton crop to 21.729 million bales because of hot and dry weather in key cotton growing areas in the US. However, the year-on-year decline must be compared to the record year seen in 2005-06. In fact, the 2006-07 cotton crop was the third largest US cotton crop ever. In

64

Trade – World exports of cotton in 2006-07 fell by – 13.7% yr/yr to 38.535 million bales, down from the 2005-06 record high. The US is the world’s largest cotton exporter by far and accounts for 36% of world cotton exports. Key world cotton importers include Turkey with 8% of total world imports in 2006-07, Indonesia with 6%, Mexico with 4%, and Russia with 4%. US cotton exports in 2005-06 rose by +8.1% yr/yr to 15.603 million bales, which was a new record high. The main destinations for US exports in 2005-06 were China (52%), Mexico (8%), Indonesia (5%), Taiwan (3%), and Thailand (4%).

COTTON Supply and Distribution of All Cotton in the United States

In Thousands of 480-Pound Bales Ending Stocks -- Cents per Lb. --

Value of Production Million $

3,887 3,939 3,915 6,000 7,448 5,385 3,450 5,495 6,050 6,000

5,975.6 4,119.9 3,809.6 4,260.4 3,121.8 3,777.1 5,516.8 4,993.6 5,695.2 5,175.7

---------------- Acre ----------------- --------------------- Supply --------------------- -------------------- Disappearance --------------------

Crop Year Yield Beginning Beginning Planted Harvested ---- 1,000 Acres ---- Lbs./acre Stocks3 Aug. 1

Production4 Imports

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

18,793 13,918 16,968 17,188 20,303 17,209 18,255 23,251 23,890 21,729

13,898 13,393 14,874 15,517 15,769 13,958 13,480 13,659 14,245 15,274

13,406 10,684 13,425 13,053 13,828 12,417 12,003 13,057 13,803 12,732

673 625 607 632 705 665 730 855 831 819

3,971 3,887 3,939 3,915 6,000 7,448 5,385 3,450 5,495 6,050

13 443 97 16 21 67 45 29 27 30

Total

Mill Use Exports

22,777 11,349 7,500 18,248 10,401 4,344 21,004 10,240 6,750 21,119 8,862 6,740 26,324 7,696 11,000 24,724 7,273 11,900 23,685 6,266 13,758 26,730 6,691 14,436 29,412 5,888 18,036 27,379 5,200 16,200

UnacTotal counted

18,849 14,699 16,944 15,602 18,696 19,173 20,024 21,127 23,924 21,400

-41 394 -145 483 -180 -166 -211 -108 562 21

Farm "A" Index Price5 Price6

66.2 61.7 46.8 51.6 32.0 45.7 63.0 43.5 49.0 49.6

72.11 58.97 52.85 57.25 41.88 55.81 69.24 53.53 57.10

Preliminary. 2 Estimate. 3 Excludes preseason ginnings (adjusted to 480-lb. bale net weight basis). 4 I ncludes preseason ginnings. Marketing year average price. 6 Average of 5 cheapest types of SLM 1 3/32 staple length cotton offered on the European market. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

5

World Production of All Cotton

In Thousands of 480-Pound Bales

Crop Year Beginning Aug. 1

Argentina

Australia

Brazil

Burkina

China

Egypt

Greece

India

Pakistan

Turkey

United States

Uzbekistan

World Total

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

1,428 918 615 758 300 290 515 675 625 800

3,166 3,327 3,458 3,700 3,340 1,680 1,700 3,000 2,800 1,100

1,890 2,391 3,216 4,312 3,519 3,890 6,015 5,900 4,700 6,000

635 550 505 525 725 750 965 1,180 1,350 1,450

21,100 20,700 17,600 20,300 24,400 22,600 22,300 29,000 26,200 30,900

1,532 1,050 1,055 920 1,441 1,310 920 1,285 925 950

1,698 1,783 2,021 2,035 2,093 1,715 1,530 1,800 1,975 1,400

12,337 12,883 12,180 10,931 12,300 10,600 14,000 19,000 19,050 21,500

7,175 6,300 8,600 8,200 8,300 7,800 7,750 11,143 9,850 9,700

3,651 3,860 3,634 3,600 3,975 4,179 4,100 4,150 3,550 4,000

18,793 13,918 16,968 17,188 20,303 17,209 18,255 23,251 23,890 21,729

5,228 4,600 5,180 4,400 4,900 4,600 4,100 5,200 5,550 5,400

92,234 85,501 87,719 88,849 98,745 88,251 95,267 120,120 113,940 116,750

1

Preliminary.

2

Estimate.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Stocks and Trade of Cotton Crop Year Beginning Aug. 1

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

---------------- Beginning Stocks ---------------United UzbekWorld States istan China Total

3,971 3,887 3,939 3,915 6,000 7,448 5,385 3,450 5,495 6,050

Preliminary.

2

822 635 603 738 668 918 1,018 923 1,298 1,248

Estimate.

20,197 24,547 26,928 22,378 19,766 18,948 14,999 14,958 13,063 15,661

44,597 49,351 52,162 50,206 48,230 53,702 44,217 43,031 53,868 53,947

In Thousands of 480-Pound Bales --------------------------------- Imports --------------------------------- ------------------------ Exports -----------------------IndoWorld United UzbekWorld nesia Mexico Russia Turkey Total States istan China Total

1,910 2,323 2,076 2,650 2,356 2,228 2,150 2,200 2,200 2,200

1,371 1,422 1,813 1,865 2,065 2,330 1,858 1,810 1,744 1,500

1,225 850 1,600 1,650 1,800 1,650 1,475 1,450 1,425 1,425

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

Preliminary.

Banglad e sh

Brazil

China

651 701 801 1,001 1,201 1,552 1,727 1,880 2,205 2,310

3,551 3,674 4,111 4,025 3,650 3,500 3,850 4,100 4,050 3,950

18,450 17,975 20,575 22,700 25,325 28,925 31,000 37,250 42,850 47,000

2

Estimate.

25,928 24,480 27,976 26,227 29,304 30,112 34,013 33,392 44,002 39,014

7,500 4,298 6,750 6,740 11,000 11,900 13,758 14,436 18,036 14,000

4,570 3,812 4,200 3,450 3,500 3,400 3,100 3,950 4,800 4,650

25 676 1,692 442 342 751 173 30 36 50

26,722 23,524 27,195 26,258 29,060 30,322 33,220 34,975 44,668 38,535

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Consumption of All Cottons in Specified Countries Year

1,450 1,139 2,411 1,758 2,977 2,265 2,370 3,414 3,383 3,100

Egypt

India Indonesia

1,056 12,675 973 12,620 823 13,547 773 13,544 673 13,275 913 13,300 913 13,500 963 14,800 1,013 16,500 1,013 18,300

1,900 2,241 2,050 2,500 2,350 2,300 2,200 2,200 2,225 2,225

In Thousands of 480-Pound Bales

Mexico

Pakistan

Russia

Thailand

Turkey

United States

World Total

2,035 2,235 2,425 2,125 2,225 2,125 2,025 2,125 2,125 2,075

7,212 7,025 7,675 8,125 8,525 9,425 9,625 10,775 11,775 12,125

1,200 920 1,550 1,600 1,800 1,650 1,500 1,425 1,425 1,425

1,376 1,335 1,606 1,685 1,825 1,975 1,875 2,125 2,075 2,075

5,000 4,600 5,600 5,167 6,150 6,300 6,000 7,100 6,900 7,000

11,390 10,007 10,339 8,379 7,876 7,439 6,477 6,799 5,326 4,994

86,686 83,646 90,456 90,794 93,517 97,526 97,246 107,700 113,195 118,796

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

65

COTTON

Cents Per Pound ----- Spot Average, New York (1791 - 1914) 7/8” Middling, Designated Markets (Aug. 1915 - July 1930) 15/16” Middling, Designated Markets (Aug. 1930 - Feb. 1967) 1 1/16” 7 Market Average (Mar. 1967 - date)

Averag e S p o t C o tto n P rices2, C .I.F. N o rth ern E u ro p e Crop Year Begi nni ng Aug. 1

Argenti na "C"3 1 1/16"

Australi a M 1 3/32"

Cotlook Index A

Cotlook Index B

1990-1 1991-2 1992-3 1993-4 1994-5 1995-6 1996-7 1997-8 1998-9 1999-001

77.06 55.08 64.31 80.20 101.88 82.98 79.71 69.96 57.19 ----

85.58 65.97 64.01 72.81 81.05 93.75 83.24 77.49 66.48 61.97

82.90 63.05 57.70 70.60 92.75 85.61 78.59 72.19 58.91 52.80

77.80 58.50 53.70 67.30 92.40 81.06 74.80 70.69 54.26 49.55

Egypt Gi za4 Greece 81 M 1 3/32"

177.43 128.10 99.24 88.35 93.70 ----------------

84.24 65.90 56.92 58.81 88.64 84.95 75.85 72.03 58.66 51.71

In U.S. Cents Per Pound Mexi co5 M 1 3/32"

Paki stan Si nd/ Punjab6

Tanzani a AR7 Type 3

84.46 68.19 ------82.65 94.94 79.60 81.70 65.78 56.43

77.19 58.14 52.66 54.42 73.75 81.86 73.37 72.93 -------

89.62 68.90 62.24 69.83 ---96.20 79.22 84.04 72.70 55.67

Turkey U.S. Cali f. Izmi r8 ACALA SJV9 1 3/32"

81.32 74.66 ---59.80 ---90.38 -------------

92.84 74.47 68.37 77.55 106.40 103.49 89.55 85.11 78.57 68.76

U.S. U.S. Memphi s Orleans/ Terr.10 Texas 11 M 1 3/32" M 1 1/32"

88.13 66.35 63.08 72.80 98.67 94.71 82.81 78.12 73.65 60.22

80.35 63.41 58.89 69.78 95.70 90.37 79.77 74.74 70.95 55.67

P reliminary. 2 Generally for prompt shipment. 3 1 1/32 prior to January 20, 1984; 1 1/16 since. 4 Dendera until 1969/70; Giz a 67 1969/70 until December 1983; Giz a 69/75/81 until Nov ember 1990; Giz a 81 since. 5 S. B raz il Ty pe 5, 1 1/32 prior to 1968-69; 1 1/16 until 1987/88; B raz ilian Ty pe 5/6, 1 1/16 since. 6 P unj ab until 1979/80; Sind SG until June 1984; Sind/P unj ab SG until January 1985; A fz al 1 until January 1986; A fz al 1 1/32 since. 7 8 No. 1 until 1978/79; No. 1/2 until F ebruary 1986; A R ' Mwanz a No. 3 until January 1992; A R ' Ty pe 3 since. I z mir ST 1 W hite 1 1/16 R G prior to 1981/82; 1 3/32 from 1981/82 until January 1987; I z mir/A ntaly a ST 1 W hite -3/32 R G since. 9 SM 1 3/32 prior to 1975/76; SM 1 1/8 since. 10 SM 1 1/16 prior to 1981/82; Middling 1 3/32 since. 11 Middling 1 prior to 1988/89; Middling 1 1/32 since. S ource: I nt ernat ional C ot t on Advisory C ommit t ee 1

Average Producer Price Index of Gray Cotton Broadw ovens Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

120.3 122.8 117.1 112.1 112.8 110.7 105.7 109.9 112.6 111.1

120.8 122.0 117.3 111.1 113.1 109.9 105.2 111.2 112.0 110.5

120.7 122.1 118.8 106.9 113.1 110.1 105.0 110.6 111.9 109.9

120.8 121.5 116.5 108.2 112.7 108.1 105.9 111.5 111.8 109.9

121.2 121.8 116.4 108.6 112.8 107.3 106.0 112.3 111.2 110.1

120.6 120.8 116.1 107.7 112.9 108.0 106.7 112.6 111.2 110.1

121.4 120.0 116.5 108.3 113.2 106.9 107.2 113.7 111.1 110.1

121.6 119.1 112.9 108.8 112.9 107.0 109.1 113.2 111.2 110.1

121.4 118.8 112.9 110.1 112.9 106.9 110.1 113.5 111.2 110.1

120.8 118.1 113.1 110.2 112.0 105.9 111.0 113.6 111.3 110.0

121.6 117.3 112.6 112.3 111.2 105.7 110.6 113.3 110.9 110.1

121.2 117.8 108.6 112.3 111.1 106.2 108.9 112.5 111.1 109.9

121.0 120.2 114.9 109.7 112.6 107.7 107.6 112.3 111.5 110.2

Preliminary.

66

Index 1982 = 100

Jan.

Source: Bureau of Labor Statistics (0337-01), U.S. Department of Commerce

COTTON Average Price of SLM 1 1/16",Cotton2 at Designated US Mkts Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

In Cents Per Pound (Net Weight)

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Average

71.61 71.87 49.72 59.33 36.05 39.20 51.94 44.92 45.38 48.65

70.75 71.75 48.39 60.62 33.22 37.91 58.02 47.48 47.43 46.80

69.46 67.61 49.46 60.54 28.42 39.62 69.38 44.55 51.02 45.15

68.90 64.95 48.12 62.16 31.23 44.98 68.88 42.62 48.80 46.32

64.57 59.88 46.65 61.04 32.21 46.38 65.09 41.68 49.53 49.85

62.75 56.20 51.92 56.66 32.13 48.60 68.21 43.21 51.91 49.90

63.66 55.46 54.29 54.10 31.60 51.35 63.35 42.90 52.39 48.77

67.04 58.17 57.67 47.22 33.23 53.82 61.78 48.19 50.04

61.88 57.01 53.76 42.19 31.86 53.38 57.50 49.58 49.00

65.21 55.54 58.31 40.02 31.14 48.94 60.22 48.57 47.00

73.50 53.74 54.97 37.38 36.36 50.92 52.35 45.92 47.90

74.18 49.23 55.13 37.48 39.78 54.45 45.05 47.78 47.15

67.79 60.12 52.36 51.56 33.10 47.46 60.15 45.62 48.96 47.92

1 2 Preliminary. Grade 41, leaf 4, staple 34, mike 35-36 and 43-49 , strength 23.5-26.4. U.S. Department of Agriculture (AMS-USDA)

Source: Agricultural Marketing Service,

Average Spot Cotton, 1 3/32", Price (SLM) at Designated U.S. Markets

In Cents Per Pound (Net Weight)

Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Average

73.69 73.93 52.90 62.60 38.88 42.31 55.87 50.45 50.59 53.80

72.64 73.75 51.27 63.62 36.11 41.07 61.76 52.55 52.81 51.95

71.13 69.90 52.43 63.13 31.55 43.08 73.27 49.45 56.01 50.20

70.35 67.18 51.51 65.08 34.03 48.78 72.63 47.23 53.78 51.13

66.30 62.18 49.73 64.73 34.82 50.70 68.90 46.41 54.47 54.71

64.55 58.56 55.02 60.18 34.55 52.87 71.96 48.16 56.69 54.75

65.78 58.27 57.38 57.18 34.08 55.34 67.34 48.17 57.16

69.25 61.34 61.02 50.08 36.04 57.88 66.42 53.37 55.03

64.31 60.33 57.52 44.94 34.84 57.54 63.11 54.67 54.07

67.66 58.89 63.09 42.54 34.03 52.96 65.97 53.76 52.02

76.02 56.85 59.28 39.88 39.31 55.09 57.99 51.26 52.97

76.63 52.61 58.80 39.96 42.86 58.46 51.11 52.97 52.35

69.86 62.82 55.83 54.49 35.93 51.34 64.69 50.70 54.00 52.76

Source: Agricultural Marketing Service, U.S. Department of Agriculture (AMS-USDA)

Average Spot Prices of U.S. Cotton2, Base Quality (SLM) at Designated Markets Crop Year Beginning Aug. 1

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061

In Cents Per Pound

Dallas (East Tex.-Okl.)

Fresno (San Joaquin Valley)

Greenville (Southeast)

Greenwood (South Delta)

Lubbock (West Texas)

Memphis (North Delta)

Phoenix Desert (Southwest)

Average

70.29 65.93 57.66 50.49 51.03 32.59 46.76 59.95 44.22 47.69

74.47 71.79 63.78 56.67 52.45 34.64 47.52 59.71 47.38 50.06

72.33 68.60 62.06 53.81 52.63 33.02 48.28 60.80 45.91 49.65

72.11 68.36 61.82 53.34 52.32 33.24 48.46 60.85 46.02 49.63

69.89 65.88 57.76 50.12 50.71 32.39 46.51 59.71 44.08 47.78

72.11 68.36 61.82 53.34 52.32 33.24 48.47 60.78 46.02 49.67

69.88 65.63 55.92 48.79 49.47 32.60 46.27 59.23 45.66 48.26

71.58 67.79 60.12 52.36 51.56 33.10 47.46 60.15 45.61 48.96

Preliminary. 2 Prices are for mixed lots, net weight, uncompressed in warehouse. Agriculture (AMS-USDA)

1

Source: Agricultural Marketing Service, U.S. Department of

Average Price1 Received by Farmers for Upland Cotton in the United States

In Cents Per Pound

Year

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-072

67.0 66.0 52.7 51.4 37.3 33.0 46.3 53.7 42.1 45.8

69.6 66.2 45.3 50.6 36.5 35.2 55.7 49.3 44.3 47.3

69.4 65.9 46.3 55.5 30.7 39.4 67.8 50.6 48.5 46.1

67.9 64.6 44.3 58.0 27.8 43.0 63.0 43.2 48.5 47.6

63.8 60.6 42.8 57.8 30.8 44.3 63.3 39.3 48.0 49.3

61.1 58.1 43.1 52.1 27.3 45.5 62.2 38.5 48.6 49.7

62.5 55.6 46.8 48.5 28.0 46.5 61.9 38.3 48.9 48.9

63.9 55.1 47.7 41.1 28.4 48.6 61.6 40.3 50.4

63.6 55.6 45.4 42.6 27.2 45.4 60.3 41.4 48.6

63.5 55.0 47.6 40.9 26.7 45.9 59.7 39.6 46.8

69.7 54.6 45.1 39.2 33.7 45.5 59.9 41.9 47.7

68.0 53.8 48.8 38.9 35.3 46.3 53.8 41.1 47.1

65.2 60.2 45.0 49.8 29.8 43.2 59.6 43.1 47.5 47.8

1

Weighted average by sales.

2

Preliminary.

Source: Agricultural Marketing Service, U.S. Department of Agriculture (AMS-USDA)

67

COTTON Purchases Reported by Exchanges in Designated U.S. Spot Markets1 Crop Year Beginning Aug. 1

Oct.

Nov.

1997-98 48,504 106,503 323,400 1998-99 27,193 52,066 114,998 1999-00 83,564 95,241 195,370 2000-01 63,607 69,083 143,938 2001-02 118,000 94,697 214,785 2002-03 43,047 49,671 194,020 2003-04 125,240 245,295 273,028 2004-05 135,568 46,749 91,390 2005-06 67,318 63,884 138,910 2006-07 87,527 58,849 111,619

367,010 229,743 320,434 323,891 644,860 204,564 167,285 263,999 220,961 112,634

1

Aug.

Seven markets.

Sept.

D e c.

Jan.

F eb.

617,470 655,432 482,625 498,082 414,832 191,872 517,579 744,400 294,843 288,242 217,755 215,318 225,869 289,778 180,362 369,838 481,730 432,055 321,083 417,090 267,237 369,597 402,504 445,448 363,287 434,818 183,744 214,384 174,852 140,273

Mar.

Apr.

May

396,946 92,072 236,762 71,993 189,460 89,473 191,667 274,185 278,853 84,259 169,064 170,951 167,357 62,031 424,472 210,285 183,273 62,703

210,906 63,335 129,879 193,774 155,391 213,679 70,979 93,471 73,726

Market Total

July

105,139 39,647 62,192 64,092 49,012 33,942 152,905 167,647 143,422 93,489 149,780 86,830 79,061 58,400 95,154 20,398 117,934 60,708

3,445,654 2,027,160 2,743,197 2,302,012 2,523,765 2,565,229 2,254,086 2,599,035 1,971,266 1,543,094

In Thousands of 480-Pound Bales Total AmericanPima

------------------------------------------------------------------------------------------ Upland ------------------------------------------------------------------------------------------AlaArkanLouisMissisNorth South Tenbama Arizona sas California Georgia iana sippi Missouri Carolina Carolina nessee Texas

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062 1

June

Source: Agricultural Marketing Service, U.S. Department of Agriculture (AMS-USDA)

Production of Cotton (Upland and American-Pima) in the U.S. Year

In Running Bales

550 553 625 543 920 570 820 814 848 600

Preliminary.

2

847 608 716 791 690 613 550 723 622 593

Forecasted.

1,683 1,209 1,428 1,425 1,833 1,669 1,804 2,089 2,202 2,560

2,191 1,146 1,580 2,210 1,770 1,460 1,495 1,790 1,623 1,430

1,919 1,542 1,567 1,663 2,220 1,578 2,110 1,797 2,140 2,120

986 641 901 911 1,034 739 1,027 885 1,098 1,280

1,821 1,444 1,731 1,711 2,396 1,935 2,120 2,346 2,147 2,150

565 350 472 540 695 610 700 830 864 980

930 1,026 816 1,429 1,673 806 1,037 1,360 1,437 1,350

410 350 281 379 423 131 326 390 410 430

662 546 595 710 978 818 890 984 1,122 1,310

5,140 3,600 5,050 3,940 4,260 5,040 4,330 7,740 8,484 5,735

548.0 442.3 674.3 389.1 700.4 678.3 432.3 745.6 630.5 729.0

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

Cotton Production and Yield Estimates ---------- Forecast of Production (1,000 Bales of 480 Lbs.1) ---------Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Aug. 1

Sept. 1

Oct. 1

Nov. 1

D e c. 1

Jan. 1

Actual Crop

17,783 14,263 18,304 19,159 20,003 18,439 17,104 20,183 21,291 20,431

18,418 13,563 17,535 18,315 19,992 18,134 16,939 20,895 22,282 20,345

18,410 13,288 16,430 17,485 20,072 18,070 17,559 21,545 22,717 20,659

18,848 13,231 16,531 17,510 20,175 17,815 18,215 22,545 23,161 21,299

18,819 13,452 16,875 17,399 20,064 17,375 18,215 22,815 23,703 21,297

18,977 ----------------------------

18,793 13,918 16,968 17,188 20,303 17,209 18,255 23,251 23,890 21,729

Net weight bales.

------ Forecasts of Yield (Lbs. Per Harvested Acre) -----Aug. 1

Sept. 1

Oct. 1

Nov. 1

D e c. 1

Jan. 1

Actual Crop

637 640 649 648 670 675 667 727 748 765

658 614 621 622 679 675 667 758 782 762

665 616 588 620 681 674 696 782 797 774

673 612 592 622 685 665 722 818 813 798

672 621 604 619 691 648 722 828 832 798

686 ----------------------------

673 625 607 632 705 665 730 855 831 819

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

Supply and Distribution of Upland Cotton in the United States

In Thousands of 480-Pound Bales

Crop Year Beginning Aug. 1

-------------------- Area -------------------- --------------------------- Supply --------------------------- ---------------------- Disappearance ----------------------

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

13,648 13,064 14,584 15,347 15,499 13,714 13,301 13,409 13,975 14,948

Planted

Harvested

----- 1,000 Acres -----

13,157 10,449 13,138 12,884 13,560 12,174 11,826 12,809 13,534 12,408

Yield Lbs./Acre

Beginning Stocks3

Production4

Imports

666 619 595 626 694 652 723 843 825 811

3,920 3,822 3,836 3,665 5,879 7,120 5,140 3,384 5,482 5,981

18,245 13,476 16,294 16,799 19,603 16,530 17,823 22,505 23,260 20,973

13 431 53 8 6 10 3 8 9 10

Total

Mill Use

Exports

22,178 17,729 20,183 20,472 25,488 23,661 22,966 25,897 28,751 26,501

11,234 10,254 10,055 8,738 7,592 7,170 6,159 6,629 5,837 5,150

7,060 4,056 6,303 6,303 10,603 11,266 13,220 13,645 17,437 15,450

Preliminary. 2 Estimate. 3 Excludes preseason ginnings (adjusted to 480-lb. bale net weight basis). year average price. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

68

4

Total

Ending Stocks

Farm Price5 Cents/Lb.

18,294 14,264 16,358 15,041 18,195 18,436 19,379 20,274 23,274 20,600

3,822 3,836 3,665 5,879 7,120 5,140 3,428 5,482 5,981 5,912

65.2 60.2 45.0 49.8 29.8 43.2 59.6 43.1 47.5 47.8

I ncludes preseason ginnings.

5

Marketing

COTTON

Average Open Interest of #2 Cotton Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

In Contracts

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

59,909 65,392 89,358 86,739 79,598 75,794 63,987 67,720 71,849 73,383 64,096 64,572 83,775 89,852 93,191 81,871 92,651 94,047 118,234 129,108

72,130 81,236 62,857 69,788 71,389 63,451 91,336 84,600 118,183 129,728

76,779 85,505 60,384 56,038 70,407 63,827 78,658 89,082 120,416 141,156

73,464 84,562 61,470 54,058 66,680 67,601 73,146 81,988 103,446 165,386

70,296 90,178 66,789 48,024 64,032 65,848 69,137 79,310 93,818 170,190

73,893 81,652 68,975 53,621 61,183 74,892 62,565 77,029 92,284 161,719

79,309 78,571 65,690 63,069 65,257 72,612 62,781 75,449 99,959 166,806

87,134 85,378 63,976 73,735 65,496 69,554 80,348 69,514 105,874 178,539

Nov.

D e c.

92,430 89,150 88,970 88,917 60,369 63,746 67,767 65,017 59,777 56,896 71,526 82,802 108,981 97,809 76,556 86,280 117,889 103,466 184,002 170,275

Oct.

87,120 77,873 61,474 62,931 58,156 74,685 79,627 84,409 100,660 164,797

Source: New York Board of Trade (NYBOT)

Volume of Trading of #2 Cotton Futures in New York

In Contracts

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

201,610 221,308 179,049 270,792 267,930 156,834 202,615 272,948 356,817 311,926

253,475 289,222 244,300 279,566 270,876 248,299 267,234 359,105 407,277 495,729

302,609 310,075 209,127 248,017 237,356 162,781 217,791 300,820 317,486 375,624

258,851 362,688 250,622 220,222 215,903 237,861 325,627 376,669 465,210 515,709

175,227 218,595 157,552 232,947 175,808 188,340 249,314 184,869 306,971 330,785

314,406 407,922 260,649 272,023 214,513 234,442 271,822 357,548 456,584 601,971

234,718 226,138 187,631 147,878 132,065 170,893 164,027 159,924 171,139 184,482

202,008 230,752 178,236 175,707 118,685 128,185 127,080 195,886 189,584 259,259

212,966 195,690 175,282 154,735 98,947 145,946 283,988 196,739 271,268 268,847

216,771 303,849 193,552 172,875 152,702 199,779 422,132 224,431 290,650 308,584

266,800 272,775 298,531 242,013 258,847 296,859 356,052 341,709 408,580 587,710

197,839 161,816 120,120 180,982 116,033 157,741 148,310 185,370 207,424 249,781

2,837,280 3,200,830 2,454,651 2,597,757 2,259,665 2,327,960 3,035,992 3,156,018 3,848,990 4,490,407

Source: New York Board of Trade (NYBOT)

69

COTTON Daily Rate of Upland Cotton Mill Consumption2 on Cotton-System Spinning Spindles in the U.S. In Thousands of Running Bales Crop Year Beginning Aug. 1

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

40.7 39.3 36.1 36.4 28.8 28.0 23.0 25.2 23.1 18.8

42.4 38.7 36.4 35.6 28.1 28.3 22.7 24.9 22.0 19.0

42.0 39.9 37.3 34.5 27.5 27.9 22.6 24.9 22.5 18.5

42.4 37.4 37.2 33.0 26.3 27.4 23.0 24.3 21.0

43.9 37.5 37.6 34.4 27.1 27.2 22.7 25.1 20.2

41.8 38.6 36.8 33.5 27.1 26.5 21.8 24.8 22.9

41.7 38.2 37.5 31.9 27.5 26.8 22.7 24.0 23.2

41.1 37.9 37.6 31.8 27.9 26.4 22.7 24.0 22.2

40.5 37.8 37.5 30.6 27.4 26.0 22.2 24.2 20.8

40.8 37.5 37.0 29.7 28.4 25.0 22.7 23.9 20.4

40.0 37.7 38.1 27.6 29.3 24.3 23.0 25.7 20.8

41.5 36.8 36.5 28.6 30.6 24.7 24.2 25.0 19.9

41.6 38.1 37.1 32.3 28.0 26.5 22.8 24.7 21.6 18.8

1

Preliminary.

2

Not seasonally adjusted.

Source: Bureau of the Census: U.S. Department of Commerce

Consumption of American and Foreign Cotton in the United States

In Thousands of Running Bales

Year

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Total

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

868 835 762 766 616 574 476 484 454 385

1,100 1,013 949 929 751 733 599 604 574 492

872 834 793 741 600 585 482 483 472 389

855 758 757 663 521 545 468 460 415 357

951 796 801 749 563 598 504 500 438 370

848 979 736 661 541 671 478 470 452 361

861 795 769 657 580 556 475 472 476

1,068 983 966 837 759 708 609 601 593

839 777 772 641 575 541 461 469 430

854 793 771 628 594 523 473 463 422

1,017 970 990 727 754 616 582 581 531

770 678 670 510 571 456 446 449 381

10,902 10,210 9,735 8,510 7,425 7,106 6,053 6,035 5,637 4,706

1

Preliminary.

Source: Bureau of the Census, U.S. Department of Commerce

Exports of All Cotton2 from the United States Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

In Thousands of Running Bales

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Total

458 402 254 430 612 472 810 760 1,407 688

299 280 146 336 824 653 555 374 742 412

400 265 167 382 678 373 446 422 533 487

581 795 455 435 649 626 758 632 763 599

774 1,027 654 541 927 935 1,116 1,087 1,236 812

734 156 658 564 964 1,206 1,194 1,179 946 683

777 182 736 614 1,042 873 1,238 1,214 1,541

888 221 978 720 1,225 1,597 1,869 1,839 2,195

669 169 708 568 999 1,174 1,453 1,461 1,758

477 256 659 692 842 1,150 1,117 1,094 1,725

574 260 508 784 1,067 1,273 1,576 1,411 1,906

571 330 479 648 679 1,231 1,021 1,828 1,903

7,202 4,344 6,402 6,715 10,505 11,561 13,154 13,301 16,655 7,361

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

U.S. Exports of American Cotton to Countries of Destination

In Thousands of 480-Pound Bales

Crop Year Beginning Aug. 1

Canada

China

Hong Kong

Indonesia

Italy

Ja p a n

Rep. of Korea

Mexico

Philippines

Taiwan

Thailand

United Kingdom

Total

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062

253 288 281 245 322 235 303 303 305 154

1,756 737 71 147 124 306 1,840 4,919 4,085 8,085

129 151 245 316 287 407 364 169 274 246

594 464 229 573 558 947 869 889 1,138 773

46 85 29 61 52 58 81 63 75 31

630 637 406 424 355 385 380 284 301 218

568 712 381 307 489 577 480 469 643 384

733 1,447 1,359 1,500 1,760 1,516 1,777 1,620 1,589 1,226

84 53 59 71 42 126 104 100 110 33

197 220 82 257 237 693 592 527 846 449

255 376 249 476 367 693 556 396 711 566

66 13 6 4 1 0 4 20 60 23

6,862 7,202 4,298 6,401 6,740 10,397 11,607 13,758 14,436 15,603

1

Preliminary.

70

2

Estimate.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

COTTON Cotton1 Government Loan Program in the United States Crop Year Beginning Aug. 1

1996-97 1997-98 1998-99 1999-00 2000-01

Support Target Put Under Price Price Support -- Cents Per Lb. -- Ths Bales

51.92 51.92 51.92 51.92 51.92

NA NA NA NA NA

% of Production

3,340 4,281 4,724 8,721 8,837

Owned Crop Year Acquired July 31 Beginning ----- Ths. Bales ----Aug. 1

18.1 23.5 36.8 54.9 52.6

1 Upland. 2 Preliminary. 3 Less than 500 bales. U.S. Department of Agriculture (ERS-USDA)

0 1 31 0 89

0 0 3 1 5

2001-02 2002-03 2003-04 2004-05 2005-062

NA = Not applicable.

Production of Cotton Cloth1 in the United States

Support Target Put Under Price Price Support -- Cents Per Lb. -- Ths Bales

51.92 52.00 52.00 52.00 52.00

NA 74.2 74.2 72.4 74.2

% of Production

13,655 12,740 10,345 17,091

Owned Acquired July 31 ----- Ths. Bales -----

69.7 77.1 58.0 79.1

257 44 4 0

2 106 0 0

Source: Economic Research Service,

In Millions of Square Yards

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total Year

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total Year

1997 1998 1999 2000 2001

1,211 1,226 1,170 1,075 1,047

1,276 1,167 1,164 1,129 976

1,283 1,218 1,078 1,111 873

1,309 1,142 1,039 1,079 811

5,078 4,753 4,451 4,395 3,706

2002 2003 2004 2005 20062

893 836 648 672 583

912 780 644 640 609

894 662 640 653 542

825 620 614 664

3,524 2,898 2,547 2,629 2,312

1

Cotton broadwoven goods over 12 inches in width.

2

Preliminary.

Cotton Ginnings in the United States To: 1

Crop Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-072 1

Aug. 1

Sept. 1 Sept. 15

2 146 81 245 99 56 29 48 69 23

Excluding linters.

359 523 561 842 609 538 567 563 592 406 2

683 739 1,018 1,454 802 898 958 1,157 976 996

Preliminary.

Oct. 15

Nov. 1

Nov. 15

D e c. 1

D e c. 1 5

Jan. 1

Jan. 15

F eb. 1

Total Crop

1,210 2,056 2,690 3,264 2,072 1,656 2,001 2,227 2,314 2,589

3,752 4,265 4,885 5,930 4,616 3,520 3,819 4,788 4,556 5,043

7,930 7,359 8,263 9,221 8,806 6,697 7,393 8,758 8,691 8,742

11,601 9,366 11,006 11,546 12,558 9,265 10,507 12,019 12,569 11,833

14,735 11,310 13,379 13,657 15,564 12,368 13,466 14,754 15,991 15,142

16,662 12,558 14,992 15,364 17,606 14,392 15,678 17,072 18,401 17,711

17,613 13,160 15,965 16,097 18,759 15,654 16,883 18,925 20,108 19,219

18,013 13,376 16,322 16,518 19,268 16,285 17,409 20,155 21,282 20,132

18,170 13,458 16,468 16,648 19,532 16,576 17,601 21,249 22,255 20,590

18,301 13,534 16,528 16,742 19,771 16,710 17,709 22,556 23,253 21,729

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

------------ Cotton1 -----------Raw5 Equivalent Actual

Year

Jan . F eb . Mar. Apr. May Ju n e July A ug . Sept. Oct. Nov. Dec.

74.21 61.45 64.06 47.08 45.56 62.54 60.42 54.75 56.70 59.55 60.94 57.77 56.35 53.69 56.64 55.96 57.45 54.78 53.67 54.82 58.74

In Thousands of Running Bales

Oct. 1

Fiber Prices in the United States

1998 1999 2000 2001 2002 2003 2004 2005 20066

Source: Bureau of Census, U.S. Department of Commerce

82.45 68.28 71.17 52.32 50.63 69.49 67.13 60.00 63.00 66.17 67.71 64.19 62.61 59.66 62.93 62.18 63.83 60.87 59.63 60.91 65.27

In Cents Per Pound --------------- Rayon2 --------------Raw5 Actual Equivalent

110.25 98.92 97.58 98.50 97.83 90.25 99.08 114.58 113.00 113.00 113.00 113.00 113.00 113.00 113.00 113.00 113.00 113.00 113.00 113.00 113.00

114.84 103.04 101.65 102.61 101.91 94.01 103.21 119.36 117.71 117.71 117.71 117.71 117.71 117.71 117.71 117.71 117.71 117.71 117.71 117.71 117.71

------------ Polyester3 -----------Raw5 Actual Equivalent

62.50 51.67 57.08 60.42 61.17 60.67 62.67 67.75 69.00 65.00 65.00 65.00 65.00 67.00 67.00 69.00 69.00 74.00 74.00 74.00 74.00

65.11 53.82 59.46 62.93 63.72 63.20 65.28 70.57 71.86 67.71 67.71 67.71 67.71 69.79 69.79 71.88 71.88 77.08 77.00 77.00 77.00

Price Ratios4 ---------- in Percent ---------Cotton/ Cotton/ Rayon Polyester

.72 .66 70.00 52.0 50.0 74.1 66.5 51.0 53.5 56.2 57.5 54.5 53.2 50.7 53.5 52.8 54.2 51.7 50.7 51.7 55.4

1.29 1.27 119.10 83.0 79.0 111.0 103.5 86.2 88.0 97.7 100.0 94.8 92.5 85.5 90.2 86.5 88.8 79.0 77.4 79.0 84.7

SLM-1 1/16 at group B Mill points, net weight. 2 1.5 and 3.0 denier, regular rayon staples. 3 Reported average market price for 1.5 denier polyester staple for cotton blending. 4 Raw fiber equivalent. 5 Actual prices converted to estimated raw fiber equivalent as follows: cotton, divided by 0.90, rayon and polyester, divided by 0.96. 6 Preliminary. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

71

Cottonseed and Products Cottonseed is crushed to produce both oil and meal. Cottonseed oil is typically used for cooking oil and cottonseed meal is fed to livestock. Before the cottonseed is crushed for oil and meal, it is de-linted of its linters. Linters are used for padding in furniture, absorbent cotton swabs, and for the manufacture of many cellulose products. The sediment left by cottonseed oil refining, called foots, provides fatty acids for industrial products. The value of cottonseeds represents a substantial 18% of a cotton producer’s income. Prices – The monthly average price of cottonseed oil in 2006 fell by –6.0% yr/yr to 28.56 cents per pound. The average monthly price of cottonseed meal in 2006 rose by +9.0% yr/yr to $142.28 per ton, but still well below 2004’s 9year high of $169.45 per ton. Supply – World production of cottonseed in the 2005-6 marketing year fell –6.2% yr/yr to 42.555 million metric tons, down from the record high of 45.354 million metric tons

World Production of Cottonseed Crop Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 1

Preliminary.

posted in 2004-05. The world’s largest cottonseed producers are China with 24% of world production, India with 19%, the US with 17%, and Pakistan with 10%. US production of cottonseed in the 2006-07 marketing year fell by –6.6% yr/yr to 7.632 million tons. US production of cottonseed oil in 2006-07 fell by –7.5% yr/yr to 880 million pounds, down from the 9-year high of 957 million pounds posted in 200405. US annualized production of cottonseed cake and meal in six months of the 2006-07 marketing year (Aug-Jan) fell by -8.8% yr/yr to 1.257 million tons. Demand – US cottonseed crushed (consumed) in the US annualized for six months of the 2006-07 marketing year fell by –18.7% to 2.480 million tons, far below the levels of over 4 million tons seen in the 1970s. Trade – US exports of cottonseed in 2006-07 rose +9.9% to 575,000 short tons, while imports were virtually zero.

In Thousands of Metric Ton

Argentina

Australia

Brazil

China

Egypt

Greece

India

Mexico

Pakistan

Turkey

United States

Former USSR

World Total

542 337 223 257 102 90 159 170 173

941 1,012 1,047 1,062 1,054 470 494 912 819

763 961 1,310 1,720 1,407 1,451 2,390 2,308 1,793

8,193 8,012 6,817 7,868 9,476 8,750 8,669 11,250 10,000

564 379 385 371 527 480 330 480 335

590 665 740 726 743 718 611 680 720

5,150 5,420 5,300 4,760 5,372 4,624 6,018 8,000 8,200

348 369 237 128 152 68 119 210 225

3,124 2,990 3,824 3,651 3,610 3,472 3,416 4,976 4,220

1,193 1,282 1,159 1,289 1,320 1,457 1,419 1,450 1,250

6,291 4,867 5,764 5,838 6,761 5,610 6,046 7,437 7,414

2,692 2,580 2,832 2,531 2,753 2,575 2,439 2,885 3,056

34,522 32,868 33,398 33,914 37,360 33,634 36,218 45,354 42,555

2

Estimate.

Source: The Oil World

Salient Statistics of Cottonseed in the United States

In Thousands of Short Tons -- Products Produced --

-------------------- Supply --------------------

Crop Year Beginning Aug. 1

------------------------ Disappearance -----------------------Total D i sa p ProTotal pearance Stocks duction Supply Crush Exports Other --------------------------------------------- In Thousands of Short Tons ------------------------------------------

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

563 393 274 427 400 347 421 592 602

Preliminary.

2

5,365 6,354 6,436 7,452 6,184 6,665 8,242 8,172 7,632

Estimate.

6,135 7,055 7,084 8,206 6,687 7,013 8,664 8,764 8,234

2,719 3,079 2,753 2,791 2,495 2,643 2,923 3,011 2,800

68 198 235 274 370 354 379 523 575

2,955 3,505 3,669 4,742 3,477 3,595 4,770 4,629 4,405

5,742 6,781 6,657 7,807 6,341 6,592 8,072 8,163 7,780

Farm Price $/Ton

Value of Production Mil. $

Oil MIllion L b s.

Meal Thousand Sh. Tons

129 89 105 91 101 117 107 96 101-124

687.2 565.5 675.7 667.3 616.4 779.0 872.8 779.5 842.9

832 939 847 876 725 874 957 951 880

1,232 1,390 1,338 1,294 1,115 1,244 1,362 1,373 1,300

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Wholesale Price of Cottonseed Meal (41% Solvent)2 in Memphis Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

153.10 110.60 126.88 184.00 133.13 157.38 188.00 112.50 172.50

139.10 101.25 130.50 148.75 125.00 143.60 193.00 111.25 152.50

128.70 106.90 129.38 138.13 131.88 142.40 205.10 110.80 148.75

116.25 110.90 125.00 140.00 124.30 142.40 219.67 108.00 144.38

105.00 108.75 123.25 137.50 120.88 131.75 203.00 110.40 131.50

129.40 114.50 130.63 126.88 137.50 131.50 185.40 138.75 135.00

146.65 115.00 131.88 129.69 151.50 143.00 177.50 151.00 132.50

130.30 100.65 130.50 130.63 159.75 151.70 156.20 143.00 134.50

115.60 111.92 153.12 131.25 156.38 153.20 142.75 140.00 139.00

106.50 111.83 150.00 131.25 150.10 163.50 126.75 133.13 132.40

107.90 112.00 141.88 128.13 150.00 182.50 119.00 132.50 131.88

119.75 124.20 160.83 134.17 156.00 185.00 117.00 175.00 152.50

124.85 110.71 136.15 138.37 141.37 152.33 169.45 130.53 142.28

Preliminary.

72

In Dollars Per Short Ton

Jan.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

COTTONSEED AND PRODUCTS

USD Per Ton ----- 36% Protein, Memphis, TN (Aug. 1910 - Sept. 1920) 41% Protein, Memphis, TN (Oct. 1920 - Sept. 1946) 41% Protein (Expeller), Memphis, TN (Oct. 1946 - Dec. 1981) 41% Protein (Solvent), Clarksdale, MS (Jan. 1982 - date)

Supply and Distribution of Cottonseed Oil in the United States Crop Year Beginning Oct. 1

In Millions of Pounds

Per Capita Cunsump. ------------------------- Supply ------------------------- ----------- Disappearance ----------- of Salad & Cook Oils ProTotal Stocks duction Imports Supply Domestic Exports Total - In Lbs. -

2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

49 93 39 36 109 76 101

847 876 725 874 957 951 880

0 0 21.0 0 2.0 1.0 0

896 969 786 910 1,068 1,029 981

673 779 640 690 935 860 841

131 150 110 111 57 67 75

804 930 750 801 991 928 916

Utiliz ation ------------ Food Uses ------------ --------- Prices ---------

34 36 38 38 37 40

Preliminary. 2 Estimate. 3 Valley Points FOB; Tank Cars. 4 Rotterdam; US, PBSY, fob gulf. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Shortening

Salad & Cooking Oils

188 185 195 167 166 213

304 203 302 295 304 390

Consumption of Crude Cottonseed Oil in Refining in the United States 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

2000 2001 2002 2003 2004 2005 2006 1 1

352 396 832 688 617 649 658

428 441 920 814

In Millions of Pounds

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Total

56.9 48.5 48.5 60.1 60.0 72.7 65.7

53.7 63.9 59.5 63.5 66.4 79.0 55.7

56.7 61.6 56.0 61.6 67.0 75.1 62.0

67.4 65.2 66.8 64.5 73.7 70.9

61.6 58.3 55.8 58.6 69.2 64.0

59.5 58.9 57.1 68.5 66.8 71.1

38.1 56.6 59.2 55.1 72.6 58.2

46.0 56.9 49.7 55.2 52.9 71.6

51.4 45.2 42.4 52.5 64.7 61.2

42.8 37.1 31.9 43.8 57.0 52.6

49.6 53.0 38.7 53.6 71.8 61.4

29.8 47.5 34.9 52.2 55.2 52.4

613.6 652.7 600.5 689.1 777.1 790.2 733.5

Source: U.S. Bureau of Census, U.S. Department of Commerce

Exports of Cottonseed Oil (Crude and Refined) from the United States Year

426 539 427

W = Withheld proprietary data.

1

Year

U.S.3 Rott4 (Crude) (Cif) Total ------ $/Met. Ton ------

In Thousands of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

10,627 14,684 12,905 7,017 14,203 3,490 5,084

9,447 6,638 17,550 8,483 8,982 3,161 5,676

13,181 7,237 12,137 10,054 8,321 5,191 5,410

8,258 10,595 8,319 8,234 10,399 3,461 7,738

7,402 12,722 21,013 9,706 9,632 5,873 5,519

7,550 7,525 9,444 8,161 10,720 3,029 6,510

11,546 10,325 7,863 6,593 7,931 3,147 7,587

10,642 20,809 8,727 8,663 9,891 3,763 6,608

16,467 6,439 6,831 8,764 4,617 4,823 5,755

13,263 19,891 12,698 8,640 5,669 3,847 8,827

11,652 5,662 11,105 9,349 7,619 2,926 9,377

8,898 19,831 10,761 8,176 7,507 4,676 14,365

128,934 142,359 139,352 101,839 105,492 47,387 88,456

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

73

COTTONSEED AND PRODUCTS Cottonseed Crushed (Consumption) in the United States Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

In Thousands of Short Tons

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Total

246.0 166.8 170.8 186.8 195.1 138.7 193.8 240.7 204.8

174.9 230.7 141.1 147.6 131.4 98.9 141.0 170.3 158.2

272.7 281.6 265.9 267.5 207.8 251.6 247.9 272.2 252.4

254.3 302.5 252.3 287.0 242.5 254.8 260.3 289.4 223.3

262.7 296.4 241.5 273.1 236.6 252.0 263.5 296.9 236.7

282.2 300.2 295.2 281.3 274.5 265.2 283.1 291.3 164.7

259.5 299.4 268.7 253.2 224.5 242.3 266.3 245.0

280.2 297.7 261.9 251.8 230.4 278.0 270.2 276.7

205.5 263.5 186.0 243.0 241.5 217.1 287.7 235.0

172.0 250.3 228.3 233.3 203.6 240.2 221.0 280.3

159.9 221.3 241.9 200.3 179.4 217.7 266.6 227.2

149.2 153.5 199.2 166.3 127.4 182.4 221.6 203.4

2,719 3,064 2,753 2,791 2,495 2,639 2,923 3,028 2,480

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Production of Cottonseed Cake and Meal in the United States Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

In Thousands of Short Tons

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Total

114.7 82.1 74.1 83.9 92.4 74.9 95.3 116.4 102.0

77.1 107.5 79.3 70.8 79.3 59.5 82.5 91.1 83.0

118.7 132.1 134.1 118.5 95.5 112.3 105.4 109.6 118.8

115.9 140.8 121.4 126.5 112.6 111.0 110.4 134.6 101.8

122.5 138.3 117.1 118.2 108.0 112.5 118.7 129.3 102.4

130.2 135.3 136.0 129.0 123.0 113.9 125.7 128.8 120.4

114.8 137.7 118.9 112.5 100.3 105.1 119.3 108.2

127.2 140.2 120.3 115.0 96.7 123.4 120.4 119.4

90.6 120.0 83.4 109.2 108.9 94.2 124.4 104.5

75.6 109.4 101.0 107.9 89.8 104.7 103.6 129.3

75.6 109.3 114.3 96.3 81.4 97.7 121.0 107.2

71.0 79.5 89.7 73.7 63.0 91.0 106.2 99.0

1,234 1,432 1,290 1,261 1,151 1,200 1,333 1,377 1,257

Source: Bureau of Census, U.S. Department of Commerce

Production of Crude Cottonseed Oil2 in the United States

In Millions of Pounds

Year

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Total

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

77.8 56.1 55.1 57.5 60.2 45.0 68.6 84.3 68.4

59.6 69.6 52.1 42.2 53.7 40.7 58.1 62.0 59.2

78.3 88.3 84.3 79.4 62.8 77.5 77.1 86.9 77.1

80.0 95.4 76.8 86.2 72.1 78.2 82.2 95.7 71.7

80.6 94.2 73.5 81.7 67.9 79.0 81.4 90.9 73.9

84.0 93.4 85.9 87.5 80.8 82.4 88.7 92.8 81.9

80.2 93.2 78.4 78.3 65.6 75.7 83.4 77.2

86.7 93.8 76.4 78.2 66.7 87.2 84.3 87.8

64.4 82.6 53.9 74.6 71.0 67.0 90.7 70.9

53.4 75.7 66.8 74.5 59.9 73.8 71.3 90.4

52.4 70.2 66.6 61.8 52.8 66.7 81.6 70.4

45.9 49.2 55.7 50.6 39.9 59.7 69.5 68.1

843 962 826 853 753 833 937 977 864

1

Preliminary.

2

Not seasonally adjusted.

Source: Bureau of Census, U.S. Department of Commerce

Production of Refined Cottonseed Oil in the United States

In Millions of Pounds

Year

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Total

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

55.8 44.8 44.4 49.4 52.7 38.5 53.4 71.2 61.0

29.1 42.4 36.2 29.6 47.1 34.6 52.0 54.7 52.0

51.1 50.4 55.1 48.2 48.3 59.8 59.7 72.8 65.2

47.9 55.6 52.2 63.6 59.2 63.5 66.1 78.5 55.3

48.5 59.5 54.9 61.3 55.7 61.4 66.9 74.7 61.5

45.4 58.3 65.7 64.9 66.5 64.3 73.4 70.3

47.3 56.7 59.8 58.0 55.6 58.4 68.8 63.8

49.0 65.8 57.8 58.5 56.8 68.3 66.6 70.8

35.2 60.0 36.9 56.2 58.9 55.1 72.3 57.8

27.4 51.0 44.8 56.7 49.4 55.1 52.7 71.2

27.5 41.9 50.0 45.2 42.4 52.4 64.6 60.8

29.7 22.0 41.5 36.8 31.7 43.8 56.6 52.3

494 608 599 628 624 655 753 799 708

1

Preliminary.

Source: Bureau of the Census, U.S. Department of Commerce

Stocks of Cottonseed Oil (Crude and Refined) in the U.S., at End of Month Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

74

In Millions of Pounds

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

97.3 107.8 59.9 97.7 46.1 50.5 123.3 90.6 98.9

78.6 76.0 49.0 91.8 39.7 36.0 109.0 76.4 101.1

89.1 81.1 66.5 113.8 32.8 51.9 106.6 69.0 93.2

110.0 88.7 75.2 112.9 40.2 56.1 110.6 76.1 92.3

85.5 85.1 95.0 109.8 38.0 68.7 111.3 74.0 107.2

109.5 84.5 109.5 124.9 46.1 85.9 116.6 84.0

113.3 79.6 134.4 120.3 58.8 100.6 122.0 99.0

125.3 115.2 139.9 106.9 72.2 117.6 112.9 108.5

126.0 127.4 133.5 110.3 83.3 116.8 121.2 103.3

112.0 127.5 123.5 97.3 84.2 125.7 111.5 110.8

Source: Bureau of Census, U.S. Department of Commerce

June

July

100.7 83.7 103.0 81.3 126.8 114.0 82.7 61.8 91.4 64.0 121.0 123.0 90.0 86.2 105.895.6

COTTONSEED AND PRODUCTS

Cents Per Pound ----- Prime Yellow Summer, New York (1875 - 1908) Crude, FOB Southeast Mills (Aug. 1909 - Dec. 1974) PBSY, Greenwood, MS (Jan. 1975 - date)

Average Price of Crude Cottonseed Oil, PBSY, Greenw ood, MS. in Tank Cars Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

25.21 27.69 31.72 21.98 16.24 16.38 49.82 32.76 23.70 29.63

25.44 29.37 28.21 22.65 15.20 15.89 49.90 34.21 24.38 29.50

26.18 30.46 26.27 23.70 15.53 16.77 47.52 34.91 28.19 29.75

25.10 32.47 24.39 24.57 14.03 16.98 44.57 34.47 29.80 27.05

25.19 33.13 24.25 22.97 14.53 17.95 42.33 32.57 30.63 28.06

25.01 30.22 25.19 21.54 13.27 19.48 28.69 30.72 33.13 27.25

26.53 29.40 24.70 21.03 16.78 21.30 24.38 27.83 34.15 29.20

27.11 30.11 21.39 20.17 17.18 22.32 25.51 25.29 30.44 26.69

28.03 33.26 20.22 18.52 15.78 22.32 29.64 23.29 31.25 27.13

28.47 33.99 20.15 18.16 14.44 26.84 32.93 22.74 34.44 27.44

29.11 34.16 19.69 17.83 15.91 36.90 32.24 23.88 34.09 30.25

26.78 33.40 21.25 17.25 16.07 46.89 33.26 23.81 30.50 30.75

26.51 31.47 23.95 20.86 15.41 23.34 36.73 28.87 30.39 28.56

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Exports of Cottonseed Oil to Important Countries from the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

Preliminary.

Canada

Dominican Republic

28.0 37.6 37.5 40.2 26.0 36.4 33.6 26.5 12.7 9.9

.0 .1 0 .0 .0 0 0 0 0 .0

Egypt

Guatemala

Ja p a n

0 0 0 0 3.0 0 0 0 0

.4 0 0 0 .5 0 0 0 0 .0

11.3 6.0 4.2 7.6 6.5 5.4 3.5 11.6 1.0 1.3

In Thousands of Metric Tons

Mexico

Netherlands

El Salvador

South Korea

Turkey

2.5 6.1 5.4 7.9 8.6 6.9 7.2 8.6 6.5 11.2

4.2 0 .5 .4 3.1 0 0 0 0 0

25.3 16.1 .8 0 4.8 1.8 .0 0 0 0

1.9 2.1 .0 .1 2.5 4.7 .7 .0 .1 14.1

2.5 0 0 0 0 .3 0 0 0 0

Venezuela

Total

.0 0 0 0 0 0 0 0 .1

110.6 86.9 57.0 58.5 64.6 63.2 46.2 47.9 21.5 40.1

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

75

Reuters-CRB Index (CCI) The Reuters Commodity Research Bureau Index (CCI) was first calculated by Commodity Research Bureau, Inc. in 1957 and made its inaugural appearance in the 1958 CRB Commodity Year Book. The Index originally consisted of two cash markets and 26 futures markets which were traded on exchanges in the U.S. and Canada. It included barley and flaxseed from the Winnipeg exchange; cocoa, coffee “B”, copper, cotton, cottonseed oil, grease wool, hides, lead, potatoes, rubber, sugar #4, sugar #6, wool tops and zinc from New York exchanges; and corn, oats, wheat, rye, soybeans, soybean oil, soybean meal, lard, onions, and eggs from Chicago exchanges. In addition to those 26, the Index also included the spot New Orleans cotton and Minneapolis wheat markets. Like the Bureau of Labor Statistics spot index, the Reuters-CRB Index (CCI) is calculated to produce an unweighted geometric mean of the individual commodity

price relatives. In other words, a ratio of the current price to the base year average price. Currently, 1967 is the base year the Index is calculated against (1967=100). The formula considers all future delivery contracts that expire on or before the end of the sixth calendar month from the current date, using up to a maximum of five contracts per commodity. However, a minimum of two contracts must be used to calculate the current price, even if the second contract is outside the six-month window. Contracts are excluded when in their delivery period. The 2006 closing value of 408.25 was 13.51 percent higher than the 2005 close of 347.89. 12 of the 17 component commodities finished higher for the year. Futures Markets Futures and options on the Reuters-CRB Index (CCI) are traded on the New York Board of Trade (NYBOT).

Reuters-CRB Index (CCI) Component Commodities by Group Groups: Energy:

Components Crude Oil, Heating Oil, Natural Gas

Grains and Oilseeds:

Corn, Soybeans, Wheat

Industrials:

Copper, Cotton

Livestock:

Live Cattle, Live Hogs

Precious Metals:

Gold, Platinum, Silver

Softs:

Cocoa, Coffee, Orange Juice, Sugar #11

The Reuters-CRB Index (CCI) is computed using a three-step process: 1) Each of the Index’s 17 component commodities is arithmetically averaged using the prices for all of the designated contract months which expire on or before the end of the sixth calendar month from the current date, except that: a) no contract shall be included in the calculation while in delivery; b) there shall be a minimum of two contract months for each component commodity (adding contracts beyond the six month window if necessary); c) there shall be a maximum of five contract months for each commodity (dropping the most deferred contracts to remain at five, if necessary). The result is that the Index extends six to seven months into the future depending on where one is in the current month. For example, live cattle’s average price on October 30, 1995 would be computed as follows:

Cattle Average =

Dec. ‘96 + Feb. ‘97 2

2) These 17 component averages are then geometrically averaged by multiplying all of the numbers together and taking the 17th root. Geometric Average = 17 √ Crude Avg. * Heating Oil Avg. * Sugar Avg.... 3) The resulting average is divided by 30.7766, the 1967 base-year average for these 17 commodities. That result is then multiplied by an adjustment factor of .8486. This adjustment factor is necessitated by the nine revisions to the Index since its inception in 1957. Finally, that result is multiplied by 100 in order to convert the Index into percentage terms:

Reuters-CRB Index (CCI) =

76

Current Geometric Average 1967 Geometric Avg. (30.7766)

* .8486 * 100

REUTERS-CRB INDEX (CCI)

Reuters-CRB Futures Index 17 Futures Markets Cattle (Live), Cocoa, Coffee, Copper, Corn, Cotton, Crude Oil, Gold (NY), Heating Oil #2, Hogs (Lean), Natural Gas, Orange Juice, Platinum, Silver (NY), Soybeans, Sugar #11 (World), Wheat (Chi.)

Average Open Interest of Reuters-CRB Futures Index in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

1,944 1,679 2,863 3,487 1,280 422 748 838 540 1,045

2,128 1,557 3,027 3,525 1,063 514 877 870 561 1,025

2,090 1,626 3,153 3,271 1,032 458 835 942 710 998

2,245 1,509 3,041 3,117 1,036 384 849 704 663 1,061

2,192 1,641 3,785 3,155 969 400 939 357 644 1,045

1,817 1,895 3,388 2,737 1,006 412 905 305 683 964

1,957 1,832 3,300 2,104 1,058 489 858 413 861 939

1,741 1,719 3,443 1,640 1,048 399 917 412 1,023 919

1,656 1,839 4,231 1,551 993 583 1,078 539 1,016 935

1,843 2,162 4,851 1,632 559 646 1,029 600 1,024 948

1,789 2,639 4,579 1,544 354 684 1,013 581 1,016 955

1,752 2,787 4,087 1,438 404 710 760 604 1,035 959

Source: New York Board of Trade (NYBOT)

Volume of Trading of Reuters-CRB Futures Index in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

6,645 7,659 7,606 14,975 2,428 1,251 2,289 2,477 1,154 2,231

4,942 4,623 7,766 6,760 1,823 1,231 2,154 1,695 861 1,114

5,245 3,953 7,556 3,941 1,310 896 1,826 3,169 2,023 1,017

8,600 3,890 7,808 7,582 2,062 1,472 1,634 2,672 1,891 1,836

8,156 2,933 4,986 7,402 930 785 1,514 1,209 1,027 1,563

7,776 5,634 8,404 8,924 1,965 1,191 2,106 1,618 2,105 1,323

6,248 3,394 4,378 2,023 880 1,217 1,632 792 1,623 927

7,685 4,578 12,053 3,973 2,021 915 1,350 1,341 1,931 1,020

4,537 5,101 6,660 1,333 625 1,100 1,712 759 605 892

4,588 4,013 8,063 2,122 1,263 1,654 2,123 813 707 461

3,468 8,814 9,497 3,254 843 1,430 2,502 1,630 1,258 1,220

3,592 4,401 3,932 1,205 728 1,141 2,314 979 882 708

71,482 58,993 88,709 63,494 16,878 14,283 23,156 19,154 16,067 14,312

Source: New York Board of Trade (NYBOT)

77

Currencies A currency rate involves the price of the base currency (e.g., the dollar) quoted in terms of another currency (e.g., the yen), or in terms of a basket of currencies (e.g., the dollar index). The world’s major currencies have traded in a floating-rate exchange rate regime ever since the BrettonWoods international payments system broke down in 1971 when President Nixon broke the dollar’s peg to gold. The two key factors affecting a currency’s value are central bank monetary policy and the trade balance. An easy monetary policy (low interest rates) is bearish for a currency because the central bank is aggressively pumping new currency reserves into the marketplace and because foreign investors are not attracted to the low interest rate returns available in the country. By contrast, a tight monetary policy (high interest rates) is bullish for a currency because of the tight supply of new currency reserves and attractive interest rate returns for foreign investors. The other key factor driving currency values is the nation’s current account balance. A current account surplus is bullish for a currency due to the net inflow of the currency, while a current account deficit is bearish for a currency due to the net outflow of the currency. Currency values are also affected by economic growth and investment opportunities in the country. A country with a strong economy and lucrative investment opportunities will typically have a strong currency because global companies and investors want to buy into that country’s investment opportunities. Futures on major currencies and on cross-currency rates are primarily traded at the Chicago Mercantile Exchange. Dollar – The dollar index in 2006 showed a moderate sell-off and closed the year –8.2% yr/yr, giving back part of the +15.2% recovery seen in 2005. The dollar index closed 2006 near the bottom of the 33.6% plunge seen in the dollar index in 2002-04 from the 20-year high posted in July 2001 to the 10-year low of 80.39 seen in December 2004. The dollar faded in 2006 because the US Federal Reserve in July 2006 finally halted its 2-year tightening regime, which took the federal funds rate higher by 425 basis points from 1.00% in mid-2004 to 5.25% in mid-2006. The Fed’s switch to a neutral monetary policy caused US interest rate differentials to stop improving, thus taking away the main factor that caused the dollar to show a moderate upside recovery in 2005. US interest rate differentials in 2006 were also hurt by the fact that the European Central Bank raised its benchmark rate five times

78

in 2006 (by a total of 125 bp) and the Bank of Japan in mid2006 finally retracted its zero interest rate policy and raised its overnight rate by 25 basis points to 0.25%. When US interest rate differentials stopped improving, the market refocused its attention on the bearish factor of the massive US trade deficit. The US trade deficit in 2006 rose to a new record high of $763.6 billion from $716.7 billion in 2005. Meanwhile, the US current account balance as a percentage of US GDP was about 6.7% of GDP in 2006, just below the quarterly record of 7.0% seen in Q4-2005. Looking ahead, the dollar is likely to remain subject to continued weakness due to the massive US trade deficit, expectations for Fed easing by the end of 2007, the possibility of reserve diversification by the Chinese central bank, and the possibility of a further exit from yen carry trades (which is bullish for the yen). However, the dollar should continue to receive underlying support from the fact that US investments remain attractive and that US interest rates are still above those in Europe and Japan. Euro – The euro in 2006 rallied fairly steadily against the dollar to close the year +11.4% at $1.3199 per euro. Against the yen, the euro extended its 2001-07 bull market and posted a record high of 159.64 yen/euro in February 2007. The euro received strong support from the European Central Bank’s steady series of interest rate hikes. The ECB from late-2005 through March-2007 raised its benchmark 2-week refinancing rate by a total of 175 basis points from the 2.00% level that prevailed from mid-2003 to late-2005 to 3.75% by March 2007. In addition, Europe’s GDP grew steadily through 2006 and reached +3.3% yr/yr by Q4-2006. Yen – The yen showed general weakness against both the dollar and the euro in 2006. The yen continued to suffer from the Bank of Japan’s extremely easy monetary policy, which made yen plentiful and also encouraged the yen carry trade where global investors borrow in yen, sell the yen, and then invest the proceeds in higher-yielding nonJapanese investments. However, the Bank of Japan in mid2006 did finally raise its overnight rate by 25 basis points to 0.25% and implemented another 25 basis point rate hike to 0.50% in March 2007 as the Japanese economy showed a sustained recovery and appeared to be throwing off deflationary pressures.

CURRENCIES

U.S. Dollars per British Pound Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1.6590 1.6347 1.6495 1.6395 1.4767 1.4314 1.6184 1.8223 1.8783 1.7665

1.6258 1.6402 1.6269 1.6007 1.4522 1.4233 1.6077 1.8675 1.8883 1.7478

1.6095 1.6615 1.6213 1.5810 1.4438 1.4233 1.5832 1.8273 1.9034 1.7446

1.6285 1.6720 1.6085 1.5807 1.4350 1.4434 1.5751 1.8050 1.8961 1.7690

1.6325 1.6370 1.6147 1.5084 1.4268 1.4601 1.6230 1.7888 1.8538 1.8693

1.6457 1.6509 1.5957 1.5102 1.4025 1.4849 1.6606 1.8292 1.8179 1.8435

1.6717 1.6429 1.5754 1.5082 1.4149 1.5566 1.6242 1.8433 1.7518 1.8451

1.6044 1.6355 1.6051 1.4885 1.4376 1.5375 1.5942 1.8195 1.7947 1.8934

1.6020 1.6814 1.6237 1.4341 1.4646 1.5562 1.6141 1.7932 1.8078 1.8858

1.6331 1.6933 1.6570 1.4509 1.4520 1.5576 1.6778 1.8069 1.7649 1.8766

1.6887 1.6613 1.6206 1.4252 1.4358 1.5718 1.6899 1.8608 1.7355 1.9124

1.6606 1.6713 1.6131 1.4657 1.4422 1.5882 1.7536 1.9298 1.7454 1.9634

1.6385 1.6568 1.6176 1.5161 1.4403 1.5029 1.6352 1.8328 1.8198 1.8431

Source: FOREX

Volume of Trading of British Pound Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

240.3 174.3 182.4 199.6 125.6 182.0 158.3 310.3 376.7 1,013.7

168.7 126.9 151.8 179.8 126.2 168.2 161.8 291.6 410.5 1,012.0

289.4 231.9 350.2 270.9 198.7 230.4 217.4 470.3 628.7 1,479.2

185.3 175.7 205.3 138.9 127.0 168.2 158.1 293.1 453.3 1,207.6

236.6 217.1 285.0 133.3 166.3 174.1 164.7 282.5 555.5 1,465.1

279.3 323.0 332.1 225.8 248.9 239.8 288.6 427.8 763.5 1,262.1

265.1 211.7 250.3 136.2 164.2 133.3 214.9 373.4 640.2 963.1

194.6 277.3 178.2 155.9 183.6 138.3 163.5 367.1 735.3 1,262.2

234.1 291.4 275.9 245.1 197.1 185.3 284.5 471.4 1,034.5 1,486.2

202.1 202.0 177.9 100.7 178.9 177.5 212.6 405.4 887.8 1,387.1

145.0 146.8 163.2 100.7 161.4 160.9 206.2 348.4 1,080.6 1,563.9

D e c.

Total

286.1 2,726.6 255.5 2,633.7 181.5 2,734.0 152.5 2,039.3 187.4 2,065.4 198.0 2,155.9 364.5 2,595.2 635.2 4,676.5 1,203.1 8,769.8 1,997.4 16,099.5

Source: I nternational Monetary Market (I MM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of British Pound Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

40,479 33,616 51,519 37,192 28,776 26,450 36,892 61,694 67,140 83,051

38,370 31,282 59,705 45,329 30,555 31,023 33,066 68,173 70,872 97,226

43,742 38,712 66,913 51,645 36,532 30,474 27,042 51,968 81,799 83,641

37,701 41,256 64,937 41,488 34,713 39,952 25,274 43,830 80,850 83,275

40,956 47,303 58,744 51,965 39,836 46,178 36,171 45,843 88,397 106,555

48,890 55,511 60,414 43,009 48,310 47,355 50,118 53,615 79,278 98,417

60,592 39,156 65,206 30,766 33,273 38,138 41,702 68,262 75,387 91,563

50,829 49,645 54,373 36,320 40,935 31,320 46,979 71,503 73,199 129,334

41,801 63,756 50,949 42,781 50,083 31,513 40,183 60,274 81,479 120,737

35,752 53,458 65,038 30,978 38,579 29,599 55,884 66,565 79,854 106,288

Nov.

D e c.

56,825 44,667 54,004 53,578 49,468 34,191 34,627 32,913 40,461 35,424 40,901 36,671 66,660 70,197 87,487 86,572 84,884 91,497 145,026 157,837

Source: I nternational Monetary Market (I MM), division of the Chicago Mercantile Exchange (CME)

79

CURRENCIES

Canadian Dollars per U.S. Dollar Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1.3484 1.4407 1.5189 1.4480 1.5021 1.5996 1.5395 1.2967 1.2248 1.1573

1.3555 1.4335 1.4971 1.4499 1.5227 1.5961 1.5119 1.3292 1.2386 1.1488

1.3727 1.4159 1.5174 1.4600 1.5579 1.5872 1.4752 1.3282 1.2157 1.1571

1.3947 1.4294 1.4868 1.4681 1.5581 1.5814 1.4567 1.3410 1.2368 1.1440

1.3793 1.4449 1.4614 1.4944 1.5403 1.5491 1.3819 1.3774 1.2553 1.1094

1.3844 1.4647 1.4691 1.4762 1.5238 1.5312 1.3520 1.3582 1.2402 1.1139

1.3769 1.4865 1.4877 1.4778 1.5294 1.5447 1.3801 1.3225 1.2239 1.1287

1.3894 1.5344 1.4921 1.4819 1.5384 1.5685 1.3948 1.3127 1.2048 1.1191

1.3865 1.5212 1.4772 1.4841 1.5665 1.5747 1.3638 1.2880 1.1781 1.1161

1.3863 1.5430 1.4767 1.5119 1.5708 1.5783 1.3226 1.2476 1.1777 1.1281

1.4127 1.5400 1.4671 1.5425 1.5934 1.5715 1.3128 1.1958 1.1813 1.1365

1.4272 1.5429 1.4713 1.5219 1.5793 1.5588 1.3121 1.2177 1.1619 1.1531

1.3845 1.4831 1.4852 1.4847 1.5486 1.5701 1.4003 1.3013 1.2116 1.1343

Source: FOREX

Volume of Trading of Canadian Dollar Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

189.9 172.0 171.0 184.2 194.7 222.9 270.8 380.7 548.6 695.1

127.3 202.0 173.0 182.5 201.1 191.5 256.7 328.0 483.0 648.6

295.2 277.1 279.9 280.9 317.9 338.3 475.5 516.3 678.0 1,040.9

151.1 142.6 203.4 155.0 188.2 249.6 289.2 380.3 592.9 654.9

230.7 143.2 164.4 162.8 228.4 222.2 353.1 337.1 555.2 816.6

276.8 291.5 309.7 295.5 351.0 358.7 494.2 504.0 761.5 1,043.4

146.9 153.4 216.1 166.0 221.6 278.8 331.3 366.5 562.2 658.3

187.1 214.0 186.0 188.5 235.9 204.2 266.2 419.4 566.3 811.0

262.3 288.7 263.4 241.2 265.1 279.1 393.3 640.8 914.2 1,073.7

268.4 148.7 167.7 161.6 214.1 245.3 285.7 512.0 671.3 805.8

130.5 148.9 165.6 150.3 218.1 207.4 294.4 499.5 736.0 960.8

322.9 210.0 277.2 265.8 287.3 324.4 509.3 726.8 861.0 1,070.4

2,589.1 2,392.2 2,577.5 2,434.1 2,923.3 3,122.3 4,219.6 5,611.3 7,930.2 10,279.6

Source: I nternational Monetary Market (I MM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of Canadian Dollar Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

55,949 63,300 50,061 66,374 54,369 68,927 82,870 74,577 74,703 103,427

56,600 67,862 71,819 64,528 58,660 72,132 105,051 64,032 84,753 118,978

72,803 61,528 63,782 58,621 72,051 70,484 107,507 61,981 93,986 103,066

82,732 58,938 73,773 60,389 64,550 68,120 97,515 72,750 77,680 92,541

73,747 64,859 84,885 76,444 65,407 81,574 96,689 84,356 95,229 114,587

57,243 74,027 71,923 69,033 62,489 86,250 85,665 68,458 79,464 107,605

43,937 71,313 65,877 67,198 54,742 74,347 68,741 73,164 86,451 89,443

59,112 75,193 71,458 65,370 54,580 63,116 63,518 83,483 101,128 91,591

56,387 60,863 61,994 65,779 73,647 63,605 70,261 97,486 120,542 112,788

59,265 51,967 58,749 81,995 71,610 57,031 79,754 112,648 108,095 99,209

Source: I nternational Monetary Market (I MM), division of the Chicago Mercantile Exchange (CME)

80

Nov.

D e c.

75,027 74,221 61,318 50,271 59,941 51,967 77,746 65,452 82,083 67,578 60,648 71,852 82,366 74,271 110,035 81,976 106,773 122,584 121,729 146,474

CURRENCIES

Euro1 per U.S. Dollar Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1.2088 1.0859 1.1584 1.0135 .9380 .8828 1.0636 1.2604 1.3110 1.2121

1.1592 1.0896 1.1202 .9842 .9208 .8706 1.0778 1.2633 1.3020 1.1940

1.1460 1.0854 1.0882 .9644 .9085 .8767 1.0795 1.2263 1.3178 1.2033

1.1396 1.0931 1.0700 .9450 .8931 .8866 1.0875 1.1999 1.2940 1.2282

1.1441 1.1099 1.0622 .9080 .8747 .9179 1.1580 1.2013 1.2685 1.2773

1.1309 1.1015 1.0385 .9496 .8536 .9567 1.1670 1.2147 1.2156 1.2665

1.0999 1.0991 1.0366 .9394 .8616 .9924 1.1374 1.2265 1.2049 1.2693

1.0694 1.1041 1.0603 .9042 .9023 .9781 1.1154 1.2192 1.2299 1.2811

1.0976 1.1566 1.0501 .8706 .9123 .9810 1.1260 1.2226 1.2246 1.2734

1.1190 1.2015 1.0705 .8533 .9062 .9818 1.1701 1.2504 1.2030 1.2623

1.1418 1.1680 1.0327 .8554 .8882 1.0020 1.1714 1.3001 1.1796 1.2893

1.1114 1.1746 1.0117 .9004 .8913 1.0210 1.2314 1.3415 1.1861 1.3200

1.1306 1.1224 1.0666 .9240 .8959 .9456 1.1321 1.2439 1.2448 1.2564

1

Data through December 1998 are theoretical based on DEM * 1.95583.

Volume of Trading of Euro FX Futures in Chicago Year

1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

Mar.

Apr.

May

------------0.0 69.0 96.6 288.4 157.6 183.7 404.9 335.0 452.4 289.4 318.3 453.5 373.2 556.4 368.3 407.7 567.8 582.3 783.3 650.2 611.4 610.6 749.2 977.9 785.5 902.7 1,487.3 1,469.2 1,837.7 1,326.7 1,328.9 2,646.0 2,266.4 2,772.9 2,992.0 2,771.6 2,956.0 2,563.9 3,411.2 2,984.4 4,496.3

Source: FOREX

In Thousands of Contracts

June

Aug.

Sept.

Oct.

Nov.

D e c.

Total

0.0 0.0 0.0 276.4 259.7 258.1 382.2 234.9 303.3 585.3 425.1 494.7 917.7 821.6 525.5 1,103.8 866.2 824.5 1,682.2 1,491.2 1,518.5 3,656.1 2,732.6 2,765.1 3,765.7 2,789.0 3,229.5

July

0.0 422.8 486.3 533.9 675.3 1,112.4 1,798.7 3,206.6 3,364.0

0.0 302.5 287.7 533.6 525.2 1,069.6 1,786.0 2,613.6 3,123.5

0.0 303.1 297.0 545.0 426.7 958.9 2,138.5 3,164.2 3,790.4

0.0 383.0 466.7 781.1 625.4 1,232.6 2,591.9 2,943.6 4,316.6

0.0 3,000.8 4,258.2 6,057.8 7,712.3 11,193.9 20,456.7 34,530.7 40,790.4

Source: I nternational Monetary Market (I MM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of Euro FX Futures in Chicago Year

1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

---8,261 63,124 89,049 100,258 105,762 125,879 135,748 133,092

---30,546 68,413 91,130 108,955 106,905 133,690 152,110 150,085

---37,837 61,180 90,127 113,075 100,759 115,712 140,879 152,674

---37,881 59,110 78,762 112,413 85,604 112,361 130,131 166,920

1 46,446 67,644 89,390 136,660 108,619 138,193 154,751 196,057

1 50,615 63,361 94,160 135,364 111,651 120,281 163,584 177,700

1 46,777 57,723 84,637 112,462 96,338 140,430 142,826 155,865

1 55,858 69,561 104,437 101,992 98,671 160,315 148,309 173,151

1 49,352 77,617 112,797 99,365 95,553 121,180 149,184 155,567

0 57,380 73,314 108,445 85,462 102,568 136,959 142,879 152,410

7 58,846 79,577 108,999 103,156 113,601 202,074 171,035 182,079

7 65,346 92,730 104,323 108,602 131,560 175,374 160,065 214,241

Source: I nternational Monetary Market (I MM), division of the Chicago Mercantile Exchange (CME)

81

CURRENCIES

Japanese Yen per U.S. Dollar Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

117.93 129.39 113.23 105.29 116.83 132.77 118.76 106.38 103.29 115.53

122.90 125.71 116.62 109.49 116.17 133.50 119.39 106.70 104.98 117.92

122.72 129.04 119.49 106.34 121.44 131.11 118.76 108.51 105.35 117.31

125.66 131.79 119.73 105.65 123.64 130.75 119.81 107.61 107.19 116.97

118.93 135.01 121.88 108.19 121.66 126.29 117.37 112.05 106.71 111.77

114.25 140.40 120.69 106.15 122.38 123.25 118.31 109.44 108.75 114.65

115.30 140.75 119.38 108.03 124.45 118.02 118.64 109.46 111.92 115.69

117.90 144.51 113.16 108.06 121.29 119.04 118.61 110.24 110.62 115.95

120.85 134.45 107.00 106.79 118.64 120.88 114.94 110.10 111.19 117.14

121.06 120.49 105.94 108.39 121.35 123.92 109.51 108.81 114.84 118.61

125.35 120.41 104.62 108.94 122.39 121.50 109.17 104.71 118.42 117.28

129.62 117.01 102.64 112.18 127.72 121.83 107.70 103.79 118.39 117.43

121.04 130.75 113.70 107.79 121.50 125.24 115.91 108.15 110.14 116.35

Source: FOREX

Volume of Trading of Japanese Yen Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

411.6 557.8 418.1 433.9 258.6 415.7 423.9 410.1 789.9 1,221.1

457.2 500.9 524.6 299.1 223.7 417.5 388.3 484.9 718.8 1,128.7

564.8 636.6 672.7 569.7 598.4 630.8 634.4 741.8 1,045.2 1,950.5

402.7 480.3 400.4 250.5 295.4 391.7 453.4 516.4 915.4 1,385.9

604.6 453.4 473.4 265.8 351.2 318.5 495.6 415.5 876.2 1,890.9

564.2 1,017.0 687.1 427.4 459.4 461.7 621.0 685.8 1,263.0 1,905.3

424.3 515.9 476.9 248.8 307.4 301.2 518.8 487.5 946.9 1,317.9

528.2 590.8 422.3 285.9 369.4 234.2 427.0 490.7 1,012.4 1,395.9

611.8 895.8 679.1 367.1 518.6 499.2 731.0 807.6 1,285.4 1,965.8

529.6 551.9 310.5 213.9 286.2 349.5 396.6 629.6 963.7 1,525.1

425.8 386.3 390.5 222.7 350.1 255.4 353.4 650.5 1,001.0 1,852.8

D e c.

Total

644.8 6,169.6 467.2 7,053.8 469.1 5,924.8 405.2 3,990.0 595.9 4,614.1 535.8 4,811.1 641.8 6,085.2 1,074.9 7,395.3 1,653.9 12,471.7 2,137.5 19,677.4

Source: I nternational Monetary Market (I MM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of Japanese Yen Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

73,391 95,338 78,767 93,785 89,680 129,917 116,574 156,929 164,708 168,309

82,542 101,448 81,859 125,318 90,652 123,735 107,929 156,416 155,593 198,855

78,466 97,183 96,271 95,034 109,536 95,535 101,809 120,848 132,268 203,450

81,117 97,389 87,829 75,631 96,244 72,358 81,168 117,483 134,802 201,459

85,984 106,139 118,819 80,840 89,377 88,905 107,090 108,078 172,574 210,578

73,322 132,732 120,681 68,359 82,838 88,324 102,507 105,505 164,580 197,160

62,488 113,084 118,329 60,966 93,430 77,168 107,450 106,280 161,763 191,480

82,369 145,241 136,826 79,195 107,588 71,683 125,884 110,234 170,290 218,893

96,468 108,808 115,884 64,845 102,710 79,980 149,978 93,780 159,227 239,426

90,080 88,991 82,657 64,648 75,096 80,104 152,368 127,644 186,631 258,509

130,606 89,108 87,869 68,719 97,368 74,584 138,799 181,093 202,939 242,216

121,001 79,262 87,595 100,713 137,756 99,643 147,255 172,526 191,591 265,490

Source: I nternational Monetary Market (I MM), division of the Chicago Mercantile Exchange (CME)

82

CURRENCIES

Sw iss Francs per U.S. Dollar Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1.3925 1.4756 1.3856 1.5888 1.6296 1.6710 1.3748 1.2425 1.1802 1.2781

1.4543 1.4616 1.4273 1.6326 1.6681 1.6972 1.3609 1.2458 1.1906 1.3056

1.4622 1.4896 1.4656 1.6624 1.6903 1.6741 1.3617 1.2773 1.1763 1.3044

1.4614 1.5050 1.4972 1.6638 1.7115 1.6527 1.3770 1.2954 1.1955 1.2822

1.4298 1.4782 1.5078 1.7151 1.7525 1.5868 1.3091 1.2818 1.2183 1.2185

1.4419 1.4951 1.5359 1.6422 1.7842 1.5389 1.3196 1.2501 1.2663 1.2319

1.4810 1.5126 1.5472 1.6503 1.7564 1.4731 1.3597 1.2458 1.2935 1.2362

1.5123 1.4927 1.5092 1.7146 1.6791 1.4968 1.3813 1.2625 1.2626 1.2319

1.4702 1.4002 1.5251 1.7564 1.6338 1.4929 1.3741 1.2624 1.2657 1.2440

1.4507 1.3376 1.4891 1.7727 1.6337 1.4922 1.3234 1.2338 1.2872 1.2597

1.4057 1.3856 1.5541 1.7772 1.6501 1.4647 1.3314 1.1702 1.3100 1.2351

1.4393 1.3600 1.5827 1.6778 1.6569 1.4360 1.2627 1.1455 1.3056 1.2102

1.4501 1.4495 1.5022 1.6878 1.6872 1.5564 1.3446 1.2428 1.2460 1.2532

Source: FOREX

Volume of Trading of Sw iss Franc Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

360.5 308.0 294.6 326.2 193.5 195.3 236.1 216.1 444.3 803.5

316.3 256.8 262.1 313.1 203.0 183.2 289.9 230.1 389.1 745.9

436.8 448.0 417.0 385.3 280.3 281.3 412.7 359.6 575.5 1,129.0

343.6 318.5 284.0 252.1 168.7 211.5 256.9 260.0 605.0 837.5

432.5 319.2 323.3 247.7 191.6 208.1 277.8 255.7 521.4 1,011.3

389.5 367.4 384.7 301.2 326.0 297.0 384.9 370.9 753.4 993.3

316.1 310.7 351.1 214.6 257.6 187.2 315.0 331.4 546.4 771.2

305.2 360.4 311.8 216.6 229.4 218.5 252.1 313.7 596.4 1,014.8

394.1 438.1 482.4 344.5 261.8 323.1 349.9 404.5 888.8 1,046.8

429.7 300.7 407.6 176.2 227.5 237.6 237.2 428.3 765.9 919.6

221.0 251.3 287.2 185.4 238.2 207.8 283.8 329.0 797.1 1,078.1

344.9 290.8 304.5 267.3 297.3 271.6 300.5 568.4 901.2 1,118.9

4,290.1 3,970.0 4,110.3 3,230.2 2,874.8 2,822.1 3,596.7 4,067.8 7,784.5 11,470.0

Source: I nternational Monetary Market (I MM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of Sw iss Franc Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

51,652 57,740 39,434 55,660 50,121 35,116 56,268 45,259 51,858 80,904

54,114 46,160 58,279 69,983 44,405 44,388 57,099 42,950 56,240 107,509

51,121 67,722 66,250 57,703 46,470 45,434 50,008 41,250 50,827 101,445

45,725 67,303 66,530 41,732 41,641 38,248 37,451 38,563 41,322 82,280

48,651 63,477 73,322 46,159 53,265 55,039 53,642 38,024 55,995 98,416

42,530 77,564 75,322 41,727 60,943 54,573 49,688 48,654 78,794 89,254

55,279 85,984 66,603 36,894 53,687 42,060 41,489 51,116 72,596 67,127

58,098 70,569 71,060 50,595 60,986 38,102 50,677 40,256 67,489 69,406

49,296 81,465 60,214 57,439 61,689 37,675 52,641 33,539 66,009 83,545

43,585 57,413 65,020 47,313 48,962 35,796 54,259 47,200 75,088 97,034

51,822 44,810 67,936 48,870 53,445 48,951 62,584 74,988 91,072 89,039

48,560 43,436 64,507 55,982 46,771 50,107 60,475 70,330 98,443 74,522

Source: I nternational Monetary Market (I MM), division of the Chicago Mercantile Exchange (CME)

83

CURRENCIES United States Merchandise Trade Balance1 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 392006 2 1

Jan.

F eb.

-18,167 -17,187 -23,409 -34,116 -39,161 -33,407 -43,619 -46,104 -57,625 -70,969

-16,780 -18,331 -25,233 -34,708 -34,648 -31,405 -38,301 -42,621 -54,860 -59,692

Not seasonally adjusted.

2

Mar.

In Millions of Dollars

Apr.

May

-14,896 -16,505 -20,615 -20,860 -25,741 -25,851 -37,215 -36,934 -38,815 -37,270 -31,865 -39,875 -43,538 -46,145 -50,545 -52,314 -56,700 -60,386 -63,453 -65,459

-16,982 -22,236 -27,753 -36,910 -34,690 -39,229 -43,275 -49,848 -61,475 -72,366

Preliminary.

June

July

-15,610 -15,864 -20,404 -21,066 -30,381 -31,227 -37,827 -38,091 -35,760 -35,633 -37,590 -46,642 -43,882 -51,798 -60,221 -60,068 -64,686 -66,999 -70,980 -78,918

Aug.

Sept.

Oct.

-16,909 -16,524 -16,270 -22,291 -21,611 -20,990 -30,518 -30,573 -31,576 -36,839 -39,682 -40,205 -34,458 -35,660 -35,034 -44,082 -43,241 -45,583 -45,166 -49,478 -51,812 -60,752 -57,766 -62,556 -70,417 -73,183 -77,869 -79,932 -71,740 -73,679

1999 2000 2001 2002 2003 2004 2005 2006 1

U.S. Markets U.S. Competitors U.S. Markets U.S. Competitors U.S. Markets U.S. Competitors U.S. Markets U.S. Competitors U.S. Markets U.S. Competitors U.S. Markets U.S. Competitors U.S. Markets U.S. Competitors U.S. Markets U.S. Competitors

Nov.

Total

-196,652 -246,853 -345,434 -452,423 -427,215 -482,298 -547,296 -665,409 -782,7 -836,077

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

Index of Real Trade-Weighted Dollar Exchange Rates for Total Agriculture2 Year

D e c.

-16,605 -16,962 -21,539 -21,059 -32,401 -32,255 -38,955 -39,360 -34,095 -31,534 -44,076 -45,303 -42,937 -47,345 -66,320 -56,294 -72,663 -65,876 -67,394 -61,495

2000 = 100

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

91.9 75.0 94.2 87.6 103.1 99.0 109.3 106.7 102.2 89.6 92.7 72.5 86.2 68.3 93.2 76.0

93.7 78.4 96.3 91.0 104.0 102.1 110.4 109.8 103.1 88.6 93.3 72.7 86.7 69.2 93.8 76.8

95.4 80.9 96.8 93.5 106.0 104.0 109.8 109.1 103.1 89.0 94.6 75.4 86.4 68.4 94.0 76.5

95.5 82.2 97.3 95.5 107.5 106.5 109.4 108.0 102.0 87.1 95.3 77.2 87.9 70.1 93.6 75.1

95.4 82.3 99.6 100.5 107.5 108.5 107.1 104.3 98.2 80.6 97.5 78.3 91.2 71.7 91.3 71.9

96.0 84.7 98.4 96.1 108.6 111.7 105.5 100.4 98.4 80.1 96.4 77.6 92.7 75.0 92.9 73.3

96.3 85.2 99.0 97.3 108.8 110.6 103.5 97.1 99.7 82.8 95.4 76.2 93.9 76.4 93.1 73.3

94.8 83.7 99.7 101.1 106.4 105.1 104.8 99.4 100.7 85.0 95.4 76.6 93.0 74.8 92.3 72.3

94.5 85.2 101.2 106.1 106.5 104.6 105.5 99.3 99.3 83.6 92.3 75.7 93.9 75.7 92.0 72.2

93.7 83.7 102.9 109.0 107.0 105.2 106.6 99.6 96.6 79.4 91.0 73.7 95.4 77.4 92.0 72.2

94.2 86.5 103.4 108.9 107.5 106.5 105.1 97.1 96.1 78.7 88.0 70.1 95.7 78.2 90.7 70.0

93.9 87.9 102.3 102.5 107.7 104.7 103.8 93.9 94.3 74.5 86.1 67.1 94.4 76.9 90.7 69.7

Preliminary. 2 Real indexes adjust nominal exchange rates for differences in rates of inflation, to avoid the distortion caused by high-inflation countries. A higher value means the dollar has appreciated. Federal Reserve Board I ndex of trade-weighted value of the U.S. dollar against 10 major currencies. Weights are based on relative importance in world financial markets. Source: Economic Research Service, U.S. Department of Agriculture

1

United States Balance on Current Account1 Year

Second Quarter

Third Quarter

Fourth Quarter

Annual

-25,610 -33,568 -53,342 -86,928 -95,822 -95,877 -124,432 -133,037 -175,780 -197,357

-29,346 -51,455 -72,162 -100,085 -98,602 -119,655 -131,868 -167,121 -195,103 -218,756

-43,871 -69,380 -90,269 -116,923 -102,318 -130,901 -142,863 -178,006 -197,164 -239,962

-41,575 -59,125 -84,053 -111,214 -92,217 -126,013 -128,351 -187,122 -223,461

-140,402 -213,528 -299,826 -415,150 -388,959 -472,446 -527,514 -665,286 -791,508 -874,767

1997 1998 1999 2000 2001 2002 2003 2004 2005 20062 1

In Millions of Dollars

First Quarter

Not seasonally adjusted.

2

Preliminary.

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

Merchandise Trade and Current Account Balances

In Billions of Dollars

----------------------------- Merchandise Trade Balance ----------------------------Year

1998 1999 2000 2001 2002 2003 2004 2005 2 0 0 61 20072 1

Estimate.

84

2

------------------------------ Current Account Balance ------------------------------

Canada

Germany

Ja p a n

Switzerland

U.K.

Canada

Germany

Ja p a n

Switzerland

U.K.

12.3 24.2 41.6 41.2 32.4 32.2 41.1 43.1 29.6 17.6

29.8 18.0 6.9 38.4 93.4 97.4 136.3 143.9 153.9 182.4

72.3 69.4 68.0 26.2 51.2 69.2 89.0 63.4 55.5 74.5

13.2 14.9 14.1 10.9 17.7 21.6 26.3 24.8 24.9 26.9

-11.9 -25.0 -29.2 -38.6 -46.5 -48.3 -64.1 -82.2 -99.7 -109.5

-7.7 1.7 19.7 16.3 12.6 10.2 21.1 26.5 13.6 1.3

-17.0 -27.8 -33.9 .5 41.4 47.9 101.1 116.6 116.8 146.3

119.9 115.7 118.7 88.7 112.4 137.1 171.6 168.3 164.9 200.5

25.1 29.4 30.9 20.0 23.6 43.3 48.7 54.3 57.6 65.1

-5.3 -35.2 -37.4 -31.5 -24.7 -24.5 -35.3 -47.7 -55.6 -52.1

Projection.

Source: Organization for Economic Cooperation and Development (OECD)

CURRENCIES

85

Diamonds The diamond, which is the mineral form of carbon, is the hardest, strongest natural material known on earth. The name diamond is derived from adamas, the ancient Greek term meaning “invincible.” Diamonds form deep within the Earth’s crust and are typically billions of years old. Diamonds have also have been found in and near meteorites and their craters. Diamonds are considered precious gemstones but lower grade diamonds are used for industrial applications such as drilling, cutting, grinding and polishing.

million carats (one carat equals 1/5 gram or 200 milligrams). The world’s largest producers of natural gem diamonds are Botswana with 23.4% of world production in 2005, Russia a close second with 22.6%, Australia with 20%, Congo with 6%, and South Africa also with 6%. World production of natural industrial diamonds in 2005 fell by –0.2% yr/yr to 81.000 million carats. The main producer of synthetic diamonds is the US with 256.000 million carats of production in 2005, representing 45% of world production. Trade – The US in 2006 relied on net imports for 82% of its consumption of natural diamonds, which totaled 2.3 million carats in 2005.

Supply – World production of natural gem diamonds in 2005 rose by +2.0% yr/yr to a record high of 102.000

World Production of Natural Gem Diamonds Year

Angola

Australia

Botswana

Brazil

Central African Republic

2000 2001 2002 2003 20041 20052

3,880 4,643 4,520 5,130 5,490 5,580

11,956 14,397 15,136 13,981 20,602 20,000

18,500 19,812 21,297 22,800 23,300 23,900

1,000 700 500 400 300 300

348 340 312 250 263 265

1

Preliminary.

2

Estimate.

3

Formerly Zaire.

In Thousands of Carats China

Congo3

Ghana

Namibia

Russia

Sierra Leone

South Africa

World Total

230 100 100 100 100 100

3,500 3,638 4,223 5,381 6,180 6,300

792 936 770 675 690 760

1,450 1,487 1,562 1,481 2,004 1,900

17,500 17,500 17,400 20,000 21,400 23,000

58 102 162 233 318 318

4,320 4,465 4,351 5,144 5,780 5,780

67,100 72,900 76,400 87,700 100,000 102,000

Source: U.S. Geological Survey (USGS)

World Production of Natural Industrial Diamonds Year

Angola

Australia

Botswana

Brazil

Central African Republic

431 516 502 570 610 620

14,612 11,779 18,500 17,087 22,709 20,000

6,160 6,604 7,100 7,600 7,800 8,000

---600 600 600 600 600

116 113 104 83 88 88

2000 2001 2002 2003 20041 20052 1

Preliminary.

2

Estimate.

3

Formerly Zaire.

Year

Belarus

China

2000 2001 2002 2003 20041 20052

25,000 25,000 25,000 25,000 25,000 25,000

16,800 17,000 17,000 17,000 17,000 17,000

-------------------

1

Preliminary.

2

Estimate.

China

Congo3

Ghana

Russia

Sierra Leone

South Africa

Venezuela

World Total

920 950 955 955 960 960

14,200 14,560 17,456 21,600 24,700 25,200

198 234 193 225 230 253

11,700 11,700 11,600 13,000 14,200 15,000

19 120 190 274 374 374

6,470 6,698 6,526 7,540 8,500 9,380

80 28 61 24 60 69

55,400 54,300 64,200 69,900 81,200 81,000

Source: U.S. Geological Survey (USGS)

World Production of Synthetic Diamonds Czech Republic

In Thousands of Carats

In Thousands of Carats

France

Greece

Ireland

Ja p a n

Russia

South Africa

Sweden

Ukraine

United States

World Total

3,000 3,000 3,000 3,000 3,000 3,000

750 ----------------

60,000 60,000 60,000 60,000 60,000 60,000

33,000 33,000 34,000 34,000 34,000 34,000

80,000 80,000 80,000 80,000 80,000 80,000

---60,000 60,000 60,000 60,000 60,000

20,000 20,000 20,000 20,000 20,000 20,000

8,000 8,000 8,000 8,000 8,000 8,000

182,000 202,000 222,000 236,000 252,000 256,000

429,000 508,000 529,000 543,000 559,000 563,000

Source: U.S. Geological Survey (USGS)

Salient Statistics of Industrial Diamonds in the United States

In Millions of Carats

Bort, Grit & Pow der & Dust

Year

2000 2001 2002 2003 20041 20052 1

---------------------------------------- Natural and Synthetic ---------------------------------------- ---------------------------------- Stones (Natural) ---------------------------------Net ----- Production ----Import Price Price Value of Reliance Value of Apparent Imports Apparent Imports Secon- Imports In ManuImports Manu% of Con- $ Per Gov't Confor Con- Exports & factured Gov't factured Con$ Per dary Pro- for Con- Exports & Diamond Secondary sumption Reexports Products Sales sumption Carat duction sumption Reexports Sales sumption Carat sumption

182.0 202.0 219.0 236.0 252.0 252.0

Preliminary.

86

2

10.0 10.0 5.7 4.7 4.6 4.6

Estimate.

291.0 281.0 185.0 250.0 240.0 289.0 3

98.0 88.0 82.0 74.0 86.0 95.0

Less than 1/2 unit.

-------------------

-------------------

385.0 405.0 328.0 417.0 411.0 451.0

.39 .31 .34 .26 .25 .28

Source: U.S. Geological Survey (USGS)

3 3 3 3 3 3

2.5 2.5 2.0 1.8 1.8 2.3

1.6 1.0 1.1 .3 .5

1.0 .5 .4 .4 .4

2.2 5.31 2.2 3.54 1.6 5.43 2.1 3.09 2.1 7.77 2.7 12.55

86 91 88 80 85 84

Eggs Eggs are a low-priced protein source and are consumed worldwide. Each commercial chicken lays between 265-280 eggs per year. In the United States, the grade and size of eggs are regulated under the federal Egg Products Inspection Act (1970). The grades of eggs are AA, A, and B, and must have sound, whole shells and must be clean. The difference among the grades of eggs is internal and mostly reflects the freshness of the egg. Table eggs vary in color and can be determined by the color of the chicken’s earlobe— white earlobes lay white eggs, reddish-brown earlobes lay brown eggs, etc. In the US, egg size is determined by the weight of a dozen eggs, not individual eggs, and range from Peewee to Jumbo. Store-bought eggs in the shell stay fresh for 3 to 5 weeks in a home refrigerator, according to the USDA. Eggs are primarily used as a source of food, although eggs are also widely used for medical purposes. Fertile eggs, as a source of purified proteins, are used to produce many vaccines. Flu vaccines are produced by growing single strains of the flu virus in eggs, which are then extracted to make the vaccine. Eggs are also used in biotechnology to create new drugs. The hen’s genetic make-up can be altered so the whites of the eggs are rich in tailored proteins that form the basis of medicines to fight cancer and other diseases. The US biotech company Viragen and the Roslin Institute in Edinburgh have produced eggs with 100 mg or more of the easily-extracted proteins used in new drugs to treat various illnesses including ovarian and breast cancers. Prices – The average monthly price of all eggs received

Wo rld P ro d u ctio n o f E g g s

1

In Millions of Eggs

Brazil

Chi na

France

Germany

Italy

Japan

Mexi co

Russia

Spain

Ukrai ne

Uni ted Ki ngdom

Uni ted States

World Total3

12,700 13,460 16,065 15,932 12,596 13,636 14,768 15,654 16,435

235,960 281,010 301,860 253,680 282,350 307,760 365,300 377,420 389,000

15,355 16,370 16,911 16,500 16,084 16,900 17,550 17,500 17,450

13,678 13,960 13,838 13,922 14,025 14,164 14,341 14,350 14,350

11,502 11,599 12,017 11,923 12,298 12,433 12,660 12,400 12,400

43,252 43,047 42,167 42,786 42,588 42,117 41,975 41,800 42,000

21,471 25,896 25,760 26,045 28,170 29,898 32,428 33,310 33,640

40,300 37,400 33,720 31,500 31,900 33,000 33,000 33,500 34,200

8,454 9,670 9,983 8,952 9,450 9,084 9,216 8,900 9,000

11,766 10,145 9,404 8,763 8,242 8,269 8,740 8,000 7,700

10,645 10,620 10,644 10,668 10,752 10,812 10,293 10,000 9,800

72,072 74,136 74,592 76,536 77,676 79,896 82,944 84,420 85,020

593,734 643,045 670,211 631,846 666,748 695,281 762,077 778,995 795,711

Year

1993 1994 1995 1996 1997 1998 1999 2000 1 20012

by farmers in the US in 2006 rose by +8.3.4% yr/yr to 58.9 cents per dozen, which was down from the 10-year high of 73.8 cents posted in 2003. Supply – World egg production in 2001, the latest reporting year, was 795.711 billion eggs. The world’s largest egg producers at that time were China with 49% of world production, the US with 11% (85.884 billion eggs), Japan with 5%, Russia with 4%, and Mexico with 4%. US egg production in 2006 rose +0.9% to 90.857 billion eggs, which was a new record high. The average number of hens and pullets on US farms in 2006 rose by +0.7% yr/yr to 346.078 million, which was a new record high. Demand – US consumption of eggs in 2006 rose +1.8% yr/yr to 6.419 billion eggs. That was a new record high and was up about 23% from 10-years earlier, reflecting sharply higher egg consumption due to the popularity of a lowcarbohydrate diet since eggs are high in protein. US per capita egg consumption in 2006 rose +0.4% yr/yr to 256.0 eggs per year per person. Per capita egg consumption was at a high of 277.2 eggs in 1970, fell sharply in the 1990s to a low of 174.9 in 1995, and then began rebounding in 1997 to current levels of over 250 eggs per year. Trade – US imports of eggs in 2005 fell by –32.3% yr/ yr to 8.6 million dozen eggs, falling from the 16-year high of 15.0 million posted in 2002. US exports of eggs in 2005 rose by +22.9% yr/yr to 205.9 million dozen eggs, but that was still well below the record export level of 253.1 million dozen eggs in 1996.

P reliminary.

2

F orecast.

3

Selected countries.

S ource: F oreig n Ag ricult ural S ervice, U.S . Depart ment of Ag ricult ure (F AS -US DA)

Salient Statistics of Eggs in the United States

Year

1998 1999 2000 2001 2002 2003 2004 2005 1 20062

-- Hens & Pullets -Average Number On During Farm Year D e c. 1 3 ----- Thousands -----

321,718 329,320 332,410 338,628 339,827 340,979 343,922 453,301 453,036

312,035 322,354 327,985 335,012 339,024 338,393 341,956 343,792 346,078

Rate of Lay Per Layer During Year4 (Number)

255 257 257 256 257 259 261 262 263

--------- Eggs --------Price in Cents P er Total Dozen Produced ------- Millions -------

79,754 82,715 84,386 85,745 87,252 87,473 89,091 90,027 90,877

66.8 62.2 61.8 62.2 58.9 73.2 71.4 53.9

----- Consumption ----Value of Production5 Million Dollars

4,439 4,287 4,346 4,446 4,281 5,333 5,299 4,042

Total Egg ProUsed for Per Capita duction Imports6 Exports6 Hatching Total E g g s6 ----------------------------- Million Doz en ----------------------------(Number)

6,658 6,912 7,034 7,157 7,270 7,297 7,440 7,504 7,583

5.8 7.4 8.4 8.9 15.0 13.3 12.7 8.6 8.0

218.8 161.9 171.1 190.0 174.0 146.2 167.5 205.9 175.4

921.8 941.7 940.2 964.2 961.3 959.4 988.1 999.8 994.3

5,522 5,817 5,927 6,013 6,149 6,201 6,296 6,308 6,419

240.2 250.1 252.1 252.7 256.0 255.7 257.2 255.1 256.0

Preliminary. 2 Forecast. 3 All layers of laying age. 4 Number of eggs produced during the year divided by the average number of all layers of laying age on hand during the year. 5 Value of sales plus value of eggs consumed in households of producers. 6 Shell-egg equivalent of eggs and egg products. Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

1

87

EGGS

Cents Per Dozen ----- Fresh, Boston (1856 - 1899) Fresh, New York (1900 - 1909) Fresh Firsts, New York (Jan. 1910 - Dec. 1926) Fresh Firsts, Chicago (Jan. 1927 - June 1943) US Standards, Chicago (July 1943 - Dec. 1947) Large, Chicago (Jan. 1948 - date)

Average Price Received by Farmers for All Eggs in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

76.5 74.3 72.5 57.8 67.2 62.3 63.6 92.6 55.8 61.0

76.1 64.9 66.1 67.8 68.2 55.9 59.3 87.5 55.1 49.5

72.3 69.9 68.6 56.9 69.1 68.5 68.7 110.0 52.6 67.0

66.0 63.7 60.3 64.7 65.0 52.2 68.6 76.7 47.4 51.2

64.2 54.9 54.9 52.0 55.2 50.5 58.7 62.6 45.6 43.9

59.4 59.6 56.2 61.8 55.0 62.1 67.2 77.3 45.2 56.3

65.6 58.2 58.8 56.5 54.0 60.8 68.7 64.0 52.7 45.6

63.1 65.0 59.7 66.4 56.6 66.4 80.8 52.6 47.1 57.4

69.6 63.3 57.5 59.2 55.5 57.1 77.6 53.8 63.6 56.0

65.9 66.3 52.0 66.8 59.9 56.0 83.8 49.4 51.1 56.7

80.8 72.8 64.1 72.0 64.1 70.7 102.0 60.4 65.0 81.7

78.7 75.5 60.3 80.7 59.0 62.8 86.8 65.4 71.9 80.7

69.9 65.7 60.9 63.6 60.7 60.4 73.8 71.0 54.4 58.9

Source: Economic Research Service, U.S. Department of Agriculture (NASS-USDA)

Average Wholesale Price of Shell Eggs (Large) Delivered, Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Cents Per Dozen

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

79.77 75.20 72.34 54.97 68.52 60.43 69.57 105.10 54.78 65.40

75.18 64.92 62.13 59.65 64.45 52.00 65.39 103.89 60.26 46.08

77.25 74.68 67.85 52.93 69.00 68.00 71.05 115.00 48.32 65.11

68.55 63.64 52.74 61.71 66.12 47.23 68.83 86.88 42.00 57.11

64.40 51.91 51.35 42.59 50.61 43.73 59.10 67.28 41.57 41.32

61.02 61.86 47.86 55.18 49.81 56.40 68.76 70.00 40.72 56.14

74.66 65.00 58.40 52.80 52.83 53.02 72.39 63.12 51.38 40.30

66.07 68.76 59.30 64.39 55.46 57.16 88.26 59.45 42.78 57.46

74.26 67.76 52.86 58.08 50.21 53.20 86.21 55.81 61.19 54.97

68.39 71.45 48.38 66.45 57.41 54.43 92.07 53.79 48.38 55.64

89.87 75.85 59.26 74.26 62.50 74.00 113.16 60.36 62.41 84.38

82.68 75.27 56.38 84.90 58.05 66.38 101.09 69.83 70.21 87.65

73.51 68.03 57.40 60.66 58.75 57.17 79.66 75.88 52.00 59.30

Preliminary.

88

In Cents Per Dozen

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

EGGS Total Egg Production in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Eggs

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

6,577 6,766 6,979 7,157 7,226 7,264 7,390 7,386 7,626 7,727

5,909 6,109 6,281 6,648 6,524 6,581 6,665 6,901 6,928 6,980

6,625 6,869 7,052 7,234 7,336 7,417 7,424 7,547 7,738 7,843

6,355 6,603 6,784 7,013 7,099 7,105 7,187 7,358 7,407 7,543

6,519 6,665 6,941 7,104 7,240 7,297 7,327 7,513 7,572 7,637

6,292 6,456 6,742 6,801 6,992 7,126 7,105 7,289 7,346 7,401

6,457 6,720 6,903 7,061 7,195 7,347 7,403 7,557 7,563 7,645

6,500 6,694 6,971 7,104 7,221 7,356 7,367 7,538 7,528 7,647

6,366 6,480 6,860 6,854 7,044 7,147 7,112 7,344 7,348 7,430

6,664 6,791 7,131 7,130 7,347 7,412 7,439 7,659 7,665 7,678

6,572 6,723 7,016 7,027 7,191 7,226 7,326 7,482 7,514 7,549

6,841 7,047 7,279 7,287 7,420 7,451 7,554 7,721 7,793 7,777

77,677 79,923 82,939 84,420 85,835 86,729 87,299 89,295 90,028 90,857

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Per Capita Disappearance of Eggs in the United States

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

Total Consumption (Million Dozen)

44.5 59.0 60.5 62.7 64.5 64.5

42.1 59.3 60.5 62.8 64.0 64.2

43.4 59.7 61.1 63.8 64.2 64.7

45.0 62.1 63.2 66.2 65.6 66.6

175.0 240.1 244.9 255.7 258.2 252.7

5,242 5,359 5,522 5,817 5,927 6,013

1996 1997 1998 1999 2000 2001 1

Preliminary.

2

Estimate.

3

Forecast

In Number of Eggs

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

62.4 62.6 63.7 63.4 63.9 63.6

62.6 63.0 63.9 63.0 63.5 63.8

64.0 63.8 64.1 63.5 63.8 64.4

64.6 65.3 65.5 65.0 64.8 65.3

2002 2003 2004 20051 20062 20073

Total Consumption (Million Dozen) Total

256.0 255.7 257.2 255.1 256.0 257.1

6,150 6,200 6,296 6,308 6,419 6,530

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Egg-Feed Ratio1 in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

10.1 10.1 11.7 8.9 10.9 10.2 9.0 12.9 7.2 8.5

9.9 8.3 10.6 11.3 11.4 8.4 8.0 10.7 7.4 5.9

8.6 9.4 11.3 8.0 11.6 11.6 9.5 13.2 6.3 9.8

7.4 8.5 9.2 9.9 11.3 7.4 9.3 7.8 5.2 6.2

7.1 6.7 7.8 6.4 8.6 6.7 6.9 6.0 4.6 4.4

6.6 8.0 8.2 9.5 8.5 9.5 8.8 6.6 4.4 7.1

8.2 7.9 9.9 9.2 7.9 7.5 9.8 5.9 5.9 4.8

7.8 10.8 10.1 12.9 8.4 7.9 12.7 5.6 5.1 7.8

9.3 10.7 9.3 10.3 8.5 7.1 11.6 6.5 9.3 7.3

8.7 11.3 8.0 12.2 10.3 6.6 12.6 5.8 6.6 6.7

11.4 12.6 11.9 13.1 11.5 10.5 15.7 8.8 10.3 10.6

11.0 12.8 10.1 15.0 9.3 8.9 12.2 9.8 11.3 10.1

8.8 9.7 9.8 10.6 9.9 8.5 10.5 8.3 7.0 7.4

Pounds of laying feed equivalent in value to one dozen eggs. (ERS-USDA)

1

2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture

Hens and Pullets of Laying Age (Layers) in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

305,011 311,593 322,137 328,307 332,107 339,423 340,752 338,272 347,273 349,763

303,449 312,111 322,382 328,767 335,449 338,465 341,019 338,774 348,412 349,930

304,276 314,322 323,161 330,876 336,131 337,478 340,080 340,479 349,117 350,184

303,997 313,833 322,162 330,807 337,472 337,376 339,645 342,879 344,759 349,958

302,766 309,945 320,783 327,597 336,755 336,131 336,678 342,305 342,346 346,308

300,692 309,235 320,211 325,012 333,522 335,547 335,611 343,233 341,247 343,088

299,007 309,049 320,672 324,843 332,274 335,236 333,925 342,392 338,424 341,219

298,844 308,747 318,944 326,240 332,148 335,717 334,381 342,522 338,674 340,223

300,138 309,706 321,349 325,212 333,417 336,561 334,248 343,405 339,984 341,748

305,664 312,807 323,365 327,219 336,573 337,923 334,103 344,794 341,803 343,436

307,146 316,840 327,135 329,092 337,549 338,350 336,528 345,267 343,789 344,313

312,137 321,718 329,320 332,410 338,625 339,827 339,989 344,278 347,917 348,268

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

89

EGGS Eggs Laid Per Hundred Layers in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Number of Eggs

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

2,161 2,169 2,165 2,178 2,165 2,143 2,168 2,182 2,192 2,210

1,943 1,950 1,946 2,016 1,943 1,947 1,957 2,032 1,986 1,995

2,176 2,187 2,185 2,186 2,178 2,198 2,184 2,209 2,230 2,239

2,093 2,117 2,110 2,130 2,106 2,110 2,125 2,148 2,156 2,164

2,156 2,153 2,166 2,177 2,160 2,173 2,180 2,192 2,215 2,213

2,093 2,088 2,104 2,093 2,100 2,125 2,122 2,126 2,162 2,161

2,155 2,175 2,158 2,169 2,166 2,190 2,215 2,207 2,234 2,241

2,165 2,165 2,177 2,181 2,170 2,188 2,203 2,198 2,218 2,239

2,096 2,082 2,128 2,101 2,103 2,119 2,128 2,134 2,155 2,166

2,172 2,157 2,192 2,173 2,180 2,192 2,218 2,220 2,236 2,229

2,122 2,109 2,138 2,125 2,130 2,139 2,166 2,170 2,172 2,175

2,193 2,190 2,214 2,193 2,188 2,189 2,223 2,234 2,234 2,234

2,127 2,129 2,140 2,144 2,132 2,143 2,157 2,171 2,183 2,189

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Egg-Type Chicks Hatched by Commercial Hatcheries in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

33,752 37,168 35,242 34,181 36,728 35,655 33,521 35,155 38,291 35,422

35,655 34,597 36,367 34,659 37,836 34,473 30,474 31,923 34,427 33,665

37,347 40,604 41,172 38,877 41,015 36,985 36,775 37,545 41,701 38,918

38,842 39,057 42,285 36,653 42,789 38,096 37,820 37,466 38,049 34,613

39,020 39,206 40,726 41,185 42,655 38,760 37,630 38,347 38,792 40,320

36,796 39,323 41,439 37,268 40,822 35,144 36,602 37,508 35,034 37,700

33,772 35,576 34,275 33,240 38,651 35,581 35,578 34,919 34,897 33,224

33,061 33,398 35,518 34,328 34,987 35,689 33,199 36,854 38,700 34,892

37,118 37,959 39,287 36,325 37,140 35,742 35,763 36,631 33,623 36,845

35,262 34,667 39,044 36,080 35,825 32,157 34,812 34,866 35,461 36,271

28,122 31,217 32,802 32,438 32,355 31,154 30,241 38,758 32,285 31,748

35,796 35,501 33,564 35,178 31,870 32,113 33,588 37,332 35,917 33,430

424,543 438,273 451,721 430,412 452,673 421,549 416,003 437,304 437,177 427,048

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Cold Storage Holdings of Froz en Eggs in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

10.2 9.7 11.0 10.1 15.0 13.7 13.5 18.0 19.1 21.0

11.0 12.0 11.0 17.6 16.9 13.1 15.3 21.3 18.6 22.5

11.5 12.3 10.8 14.8 15.5 13.9 17.1 21.1 17.9 24.4

8.5 10.4 9.2 14.0 14.6 11.7 17.0 19.2 18.5 20.8

8.5 9.2 9.4 12.8 15.9 10.2 15.7 20.9 18.9 23.3

8.2 12.9 9.7 13.5 15.8 11.1 17.7 20.6 17.7 21.0

8.3 10.2 11.3 14.1 14.4 12.7 18.0 18.3 19.7 22.1

8.9 11.8 11.1 14.4 16.7 12.9 18.6 16.7 19.6 23.6

11.1 9.0 8.8 14.9 17.8 13.2 18.0 17.3 19.9 21.6

10.8 8.2 9.5 14.4 17.7 13.2 16.6 18.7 18.8 19.0

10.9 9.0 9.0 16.6 15.5 13.1 16.9 17.9 17.6 16.3

10.3 9.3 8.5 15.4 13.9 11.2 14.9 17.3 17.6 17.1

Preliminary. 2 Converted on basis 39.5 pounds frozen eggs equals 1 case. Agriculture (NASS-USDA)

1

90

In Millions of Pounds2

Source: National Agricultural Statistics Service, U.S. Department of

Electric Power the utility transmission systems of Pennsylvania Electric Co. and the Potomac Electric Co. The contract is priced in dollars and cents per megawatt hours. Supply – US electricity production in 2006 (through October, annualized) rose +0.6% yr/yr to 2.568 trillion kilowatt-hours. That was well below the record high of 3.212 trillion kilowatt-hours in 1998 and indicated that recent electricity production has been reduced by more efficient production and distribution systems, and to some extent by electricity conservation by business and residential consumers. US electricity generation in 2005 (latest data available) required the use of 2.148 trillion cubic feet of natural gas (+18.8% yr/yr), 781 million short tons of coal (+1.1% yr/yr), and 98 million barrels of fuel oil (-5.1% yr/yr). In terms of kilowatt-hours, coal is the most widely used source of electricity production, accounting for 60% of US electricity production in 2005 (latest data available), followed by nuclear (18%), hydro (11%), natural gas (9%), and fuel oil (3%). Alternative sources of fuel for electricity generation that are gaining favor include biomass, solar, wind, and fuel cells. Demand – Residential use of electricity accounts for the largest single category of electricity demand with usage of 1.359 trillion kilowatt hours in 2005 (latest data available) accounting for 36% of overall usage. Business users together use more electricity than residential users, but business users are broken into the categories of commercial with 33% of usage and industrial with 27% of usage.

The modern electric utility industry began in the 1800s. In 1807, Humphry Davy constructed a practical battery and demonstrated both incandescent and arc light. In 1831, Michael Faraday built the first electric generator proving that rotary mechanical power could be converted into electric power. In 1879, Thomas Edison perfected a practical incandescent light bulb. The electric utility industry evolved from gas and electric carbon-arc commercial and street lighting systems. In 1882, in New York City, Thomas Edison’s Pearl Street electricity generating station established the industry by displaying the four key elements of a modern electric utility system: reliable central generation, efficient distribution, successful end use, and a competitive price. Electricity is measured in units called watts and watthours. Electricity must be used shortly after it is generated and cannot be stored to any significant degree. That means the power utilities must match the level of electricity generation to the level of demand in order to avoid wasteful over-production. The power industry has been deregulated to some degree in the past decade and now major utility companies sell power back and forth across major national grids in order to meet supply and demand needs. The quick changes in the supply-demand situation means that the price of electricity can be volatile. Electricity futures trade at the New York Mercantile Exchange (NYMEX). The futures contract is a financially settled contract, which is priced based on electricity prices in the PJM western hub at 111 delivery points, mainly on

World Electricity Production (Monthly Average)

In Millions of Kilowatt Hours

Year

Australia

Canada

China

Germany

India

Italy

Ja p a n

Rep. of Korea

Russia

South Africa

Ukraine

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062

15,256 14,974 15,399 15,712 15,548 15,646 15,564 16,095 16,336 16,835

47,929 54,393 55,809 58,337 56,576 57,873 56,294 56,844 49,559 48,558

94,539 97,183 100,345 109,426 118,439 133,513 153,229 176,169 199,785 225,575

45,961 46,367 45,820 46,417 47,107 47,211 49,060 44,439 46,738 44,023

35,146 37,379 40,148 41,725 42,434 44,141 52,773 48,968 50,465 53,687

20,898 21,659 22,136 22,986 23,242 23,638 24,386 24,975

86,676 76,763 76,755 78,391 77,742 77,139 76,661 71,574 80,267 82,024

18,704 17,942 19,944 22,200 23,768 25,500 26,856 28,472 30,363 31,345

69,511 68,930 70,611 73,117 74,031 74,078 76,158 77,562 79,355 79,450

16,108 17,119 16,961 17,557 17,508 18,142 17,534 20,238 19,575 21,536

14,834 14,402 14,342 14,287 14,414 14,477 15,030 15,180 15,418 15,595

1

Preliminary.

2

Estimate.

United Kingdom

United States

27,012 27,928 28,095 28,484 29,415 29,220 35,006 34,924 34,462

291,185 301,489 308,572 316,845 311,387 321,538 307,250 316,000 336,499 344,502

Source: United Nations

In stalled C ap acity, C ap ab ility & P eak L o ad o f th e U .S . E lectric U tility In d u stry

In Millions of Kilowatt Hours

----------------------------------- In stalled Gen eratin g C ap acity o n D ecemb er 31 -----------------------------------

Year

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 1 1

Total Electri c Uti li ty Industry

735.1 740.0 741.7 744.7 746.0 750.5 756.5 759.9 728.3 678.0

P reliminary.

Capaci ty Capa- Non-Co- Margi n ---------------------- Typ e o f Ow n ersh ip ---------------------Power bi li ty i nci dent Non-CoDi stri cts, at Wi nter Muni cInternal Wi nter i nci dent State ipal Nuclear Com- Investor Cooper- Subtotal Peak Peak Peak ati ve Gov't Uti li ti es Federal Projects Power busti on Owned Load Load (%) Load

----------- Typ e o f P rime Mo ver ----Gas, Turbi ne Hydro & Steam

87.2 88.7 89.7 90.2 90.3 91.1 91.0 92.5 91.2 89.8

531.1 534.1 534.5 536.9 537.9 541.6 546.6 549.7 522.1 476.3

108.0 108.4 107.9 107.8 107.9 107.9 109.0 107.6 104.8 102.3

8.7 8.8 9.6 9.8 9.9 9.9 9.9 10.0 10.2 9.6

568.8 573.0 572.9 575.2 574.8 578.7 582.2 582.5 531.3 483.7

26.3 26.5 26.0 26.1 26.4 27.1 27.2 28.0 32.5 34.6

139.9 140.5 142.7 143.4 144.7 144.8 147.1 149.4 164.5 159.6

40.1 40.4 41.6 41.8 42.0 42.2 43.0 43.8 50.5 50.2

65.4 65.6 66.1 66.1 66.3 65.9 67.2 68.9 68.7 68.7

34.4 34.5 35.0 35.5 36.4 36.6 36.9 36.7 45.3 40.7

696.8 703.2 707.8 712.0 715.1 727.7 740.5 743.8 835.3 848.9

484.0 485.4 493.0 521.7 518.3 544.7 545.1 560.2 652.4 656.3

20.4 20.2 21.1 17.1 16.7 13.2 14.9 13.4 12.0 10.3

Total Electri c Annual Uti li ty Peak Load Industry Gen- Factor (%) erati on

2,808.2 2,825.0 2,797.2 2,882.5 2,910.7 2,994.5 3,073.1 3,119.1 3,212.2 3,173.7

60.4 60.9 61.1 61.0 61.2 59.8 61.0 61.3 62.0 61.2

S ource: E dison E lect ric I nst it ut e (E E I )

91

ELECTRIC POWER Available Electricity and Energy Sales in the United States ------------------------------------- Net Generation ----------------------------------------------------------- Electric Utility Industry ------------------------

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 20051

Total2

Hydro

Natural Gas

3,077 3,123 3,212 3,174 3,015 2,630 2,549 2,462 2,505 2,554

347.2 356.5 323.3 319.5 275.6 217.0 264.3 275.8 268.4 269.6

262.7 283.6 309.2 296.4 290.7 264.4 229.6 187.0 199.7 238.5

C oal

Fuel Oil

Nu- Other clear Source3

1,737 67.3 674.7 1,788 77.8 628.6 1,807 110.2 673.7 1,768 86.9 725.0 1,697 72.2 705.4 1,560 78.9 534.2 1,515 59.1 507.4 1,500 69.9 458.8 1,514 73.7 475.7 1,534 70.8 465.1

7.2 7.5 7.2 3.7 2.2 2.2 3.6 3.9 4.1 5.3

Total

3,444 3,492 3,620 3,695 3,802 3,737 3,858 3,883 3,971 4,055

In Billions of Kilowatt Hours

------------------------------ Sales to Ultimate Customers -----------------------------Rail Street & Other InterResiways den- depart- Com- Indust- Highway Public & RailTotal Auth. roads rial Lighting tial mental mercial Million $ Total

212,609 215,334 219,848 219,896 233,163 247,325 250,189 259,767 270,119 298,003

3,101 3,146 3,264 3,312 3,421 3,382 3,466 3,662 3,716 3,816

1,083 1,076 1,130 1,145 1,192 1,201 1,265 1,276 1,292 1,359

2.5 887.4 2.6 928.6 4 979.4 4 1,002.0 4 1,055.2 4 1,088.0 4 1,104.7 4 1,198.7 4 1,230.4 4 1,275.1

1,034 1,037 1,051 1,058 1,064 985 990 1,012 1,018 1,019

Preliminary. 2 I ncludes internal combustion. 3 I ncludes electricity produced from geothermal, wood, waste, wind, solar, etc. NA = Not available. Source: Edison Electric I nstitute (EEI )

1

Electric Pow er Production by Electric Utilities in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

18.0 70.3 19.7 75.6 16.3 87.2 15.9 107.0 4 109.5 4 108.4 4 105.8 4 NA 4 NA 4 NA 4

5.3 5.3 4 4 4 4 4 4 4 4

I ncluded in Other.

In Millions of Kilowatt Hours

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

273,410 265,435 275,230 265,991 236,467 215,684 217,338 221,782 218,914 212,083

233,907 235,340 239,825 237,324 199,802 187,929 189,944 198,675 191,246 198,062

244,659 256,575 258,678 241,397 211,942 200,833 193,305 193,763 202,430 202,443

230,512 232,457 238,969 227,031 197,499 194,038 181,914 182,744 183,701 189,111

243,143 265,077 255,266 253,890 215,508 208,436 200,634 207,224 203,461 209,400

266,588 291,029 281,233 268,128 233,622 227,940 212,297 219,767 228,298 229,154

304,628 317,521 318,745 279,421 253,400 248,962 234,888 235,266 246,778 248,782

294,557 312,538 307,835 286,682 258,901 241,449 234,675 227,785 246,019 247,571

266,649 279,198 261,347 245,137 214,236 215,408 201,966 209,507 217,938 205,328

253,267 251,380 243,212 228,389 204,307 201,705 192,198 197,320 200,389 198,306

243,726 239,089 235,129 226,765 192,518 194,205 189,362 191,813 194,838 195,313

267,477 266,532 258,205 255,229 211,742 212,868 213,758 219,585 220,039

3,122,523 3,212,171 3,173,674 3,015,383 2,629,946 2,549,457 2,462,281 2,505,231 2,554,051 2,547,876

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Use of Fuels for Electric Generation in the United States ----- Consumption of Fuell -----

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 20051

C oal (Thousand Short Tons)

Fuel Oil (Thousand Barels)2

Gas (Million Cubic Feet)

874,681 900,361 910,867 894,120 859,335 806,269 767,803 757,384 772,224 781,031

113,274 125,146 178,614 143,830 120,129 126,367 88,595 105,319 103,785 98,458

2,732,107 2,968,453 3,258,054 3,113,419 3,043,094 2,686,287 2,259,684 1,763,764 1,808,836 2,148,035

Total Fuel i n C oal Equivalent3 (Thousand Short Tons)

1,063,755 1,103,037 1,147,317 1,113,614

Average C o st o f Net C o st o f FossilGeneration Pounds of Fuel Per fuel at by Fuels4 C oal P er Elec. Util. Kiliowatthour (Million Kilowatthour (Cents) (Pounds) Cents/MBTU Kilowatthour)

2,066,666 2,148,756 2,226,860 2,150,989

1.007 1.005 .996 1.012

151.9 152.2 143.8 144.1 173.8 173.0 151.5

Preliminary. 2 42-gallon barrels. 3 Coal equivalents are calculated on the basis of Btu instead of generation data. Source: Edison Electric I nstitute (EEI )

1

92

1.55 1.53 1.49 1.48

4

Heat Rate BTU Per kilowatthour

C o st P e r Million BTU Consumed (Cents)

10,176 10,081 10,360 10,301

151.9 152.2 143.8 144.1

Excludes wood & waste fuels.

Ethanol World Production of Ethanol Year

2004 20051 1

Preliminary.

In Millions of Gallons

Brazil

China

France

Germany

India

Russia

Saudi Arabia

South Africa

Spain

Thailand

United Kingdom

United States

Total World

3,989 4,227

964 1,004

219 240

71 114

462 449

198 198

79 32

110 103

79 93

74 79

106 92

3,535 4,264

10,770 12,150

Source: Renewable Fuels Association

Salient Statistics of Ethanol in the United States

Year

Ethanol Plants

1999 2000 2001 2002 2003 2004 2005 20061 1

50 54 56 61 68 72 81 95

Preliminary.

Capacity Ethanol Under Plants Production Under Construction Capacity (mgy) (mgy) Construction

1,701.7 1,748.7 1,921.9 2,347.3 2,706.8 3,100.8 3,643.7 4,336.4

5 6 5 13 11 15 16 31

Farmer Owned Plants

Farmer Owned Capacity (mgy)

Percent of Total Capacity Farmer

Farmer Owned UC Plants

Farmers Owned UC Capacity

Percent of UC Capacity

States with Ethanol Plants

14 18 21 25 28 33 40 46

293.3 340.3 473.0 645.6 796.6 1,041.1 1,388.6 1,677.1

17 19 25 28 29 34 38 39

5 3 3 10 8 12 10 4

77 60 60 335 318 447 450 187

100 66 71 86 66 75 60 11

17 17 18 19 20 19 18 20

77.0 91.5 64.7 390.7 483.0 598.0 754.0 1,778.0

Source: Renewable Fuels Association

Production of Fuel Ethanol in the United States

In Thousands of Barrels Per Day

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

80 96 102 110 115 135 177 211 241 288

82 85 99 108 116 122 169 212 245 302

86 86 102 104 113 128 175 214 243 301

77 85 99 110 108 126 179 218 238 289

89 81 93 103 108 129 175 221 237 293

75 83 83 104 110 123 181 222 249 318

77 85 77 103 112 128 178 218 258 316

80 87 93 98 113 136 180 225 260 329

80 98 97 101 116 145 190 226 261 333

87 103 106 111 121 159 188 226 269 333

98 97 100 109 126 166 194 232 275 343

98 100 100 113 124 176 207 232 280

84 91 96 106 115 139 183 221 255 313

1

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Production of Fuel Ethanol in the United States Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

3,159 3,329 3,574 3,974 5,497 6,551 7,461 8,942

2,782 3,145 3,249 3,429 4,734 6,155 6,847 8,452

3,163 3,209 3,500 3,996 5,430 6,648 7,521 9,338

2,975 3,143 3,226 3,788 5,384 6,525 7,135 8,656

2,894 3,179 3,339 4,007 5,426 6,857 7,357 9,093

2,496 3,128 3,310 3,705 5,440 6,648 7,463 9,532

2,399 3,208 3,472 3,970 5,529 6,749 8,007 9,804

2,884 3,052 3,526 4,203 5,589 6,977 8,050 10,185

2,917 3,026 3,470 4,342 5,685 6,766 7,841 9,992

3,272 3,438 3,743 4,939 5,829 7,007 8,335 10,308

2,998 3,281 3,794 4,965 5,806 6,946 8,259 10,279

3,102 3,505 3,836 5,451 6,423 7,180 8,676

35,041 38,643 42,039 50,769 66,772 81,009 92,952 114,088

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Stocks of Fuel Ethanol in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

In Thousands of Barrels

Jan.

In Thousands of Barrels

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

2,169 2,633 2,973 3,692 2,582 4,627 6,680 5,291 6,136 6,173

2,139 2,519 3,240 4,097 2,525 4,613 5,841 5,200 6,199 7,376

2,291 2,360 3,722 3,949 2,547 5,192 6,783 5,245 6,562 8,708

2,302 2,423 4,222 4,353 2,807 5,590 6,704 4,989 6,823 9,087

2,681 2,732 4,624 4,202 3,029 5,728 6,695 5,170 6,762 7,848

2,966 2,829 4,382 4,805 3,095 5,962 6,752 5,090 6,016 6,731

2,620 2,951 4,440 4,916 3,388 5,883 6,474 5,554 5,848 7,727

3,036 2,991 4,640 4,553 4,226 6,029 6,218 6,072 5,246 9,160

3,109 3,169 4,868 4,436 4,225 6,231 6,745 6,020 5,324 9,727

2,605 3,195 4,798 4,103 3,521 6,350 6,674 6,281 5,591 9,814

3,005 3,300 4,362 3,647 3,785 5,871 5,848 6,095 5,720 9,212

2,758 2,814 3,592 3,227 4,013 6,176 5,255 5,991 5,563

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

93

ETHANOL

Average Price of Ethanol in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Dollars Per Gallon

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

---1.242 1.033 1.285 1.783 0.979 1.151 1.423 1.733 1.967

---1.212 1.032 1.275 1.737 0.973 1.278 1.398 1.597 2.428

---1.144 1.044 1.331 1.579 1.125 1.427 1.666 1.365 2.450

---1.083 1.023 1.329 1.571 1.070 1.269 1.791 1.237 2.475

---1.078 1.016 1.314 1.707 0.982 1.131 1.753 1.221 2.903

---1.114 0.992 1.471 1.646 1.046 1.242 1.862 1.405 3.597

---1.130 0.986 1.402 1.457 1.156 1.234 1.762 1.786 3.208

---1.135 0.990 1.405 1.551 1.330 1.262 1.624 2.031 2.668

1.238 1.132 0.991 1.533 1.593 1.335 1.388 1.585 2.695 2.148

1.251 1.113 0.996 1.558 1.375 1.238 1.381 1.878 2.511 1.815

1.260 1.075 1.032 1.687 1.188 1.263 1.645 1.995 2.130 2.045

1.256 1.034 1.170 1.696 1.012 1.210 1.716 1.812 1.916 2.234

1.251 1.124 1.025 1.441 1.517 1.142 1.344 1.712 1.802 2.495

Northeast and Northwest I owa.

Source: Agricultural Marketing Service, U.S. Department of Agriculture (AMS-USDA)

Volume of Trading of Ethanol Futures in Chicago

In Contracts

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

2005 2006

---443

---508

350 329

119 421

222 330

61 686

155 1,141

321 365

227 779

390 348

559 97

272 117

2,676 5,564

Source: Chicago Board of Trade (CBT)

Month-End Open Interest of Ethanol Futures in Chicago

In Contracts

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

2005 2006

---774

---856

246 860

215 900

88 745

39 735

61 829

208 599

301 474

461 442

759 396

778 322

Source: Chicago Board of Trade (CBT)

94

Fertilizer Fertilizer is a natural or synthetic chemical substance, or mixture, that enriches soil to promote plant growth. The three primary nutrients that fertilizers provide are nitrogen, potassium, and phosphorus. In ancient times, and still today, many commonly used fertilizers contain one or more of the three primary ingredients: manure (containing nitrogen), bones (containing small amounts of nitrogen and large quantities of phosphorus), and wood ash (containing potassium). At least fourteen different nutrients have been found essential for crops. These include three organic nutrients (carbon, hydrogen, and oxygen, which are taken directly from air and water), three primary chemical nutrients (nitrogen, phosphorus, and potassium), and three secondary chemical nutrients (magnesium, calcium, and sulfur). The others are micronutrients or trace elements and include iron, manganese, copper, zinc, boron, and molybdenum. Prices – The average price of ammonia, a key source of ingredients for fertilizers, rose by 14.6% yr/yr in 2005 to a record high of $314 per metric ton. The average price of phosphate rock in the US in 2005 rose by 4.9% yr/yr to a record high of $29.20 per metric ton. The average price of potash in the US in 2005 rose by +15.0% yr/yr to a record high of $230.00 per metric ton. Supply – World production of nitrogen (as contained in ammonia) in 2005 rose by +3.4% yr/yr to a new record high of 121.000 million metric tons. The world’s largest producers of nitrogen in 2005 were China with 31% of world production, India (8.9%), Russia (8.3%), and the US (6.6%). US nitrogen production in 2005 fell –10.6% to 8,040 million metric tons.

World Production of Ammonia Year

World production of marketable potash rose by +2.3% yr/yr in 2005 to a 17-year high of 31.100 million metric tons. The world’s largest producers of potash in 2005 were Canada with 32% of world production, Russia (18%), Belarus (16%), and Germany (12%). US production of potash in 2005 fell – 7.7% yr/yr 1.200 million metric tons. Demand – US consumption of nitrogen in 2005 fell – 5.0% yr/yr to 11.300 million metric tons, down from last year’s 4-year high of 11.900. US consumption of phosphate rock in 2005 fell –1.0% to 38.600 million metric tons but remained above the 18-year low of 35.300 million metric tons in 2001. US consumption of potash in 2005 was unchanged from last year’s 6.000 million metric tons which is a 6-year high. Trade – US imports of nitrogen in 2005 rose +10.5% to 6.520 million metric tons and the US relied on imports for 41% of consumption. US imports of phosphate rock in 2005 rose +4.9% yr/yr to 2.630 million metric tons, slightly below the 2002 record high of 2.700 million metric tons. US imports of potash was unchanged from last year’s 4.920 million metric tons, and imports accounted for 80% of US consumption.

In Thousands of Metric Tons of Contained Nitrogen

Canada

China

France

Germany

India

Indonesia

Ja p a n

Mexico

Netherlands

Poland

Russia

United States

World Total

4,081 3,900 4,135 4,130 3,439 3,700 3,662 4,107 4,000

24,700 25,800 28,300 27,700 28,200 30,200 31,500 34,800 37,800

1,757 1,570 1,580 1,620 1,380 1,172 1,153 1,120 1,150

2,471 2,512 2,406 2,473 2,522 2,623 2,803 2,741 2,700

9,328 10,240 10,376 10,148 10,081 9,827 10,048 10,718 10,800

3,770 3,600 3,450 3,620 3,655 4,200 4,250 4,120 4,400

1,509 1,389 1,385 1,410 1,318 1,192 1,061 1,101 1,083

1,448 1,449 1,003 701 548 437 440 568 440

2,478 2,350 2,430 2,540 1,989 2,053 1,750 1,970 1,700

1,824 1,683 1,474 1,862 1,735 1,311 1,906 1,976 2,000

7,150 6,500 7,633 8,735 8,690 8,600 9,100 9,800 10,000

13,300 13,800 12,900 11,800 9,120 10,300 8,450 8,990 8,040

103,000 104,000 107,000 108,000 105,000 109,000 110,000 117,000 121,000

1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

World production of phosphate rock, basic slag and guano in 2005 rose +4.3% yr/yr to a 14-year high of 147.000 million metric tons. The world’s largest producers of phosphate rock in 2005 were the US with 25% of world production, China (21%), Morocco (17%), and Russia (8%). US production in 2005 rose +1.4% y/y to 36.300 million metric tons.

Preliminary.

2

Estimate.

Source: U.S. Geological Survey (USGS)

Salient Statistics of Nitrogen3 (Ammonia) in the United States

In Thousands of Metric Tons

- Stocks, Dec. 31-

Year

1998 1999 2000 2001 2002 2003 20041 20052

Net Import Nitrogen5 Reliance Fixed Ammonia Conas a % of --- Production3 (Fixed) --Nitrogen --- Compounds --Apparent NonImports4 Com- sumption ConConsumption Fertilizer fertilizer Total (Fixed) Exports Produced sumption Ammonia pounds (Apparent)

19 11,800 21 11,400 21 10,300 31 8,190 29 9,300 39 7,490 38 8,470 41 7,190

1,950 1,550 1,510 929 1,030 961 524 842

13,800 12,900 11,800 9,120 10,300 8,450 8,990 8,040

3,460 3,890 3,880 4,550 4,670 5,720 5,900 6,520

614 11,712 11,300 562 11,303 11,500 662 10,272 12,500 647 7,852 10,600 437 9,937 11,000 400 9,122 11,000 381 9,258 11,900 525 8,897 11,300

Preliminary. 2 Estimate. 3 Anhydrous ammonia, synthetic. E = Net exporter. Source: U.S. Geological Survey (USGS)

1

4

1,050 996 1,120 261 286 195 298 197

For consumption.

5

1,270 1,240 1,400 1,340 1,140 476 590 532

17,100 16,300 14,900 13,200 14,500 13,900 14,400 14,100

-- Average Price ($ Per Tonne) -------- Urea FOB Gulf6 C o a st

82-85 107-110 158-161 104-108 128-132 192-195 225-230 260-267

------- Ammonium Ammonia FOB FOB Nitrate: Corn FOB Corn Gulf Belt Belt C o a st

110-125 115-125 175-180 130-135 150-160 215-225 255-270 300-325

Major downstream nitrogen compounds.

110-115 110-115 140-150 120-130 120-130 190-195 195-210 265-270 6

121 109 169 183 137 245 274 314

Granular.

95

FERTILIZER World Production of Phosphate Rock, Basic Slag & Guano Brazil

China

Egypt

Israel

Jordan

Morocco

Russia

Senegal

Syria

Togo

Tunisia

United States

World Total

3,823 4,276 4,421 4,344 4,725 4,805 5,084 5,584 6,074 6,100

21,000 24,500 25,000 20,000 19,400 21,000 23,000 25,200 25,500 30,400

808 1,067 1,076 1,018 1,096 972 1,550 2,183 2,219 2,730

3,839 4,047 4,067 4,128 4,110 3,511 3,476 3,208 2,947 2,900

5,355 5,896 5,925 6,014 5,526 5,843 7,179 6,763 6,223 6,230

20,855 23,084 23,587 22,163 21,463 21,983 23,041 22,877 25,369 25,200

8,300 9,800 10,100 11,400 11,100 10,500 10,700 11,000 11,000 11,000

1,340 1,565 1,478 1,814 1,738 1,708 1,551 1,765 1,754 1,520

2,189 2,392 2,496 2,084 2,166 2,043 2,483 2,414 2,883 3,500

2,731 2,631 2,250 1,600 1,370 1,067 1,271 1,471 1,115 1,215

7,167 6,941 7,901 8,006 8,339 8,144 7,461 7,890 7,954 8,000

45,400 45,900 44,200 40,600 38,600 31,900 36,100 35,000 35,800 36,300

135,000 143,000 144,000 134,000 132,000 126,000 135,000 138,000 141,000 147,000

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

Preliminary.

2

Estimate.

Source: U.S. Geological Survey (USGS)

Salient Statistics of Phosphate Rock in the United States

Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 1

Mine Production

Marketable Production

179,000 166,000 170,000 161,000 163,000 130,000 154,000 153,000 146,000 159,000

45,400 45,900 44,200 40,600 38,600 31,900 36,100 35,000 35,800 38,300

Preliminary.

2

Estimate.

Imports Value F or Million Dollars Consumption

1,060 1,080 1,130 1,240 932 856 993 946 995 993

1,800 1,830 1,760 2,170 1,930 2,500 2,700 2,400 2,500 2,630

Exports

Apparent Consumption

Stocks, D e c. 3 1 (Producer)

1,570 335 378 272 299 9 62 64 -------

43,700 43,600 45,000 43,500 39,000 35,300 37,400 38,800 39,000 38,600

6,390 7,910 7,920 6,920 8,170 7,510 8,860 7,540 7,220 6,970

35.82 34.80 42.70 41.96 40.38 W W W W W

23.40 24.50 25.87 31.49 24.29 26.81 27.69 26.95 27.76 29.20

Canada

China

France

Germany

Israel

Jordan

Russia

Spain

United Kingdom

United States

World Total

2,716 3,247 3,451 4,553 3,786 3,700 3,800 4,230 4,600 4,844

243 280 326 348 352 319 337 416 403 405

8,120 8,989 9,201 8,475 9,202 8,237 8,361 9,093 10,114 10,120

110 115 120 260 380 385 450 500 551 600

751 725 453 345 320 244 130 ----------

3,332 3,423 3,582 3,543 3,407 3,550 3,450 3,563 3,626 3,600

1,500 1,488 1,668 1,700 1,750 1,770 1,920 1,960 2,060 2,060

1,080 850 916 1,080 1,160 1,180 1,170 1,230 1,230 1,230

2,620 3,400 3,500 4,200 3,700 4,300 4,400 4,740 5,000 5,500

717 639 597 656 653 471 407 510 500 500

618 565 608 495 600 532 540 620 600 600

1,390 1,400 1,300 1,200 1,300 1,200 1,200 1,100 1,300 1,200

23,300 25,200 26,000 27,300 27,000 26,400 26,600 28,400 30,400 31,100

2

Estimate.

Source: U.S. Geological Survey (USGS)

Net Import Reliance as a % of Consumption

Production

77 80 80 80 70 80 80 80 70 80

1,390 1,400 1,300 1,200 1,300 1,200 1,200 1,100 1,300 1,200

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 Preliminary.

96

22.90 24.40 25.46 30.56 24.14 26.82 27.69 26.95 27.76 29.20

In Thousands of Metric Tons (K2O Equivalent)

Salient Statistics of Potash in the United States

1

23.40 24.50 25.87 31.49 24.29 26.82 27.47 27.01 27.79 2734.00

Brazil

Preliminary.

Year

Avg. Price of Florida & N. Carolina Price - $ Avg. Per Metric Ton - $/Tonne - FOB Mine (-60% to +74% ) (FOB Mine) Domestic Export Average

Belarus

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

In Thousands of Metric Tons

Source: U.S. Geological Survey (USGS)

World Production of Marketable Potash Year

In Thousands of Metric Tons (Gross Weight)

2

Estimate.

3

In Thousands of Metric Tons (K2O Equivalent)

Sales by Producers

Value Million Dollars

Imports F or Consumption

Exports

Apparent Consumption

1,430 1,400 1,300 1,200 1,200 1,100 1,200 1,200 1,300 1,200

299.0 320.0 330.0 280.0 290.0 260.0 280.0 280.0 340.0 410.0

4,940 5,490 4,780 4,470 4,600 4,540 4,620 4,720 4,920 4,920

481 466 477 459 367 366 371 329 233 200

5,890 6,500 5,600 5,100 5,600 5,300 5,300 5,400 6,000 6,000

Unit of K2O, standard 60% muriate F.O.B. mine.

----- $ Per Ton ----Producer Avg. Value Avg. Value of Avg. Price3 Stocks Per Ton of Dec. 31 Product ($) K2O Equiv. $ Per Tonne

265 200 300 300

101.08 110.00 115.00 110.00 110.00 110.00 110.00 110.00 125.00 165.00

Source: U.S. Geological Survey (USGS)

208.57 230.00 250.00 230.00 230.00 230.00 230.00 230.00 270.00 350.00

134.07 138.00 145.00 150.00 157.50 165.00 155.00 170.00 200.00 230.00

Fish from 19.850 billion pounds in 2003. The US domestic catch in 2004 rose by +1.4% to 9.643 billion pounds, and that comprised 47% of total US supply. Of the US domestic catch in 2004, 69% of the catch was finfish for human consumption, 20% of the catch was a variety of fish for industrial use, and 11% was shellfish for human consumption. The principal species of US fishery landings in 2004 were Pollock (with 3.362 billion pounds landed), Menhaden (1.498 billion pounds), Pacific Salmon (738 million pounds), Flounder (362 million pounds), and Sea Herring (258 million pounds). About 30% the fish harvested in the world are processed directly into fishmeal and fish oil. Fishmeal is used primarily in animal feed. Fish oil is used in both animal feed and human food products. World fishmeal production in the 2005-06 marketing year fell by –6.4% to 5.660 million metric tons. World production of fish oil in 2005-06 fell – 5.6% to 978.600 metric tons. Peru and Chile are the world’s largest producers of fishmeal and fish oil. Trade – US imports of fishery products in 2004 rose 3.7% yr/yr to a record high of 10.730 billion pounds, comprising 52.7% of total US supply.

Fish are the primary source of protein for a large portion of the world’s population. The worldwide yearly harvest of all sea fish (including aquaculture) is between 85 and 130 million metric tons. There are approximately 20,000 species of fish, of which 9,000 are regularly caught. Only 22 fish species are harvested in large amounts. Ground-fish, which are fish that live near or on the ocean floor, account for about 10% of the world’s fishery harvest, and include cod, haddock, pollock, flounder, halibut and sole. Large pelagic fish such as tuna, swordfish, marlin, and mahi-mahi, account for about 5% of world harvest. The fish eaten most often in the United States is canned tuna. Rising global demand for fish has increased the pressure to harvest more fish to the point where all 17 of the world’s major fishing areas have either reached or exceeded their limits. Atlantic stocks of cod, haddock and blue-fin tuna are all seriously depleted, while in the Pacific, anchovies, salmon and halibut are all over-fished. Aquaculture, or fish farming, reduces pressure on wild stocks and now accounts for nearly 20% of world harvest. Supply – The US supply of fishery products rose +2.6% to 20.373 billion pounds in 2004 (the latest reporting year)

Fishery Products -- Supply in the United States

In Millions of Pounds2

---------------------- Domestic Catch ----------------------

Year

1998 1999 2000 2001 2002 2003 20041

Grand - For Human Food Total Finfish Shellfish3

16,898 17,378 17,339 18,119 19,028 19,850 20,373

10,837 10,831 11,006 11,330 11,770 12,617 12,954

3,338 3,630 3,734 3,977 4,237 4,570 4,668

F or Industrial Use4

Total

2,723 2,916 2,599 2,812 3,022 2,663 2,751

9,194 9,339 9,068 9,492 9,397 9,507 9,643

------------------------------ Imports ------------------------------

F or % of Grand - For Human Food - Industrial Use4 Total Finfish Shellfish3

54.4 53.7 52.3 52.4 49.4 47.9 47.3

5,935 5,490 5,637 6,162 6,013 6,388 6,636

1,238 1,341 1,275 1,152 1,192 1,133 1,132

Total

F or Industrial Use4

% of Grand - For Human Food Total Finfish Shellfish3

2,021 7,704 2,507 8,039 2,157 8,271 2,178 8,627 2,193 9,631 1,986 10,343 1,875 10,730

45.6 46.3 47.7 47.6 50.6 52.1 52.7

4,901 5,341 5,369 5,168 5,757 6,229 6,318

2,100 2,289 2,459 2,825 3,045 3,437 3,536

702 409 442 634 829 677 876

Preliminary. 2 Live weight, except percent. 3 For univalue and bivalues mollusks (conchs, clams, oysters, scallops, etc.) the weight of meats, excluding the shell is reported. 4 Fish meal and sea herring. Source: Fisheries Statistics Division, U.S. Department of Commerce

1

Fisheries -- Landings of Principal Species in the United States

In Millions of Pounds

----------------------------------------------------------- Fish ------------------------------------------------------------ ---------------------------------- Shelfish ---------------------------------Year

C od, Atlantic Flounder

1998 1999 2000 2001 2002 2003 20041 1

25 21 25 33 29 24 16

Preliminary.

Halibut

Herring, S ea

Manhaden

Pollock

Salmon, Pacific

Tuna

Whiting

Clams (Meats)

73 80 75 78 82 80 79

272 267 235 300 214 287 256

1,706 1,989 1,760 1,741 1,751 1,599 1,498

2,729 2,336 2,616 3,188 3,349 3,372 3,362

644 815 629 723 567 674 738

85 58 51 52 49 62 57

33 31 27 28 18 19 19

108 112 118 123 130 128 119

391 331 413 352 373 365 362

Lobsters Oysters Scallops Crabs (American) ------ (Meats) ------ Shrimp

553 458 299 272 308 332 314

80 87 83 74 82 74 75

34 27 41 33 34 37 39

13 27 33 47 53 56 65

278 304 332 324 317 315 308

Source: National Marine Fisheries Service, U.S. Department of Commerce

U.S. Fisheries: Quantity & Value of Domestic Catch & Consumption & World Fish Oil Production

Year

F or F or ----------------------------------- Disposition ----------------------------------Industrial Human Fresh & For Meal, Products F ood Frozen Canned Cured Oil, Etc. Total ------------------------------------------------ Millions of Pounds ------------------------------------------------

1998 1999 2000 2001 2002 2003 20041 1

Preliminary.

6,870 6,416 6,657 7,085 6,826 7,266 7,448 2

516 712 530 536 652 498 552

129 133 119 123 117 119 137

1,679 2,078 1,763 1,748 1,802 1,624 1,506

Crop years on a marketing year basis.

9,194 9,339 9,069 9,492 9,397 9,507 9,643 3

7,173 6,832 6,912 7,314 7,205 7,521 7,768

At the Dock Prices.

2,021 2,507 2,157 2,178 2,192 1,986 1,875

Ex-vessel Value3

F i sh Per Capita Average Price Cunsumption

- Million $ - - Cents/Lb. -

3,128 3,467 3,550 3,228 3,092 3,347 3,652

34.0 37.1 39.1 34.0 32.9 35.2 37.9

World2 Fish Oil Production

- Pounds - - 1,000 Tons -

NA NA NA NA NA

886 1,413 1,428 1,132 942 979

Source: Fisheries Statistics Division, U.S. Department of Commerce

97

FISH Imports of Seafood Products into the United States ------------------- Fresh -------------------

Year

1998 1999 2000 2001 2002 2003 2004 20051

Atlantic Salmon

Pacific Salmon2

190,131 217,948 257,218 316,837 356,164 349,474 324,358 352,778

38,486 26,467 19,908 17,472 23,210 22,462 22,387 22,522

In Thousands of Pounds

----------------- Froz en -----------------

Shrimp

Fresh & Frozen Trout

Atlantic Salmon

Pacific Salmon2

5,670 5,259 7,083 7,382 9,887 9,023 8,573 7,190

19,092 24,222 32,089 41,176 56,883 64,999 69,894 70,000

17,134 16,596 12,866 10,515 18,317 26,658 40,767 42,296

Canned & Prepared Shrimp Salmon3

599,466 617,089 621,231 714,706 730,002 878,124 871,638 871,902

3,430 5,627 8,893 11,298 16,378 25,177 24,418 25,421

Fresh & Prepared Shrimp4

Oysters5

Mussels6

Clams7

Tilapia8

95,942 114,191 139,526 167,877 216,439 234,084 269,502 293,970

18,049 18,325 20,810 18,438 19,084 22,257 23,121 22,932

34,099 34,969 43,141 39,973 45,695 43,236 50,855 51,669

6,541 7,537 8,074 8,007 7,457 8,752 7,875 6,708

61,336 82,837 89,218 124,202 148,122 198,957 248,986 297,331

Preliminary. 2 Also contains salmon with no specific species noted. 3 I ncludes smoked and cured salmon. 4 Shrimp, canned, breaded, or prepared. Oysters fresh or prepared. 6 Mussels fresh or prepared. 7 Clams, fresh or prepared. 8 Tilapia, frozen whole fish plus fresh and frozen fillets. Source: Bureau of the Census, U.S. Department of Commerce

1

5

Exports of Seafood Products into the United States Year

1998 1999 2000 2001 2002 2003 2004 2005 1 1 5

Fresh & Frozen Trout

------------------- Fresh ------------------Atlantic Pacific Salmon Salmon2 Shrimp

7,978 10,717 15,942 18,417 8,456 11,337 13,606 10,949

34,645 40,683 38,750 20,651 29,672 38,902 33,863 18,537

In Thousands of Pounds

------------------- Froz en ------------------Atlantic Pacific Salmon Salmon2 Shrimp

1,453 1,697 1,816 1,077 1,163 2,592 1,118 945

243 182 299 84 84 99 197 379

105,869 157,278 161,515 167,933 132,646 150,766 172,476 260,159

11,323 13,607 15,162 13,905 13,890 16,466 12,711 9,106

Canned & Prepared Salmon3

Fresh & Prepared Shrimp4

Oysters5

Mussels6

Clams7

77,201 113,556 81,098 109,109 95,955 94,338 117,570 114,273

13,882 13,153 14,229 13,640 13,148 14,307 12,719 10,689

2,496 2,727 3,229 3,915 3,896 5,827 7,505 7,797

1,347 1,861 1,513 1,485 1,178 1,337 911 1,035

5,375 5,240 3,413 3,939 3,861 4,003 5,761 4,384

Preliminary. 2 Also contains salmon with no specific species noted. 3 I ncludes smoked and cured salmon. 4 Shrimp, canned, breaded, or prepared. Oysters fresh or prepared. 6 Mussels fresh or prepared. 7 Clams, fresh or prepared. Source: Bureau of the Census, U.S. Department of Commerce

World Production of Fish Meal Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

Preliminary.

In Thousands of Metric Tons

Chile

Spain

Denmark

EU-25

FSU-12

Iceland

Ja p a n

Norway

Peru

South Africa

Thailand

United States

World Total

823.4 890.0 731.0 766.0 818.1 851.8 806.2 810.0

86.1 110.8 116.6 95.5 92.7 96.6 95.0 96.0

319.1 314.2 311.9 308.2 238.9 255.9 231.2 220.0

542.7 582.6 577.7 554.1 482.5 508.8 487.9 480.4

147.1 132.3 102.8 72.2 75.3 80.3 85.3 88.3

240.6 281.2 283.0 307.9 268.5 214.6 202.1 168.0

388.5 390.0 350.0 318.0 326.0 319.0 319.0 320.0

352.6 315.0 238.8 222.9 199.2 234.2 155.6 178.0

1,597.4 2,449.4 2,144.2 1,688.1 1,344.6 1,842.2 1,949.2 1,550.0

76.2 113.7 97.8 115.7 131.8 126.3 112.0 118.0

398.0 392.4 385.9 390.9 398.8 404.3 407.9 411.0

389.9 346.8 337.1 349.8 322.4 305.0 282.6 292.0

6,341.6 7,383.5 6,763.8 6,193.3 5,735.1 6,185.4 6,045.7 5,660.0

2

Estimate.

3

Forecast.

Source: The Oil World

World Production of Fish Oil Year

Canada

Chile

China

Denmark

Iceland

Ja p a n

Norway

Peru

South Africa

FSU-12

United States

World Total

Fish Oil CIF4

3.3 3.7 4.1 4.3 4.5 4.8 5.2 5.0

176.8 166.0 142.9 140.2 134.0 146.0 166.0 170.0

28.8 20.6 17.6 19.0 17.1 14.0 12.0 12.1

135.2 139.7 121.3 108.7 104.9 112.0 99.0 103.0

92.1 98.0 98.0 84.6 122.0 74.2 66.0 55.0

72.8 69.7 65.8 64.7 65.6 68.1 67.0 68.0

99.2 98.3 66.4 61.2 51.6 40.5 29.7 36.0

376.5 699.4 400.8 162.2 208.0 263.5 341.2 262.0

6.8 8.9 4.5 5.3 5.4 6.5 6.8 7.0

14.5 2.9 2.7 2.9 3.5 3.6 3.7 3.8

141.6 81.3 123.3 103.9 89.6 81.9 72.5 75.4

1,277.3 1,523.4 1,209.4 916.2 973.5 986.2 1,037.1 978.6

408 268 375 593 560 648 716 774

1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

In Thousands of Metric Tons

Preliminary.

2

Estimate.

3

Forecast.

4

Any origin, N.W. Europe.

NA = Not available.

Source: The Oil World

Monthly Production of Catfish--Round Weight Processed, in the US In Thousands of Pounds (Live Weight) Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

48,723 50,552 46,999 52,551 55,523 53,849 53,856 50,703

48,891 50,942 50,257 52,856 55,461 54,173 51,720 49,145

56,310 56,856 57,766 58,340 65,007 60,272 57,117 56,315

46,830 48,781 52,478 50,694 57,105 53,896 50,306 43,126

47,703 48,424 51,736 52,902 58,424 52,324 51,552 42,865

48,445 48,011 47,883 49,450 52,441 50,155 49,626 41,214

50,074 49,023 47,829 52,363 54,089 51,055 47,241 45,528

50,372 53,204 51,690 54,383 54,153 53,295 50,686 51,736

50,414 49,422 49,699 53,366 51,885 51,329 47,151 47,296

52,407 51,412 52,264 56,576 57,652 52,396 49,034 50,788

48,118 45,535 44,670 50,072 51,246 49,536 46,674 45,680

48,341 41,441 43,837 48,048 48,518 48,170 45,707 41,735

596,628 593,603 597,108 631,601 661,504 630,450 600,670 566,131

Preliminary.

98

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

FISH Average Price Paid to Producers for Farm-Raised Catfish in the US

In Cents Per Pound (Live Weight)

Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

70.3 74.4 69.3 54.9 52.9 66.8 72.5 72.7

71.4 78.8 69.6 55.5 54.4 70.3 73.1 72.9

73.2 78.9 69.7 56.5 58.5 72.3 73.3 74.5

75.6 78.9 69.4 56.1 63.0 72.8 72.5 78.5

77.7 78.5 68.7 57.4 61.8 72.0 72.2 79.6

77.5 78.6 66.9 58.8 58.6 68.9 72.1 80.7

76.8 76.0 65.6 59.0 56.4 68.2 72.3 81.2

74.3 74.1 62.4 58.2 55.2 68.3 72.4 81.1

72.8 72.7 61.0 57.6 56.0 68.3 72.4 83.2

71.6 71.0 59.6 56.8 56.7 69.5 72.4 83.6

71.3 69.6 56.6 56.0 61.0 68.9 72.4 83.7

71.6 68.2 55.4 54.4 62.9 69.0 72.6 83.8

73.7 75.0 64.5 56.8 58.1 69.6 72.5 79.6

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Sales of Fresh Catfish in the United States Year

Whole 2001 2002 2003 2004 2005 20061 Fillets2 2001 2002 2003 2004 2005 20061 Other3 2001 2002 2003 2004 2005 20061

In Thousands of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

3,516 3,713 3,833 3,205 3,111 3,195

3,242 3,656 3,785 3,266 3,177 3,331

4,260 3,826 4,339 3,808 3,402 4,024

3,644 3,373 3,643 3,001 2,938 2,940

3,271 3,644 3,692 2,853 2,679 2,795

3,166 3,313 3,266 2,707 2,765 2,464

3,233 3,477 3,553 2,875 2,686 2,716

3,204 3,733 3,510 3,002 2,673 2,711

3,174 3,418 3,233 2,861 2,687

3,294 3,822 3,231 3,076 2,546

2,865 3,031 2,798 2,950 2,615

2,803 2,986 2,693 2,704 2,784

39,672 41,992 41,576 36,308 34,063 36,264

4,884 5,684 5,362 5,964 5,274 5,160

6,112 6,132 5,158 6,455 5,615 5,109

6,751 6,010 6,715 6,815 5,795 6,090

5,709 5,236 5,700 5,887 4,979 5,077

5,587 5,682 6,364 5,688 5,274 4,653

5,122 5,093 5,737 5,500 4,987 4,446

5,191 5,327 5,984 5,559 4,714 4,279

5,313 5,442 6,013 5,483 4,998 4,447

5,264 5,317 5,308 4,865 4,848

5,273 5,420 6,082 4,992 5,072

4,463 4,447 5,187 4,336 4,291

4,489 4,119 4,710 4,162 4,209

64,158 63,909 68,320 65,706 60,056 58,892

1,443 1,526 1,668 1,435 1,300 1,126

1,292 1,446 1,532 1,518 1,295 1,024

2,156 1,375 1,599 1,567 1,370 1,214

1,309 1,356 1,458 1,426 1,271 987

1,282 1,732 1,472 1,299 1,204 915

1,298 1,527 1,319 1,248 1,130 807

1,375 1,576 1,425 1,181 1,097 863

1,436 1,569 1,366 1,173 1,128 879

1,449 1,441 1,473 1,228 1,084

1,430 1,596 1,361 1,263 1,121

1,223 1,165 1,138 1,152 965

1,252 1,205 1,134 1,095 900

16,945 17,514 16,945 15,585 13,865 11,723

Preliminary. 2 I ncludes regular, shank and strip fillets; excludes breaded products. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Prices of Fresh Catfish in the United States Year

Whole 2001 2002 2003 2004 2005 20061 Fillets2 2001 2002 2003 2004 2005 20061 Other3 2001 2002 2003 2004 2005 20061

I ncludes steaks, nuggets and all other products not reported.

In Dollars per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1.59 1.36 1.28 1.49 1.64 1.53

1.68 1.35 1.30 1.53 1.64 1.49

1.63 1.30 1.35 1.57 1.61 1.54

1.65 1.34 1.37 1.60 1.61 1.65

1.65 1.36 1.36 1.60 1.61 1.70

1.62 1.37 1.39 1.57 1.58 1.74

1.59 1.35 1.33 1.57 1.58 1.72

1.55 1.32 1.33 1.58 1.57 1.76

1.53 1.32 1.34 1.56 1.58

1.49 1.28 1.36 1.59 1.63

1.42 1.24 1.40 1.51 1.55

1.37 1.25 1.43 1.57 1.50

1.56 1.32 1.35 1.56 1.59 1.64

2.80 2.52 2.44 2.59 2.81 2.86

2.79 2.49 2.45 2.62 2.75 2.87

2.80 2.49 2.44 2.71 2.85 2.89

2.80 2.51 2.49 2.73 2.87 2.98

2.80 2.53 2.51 2.74 2.86 3.08

2.78 2.55 2.50 2.74 2.85 3.14

2.77 2.55 2.48 2.73 2.84 3.18

2.75 2.54 2.48 2.73 2.83 3.20

2.69 2.54 2.49 2.74 2.83

2.63 2.52 2.49 2.76 2.84

2.60 2.49 2.50 2.77 2.84

2.55 2.47 2.54 2.77 2.84

2.73 2.52 2.48 2.72 2.83 3.03

1.64 1.53 1.40 1.63 1.67 1.64

1.68 1.57 1.41 1.70 1.67 1.63

1.57 1.54 1.51 1.71 1.74 1.65

1.64 1.51 1.53 1.78 1.71 1.75

1.69 1.45 1.47 1.78 1.77 1.73

1.64 1.51 1.54 1.78 1.78 1.86

1.61 1.51 1.52 1.62 1.72 1.86

1.57 1.50 1.58 1.76 1.68 1.85

1.52 1.54 1.50 1.69 1.64

1.59 1.48 1.58 1.72 1.65

1.59 1.55 1.60 1.70 1.60

1.53 1.46 1.64 1.71 1.65

1.61 1.51 1.52 1.72 1.69 1.75

Preliminary. 2 I ncludes regular, shank and strip fillets; excludes breaded products. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

3

3

I ncludes steaks, nuggets and all other products not reported.

99

Flaxseed and Linseed Oil Flaxseed, also called linseed, is an ancient crop that was cultivated by the Babylonians around 3,000 BC. Flaxseed is used for fiber in textiles and to produce oil. Flaxseeds contain approximately 35% oil, of which 60% is omega-3 fatty acid. Flaxseed or linseed oil is obtained through either the expeller extraction or solvent extraction method. Manufacturers filter the processed oil to remove some impurities and then sell it as unrefined. Unrefined oil retains its full flavor, aroma, color, and naturally occurring nutrients. Flaxseed oil is used for cooking and as a dietary supplement as well as for animal feed. Industrial linseed oil is not for internal consumption due to possible poisonous additives and is used for making putty, sealants, linoleum, wood preservation, varnishes, and oil paints. Flaxseed futures and options trade at the Winnipeg Commodity Exchange. The futures contract calls for the delivery of 20 metric tons of flaxseed. The contract is now priced in US dollars per metric ton.

producer of flaxseed is Canada with 39% of world production in 2005-06, followed by the US (17%), China (16%), and India (8%). US production of flaxseed in 2005-06 rose sharply by +88.1% yr/yr to a new record high of 19.695 million bushels from the 23-year high of 11.863 million bushels posted in 2002-03. North Dakota is by far the largest producing state of flaxseed and accounted for 94.0% of flaxseed production in 2006, followed by South Dakota with 2.1% of production and Minnesota with 1.1% of production World production of linseed oil in 2005-06 rose by +9.5% yr/yr to 677,500 metric tons. The world’s largest producers of linseed oil are China (with 20% of world production in 2005-06), the US (23%), Belgium (13%), and India (10%). US production of linseed oil in 2004-05 (latest data available) fell by –4.2% yr/yr to 203 million pounds.

Prices – The average monthly price received by US farmers for flaxseed in the 2006-07 marketing year (through February 2007) fell by –7.8% yr/yr to $5.66 per bushel from $6.14 per bushel in the 2005-06 marketing year.

Demand – US distribution of flaxseed in 2004-05 (latest data available) fell –5.9% yr/yr to 13.996 million bushels. The breakdown was 75% for crushing into meal and oil, 14% for exports, 7% for residual, and 4% for seed. US consumption of linseed oil (inedible products) in the 200607 marketing year (through Dec) rose +2.5% yr/yr to 51.802 million pounds.

Supply – World production of flaxseed in the 2005-06 marketing year rose sharply by 42.9% yr/yr to a record high of 2.597 million metric tons from the 13-year low of 2.011 million metric tons posted in 2001-02. The world’s largest

Trade – US exports of flaxseed in 2004-05 (latest data available) fell by –20.0% yr/yr to 2.013 million bushels. US imports of flaxseed in 2004-05 fell by –22.7% yr/yr to 3.537 million bushels.

World Production of Flaxseed Year

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

Preliminary.

In Thousands of Metric Tons

Argentina

Australia

Bangladesh

Canada

China

Egypt

France

Hungary

India

Romania

United States

Former USSR

World Total

72 75 85 47 22 16 11 29 36 54

7 9 10 9 9 9 9 9 10 10

46 50 50 46 48 50 50 50 50 50

851 1,038 1,210 1,100 775 770 750 835 592 1,160

480 393 523 404 520 253 463 450 460 475

17 19 24 30 30 26 15 22 31 28

29 31 29 34 38 29 49 53 54 57

4 ÑÑ 1 2 1 1 1 1 1 1

319 275 265 289 240 240 200 230 200 230

5 5 3 3 1 2 2 2 3 1

41 62 170 200 273 291 301 265 263 500

86 47 55 42 74 82 60 82 97 95

2,300 2,370 2,828 2,868 2,361 2,011 2,101 2,302 2,069 2,957

2

Estimate.

3

Forecast.

Source: The Oil World

Supply and Distribution of Flaxseed in the United States Crop Year Beginning June 1

Planted

------- 1,000 Acres -------

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

Preliminary.

100

Harvested

151 336 387 536 585 784 595 523 983 718 2

Estimate.

Yield Per Acre (Bushels)

146 329 381 517 578 703 588 516 955 704 3

Forecast.

16.6 20.4 20.6 20.8 19.8 16.9 17.9 20.3 20.6 14.4

In Thousands of Bushels

------------------------- Supply ------------------------Beginning Stocks

Production

453 1,181 2,158 1,767 1,308 893 1,078 1,288

2,420 6,708 7,864 10,730 11,455 11,863 10,516 10,471 19,695

--------------------------------- Distribution -------------------------------

Imports

Total Supply

S eed

Crush

Exports

Residual

Total Distribution

9,636 5,992 6,629 2,849 1,904 2,901 4,573 3,537

12,509 13,881 16,651 15,346 14,667 15,657 16,167 15,296

272 313 434 474 635 482 509 529

10,500 10,600 11,500 12,000 10,000 10,500 10,860 10,410

174 476 201 1,017 2,386 3,181 2,516 2,013

382 333 2,735 572 753 416 994 1,041

11,328 11,723 14,884 14,038 13,774 14,579 14,879 13,996

Source: Economic Research Service, U.S. Department of Agriculture

FLAXSEED AND LINSEED OIL Production of Flaxseed in the United States, by States Crop Year

1997 1998 1999 2000 2001 1

Preliminary.

In Thousands of Bushels

MInnesota

North Dakota

South Dakota

Other States

Total

Crop Year

MInnesota

North Dakota

South Dakota

Other States

Total

432 300 198 198 52

1,997 5,817 6,867 9,975 10,900

252 294 357 361 323

75 165 340 196 180

2,420 6,708 7,864 10,730 11,455

2002 2003 2004 2005 20061

64 161 51 132 126

11,560 9,990 9,840 18,165 10,368

44 144 135 480 228

195 221 445 918 297

11,863 10,516 10,471 19,695 11,019

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Factory Shipments of Paints, Varnish and Lacquer in the United States Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

1998 1999 2000 1999 2001

3,600.7 3,926.2 4,073.1 3,926.2 3,625.0

4,216.4 4,452.2 4,573.5 4,452.2 4,345.4

4,063.9 4,216.5 4,082.0 4,216.5 4,094.5

3,804.4 3,925.7 3,474.7 3,925.7 3,652.6

15,685 16,521 16,203 16,521 15,718

1

Preliminary.

In Millions of Dollars

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

2002 2003 2004 2005 20061

3,729.9 3,981.5 4,306.1 4,061.7 4,647.7

4,440.7 4,671.8 5,000.1 5,274.8 5,390.4

4,251.4 4,374.7 4,843.2 4,951.7 5,046.8

3,600.7 3,905.8 4,104.7 4,249.5

Source: Bureau of the Census, U.S. Department of Commerce

Consumption of Linseed Oil (Inedible Products) in the United States

In Millions of Pounds

Year

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

Total

16,023 16,934 18,254 18,538 20,113

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

Total

5.4 6.5 9.6 11.7 7.9 7.3 4.8 4.4

6.2 7.2 8.4 9.6 6.9 7.3 4.5 5.8

5.5 7.3 9.2 10.0 6.0 6.7 4.2 5.7

5.2 7.5 7.4 7.0 6.8 5.6 3.7 3.5

5.6 6.5 5.3 5.7 3.5 4.8 2.7 3.7

4.5 5.7 5.0 7.3 5.0 5.1 2.7 2.8

4.2 8.0 8.2 6.8 5.6 3.7 3.9

6.1 6.7 7.1 6.4 7.3 4.8 3.8

5.8 7.7 6.9 8.7 6.0 4.9 4.9

7.0 7.6 8.0 8.5 7.7 4.0 3.3

7.6 9.3 7.7 6.6 8.1 5.7 5.9

6.6 9.4 8.7 6.7 8.2 4.7 6.0

69.8 89.3 91.3 94.9 79.1 64.6 50.5 51.8

Source: Bureau of the Census, U.S. Department of Commerce

USD Per Bushel ----- No. 1, Minneapolis (Jan. 1901 - Jan. 1986) CAD Per Metric Ton No. 1, Thunder Bay (Aug. 1991 - date) USD Per Bushel - - - Average Received by Farmers, US (July 1929 - date)

101

FLAXSEED AND LINSEED OIL Supply and Distribution of Linseed Oil in the United States Crop Year Beginning June 1

1

Stocks June 1

Production

Total

Exports

Domestic

Total Disappearance

Average Price at Minneapolis Cents/Lb.

45 50 35 42 48 49 43 45 45 45

180 200 205 207 224 234 195 205 212 203

229 256 247 261 285 295 249 263 272 263

26 66 58 63 74 73 50 70 76 78

153 155 147 150 162 179 153 148 151 140

179 221 205 213 236 252 204 218 227 218

36.5 36.0 36.3 36.4 35.8 36.0 38.1 39.9 41.8 38.5-40.5

-------------------------------- Supply ---------------------------------

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 Preliminary.

2

Forecast.

Year

1

-------------------------------- Disappearance ---------------------------

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

World Production and Price of Linseed Oil

In Thousands of Metric Tons

Argentina

Bangladesh

Belgium

China

Egypt

Germany

India

17.1 24.1 24.5 13.1 6.2 3.8 2.1 2.3 6.9 11.8

12.5 13.4 13.6 12.6 12.9 13.5 13.6 13.6 13.6 13.6

52.1 54.7 59.2 68.8 75.2 95.0 92.1 119.6 104.3 89.6

142.5 120.0 150.0 118.3 133.0 81.3 124.9 124.0 127.0 132.4

9.6 11.1 15.2 15.0 23.0 16.6 14.8 11.1 14.6 17.7

52.2 66.9 74.1 73.6 63.4 57.3 64.4 66.6 37.9 53.0

90.0 84.3 80.1 85.9 74.7 72.4 63.3 67.7 62.7 67.7

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 Preliminary.

2

In Millions of Pounds

Forecast.

Ja p a n

United Kingdom

United States

Former USSR

World Total

Rotterdam Ex-Tank $/Tonne

31.0 31.3 26.5 23.8 21.1 18.9 8.6 7.5 6.8 7.2

34.1 35.1 34.3 34.1 17.0 9.9 5.9 6.7 3.5 3.5

97.9 100.7 107.6 124.9 114.7 95.7 105.5 105.5 135.5 156.5

16.5 7.2 10.7 7.9 16.4 18.7 13.0 15.7 15.9 14.9

676.7 678.6 731.1 709.4 669.0 589.1 597.5 636.0 618.7 677.5

560 686 575 413 378 454 679 757 1,191 697

Source: The Oil World

Average Price Received by Farmers for Flaxseed in the United States Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

In Dollars Per Bushel

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

Average

6.07 6.17 4.40 3.25 4.28 5.38 6.38 7.33 10.40 5.47

5.53 5.45 3.86 3.05 4.09 5.27 5.30 6.90 6.28 5.50

5.72 5.09 4.00 3.10 4.10 5.55 5.43 7.19 6.10 5.46

5.81 4.86 3.76 3.17 4.21 5.76 5.77 7.36 6.05 5.41

5.71 4.97 3.66 3.39 4.33 6.04 6.02 8.62 5.94 5.40

5.72 5.00 3.61 4.45 4.55 5.92 6.15 8.42 5.81 5.73

5.82 5.05 3.75 3.42 4.22 5.71 6.08 8.89 5.64 6.07

6.27 5.05 3.43 3.43 4.75 6.25 6.39 10.90 5.59 6.25

6.26 4.94 3.70 3.90 4.75 6.47 6.53 11.40 5.35

6.23 4.93 3.66 3.68 4.80 6.57 7.01 12.30 5.56

6.33 4.89 3.77 3.91 5.02 6.05 7.10 11.60 5.58

6.17 4.38 3.64 4.10 5.29 6.02 7.23 11.20 5.40

5.97 5.07 3.77 3.57 4.53 5.92 6.28 9.34 6.14 5.66

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Stocks of Linseed Oil (Crude and Refined) at Factories and Warehouses in the US

In Millions of Pounds

Year

July 1

Aug. 1

Sept. 1

Oct. 1

Nov. 1

D e c. 1

Jan. 1

F eb. 1

Mar. 1

Apr. 1

May 1

June 1

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

39.9 49.6 68.7 39.5 29.1 27.8 30.2 15.1 38.1 22.2

35.2 45.3 65.5 42.5 30.2 17.7 27.2 15.8 24.8 27.9

40.3 38.5 68.9 41.3 22.6 12.8 22.3 8.0 14.1 21.6

33.3 55.4 74.0 54.3 38.4 21.8 78.5 13.0 33.9 23.6

38.6 35.7 92.4 58.7 32.4 30.5 42.0 17.1 31.1 28.4

40.3 44.5 69.6 87.0 29.9 29.0 35.0 26.9 21.0 33.5

46.9 53.2 72.0 61.6 33.4 31.9 40.0 31.3 29.4 38.5

60.8 68.2 69.5 50.1 36.6 35.9 43.4 35.4 38.4

55.8 54.6 65.7 50.5 26.8 34.6 37.6 35.4 42.2

63.1 68.2 53.9 51.2 33.4 36.2 32.9 41.0 32.2

54.6 65.3 49.1 39.2 32.3 33.7 24.5 43.9 25.5

49.4 76.2 44.2 44.8 31.1 33.7 19.9 47.2 29.8

1

Preliminary.

102

Source: Bureau of the Census, U.S. Department of Commerce

FLAXSEED AND LINSEED OIL

Wholesale Price of Raw Linseed Oil at Minneapolis in Tank Cars Year

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 1

Preliminary.

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

Average

35.00 37.00 36.00 37.00 36.00 36.00 35.50 40.00 41.75 48.50

35.50 37.20 36.00 37.00 36.00 36.00 38.00 38.00 41.75 50.00

37.00 37.50 36.00 37.00 36.00 36.00 39.00 41.00 42.00 55.00

37.00 37.00 37.00 37.00 36.00 36.00 39.00 31.75 42.75 57.20

37.00 33.75 37.00 37.00 36.00 36.00 39.00 41.00 43.13 60.00

37.00 32.12 37.00 37.00 36.00 36.00 39.00 41.00 43.25 58.17

37.00 36.00 36.00 36.00 36.00 36.00 39.00 41.00 42.60

37.00 36.00 36.00 36.00 36.00 36.00 39.00 41.00 40.00

37.00 36.00 36.00 36.00 36.00 36.00 39.00 41.00 40.00

37.00 36.00 36.00 36.00 36.00 36.00 39.00 41.00 40.00

37.00 36.00 37.00 36.00 36.00 36.00 39.65 41.19 45.00

37.00 36.00 37.00 36.00 36.00 32.00 40.35 41.75 45.50

36.71 35.88 36.42 36.50 36.00 35.67 38.79 39.97 42.31 54.81

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Open Interest of Flaxseed Futures in Winnipeg Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

In Cents Per Pound

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

6,059 5,420 10,059 4,372 4,365 4,101 2,225 235 38 0

6,056 5,356 10,190 4,552 4,907 3,476 1,981 316 23 0

4,402 5,591 9,707 4,533 5,588 4,270 1,921 477 15 0

5,192 5,151 8,540 4,238 6,218 3,043 1,787 604 0 0

6,970 4,923 6,480 3,719 5,066 3,169 1,270 394 0 0

4,435 4,075 6,874 2,456 3,696 3,661 935 489 0 0

3,102 3,891 6,030 2,149 3,152 2,745 612 298 0 0

2,989 4,031 6,767 2,758 3,585 2,350 699 305 0 0

3,257 7,131 7,421 3,725 3,936 2,400 776 253 179 0

3,438 8,284 7,221 4,236 4,666 3,158 704 193 15 0

4,326 7,255 7,564 4,493 4,922 2,726 424 94 214 0

5,119 7,955 5,828 4,276 4,914 3,031 249 49 578 0

Source: Winnipeg Commodity Exchange (WCE)

Volume of Trading of Flaxseed Futures in Winnipeg Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

9,617 7,640 15,713 4,855 9,022 8,232 2,990 333 35 0

8,301 6,486 19,906 8,922 9,340 6,428 2,838 724 10 0

4,110 7,123 8,275 4,383 9,292 6,928 2,519 412 15 0

13,531 10,912 9,060 8,460 12,604 7,117 3,832 368 0 0

10,855 6,256 5,231 5,241 7,372 6,514 3,320 452 0 0

7,997 7,851 7,642 5,891 7,393 6,745 3,018 738 0 0

6,517 7,662 4,468 4,863 2,676 4,344 1,153 343 0 0

4,153 7,081 4,062 2,833 2,525 2,620 810 96 0 0

5,430 20,967 7,328 5,852 9,822 5,242 777 491 15 0

11,126 23,418 13,085 12,078 11,915 7,291 3,030 273 0 0

7,532 20,049 13,824 7,710 14,436 4,689 955 183 0 0

10,720 15,311 6,958 7,345 7,819 6,326 344 25 15 0

99,889 140,756 115,552 78,433 100,040 72,476 25,586 4,438 90 0

Source: Winnipeg Commodity Exchange (WCE)

103

Fruits $2.078 per pound), lemons (+14.2% to $1.411 per pound), grapefruit (+21.9% to 99.8 cents per pound), navel oranges (+15.9% to 99.6 cents per pound), and Valencia oranges (+29.8% to 89.7 cents per pound). Supply – US commercial production of selected fruits in 2005 fell –10.3% to 29.616 million short tons. By weight, oranges accounted for 31% of that US fruit production figure, followed by grapes at 26%, and apples at 17%. The value of US fruit production in 2005 rose +8.4% yr/yr to $16.226 billion. Demand – US per capita fresh fruit consumption in 2005 fell –2.4% to 99.91 pounds per year, down from the 2004 record high of 102.4. The highest per capita consumption categories for noncitrus fruits in 2005 were bananas (25.14 pounds) and apples (16.92 pounds). Per capital consumption of citrus fruits was the highest for oranges (11.40 pounds), lemons (2.94 pounds), and grapefruit (2.65 pounds). The utilization breakdown for 2005 shows that 39% of total US non-citrus fruit utilization went for fresh fruit, 25% for wine, 12% for dried fruit, 9% for canned fruit, 9% for juice, and 4% for frozen fruit. The value of utilized noncitrus fruit production in 2005 rose +11.1% yr/yr to $9.955 billion.

A fruit is any see-bearing structure produced from a flowering plant. A widely used classification system divides fruit into fleshy or dry types. Fleshy fruits are juicy and include peaches, mangos, apples, and blueberries. Dry fruits include tree nuts such as almonds, walnuts, and pecans. Some foods that are commonly called vegetables, such as tomatoes, squash, peppers and eggplant, are technically fruits because they develop from the ovary of a flower. Worldwide, over 430 million tons of fruit are produced each year and are grown everywhere except the Arctic and the Antarctic. The tropics, because of their abundant moisture and warm temperatures, produce the most diverse and abundant fruits. Mexico and Chile produce more than half of all the fresh and frozen fruit imported into the US. In the US, the top three fruits produced are oranges, grapes, and apples. Virtually all US production of almonds, pistachios, and walnuts occurs in California, which leads the US in tree nut production. Prices – Fruit prices were fairly strong in 2005 with the fresh fruit Consumer Price Index rising +3.7% to 297.4 and the processed fruit CPI index rising +3.8% to 114.0. Fruit prices were mixed but generally rose in 2005: Red Delicious Apples (–9.0% to 94.9 cents per pound), bananas (–0.6% to 49.2 cents per pound), Anjou pears (+11.8% to $1.114 per pound), Thompson seedless grapes (+0.9% to

Commercial Production for Selected Fruits in the United States Year

Apples Cherries2

1999 2000 2001 2002 2003 2004 20051

5,316 5,291 4,712 4,262 4,397 5,220 4,933

1

Preliminary.

2

344 352 415 213 359 390 386

Cranberries Grapes

318 286 267 285 310 309 312

Sweet and tart.

6,236 7,688 6,569 7,339 6,644 6,240 7,829 3

Grapefruit Lemons

2,513 747 2,763 840 2,462 996 2,424 801 2,063 1,026 2,165 798 1,018 870

Utilized production.

Nectarines Oranges Peaches

274 267 275 300 273 269 251

9,824 12,997 12,221 12,374 11,545 12,872 9,252

352 354 323 320 300 220 212

735 916 902 950 651 826 736 942 803 1,078 325 1,107 454 1,161

115 99 95 97 105 45 70

Tangerines

Total All Fruits

327 458 373 420 382 417 335

30,819 36,115 32,916 33,173 31,992 33,027 29,616

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

In Thousands of Short Tons

-------------------------------- Utiliz ed Production --------------------------------

--------------------------------------- Value of Production -------------------------------------

Noncitrus Tree Nuts3 Total Citrus2 ------------------------- In Thousands of Short Tons -------------------------

Citrus2 Noncitrus Tree Nuts3 Total ------------------------------------ In Thousands of Dollars ----------------------------------

1999 2000 2001 2002 2003 2004 20051 1

Pine- Prunes StrawPears apples3 & Plums berries Tangelos

1,252 1,044 1,276 993 1,204 1,027 1,268 890 1,260 934 1,307 878 1,185 825

Utiliz ed Production for Selected Fruits in the United States

Year

In Thousands of Short Tons

13,633 17,276 16,216 16,194 15,180 16,360 11,574

17,347 18,854 16,740 17,122 16,853 16,837 18,328

1,288 1,086 1,304 1,448 1,458 1,524 1,483

32,267 37,216 34,260 34,764 33,491 34,720 31,385

2,431,179 2,513,174 2,319,917 2,610,559 2,259,976 2,485,052 2,303,425

8,077,404 7,883,036 7,918,636 8,137,640 8,617,592 8,959,313 9,955,176

1,505,926 1,496,584 1,513,063 2,078,670 2,472,480 3,527,904 3,967,114

12,014,509 11,892,794 11,751,616 12,826,869 13,350,048 14,972,269 16,225,715

Preliminary. 2 Year harvest was completed. 3 Tree nuts on an in-shell equivalent. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Annual Average Retail Prices for Selected Fruits in the United States

In Dollars Per Pound ------------- Oranges -------------

Year

1999 2000 2001 2002 2003 2004 20051 1

Estimate.

104

Red Delicious Apples

Bananas

.897 .919 .868 .948 .980 1.043 .949

.491 .501 .507 .508 .509 .495 .492

Anjou Pears

Thompson Seedless Grapes

Lemons

Grapefruit

Navel

Valenci a s

.950 .986 .966 .997 NA NA 1.114

1.841 1.745 1.850 1.887 1.899 2.059 2.078

1.236 1.289 1.265 1.391 1.317 1.235 1.411

.612 .610 .651 .648 .723 .819 .998

.843 .613 .722 .836 .838 .859 .996

.947 .610 .524 .565 .575 .691 .897

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

FRUITS Utiliz ation of Noncitrus Fruit Production, and Value in the U.S.

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2 0 0 51 1

Preliminary.

1,000 Short Tons (Fresh Equivalent)

Utilized Production

Fresh

Canned

Dried

Juice

Frozen

Wine

Other

Value of utilized Production $1,000

16,103 18,400 16,552 17,347 18,854 16,740 17,122 16,853 16,837 18,328

6,313 6,642 6,514 6,691 7,015 6,488 6,549 6,676 7,177 7,194

1,873 2,130 1,845 1,986 1,812 1,859 1,727 1,762 1,711 1,594

2,275 2,660 1,911 2,154 3,023 2,290 2,582 2,293 1,425 2,102

1,582 1,666 1,786 1,887 1,712 1,462 1,251 1,295 1,421 1,598

604 699 711 717 691 665 591 716 685 705

3,043 4,035 3,315 3,351 4,130 3,568 3,999 3,582 3,819 4,552

180 293 198 244 191 169 138 219 290 271

7,265,788 8,189,821 7,251,032 8,077,404 7,883,036 7,918,636 8,137,640 8,617,592 8,959,313 9,955,176

--------------------------------------------------------- Processed ---------------------------------------------------------

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price Indexes for Fruits in the United States

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 20051 1

----------------------------------------- Producer Price Index ---------------------------------------Fresh Dried Canned Fruits Frozen Fruits Fruit Fruit and Juices and Juices ------------------------------------------------ 1982 = 100 -------------------------------------------------

Index of all Fruit and Nut Prices Received by Growers (1990-92=100)

118 110 111 115 98 109 105 107 124 134

Estimate.

100.8 99.4 90.5 103.6 91.4 97.7 91.5 84.1 104.9 102.8

119.1 123.3 121.8 122.9 122.4 120.3 120.7 122.1 NA NA

137.5 138.4 134.3 137.0 139.5 143.3 141.6 142.3 142.4 148.0

Year

234.4 236.3 246.5 266.3 258.3 265.1 270.2 279.1 286.8 297.4

83.1 148.5 101.9 105.4 106.9 109.0 111.5 113.7 114.0 118.4

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Fresh Fruit: Per Capita Consumption1 in the United States

1996 1997 1998 1999 2000 2001 2002 2003 2004 20052

83.6 148.2 101.5 106.1 108.9 111.9 111.2 115.7 112.1 112.4

------- Consumer Price Index ------Fresh Processed Fruit Fruit -------------- 1982-84 = 100 --------------

----------------------------------- Citrus Fruit ---------------------------------------Tangerines Oranges and Tangelos Lemons Grapefruit Total

12.58 13.91 14.61 8.38 11.74 11.88 11.73 11.89 10.78 11.40

2.15 2.52 2.17 2.30 2.86 2.72 2.55 2.72 2.76 2.49

2.86 2.76 2.46 2.61 2.44 2.95 3.32 3.33 3.12 2.94

5.85 6.18 5.94 5.75 5.09 4.85 4.63 4.10 4.14 2.65

24.58 26.52 26.58 20.37 23.51 23.89 23.33 23.95 22.68 21.63

In Pounds

---------------------------------------------- Noncitrus Fruit ---------------------------------------CranApples Apricots Avacados Bananas Cherries berries

18.67 18.09 18.98 18.50 17.46 15.60 15.99 16.91 18.83 16.92

.09 .14 .12 .12 .15 .08 .09 .13 .13 .14

1.58 1.73 1.52 1.92 2.21 2.50 2.33 2.74 3.05 3.27

27.60 27.16 28.01 30.70 28.44 26.63 26.77 26.15 25.74 25.14

.40 .60 .52 .63 .60 .77 .70 .92 .99 .86

.08 .07 .07 .11 .14 .13 .11 .10 .11 .10

All data on calendar-year basis except for citrus fruits; apples, August; grapes and pears, July; grapefruit, September; lemons, August of prior year; all other citrus, November. 2 Preliminary. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Fresh Fruit: Per Capita Consumption1 in the United States Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 20052

In Pounds

-------------------------------------------------------------------------------- Noncitrus Fruit Continued -----------------------------------------------------------------------------------------Nectarines PinePlums & StrawTotal Total Grapes Kiwifruit Mangos & Peaches Pears apples Papaya Prunes berries Noncitrus Fruit

6.73 7.76 7.17 7.97 7.44 7.38 8.41 7.65 7.79 8.58

.45 .54 .52 .52 .58 .43 .37 .39 .41 .45

1.34 1.44 1.49 1.62 1.75 1.79 1.97 2.06 2.01 1.88

4.38 5.51 4.69 5.29 5.30 5.16 5.23 5.17 5.14 4.82

3.05 3.39 3.43 3.53 3.39 3.25 3.06 3.08 2.95 2.92

1.90 2.34 2.75 3.03 3.22 3.16 3.82 4.39 4.42 4.90

.54 .47 .47 .62 .68 .78 .79 .87 1.03 .93

1.43 1.51 1.18 1.28 1.19 1.33 1.26 1.24 1.12 1.11

4.32 4.10 3.92 4.57 4.86 4.21 4.65 5.28 5.47 5.82

72.83 75.14 75.16 80.72 77.67 73.54 75.94 77.46 79.72 78.28

97.41 101.66 101.74 101.09 101.18 97.43 99.27 101.41 102.40 99.91

All data on calendar-year basis except for citrus fruits; apples, August; grapes and pears, July; grapefruit, September; lemons, August of prior year; all other citrus, November. 2 Preliminary. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

105

Gas Prices – NYMEX natural gas futures on the nearestfutures chart in 2006 traded in a range of about $4.00-$9.82 per mmBtu. The futures price posted the year’s high of $9.82 per mmBtu in late January, moved down to a low of $4.05 in late September, and then rallied to $9.05 in late November of 2006.

Natural gas is a fossil fuel that is colorless, shapeless, and odorless in its pure form. It is a mixture of hydrocarbon gases formed primarily of methane, but it can also include ethane, propane, butane, and pentane. Natural gas is combustible, clean burning, and gives off a great deal of energy. Around 500 BC, the Chinese discovered that the energy in natural gas could be harnessed. They passed it through crude bamboo-shoot pipes and then burned it to boil sea water to create potable fresh water. Around 1785, Britain became the first country to commercially use natural gas produced from coal for streetlights and indoor lights. In 1821, William Hart dug the first well specifically intended to obtain natural gas and he is generally regarded as the “father of natural gas” in America. There is a vast amount of natural gas estimated to still be in the ground in the US. Natural gas as a source of energy is significantly less expensive than electricity per Btu.

Supply – US recovery of natural gas in 2005 fell –2.0% to 23,488 billion cubic feet, which was farther below the record high of 24,501 billion cubic feet recovered in 2001. The top US producing states of natural gas were Texas with 28.0% of US production in 2005, Oklahoma with 8.8%, New Mexico with 8.7%, Wyoming with 8.7%, and Louisiana with 6.8%. In 2006 the world’s largest natural gas producers were Russia with 2,101,406 terajoules of production and the US with 1,677,791 terajoules. Demand – US delivered consumption of natural gas in 2005 fell –0.7% yr/yr to 22,241 billion cubic feet, of which about 30% was delivered to industrial establishments, 26% to electrical utility plants, 22% was delivered to residences, and 14% to commercial establishments.

Natural gas futures and options are traded on the New York Mercantile Exchange (NYMEX). The NYMEX natural gas futures contract calls for the delivery of natural gas representing 10,000 million British thermal units (mmBtu) at the Henry Hub in Louisiana, which is the nexus of 16 intra-state and inter-state pipelines. The contract is priced in terms of dollars per mmBtu. NYMEX also has basic swap futures contracts available for 30 different natural gas pricing locations versus the benchmark Henry Hub location. Natural gas futures are also listed in London on the International Petroleum Exchange (IPE).

Trade – US imports of natural gas (consumed) in 2005 rose +1.9% yr/yr to a record high of 4,431 billion cubic feet. US exports of natural gas in 2005 fell –14.7% yr/yr to 728 billion cubic feet from the 2004 record high of 854 billion cubic feet.

World Production of Natural Gas (Monthly Average Marketed Production3) Australia

Canada

China

99,077 95,265 92,440 92,746 96,523 96,841 99,771 104,731 92,780 94,205

537,295 538,273 569,819 588,447 550,463 553,183 534,434 537,643 547,204 549,058

81,954 84,033 79,523 90,287 98,431 106,720 111,352 132,281 163,802 190,703

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062

Germany

Indonesia

India

Italy

61,804 60,748 62,651 59,164 60,463 61,147 61,441 55,108 55,089 54,639

248,585 274,281 282,485 267,707 258,122 280,939 289,371 282,364 273,554 273,907

84,892 88,195 91,468 94,783 91,063 92,568 89,570 98,773 101,301 101,359

61,173 60,159 56,616 54,289 48,008 46,190 42,812 39,760 38,167 35,221

(In Terajoule4)

Mexico

Netherlands

Romania

Russia

United Kingdom

United States

109,568 182,615 182,610 178,861 171,940 168,675 174,733 177,650 187,151 206,358

209,526 198,554 186,672 178,989 192,180 186,206 201,433 232,485 218,699 241,803

41,547 32,932 38,952 38,254 40,422 38,004 38,831 41,725 40,959 33,785

1,771,467 1,665,726 1,807,313 1,898,046 1,887,953 1,934,011 2,016,895 2,055,061 2,065,477 2,101,406

299,503 314,506 345,040 377,565 370,237 361,414 358,798 333,492 307,775 292,706

1,711,134 1,722,107 1,790,617 1,812,716 1,848,810 1,792,367 1,726,221 1,564,674 1,659,233 1,677,791

Preliminary. 2 Estimate. 3 Compares all gas collected & utilized as fuel or as a chemical industry raw material, including gas used in oilfields and/or gasfields as a fuel by producers. 4 Terajoule = 10 to the 12th power Joule = approximately 10 to the 9th power BTU. NA = Not available. Source: United Nations

1

Marketed Production of Natural Gas in the United States, by States Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1 1

Alaska

480,828 468,311 466,648 462,967 458,995 471,440 463,301 489,757 471,899 487,282

Preliminary.

106

Colorado

Kansas

Louisiana

286,494 572,071 285,690 637,375 315,277 696,321 382,715 722,738 376,580 752,985 377,824 817,206 360,205 937,245 337,216 1,011,285 319,919 1,079,235 317,637 1,133,086

California

712,796 687,215 603,586 553,419 525,729 480,145 454,901 418,893 397,121 377,229

5,289,742 1,505,014 1,551,979 1,566,916 1,455,014 1,502,086 1,361,751 1,350,399 1,353,249 1,296,048

Michigan Mississippi

245,740 305,950 278,076 277,364 296,556 275,036 274,476 236,987 259,681 261,112

103,263 107,300 108,068 111,021 88,558 107,541 112,980 133,901 63,353 52,923

(In Million Cubic Feet)

New Mexico

Oklahoma

Texas

Wyoming

Total

1,554,087 1,558,633 1,501,098 1,511,671 1,695,295 1,689,125 1,632,080 1,604,015 1,632,539 1,645,166

1,734,887 1,703,888 1,669,367 1,594,002 1,612,890 1,615,384 1,581,606 1,558,155 1,655,769 1,670,137

6,470,620 5,167,334 5,227,477 5,054,486 5,282,104 5,282,723 5,141,075 5,243,567 5,067,315 5,254,974

666,036 738,368 903,836 971,230 1,088,328 1,363,879 1,453,957 1,539,318 1,592,203 1,639,317

19,812,241 19,866,093 19,961,348 19,804,848 20,197,511 20,570,295 19,884,780 19,911,802 19,517,491 18,950,734

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

GAS World Production of Natural Gas Plant Liquids Year

Algeria

Canada

Mexico

Saudi Arabia

160 155 190 230 250 270 280 292 295 308

636 651 653 699 709 698 724 658 645 687

388 424 439 438 433 408 418 442 426 431

712 755 745 1,008 1,051 1,095 1,220 1,310 1,460 1,479

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061

(Thousand Barrels per Day) Russia

United States

Persian Gulf2

OAPEC3

OPEC4

World

195 220 231 232 237 246 390 456 457 412

1,817 1,759 1,850 1,911 1,868 1,880 1,719 1,809 1,717 1,736

1,152 1,225 1,232 1,556 1,721 1,797 1,972 2,100 2,267 2,308

1,384 1,449 1,491 1,904 2,108 2,226 2,407 2,516 2,640 2,696

1,589 1,662 1,728 2,101 2,304 2,403 2,548 2,702 2,915 3,007

5,729 5,883 6,075 6,616 7,016 7,030 7,325 7,631 7,798 7,917

Preliminary. 2 Bahrain, I ran, I raq, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates. 3 Organization of Arab Petroleum Exporting Countries. 4 Organization of Pertroleum Exporting Countries. Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

1

Recoverable Reserves and Deliveries of Natural Gas in the United States

Year

Gross Withdrawals

Recoverable Reserves of Natural Gas D e c. 3 1 2

24,114 24,213 24,108 23,823 24,174 24,501 23,941 24,119 23,970 23,488

166,474 167,223 164,041 167,406 177,427 183,460 186,946 189,044 192,513 204,385

1996 1997 1998 1999 2000 2001 2002 2003 2004 2 0 0 51

----------------------------------------- Deliveries -----------------------------------------Electric Utility Total Plants3 Residential Commercial Industrial Deliveries

5,241 4,984 4,520 4,726 4,996 4,771 4,889 5,079 4,869 4,806

3,161 3,215 2,999 3,045 3,182 3,023 3,144 3,179 3,129 3,102

2,732 4,065 4,588 4,820 5,206 5,342 5,672 5,135 5,463 5,797

8,870 8,511 8,320 8,079 8,142 7,344 7,507 7,150 7,243 6,746

(in Billions of Cubic Feet) Heating Value BTU per Cubic Foot

------- Consumption ------Used as L e a se & Pipeline Plant Fuel Fuel

20,006 20,782 20,438 20,681 21,540 20,495 23,007 22,277 22,389 22,241

1,250 1,203 1,173 1,079 1,151 1,119 1,113 1,122 1,098 1,112

711 751 635 645 642 624 667 591 566 585

1,027 1,026 1,031 1,027 1,025 1,028 1,027 1,031 1,027 1,029

Preliminary. 2 Estimated proved recoverable reserves of dry natural gas. 3 Figures include gas other than natural (impossible to segregate); therefore, shown separately from other consumption. Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

1

Gas Utility Sales in the United States by Types and Class of Service Total Number of Utility Customers Sales (Millions)

Year

1994 1995 1996 1997 1998 1999 2000 20011 20022 1

9,248 9,221 10,242 9,722 8,781 8,975 9,232 8,667 8,864

Preliminary.

2

------------------------- Class by Service ------------------------Resi- CommerElectric dential cial Industrial Generation Other

57.9 58.7 60.0 61.0 61.5 60.8 61.3 61.4 62.0

Estimate.

4,845 4,803 5,333 5,056 4,534 4,622 4,741 4,525 4,589

2,253 2,281 2,518 2,341 2,063 2,067 2,077 2,053 2,055

1,690 1,591 1,748 1,593 1,370 1,553 1,698 1,461 1,748

420 328 641 728 810 729 709 620 459

159 218 3 4 5 5 6 8 13

(In Trillions of BTUs)

------------ Revenue - Million $ From Sales to Customers -----------Resi- CommerElectric Total dential cial industrial Generation Other

49,852 46,436 53,630 54,876 47,084 47,202 59,243 69,150 57,112

30,552 28,742 32,942 34,187 30,130 30,095 35,828 42,454 35,062

12,276 11,573 13,250 13,203 11,020 10,731 13,338 16,848 13,512

5,529 4,816 5,812 5,556 4,189 4,715 7,432 7,513 6,840

1,170 836 1,615 1,912 1,726 1,641 2,612 2,286 1,639

597 549 12 18 20 21 33 49 59

Source: American Gas Association (AGA)

Salient Statistics of Natural Gas in the United States

Year

------------------------------- Supply ------------------------------- ---------------- Disposition ---------------- --------- Average Price Delivered to Consumers --------MarWellTotal A dded Dry Storage Imports keted Extrachead Resi- Com- Indus- Electric D i sto Total ConWith- (ConProtion Protrial Utilities Loss duction drawals sumed) Supply sumption Exports Storage position Price Imports Exports dential mercial duction ------------------------------------------- In Billions of Cubic Feet ------------------------------------------------ --------------- USD Per Thousand Cubic Feet ---------------

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

19,812 958 18,854 19,866 964 18,902 24,108 938 19,024 23,823 973 18,832 24,174 1,016 19,182 24,501 954 19,616 23,941 957 18,928 24,119 876 19,099 24,055 927 18,591 23,518 876 18,074

1

Preliminary.

2

Estimate.

2,981 2,894 2,432 2,808 3,550 2,344 3,180 3,161 3,088 3,048

2,937 2,994 3,152 3,586 3,782 3,977 4,015 3,944 4,259 4,341

25,635 25,502 25,826 25,699 26,815 26,697 26,767 26,963 26,985

22,610 22,737 22,246 22,405 23,333 22,239 23,007 22,277 22,389 22,241

153 157 159 163 244 373 516 680 854 729

2,979 2,870 2,961 2,636 2,721 3,510 2,713 3,358 3,202 2,998

24,114 24,213 25,826 25,699 26,815 26,697 26,767 26,963 26,985

2.17 1.97 2.32 2.17 1.96 1.97 2.19 2.24 3.68 3.95 4.00 4.43 2.95 3.14 4.88 5.17 5.46 5.81 7.33 8.12

2.97 6.34 5.40 3.02 6.94 5.80 2.45 6.82 5.48 2.61 6.69 5.33 4.10 7.76 6.59 4.19 9.63 8.43 3.41 7.89 6.63 5.54 9.63 8.40 6.09 10.75 9.43 7.59 12.84 11.59

3.42 3.59 3.14 3.12 4.45 5.24 4.02 5.89 6.53 8.56

2.69 2.78 2.40 2.62 4.38 4.61 3.68 5.57 6.11 8.48

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

107

GAS

Average Price of Natural Gas at Henry Hub

In Dollars Per MMBtu

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

3.31 2.10 1.85 2.42 8.18 2.25 5.49 6.17 6.13 8.65

2.22 2.22 1.77 2.65 5.62 2.31 7.41 5.39 6.13 7.54

1.89 2.24 1.79 2.79 5.16 3.03 6.08 5.38 6.91 6.90

2.03 2.43 2.15 3.03 5.16 3.42 5.27 5.71 7.22 7.16

2.24 2.14 2.25 3.58 4.21 3.49 5.81 6.30 6.48 6.23

2.20 2.17 2.30 4.28 3.71 3.22 5.83 6.29 7.15 6.19

2.19 2.17 2.31 3.96 3.11 2.98 5.03 5.93 7.63 6.22

2.48 1.85 2.79 4.41 2.95 3.09 4.97 5.44 9.46 7.14

2.85 2.02 2.54 5.11 2.15 3.55 4.61 5.11 11.87 4.90

3.04 1.89 2.72 5.02 2.45 4.12 4.66 6.39 13.42 5.84

3.02 2.10 2.35 5.54 2.35 4.04 4.47 6.15 10.28 7.36

2.36 1.72 2.36 8.95 2.43 4.75 6.13 6.64 13.05 6.73

2.49 2.09 2.27 4.31 3.96 3.35 5.48 5.91 8.81 6.74

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Volume of Trading of Natural Gas Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

922.8 1,005.6 1,296.7 1,388.8 1,044.4 1,942.5 2,134.4 1,162.1 1,442.2 1,609.9

693.6 1,089.1 1,158.6 1,470.9 1,044.6 1,668.6 1,909.1 1,125.1 1,490.4 1,833.9

664.7 1,193.5 1,788.5 1,505.0 1,131.7 2,381.1 1,362.4 1,420.3 1,653.3 1,682.2

836.3 1,625.9 1,655.8 1,179.3 1,144.8 2,421.7 1,321.3 1,443.1 1,586.0 1,911.6

945.4 1,245.2 1,465.3 1,822.2 1,632.5 2,281.4 1,521.7 1,587.5 1,504.1 2,272.5

803.7 1,568.8 1,474.2 1,853.7 1,536.9 1,911.7 1,584.8 1,588.5 1,931.9 1,920.6

812.9 1,310.4 1,865.8 1,331.4 1,350.3 2,266.1 1,543.7 1,508.8 1,528.4 1,786.2

1,313.8 1,237.0 1,892.1 1,483.9 1,510.9 2,115.6 1,315.3 1,724.1 2,044.4 2,428.7

1,377.1 1,656.3 1,978.6 1,510.2 901.1 1,990.0 1,503.7 1,885.6 1,587.6 2,017.7

1,394.0 1,339.5 1,676.5 1,594.9 1,639.7 2,103.4 1,948.9 1,458.3 1,433.1 1,935.1

1,104.8 1,243.1 1,552.3 1,759.5 1,891.7 1,569.2 1,376.6 1,320.0 1,449.5 1,799.6

1,054.6 1,464.0 1,360.7 975.1 1,639.6 1,706.4 1,515.2 1,218.6 1,491.7 1,832.0

11,923.6 15,978.3 19,165.1 17,875.0 16,468.4 24,357.8 19,037.1 17,441.9 19,142.5 23,030.0

Source: New York Mercantile Exchange (NYMEX)

Average Open Interest of Natural Gas Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

156,231 192,652 244,472 262,845 364,532 458,924 415,642 322,762 401,829 545,165

162,567 198,853 268,649 266,826 346,343 491,215 420,329 312,475 405,692 582,231

171,467 203,402 284,312 295,176 360,032 527,765 367,673 322,366 458,013 634,072

181,745 251,344 315,336 313,739 380,632 559,413 354,154 338,786 479,880 700,588

206,685 255,837 332,398 342,455 421,145 556,277 365,838 382,160 480,318 795,375

197,637 264,517 330,725 347,353 456,512 526,016 366,610 366,135 472,631 851,655

199,296 255,878 316,034 330,604 473,675 494,133 357,299 373,853 498,440 883,492

213,640 273,350 353,767 339,025 497,972 437,285 343,622 378,787 524,235 938,024

235,509 275,868 336,622 373,654 494,475 419,532 354,568 393,477 544,165 940,339

242,184 252,827 316,157 369,448 488,187 413,312 352,685 392,626 551,121 931,949

231,556 236,292 309,130 389,363 455,766 393,953 356,622 383,712 545,270 903,355

210,259 240,832 292,161 377,470 415,882 391,424 340,756 387,605 551,444 889,759

Source: New York Mercantile Exchange (NYMEX)

108

In Contracts

Jan.

Gasoline Gasoline is a complex mixture of hundreds of lighter liquid hydrocarbons and is used chiefly as a fuel for internalcombustion engines. Petroleum crude, or crude oil, is still the most economical source of gasoline with refineries turning more than half of every barrel of crude oil into gasoline. The three basic steps to all refining operations are the separation process (separating crude oil into various chemical components), conversion process (breaking the chemicals down into molecules called hydrocarbons), and treatment process (transforming and combining hydrocarbon molecules and other additives). Another process, called hydro treating, removes a significant amount of sulfur from finished gasoline as is currently required by the state of California. Octane is a measure of a gasoline’s ability to resist pinging or knocking noise from an engine. Most gasoline stations offer three octane grades of unleaded fuel—regular at 87 (R+M)/2, mid-grade at 89 (R+M)/2, and premium at 93 (R+M)/2. Additional refining steps are needed to increase the octane, which increases the retail price. This does not make the gasoline any cleaner or better, but yields a different blend of hydrocarbons that burn more slowly. In an attempt to improve air quality and reduce harmful emissions from internal combustion engines, Congress in 1990 amended the Clean Air Act to mandate the addition of ethanol to gasoline. Some 2 billion gallons of ethanol are now added to gasoline each year in the US. The most common blend is E10, which contains 10% ethanol and 90% gasoline. Auto manufacturers have approved that mixture for use in all US vehicles. Ethanol is an alcohol-based fuel produced by fermenting and distilling crops such as corn, barley, wheat and sugar.

Unleaded gasoline futures and options trade at the New York Mercantile Exchange (NYMEX). The NYMEX gasoline futures contract calls for the delivery of 1,000 barrels (42,000 gallons) of unleaded gasoline in the New York harbor and is priced in terms of dollars and cents per gallon. Price – NYMEX gasoline futures prices fluctuated widely in 2006. They started the year at about $1.81 per gallon, after a slight dip in February prices rose to a high of $2.23 per gallon and then moved lower to finish the year at about $1.54 per gallon. The record high on the nearestfutures chart of $2.92 per gallon was posted on August 31, 2005. The average monthly retail price of regular unleaded gasoline in 2006 (through December) rose +12.8% yr/yr to $2.59 per gallon, which was a record high. The average monthly retail price of unleaded premium motor gasoline in the US in 2006 (through December) rose by +12.8% to $2.81 per gallon, which was a new record high. The average monthly refiner price of finished aviation gasoline to end users in 2006 (through October) rose by +22.8% yr/yr to a new record high of $2.72 per gallon. Supply – US production of gasoline in 2006 (through December, annualized) rose +0.1% yr/yr to 8.323 million barrels per day. Gasoline stocks in November 2006 were 115.3 million barrels, down from 132.9 million barrels in November 2005. Demand – US consumption of finished motor gasoline in 2006 (through December, annualized) rose +0.9% yr/yr to 9.238 million barrels per day, which was a new record high.

Production of Finished Motor Gasoline in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousand Barrels per Day

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

7,308 7,749 7,886 7,798 7,888 8,160 7,870 7,956 8,157 8,185

7,315 7,485 7,607 7,658 7,822 8,117 7,800 7,979 8,194 7,969

7,322 7,591 7,531 8,032 8,011 8,072 7,724 8,102 8,119 7,760

7,822 8,029 8,138 8,130 8,450 8,626 8,161 8,233 8,549 7,946

8,056 8,057 8,207 8,398 8,651 8,729 8,311 8,447 8,475 8,414

8,180 8,372 8,402 8,550 8,637 8,661 8,293 8,336 8,589 8,878

7,947 8,287 8,280 8,320 8,481 8,665 8,320 8,370 8,352 8,566

8,048 8,200 8,183 8,251 8,277 8,666 8,355 8,357 8,326 8,584

8,147 8,029 8,187 8,358 8,381 8,320 8,228 7,993 8,129 8,415

8,039 7,995 8,266 8,031 8,446 8,190 8,253 8,384 7,953 8,214

7,984 8,263 8,142 8,394 8,366 8,738 8,450 8,346 8,468 8,313

8,143 8,395 8,471 8,298 8,301 8,734 8,540 8,659 8,503 8,628

7,870 8,082 8,111 8,186 8,312 8,475 8,194 8,264 8,318 8,323

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Disposition of Finished Motor Gasoline, Total Product Supplied in the U.S. Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousand Barrels per Day

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

7,312 7,590 7,701 7,653 8,099 8,227 8,414 8,705 8,813 8,727

7,651 7,755 8,031 8,291 8,234 8,607 8,525 8,838 8,861 8,836

7,808 7,956 8,128 8,305 8,532 8,655 8,602 9,024 8,994 9,129

8,067 8,137 8,506 8,375 8,575 8,766 8,838 9,126 9,128 9,140

8,128 8,070 8,420 8,661 8,706 9,078 9,042 9,179 9,278 9,312

8,260 8,437 8,886 8,824 8,690 9,140 9,170 9,322 9,373 9,440

8,471 8,659 8,942 8,642 9,023 9,143 9,192 9,357 9,534 9,583

8,195 8,500 8,579 8,921 8,953 9,313 9,411 9,327 9,537 9,585

8,004 8,308 8,305 8,518 8,557 8,687 8,926 9,015 8,915 9,222

8,166 8,405 8,542 8,417 8,655 8,814 9,108 9,097 9,036 9,286

7,955 8,136 8,240 8,384 8,677 8,829 8,946 9,055 9,115 9,263

8,093 8,401 8,859 8,670 8,585 8,893 9,011 9,206 9,296 9,327

8,017 8,253 8,431 8,472 8,610 8,848 8,935 9,104 9,157 9,238

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

109

GASOLINE

Average Spot Price of Unleaded Gasoline in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Cents Per Gallon

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

67.64 47.85 34.24 70.43 83.32 54.30 87.56 99.66 123.85 173.39

62.49 45.14 31.81 81.30 82.56 55.41 99.62 104.63 122.42 149.98

61.28 44.13 42.33 89.11 78.18 69.64 95.51 109.12 143.90 175.87

58.59 46.98 50.11 73.15 94.95 74.66 80.08 112.02 147.06 214.62

62.08 48.26 48.86 89.06 92.37 70.32 76.16 133.98 137.06 204.68

55.17 43.95 48.65 96.18 71.85 71.65 80.65 115.70 151.02 206.50

58.58 42.29 58.35 86.76 68.31 76.62 87.17 122.65 158.89 223.99

70.42 40.14 63.89 86.97 77.18 76.75 100.42 120.89 191.13 203.23

62.17 42.70 69.37 96.04 75.00 78.36 90.41 126.17 214.78 158.42

58.35 43.71 62.63 94.71 59.79 82.34 87.12 137.75 170.87 152.00

55.60 36.78 69.57 93.94 51.34 76.08 87.33 126.96 147.73 158.71

51.75 30.92 70.55 73.66 51.85 80.56 88.37 106.90 159.88 166.70

60.34 42.74 54.20 85.94 73.89 72.22 88.37 118.04 155.72 182.34

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Volume of Trading of Gasoline, RBOB1 Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Jan.

In Thousands of Contracts

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

590.1 563.2 613.6 612.3 561.5 619.7 693.6 721.9 825.2 701.2 795.0 744.7 1,054.1 968.7 956.1 998.7 974.6 1,000.9 1,149.6 1,233.0

605.1 766.4 876.4 921.6 809.2 942.7 1,010.9 1,169.2 1,193.5 1,259.1

623.2 789.3 741.5 730.0 981.0 1,019.3 909.0 1,169.0 1,252.5 1,079.6

618.3 681.1 721.1 927.5 1,056.5 985.2 933.7 1,203.8 1,060.2 1,122.7

555.5 753.1 737.7 838.5 895.0 834.5 944.0 1,194.5 1,104.7 1,039.8

721.4 680.6 822.0 650.6 737.3 967.8 987.5 1,027.0 1,103.2 939.8

795.4 592.0 800.4 677.2 790.8 893.6 1,021.5 1,177.7 1,341.3 1,145.5

664.9 654.2 751.3 641.2 581.9 867.6 943.0 1,052.9 1,221.3 891.4

613.6 670.2 705.1 635.7 664.9 1,105.0 877.1 983.7 999.2 839.6

509.9 577.8 748.8 612.1 613.3 865.9 760.8 849.0 928.1 838.1

614.6 601.7 615.7 595.1 567.2 958.4 761.6 995.9 989.0 966.0

7,475.1 7,992.3 8,701.2 8,645.2 9,223.5 10,979.7 11,172.1 12,777.5 13,168.4 12,504.2

Data thru September 2005 are Unleaded, October 2005 thru December 2006 are Unleaded and RBOB.

Average Open Interest of Gasoline, RBOB1 Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

68,188 106,353 105,532 89,049 117,540 136,795 117,558 125,207 162,432 157,562

84,693 102,656 113,683 103,586 126,762 139,191 124,288 141,837 161,603 173,978

92,520 108,667 111,449 105,448 124,631 133,649 113,380 150,573 172,012 168,067

97,619 117,521 110,531 105,133 124,162 129,274 98,627 146,375 166,620 165,233

90,407 107,235 107,644 103,831 111,576 120,224 96,405 148,782 145,587 150,913

78,492 100,792 102,927 96,772 103,058 114,663 93,285 138,248 148,482 138,578

83,082 89,846 113,619 80,886 101,249 106,463 95,433 140,691 156,730 146,173

103,538 86,902 120,468 66,598 92,156 94,648 99,394 146,532 156,282 135,367

103,250 85,188 120,328 74,735 87,841 95,754 85,457 147,088 140,270 131,771

94,602 81,991 111,758 80,446 102,414 100,427 90,007 150,643 134,833 124,963

Data thru September 2005 are Unleaded, October 2005 thru December 2006 are Unleaded and RBOB.

110

Source: New York Mercantile Exchange

Nov.

D e c.

92,852 103,497 87,306 103,079 109,428 96,652 88,509 92,041 115,699 126,634 105,175 109,737 95,002 105,919 138,280 153,907 138,659 144,396 128,906 135,085

Source: New York Mercantile Exchange

GASOLINE

USD Per Gallon ----- Unleaded, New York (Jan. 1976 - date) - - - Leaded, New York (Oct. 1973 - Apr. 1991)

Stocks of Finished Gasoline2 on Hand in the United States, at End of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

164.9 175.3 185.2 165.3 158.7 169.7 157.2 138.7 144.8 143.3

161.3 172.8 178.4 156.4 154.6 165.5 151.1 133.5 148.4 140.8

153.8 166.4 167.8 157.1 144.7 159.8 144.7 132.1 137.8 124.5

152.0 168.3 168.9 160.6 150.3 167.0 151.4 133.1 141.6 115.8

157.8 174.9 176.5 162.2 160.1 168.3 155.2 137.2 141.0 121.4

163.9 177.7 172.3 164.5 169.4 167.6 153.0 140.2 141.9 119.7

150.6 172.5 163.6 164.6 162.3 164.8 150.1 140.5 135.1 118.3

149.6 168.8 158.6 151.0 150.6 157.3 145.2 137.9 125.0 116.6

158.1 164.7 159.2 154.2 158.0 157.4 146.1 135.7 128.1 120.6

158.0 160.0 158.8 147.4 160.2 148.2 140.4 138.4 130.0 113.1

161.1 167.5 160.5 156.7 161.2 158.0 146.3 141.5 132.9 115.3

166.1 172.0 151.6 153.0 161.5 161.9 146.9 143.2 135.0 135.0

Preliminary.

2

I ncludes oxygenated and other finished.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Average Refiner Price of Finished Motor Gasoline to End Users1 in the U.S. Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2 1

In Millions of Barrels

In Cents Per Gallon

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

86.6 73.3 59.2 91.7 106.8 70.6 106.0 117.3 139.5 187.3

86.1 69.0 56.8 98.7 106.7 71.8 122.1 125.6 146.8 183.5

84.3 65.6 65.1 113.1 103.9 87.2 130.0 133.8 163.7 198.5

83.9 67.4 79.0 108.7 117.7 100.4 120.1 139.6 180.3 233.4

84.5 71.0 78.2 110.3 130.1 99.9 110.0 156.9 171.4 246.1

83.3 70.4 75.6 121.3 120.7 99.1 109.3 154.4 172.1 243.9

81.5 69.4 80.6 117.3 103.2 100.3 110.6 148.3 185.0 253.0

86.8 66.7 86.5 110.3 102.5 100.1 123.1 145.1 208.0 248.8

87.2 65.4 88.8 117.5 1,009.2 100.1 126.5 145.0 241.7 207.8

84.3 66.4 87.1 115.5 89.9 104.0 115.0 158.6 226.2 178.4

81.6 64.0 88.4 113.5 76.9 101.2 109.5 155.1 182.4

77.8 60.0 90.3 106.3 68.5 98.1 106.5 141.3 173.9

83.9 67.3 78.1 110.6 103.2 94.7 115.7 143.4 182.6 218.1

Excludes aviation and taxes.

2

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

111

GASOLINE Average Retail Price of Unleaded Premium Motor Gasoline2 in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Cents per Gallon

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

144.1 131.9 117.1 148.6 165.7 132.3 166.6 177.9 201.7 252.1

143.4 127.1 115.5 155.1 167.1 133.0 182.8 185.8 210.5 251.9

141.5 122.9 118.6 172.3 163.8 145.0 192.4 194.9 225.1 260.3

141.3 123.7 136.7 169.8 174.8 162.2 184.6 201.2 246.8 296.7

140.9 127.5 137.0 168.2 193.4 162.5 172.9 218.6 240.3 316.9

141.1 127.9 133.9 178.6 188.1 160.8 170.0 222.5 236.5 313.9

138.8 126.8 137.8 177.3 169.5 160.7 171.0 213.0 250.2 321.9

143.3 124.4 144.1 168.9 163.6 162.0 180.8 209.1 270.1 320.7

145.8 123.0 146.8 176.4 172.6 161.9 191.1 208.2 313.0 281.9

142.6 123.6 146.4 174.4 156.0 164.3 178.9 221.5 300.1 249.3

139.7 122.5 145.4 173.8 142.7 164.3 172.4 220.3 256.0 245.9

136.3 118.7 148.6 167.9 131.2 158.9 168.6 208.0 239.3 255.0

141.6 125.0 135.7 169.3 165.7 157.8 177.7 206.8 249.1 280.5

Preliminary.

2

I ncluding taxes.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Average Retail Price of Unleaded Regular Motor Gasoline2 in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

126.1 113.1 97.2 130.1 147.2 113.9 147.3 159.2 182.3 231.5

125.5 108.2 95.5 136.9 148.4 113.0 164.1 167.2 191.8 231.0

123.5 104.1 99.1 154.1 144.7 124.1 174.8 176.6 206.5 240.1

123.1 105.2 117.7 150.6 156.4 140.7 165.9 183.3 228.3 275.7

122.6 109.2 117.8 149.8 172.9 142.1 154.2 200.9 221.6 294.7

122.9 109.4 114.8 161.7 164.0 140.4 151.4 204.1 217.6 291.7

120.5 107.9 118.9 159.3 148.2 141.2 152.4 193.9 231.6 299.9

125.3 105.2 125.5 151.0 142.7 142.3 162.8 189.8 250.3 298.5

127.7 103.3 128.0 158.2 153.1 142.2 172.8 189.1 292.7 258.9

124.2 104.2 127.4 155.9 136.2 144.9 160.3 202.9 278.5 227.2

121.3 102.8 126.4 155.5 126.3 144.8 153.5 201.0 234.3 224.1

117.7 98.6 129.8 148.9 113.1 139.4 149.4 188.2 218.6 233.4

123.4 105.9 116.5 151.0 146.1 135.8 159.1 188.0 229.5 258.9

Preliminary.

2

I ncluding taxes.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Average Retail Price of All-Types2 Motor Gasoline3 in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Cents per Gallon

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

131.8 118.6 103.1 135.6 152.5 120.9 155.7 163.5 186.6 235.9

131.2 113.7 101.4 142.2 153.8 121.0 168.6 171.5 196.0 235.4

129.3 109.7 104.8 159.4 150.3 132.4 179.1 180.9 210.7 244.4

128.8 110.6 123.2 156.1 161.7 149.3 170.4 187.5 232.5 280.1

128.4 114.6 123.3 155.2 181.2 150.8 158.7 205.0 225.7 299.3

128.6 114.8 120.4 166.6 173.1 148.9 155.8 208.3 221.8 296.3

126.3 113.4 124.4 164.2 156.5 149.6 156.7 198.2 235.7 304.6

131.0 110.8 130.9 155.9 150.9 150.8 167.1 194.1 254.8 303.3

133.4 109.1 133.4 163.5 160.9 150.7 177.1 193.4 296.9 263.7

130.0 109.9 132.9 161.3 144.2 153.5 164.6 207.2 283.0 231.9

127.1 108.6 131.9 160.8 132.4 153.4 157.8 205.3 238.7 228.7

123.6 104.6 135.3 154.4 120.0 147.7 153.8 192.6 223.0 238.0

129.1 111.5 122.1 156.3 153.1 144.1 163.8 192.3 233.8 263.5

1 Preliminary. 2 Also includes types of motor oil not shown separately. U.S. Department of Energy (EI A-DOE)

3

I ncluding taxes.

Source: Energy I nformation Administration,

Average Refiner Price of Finished Aviation Gasoline to End Users2 in the U.S. Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Cents per Gallon

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

113.7 104.3 87.1 118.7 128.5 111.8 139.7 W 173.8 239.1

114.9 101.1 85.1 119.5 129.2 110.6 W W 186.7 232.4

113.8 98.2 90.1 129.1 124.5 122.6 W W 201.5 247.3

114.7 98.6 101.4 124.3 134.9 129.8 W 177.4 221.7 286.9

115.7 99.9 104.2 126.8 150.9 128.9 139.8 194.4 212.1 301.3

114.6 99.0 104.1 139.8 145.1 127.3 145.1 192.3 211.6 305.7

112.5 98.4 107.9 142.6 134.6 139.2 151.9 185.4 223.0 310.3

114.6 95.9 113.2 NA 136.3 136.9 162.2 184.9 238.6 305.8

115.6 94.1 115.4 138.2 142.4 139.1 158.9 187.8 280.8 253.2

113.9 95.1 117.6 134.9 125.3 143.0 150.8 195.5 270.8 238.4

113.0 93.2 116.4 134.9 119.4 141.8 W 187.0 218.6

107.7 88.5 119.6 126.1 115.8 139.8 146.6 176.7 219.3

113.8 97.2 105.9 130.6 132.3 128.8 149.4 186.8 221.5 272.0

Preliminary.

112

In Cents per Gallon

Jan.

2

Excluding taxes.

W = Withheld.

Source: Energy I nformation Administration, U.S. Department Energy (EI A-DOE)

Gold Gold is a dense, bright yellow metallic element with a high luster. Gold is an inactive substance and is unaffected by air, heat, moisture, and most solvents. Gold has been coveted for centuries for its unique blend of rarity, beauty, and near indestructibility. The Egyptians mined gold before 2,000 BC. The first known, pure gold coin was made on the orders of King Croesus of Lydia in the sixth century BC. Gold is found in nature in quartz veins and secondary alluvial deposits as a free metal. Gold is produced from mines on every continent with the exception of Antarctica, where mining is forbidden. Because it is virtually indestructible, much of the gold that has ever been mined still exists above ground in one form or another. The largest producer of gold in the US by far is the state of Nevada, with Alaska and California running a distant second and third. Gold is a vital industrial commodity. Pure gold is one of the most malleable and ductile of all the metals. It is a good conductor of heat and electricity. Gold melts at 1,064 degrees Celsius and boils at about 2,808 degrees Celsius. The prime industrial use of gold is in electronics. Another important sector is dental gold where it has been used for almost 3,000 years. Other applications for gold include decorative gold leaf, reflective glass, and jewelry. In 1792, the United States first assigned a formal monetary role for gold when Congress put the nation’s currency on a bimetallic standard, backing it with gold and silver. Under the gold standard, the US government was willing to exchange its paper currency for a set amount of gold, meaning the paper currency was backed by a physical asset with real value. However, President Nixon in 1971 severed the convertibility between the US dollar and gold, which led to the breakdown of the Bretton Woods international payments system. Since then, the prices of gold and of paper currencies have floated freely. US and other central banks now hold physical gold reserves primarily as a store of wealth. Gold futures and options are traded at the New York Mercantile Exchange. Gold futures are traded on the Bolsa de Mercadorias and Futuros (BM&F) and on the Tokyo Commodity Exchange (TOCOM), the Chicago Board of Trade (CBOT) and the Korea Futures Exchange (KOFEX). The Nymex gold futures contract calls for the delivery of 100 troy ounces of gold (0.995 fineness), and the contract trades in terms of dollars and cents per troy ounce.

World Mine Production of Gold 1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 1

Brazil

Canada

Chile

China

289,530 314,500 310,070 301,070 296,410 280,100 266,100 282,000 259,000 262,000

60,011 58,488 49,567 52,634 50,393 42,884 41,662 40,416 47,596 41,154

166,378 171,479 165,599 157,617 156,207 158,875 151,904 140,861 129,478 118,528

53,174 49,459 44,980 48,069 54,143 42,673 38,688 38,954 39,986 40,447

145,000 175,000 178,000 173,000 180,000 185,000 192,000 205,000 215,000 225,000

Preliminary.

2

Estimate.

Supply – World mine production of gold rose +0.8% yr/ yr to 2.450 million kilograms in 2005, which was still below the record high of 2.570 million kilograms seen in 1999 and 2000 (1 kilogram = 32.1507 troy ounces). The world’s largest producers of gold are South Africa with 12% of world production in 2005, followed by Australia (10%), the US (10%), China (9%), Russia (7%), Indonesia (6%), and Canada (5%). Gold mine production has been moving lower in most major gold-producing countries such as South Africa, Australia, Canada and the US. South Africa’s production of 300,000 kilograms in 2005 was down –12.1% yr/yr and was less than half the production levels above 600,000 kilograms seen in the 1980s and early 1990s. However, China’s gold production in 2005 rose +4.7% to a record 225,000 kilograms. US gold mine production in 2005 rose +0.8% yr/yr to 260,000 kilograms, up slightly from the 258,000 kilograms in 2004, which was the lowest production level since 1988. US refinery production of gold from domestic and foreign ore sources in 2005 rose by +3.6% yr/yr to 230,000 kilograms. US refinery production of gold from secondary scrap sources in 2005 rose by +9.1% yr/yr to 100,000 kilograms. Demand – US consumption of gold in 2005 rose +5.4% yr/yr to 195,000 kilograms, which was a 7-year high. The most recent data available from the early 1990s showed that 71% of gold demand came from jewelry and the arts, 22% from industrial uses, and 7% from dental uses. Trade - US exports of gold (excluding coinage) in 2005 rose by +26.1% yr/yr to 324,000 kilograms from the 17-year low of 257,000 kilograms seen in 2004. US imports of gold for consumption in 2005 rose +20.5% yr/yr to 341,000 kilograms, which was a 20-year high.

In Kilograms (1 Kilogram = 32.1507 Troy Ounces)

Australia

Year

Prices – Nymex gold futures prices in 2006 extended the rally that began in 2001 and posted a new high of $732.00 per ounce in May 2006. Gold prices then fell sharply and consolidated through the remainder of the year on a washout of speculators and reduced fundamental demand due to high prices. The World Gold Council estimated that gold demand in 2006 fell -10% to 3,362 tonnes due to high prices, but that supply fell by even more by -13% to 3,451 tonnes. Gold futures prices finally closed 2006 up +23% yr/yr at $638 per ounce. Gold prices remained generally strong in 2006 due to the weak dollar and tight supplies caused by stagnant mine production.

Ghana

IndoPapua nesia N. Guinea

49,211 83,564 54,662 86,927 72,541 124,018 79,946 127,184 72,100 124,596 68,341 166,091 69,271 142,238 70,749 141,019 63,139 92,936 62,100 140,000

51,119 45,418 61,641 65,747 74,540 67,043 63,200 68,100 73,500 66,700

Russia

South Africa

United States

Uzbekistan

World Total

123,300 124,000 114,900 125,870 143,000 152,500 168,411 170,068 163,148 169,297

496,846 491,680 465,100 451,300 430,800 394,800 398,523 373,300 340,500 294,803

326,000 362,000 366,000 341,000 353,000 335,000 298,000 277,000 258,000 256,000

72,000 81,700 80,000 85,000 85,000 87,000 90,000 90,000 93,000 90,000

2,290,000 2,450,000 2,500,000 2,570,000 2,570,000 2,560,000 2,550,000 2,560,000 2,440,000 2,470,000

Source: U.S. Geological Survey (USGS)

113

GOLD

USD Per Troy Ounce ----- Bullion, London (1833 - 1939) Bullion, London (Jan. 1940 - Feb. 1968) Handy & Harman, N.Y. (Mar. 1968 - May 1990) Composite (June 1990 - date)

Salient Statistics of Gold in the United States

Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

Mine Production

326,000 362,000 366,000 341,000 353,000 335,000 298,000 277,000 258,000 256,000

In Kilograms (1 Kilogram = 32.1507 Troy Ounces)

Refinery Production Exports Imports Domestic Secondary (Old (Excluding for ConValue & Foreign Scrap) Coinage) sumption Ores Million $

4,090.0 3,870.0 3,480.0 3,070.0 3,180.0 2,940.0 2,980.0 3,250.0 3,400.0 3,670.0

NA NA 471,000 270,000 100,000 476,000 277,000 163,000 522,000 265,000 143,000 523,000 197,000 81,600 547,000 191,000 82,700 489,000 196,000 78,100 257,000 194,000 89,100 352,000 222,000 91,700 257,000 163,000 75,600 324,000

159,000 209,000 278,000 221,000 223,000 194,000 217,000 249,000 283,000 341,000

---------- Stocks, Dec. 31 ----------------------- Consumption --------------Treasury Official DeparWorld Futures Jewelry & Arts Total tment3 Exchange Industry Reserves4 Dental Industrial5

8,140,000 20,700 NA 8,140,000 15,200 17,300 8,130,000 25,200 16,600 8,170,000 37,900 14,700 8,140,000 52,900 9,300 8,120,000 38,000 3,670 8,140,000 63,900 3,490 8,140,000 97,100 3,590 8,140,000 180,000 1,080 8,140,000 211,000 2,040

34,400 34,000 33,600 33,500 33,000 33,000 32,200 31,800 31,400 30,800

NA NA NA NA

NA NA NA NA

NA NA NA 137,000 NA 219,000 NA 245,000 183,000 179,000 163,000 183,000 185,000 183,000

Preliminary. 2 Estimate. 3 I ncludes gold in Exchange Stabilization Fund. 4 Held by market economy country central banks and governments andinternational monetary orgainzations. 5 I ncluding space and defense. NA = Not available. Source: U.S. Geological Survey (USGS)

1

Monthly Average Gold Price (Handy & Harman) in New York

In Dollars Per Troy Ounce

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

355.10 289.18 287.05 284.26 265.58 281.47 356.91 414.09 424.39 549.27

346.71 297.49 287.22 299.60 261.99 295.40 359.60 404.52 423.15 555.02

351.67 295.90 285.96 286.39 263.03 294.06 340.55 405.99 433.91 557.09

344.47 308.40 282.45 279.75 260.56 302.68 328.25 403.96 429.23 610.41

343.75 299.39 276.94 275.10 272.07 314.08 355.03 383.94 422.53 673.97

340.75 292.31 261.31 285.73 270.23 321.81 356.35 392.73 430.66 596.15

324.08 292.79 255.81 281.01 267.53 313.51 351.01 398.08 424.33 634.89

324.03 283.76 256.56 274.44 272.40 310.18 359.91 400.86 438.03 632.10

322.74 289.01 265.23 273.53 283.78 319.49 379.07 405.45 456.52 596.76

324.87 295.92 310.72 270.00 283.06 316.56 378.92 420.46 469.90 585.78

307.10 293.89 292.74 266.05 276.49 319.14 389.13 438.21 474.87 627.12

288.65 291.29 283.69 271.68 275.98 333.21 407.44 442.20 510.01 629.38

331.16 294.12 278.81 278.96 271.06 310.13 363.51 409.21 444.79 604.00

Preliminary.

114

Source: U.S. Geological Survey (USGS)

GOLD

Volume of Trading of Gold Futures in New York (NYMEX) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,102.8 1,078.2 860.8 616.4 755.2 733.6 1,260.1 1,581.3 1,502.3 2,018.8

830.2 534.2 517.4 833.5 483.3 613.2 1,007.5 962.6 944.4 1,162.7

899.4 877.2 1,147.6 767.7 766.6 717.7 987.6 1,649.5 1,599.0 2,052.7

508.5 698.1 561.1 362.2 438.1 559.8 667.8 1,202.9 858.1 1,302.9

762.1 845.2 1,069.6 701.5 971.6 1,089.6 1,160.3 1,344.8 1,451.7 2,071.0

522.7 718.7 573.6 625.5 481.4 775.5 824.3 960.6 1,240.0 1,148.6

1,147.5 712.4 964.3 532.5 578.3 998.9 1,191.7 1,405.0 1,432.4 1,487.2

667.8 680.0 709.6 374.4 547.4 585.8 837.5 953.0 1,234.4 804.5

715.8 851.7 1,067.3 403.2 341.0 621.8 1,034.0 944.9 1,380.2 884.7

988.0 769.6 993.8 424.9 481.4 669.0 1,091.3 1,067.2 1,174.0 857.1

808.8 705.6 674.7 625.7 573.6 844.8 1,397.3 1,864.7 1,852.7 1,284.7

588.1 519.0 436.1 349.0 367.4 808.5 776.3 1,053.2 1,221.5 842.7

9,541.9 8,990.1 9,575.8 6,643.5 6,785.3 9,018.2 12,235.5 14,989.6 15,890.6 15,917.6

Source: New York Mercantile Exchange (NYMEX), COMEX division

Average Open Interest of Gold in New York (NYMEX) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

199,710 180,994 179,726 149,606 134,401 124,222 221,495 283,813 277,112 348,949

190,524 171,507 185,345 158,026 142,673 142,763 210,247 238,816 263,191 338,851

167,595 183,358 178,456 160,325 126,558 142,638 186,656 256,873 301,758 331,223

157,176 180,267 198,202 155,188 120,111 159,892 176,033 274,898 283,546 350,380

160,512 158,157 193,978 162,516 118,426 190,845 191,459 250,963 277,469 336,735

170,640 172,250 207,122 144,099 116,788 174,123 198,808 225,001 275,508 288,309

207,352 169,180 205,687 133,087 114,098 166,042 199,741 239,579 268,068 316,969

198,099 192,623 193,023 126,893 116,687 146,596 224,694 237,940 304,000 309,186

201,267 183,351 206,186 132,731 125,907 167,620 284,906 259,181 339,269 320,850

188,365 186,680 216,034 132,546 125,639 162,456 258,238 306,522 356,526 330,152

212,757 164,304 189,433 134,630 114,238 164,581 275,346 344,665 334,562 346,141

188,558 153,063 156,754 113,830 111,622 191,594 277,183 329,669 331,527 335,204

Source: New York Mercantile Exchange (NYMEX), COMEX division

115

GOLD Commodity Exchange, Inc. (COMEX) Depository Warehouse Stocks of Gold Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Troy Ounces

Jan. 1

F eb. 1

Mar. 1

Apr. 1

May 1

June 1

July 1

Aug. 1

Sept. 1

Oct. 1

Nov. 1

D e c. 1

665.8 488.4 809.5 1,219.4 1,701.2 1,220.3 2,056.5 3,122.2 5,795.6 6,657.7

837.1 445.9 809.1 1,392.9 1,775.3 1,186.7 2,159.8 3,324.0 5,962.6 7,320.9

582.9 480.9 859.7 1,373.9 1,653.7 1,285.7 2,262.4 3,476.9 5,913.9 7,518.9

1,000.1 719.8 1,034.0 1,968.1 1,302.4 1,322.3 2,383.9 3,677.1 5,960.7 7,426.6

946.0 658.5 895.9 1,966.7 858.3 1,372.3 2,460.7 4,142.0 6,156.7 7,334.4

878.2 1,077.3 879.3 1,900.6 864.2 1,764.1 2,474.9 4,391.8 6,036.6 7,796.0

850.2 1,054.7 818.3 1,890.1 891.3 1,850.7 2,675.1 4,399.6 5,751.0 8,031.2

914.0 1,092.3 936.1 2,012.6 901.1 1,835.6 2,743.8 4,657.0 5,713.8 8,199.0

733.1 911.3 1,198.2 1,961.1 793.6 1,915.0 2,729.4 4,880.1 6,008.5 7,980.8

894.4 958.4 928.0 1,918.1 824.3 1,892.4 2,822.6 5,122.4 6,737.1 7,695.2

614.7 827.1 874.4 1,865.5 1,164.6 1,994.9 2,912.1 5,334.7 6,351.5 7,565.8

760.8 819.3 1,137.4 1,863.6 1,425.7 2,046.5 3,058.9 5,374.3 6,614.3 7,491.1

Source: New York Mercantile Exchange (NYMEX), COMEX division

C en tral Go ld B an k R eserves

In Millions of Troy Ounces Bank for Int'l SettleIMF2 ments

-------------------------------------------------------- In d u strial C o u n tries -------------------------------------------------------Year

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 1 1

Germany

Italy

Japan

Netherlands

95.2 95.2 95.2 95.2 95.2 95.2 119.0 111.5 111.5 112.0

66.7 66.7 66.7 66.7 66.7 66.7 83.4 78.8 78.8 79.0

24.2 24.2 24.2 24.2 24.2 24.2 24.2 24.2 24.6 24.6

43.9 35.1 34.8 34.8 34.8 27.1 33.8 31.6 29.3 29.0

Belgi um Canada France

25.0 25.0 25.0 20.5 15.3 15.3 9.5 8.3 8.3 8.0

P reliminary.

2

9.9 81.9 6.1 81.9 3.9 81.9 3.4 81.9 3.1 81.9 3.1 81.9 2.5 102.4 1.8 97.2 1.2 97.3 1.2 97.0

I n t e r n a t io n a l M o n e t a r y F u n d .

Swi terUni ted land Ki ngdom

83.3 83.3 83.3 83.3 83.3 83.3 83.3 83.3 78.8 74.6

18.6 18.5 18.4 18.4 18.4 18.4 23.0 20.6 16.5 13.4

Montana

Nevada

Alaska

Colorado

South Dakota

New Mexico

1,740 2,140 1,840 786 442 W W W W W

23,800 24,200 18,700 17,500 17,200 13,800 9,180 4,270 3,260 W

7,410 7,490 W W W W W W W W

9,110 10,200 8,200 7,540 9,310 W W W W W

213,000 243,000 273,000 9,310 268,000 253,000 240,000 227,000 216,000 212,000

5,020 18,400 18,300 16,200 15,600 16,700 W W W W

W W W W W W W W W W

W 16,400 12,100 10,300 8,230 W W W W W

W W W W W W W W W W

W = Withheld proprietary data, included in Other States.

------------------------ Jew elry and the Arts -----------------------Gold-Filled ElectroKarat & Other plating Gold Total

1987 1988 1989 1990 1991 1992 1993 1 9 9 41 19951 19961 Preliminary.

116

9,256 7,598 7,364 8,132 3,848 3,546 3,530 3,650 NA NA

3,133 1,469 1,283 429 373 581 373 369 NA NA

100.3 108.1 106.6 111.9 115.5 115.8 115.7 112.9 112.0 111.3

103.4 103.4 103.4 103.4 103.4 103.4 103.4 103.4 103.4 103.4

6.8 8.6 7.0 7.3 6.6 6.2 6.4 6.5 6.5 6.5

1,129.9 1,123.0 1,116.2 1,113.2 1,108.2 1,089.7 1,076.1 1,074.5 1,060.1 1,054.7

In Kilograms

Idaho

58,635 57,959 60,877 69,952 79,875 79,381 61,700 49,700 NA NA

Source: U.S. Geological Survey (USGS)

71,024 67,027 69,524 78,514 84,096 83,508 65,600 53,700 NA NA

Other States

Total

W 57,920 W 40,170 W 33,860 W 279,364 W 34,218 W 51,500 W 48,820 W 45,730 W 38,740 W 44,000

318,000 362,000 366,000 341,000 353,000 335,000 298,000 277,000 258,000 256,000

Utah

Source: U.S. Geological Survey (USGS)

Consumption of Gold, By End-Use in the United States

1

42.0 42.4 42.4 41.9 42.5 42.3 41.6 41.2 41.6 42.3

California

Preliminary.

Year

877.4 860.4 856.9 848.7 840.1 821.9 809.0 810.4 796.5 791.3

Arizona

1996 1997 1998 1999 2000 2001 2002 2003 2004 20051 1

261.8 261.8 261.7 261.7 261.7 261.6 261.6 261.7 261.6 261.6

World Total

S ource: American Met al Market (AMM)

Mine Production of Recoverable Gold in the United States Year

DeveUni ted Industri al Deve- lopi ng States Total lopi ng Oi l Non-Oi l

Dental

6,944 7,576 7,927 8,700 8,485 6,543 6,170 5,430 NA NA

In Kilograms --------------------------------- Industrial --------------------------------Gold-Filled ElectroKarat & Other plating Gold Total

21,010 21,034 15,723 12,725 8,102 8,802 9,470 7,450 NA NA

12,343 15,088 20,684 17,251 12,624 10,476 9,090 9,470 NA NA

1,892 1,104 1,215 1,020 1,068 1,082 1,100 96 NA NA

35,245 37,226 37,621 30,996 21,793 20,360 19,700 17,000 NA NA

Grand Total

113,319 111,836 115,078 118,216 114,375 110,410 91,400 76,100 NA NA

GOLD

117

Grain Sorghum ton crop in 2002-03 that was the smallest crop since 196869. US grain sorghum production in 2006-07 is forecasted to fall –29.5% yr/yr to 277.538 million bushels. Sorghum acreage harvested in 2006-07 is forecasted to fall –13.9% to 4.937 million acres, which was the smallest sorghum acreage harvested since the late 1930s. Yield will be about average in 2006-07 at 56.2 bushels per acre, but down from 200405’s 12-year high of 69.8 bushels per acre.

Grain sorghums include milo, kafir, durra, feterita, and kaoliang. Grain sorghums are tolerant of drought by going into dormancy during dry and hot conditions and then resuming growth as conditions improve. Grain sorghums are a staple food in China, India, and Africa but in the US they are mainly used as livestock feed. The two key US producing states are Texas and Kansas, each with about one-third of total US production. US sorghum production has become more popular with the breeding of dwarf grain sorghum hybrids which are only about 3 feet tall (versus up to 10 feet tall for wild sorghum) and are easier to harvest with a combine. The U.S. sorghum crop year begins September 1.

Demand – World utilization (consumption) of grain sorghum in the 2006-07 marketing year fell –0.4% to 57.798 million metric tons, but that is still up from the 53.538 million metric ton utilization level seen in 2002-03, which was the lowest since 1967-68.

Prices – The monthly average price for sorghum grain received by US farmers in the 2005-06 marketing year (Sep 05-Aug 06) rose by +9.5% yr/yr to $3.57 per hundred pounds. Sorghum prices in the first six months of the 2006-07 marketing year (annualized through February 2007) rose another +60.3% to an average of $5.73 per hundred pounds. The value of US grain sorghum production in the 2006-07 marketing year is forecasted to rise +18.3% yr/yr to $871.9 million.

Trade – World exports of sorghum in the 2006-07 marketing year fell –13.0% to 4.720 million metric tons, which is a 4-decade low. US exports in 2006-07 fell by – 23.0% yr/yr to 3.810 million metric tons, and accounted for 81% of total world exports. Argentina is the world’s other major exporter with 600,000 metric tons of exports in 200607, accounting for 13% of world exports. Major world importers are Mexico with 48% of world imports and Japan with 28% of world imports.

Supply – World production of sorghum in the 2006-07 marketing year if forecasted to fall -3.8% to 56.899 million metric tons, but remain well above the 52.818 million metric

World Supply and Demand Grain Sorghum Year

2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

In Thousands of Metric Tons

------------------ Exports ------------------ ------------------ Imports -----------------ArgenNonUnactina U.S. U.S. Total Japan Mexico counted Total

419 639 192 351 200 600

Preliminary.

2

980 1,028 1,490 728 479 910

6,142 4,681 5,049 4,675 4,945 3,810

Estimate.

3

7,122 5,709 6,539 5,403 5,424 4,720

Forecast.

1,776 1,562 1,434 1,374 1,393 1,350

4,837 3,384 3,002 2,931 3,029 2,300

202 36 13 145

7,034 5,511 6,519 5,306 5,234 4,760

Total ----------------- Utiliz ation ----------------- ------ Ending Stocks -----ProNonduction China Mexico U.S. Total U.S. U.S. Total

58,310 52,818 58,969 57,785 59,143 56,899

2,700 10,750 2,825 9,900 3,000 9,800 2,400 9,300 2,500 8,600 2,550 8,500

6,427 4,939 5,638 6,255 4,814 3,938

57,185 53,538 58,191 58,230 58,015 57,798

3,248 2,786 3,785 2,649 3,365 3,204

1,549 4,797 1,093 3,879 852 4,637 1,446 4,095 1,668 5,033 970 4,174

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Salient Statistics of Grain Sorghum in the United States

Year

Acreage ------------------------------- For Grain ------------------------------- ------------- For Silage ------------- --------------- Sorghum Grain Stocks --------------Planted4 ProValue Acreage Pro- Yield Per ---------- Dec. 1 ---------- --------- June 1 --------for All Acreage of Pro- Harvested duction Yield Per Price in duction Harvested O n Farms Off Farms On Farms Off Farms Purposes Harvested 1,000 Harvested 1,000 duction Acre Cents Per 1,000 ----- 1,000 Acres ----Acre -------------------- 1,000 Bushels ---------------------Tons Acres Bushel Million $ Bushels Bushels

2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

2,750 2,800 2,200 2,900 2,200 3,100

Preliminary.

2

2,021 1,465 2,009 2,177 2,019 1,900

Estimate.

3

773 1,900 2,103 2,051 1,850 1,900

Forecast.

1,200 1,260 1,520 1,400 1,837 1,600

2,697 3,327 2,865 2,328 2,546 2,580

NA = Not available.

750 900 900 900 900 900

1,830 1,100 1,700 2,150 2,800 2,900

8,390 7,060 7,330 7,240 7,790 7,800

2001 2002 2003 2004 2005 2006 1 1

Arkansas

Colorado

Illinois

14,620 17,710 17,220 4,704 4,960 5,192

9,460 1,800 4,320 5,400 3,410 3,360

8,085 6,308 8,610 8,938 7,636 6,930

Preliminary.

118

Kansas Louisiana

232,500 135,000 130,500 220,400 195,000 132,000

17,850 13,365 14,025 5,200 8,712 8,448

7,800 7,850 9,000 10,000 10,500 10,500

4,470 2,930 5,190 2,700 4,380 3,700

13,057 9,163 10,446 11,523 9,981 7,050

58,310 52,818 58,969 57,785 59,143 56,899

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Production of All Sorghum for Grain in the United States, by States Year

5,900 6,338 7,300 5,890 5,500 6,150

In Thousands of Bushels

Missi ssi p p i

Missouri Nebraska

New Mexico Oklahoma

7,134 6,237 6,132 1,422 -------

20,680 16,150 16,170 15,660 9,880 7,885

6,300 2,450 1,674 4,232 4,365 2,800

35,700 16,000 31,000 33,615 21,750 20,800

15,120 13,500 9,250 14,400 12,480 8,050

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

South Dakota

Texas

Total

8,850 3,060 6,750 6,300 4,420 4,000

130,000 122,400 153,900 127,100 111,000 816,000

514,524 360,713 411,237 453,650 393,893 277,538

GRAIN SORGHUM Grain Sorghum Quarterly Supply and Disappearance in the United States

In Millions of Bushels

----------------------------------- Disappearance ---------------------------------------------------- Domestic Use -------------------

Crop Year Beginning Sept. 1

F ood ------------------------- Supply ------------------------Beginning ProTotal Alcohol & Stocks duction Imports Supply Industrial

2003-04 Sept.-Nov. Dec.-Feb. Mar.-May June-Aug. 2004-05 Sept.-Nov. Dec.-Feb. Mar.-May June-Aug. 2005-061 Sept.-Nov. Dec.-Feb. Mar.-May June-Aug. 2006-072 Sept.-Nov.

43.0 43.0 235.9 158.7 80.6 33.6 33.6 282.2 203.5 113.2 56.9 56.9 290.4 193.1 114.9 65.7 65.7

411.2 411.2 ---------453.7 453.7 ---------392.9 392.9 ---------277.5 277.5

0 0 0 0 0 .0 0 0 .0 0 0 0 0 0 0 0 0

454.3 454.3 235.9 158.7 80.6 487.2 487.2 282.2 203.5 113.2 449.9 449.9 290.4 193.1 114.9 343.2 343.2

Preliminary. 2 Forecast. 3 Uncommitted inventory. Service, U.S. Department of Agriculture (ERS-USDA)

1

S eed

F eed & Residual

Total

Export

182.1 148.6 11.4 21.1 1.1 191.3 147.5 10.0 25.0 8.9 139.5 107.2 24.0 3.7 4.6 110.0 86.9

420.7 218.3 77.3 78.1 47.1 430.3 205.0 78.7 90.4 56.2 384.2 159.5 97.2 78.3 49.2 305.0 136.5

198.8 60.8 55.9 46.5 35.6 184.0 44.0 55.3 51.2 33.6 194.7 40.0 57.7 62.8 34.2 150.0 36.4

39.9 9.0 10.0 10.5 10.4 54.9 13.6 13.4 14.2 13.8 50.0 12.3 15.5 11.8 10.4 45.0 13.2 4

----------- Ending Stocks ----------Gov't Privately Total Total Owned3 Owned4 Stocks

619.5 279.1 133.2 124.6 82.6 614.3 249.0 134.0 141.6 89.8 578.9 199.5 154.9 141.1 83.4 455.0 173.0

I ncludes quantity under loan & farmer-owned reserve.

Average Price of Sorghum Grain, No. 2, Yellow in Kansas City

33.6 235.9 158.7 80.6 33.6 56.9 282.2 203.5 113.2 56.9 65.7 290.4 193.1 114.9 65.7 38.2 206.7

Source: Economic Research

In Dollars Per Hundred Pounds (Cwt.)

Year

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Average

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

2.97 2.67 3.55 4.86 4.15 3.45 3.22 3.82

2.71 3.14 3.38 4.70 4.18 3.21 3.08 5.07

2.75 3.41 3.44 4.72 4.50 3.17 3.30 2.97

2.87 3.66 3.59 4.62 4.61 3.21 3.30

3.20 3.64 3.61 4.52 4.71 3.13 3.46

3.28 3.63 3.55 4.43 4.88 3.23 3.58

3.51 3.56 3.58 4.07 5.18 3.44 3.44

3.53 3.45 3.47 4.24 5.37 3.30 3.79

3.75 3.30 3.44 4.12 4.94 3.30 4.03

3.18 3.26 3.57 4.06 4.67 3.56 3.90

2.71 3.59 3.97 3.71 3.92 3.90 4.15

2.76 3.65 4.60 3.71 3.75 3.53 3.79

3.10 3.41 3.65 4.31 4.57 3.37 3.59 3.95

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Exports of Grain Sorghum, by Country of Destination from the United States Year Beginning Oct. 1

Canada

Ecuador

1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062

4,061 4,170 4,912 5,921 8,025 5,270 4,216

0 0 0 91 210 0 0

1

Preliminary.

2

Estimate.

Israel

Ja p a n

Jordan

Mexico

South Africa

21,940 167,816 24,117 82,776 0 25,082 48,000 65,725 54,320 105,170 53,540 26,654 31,500 16,177

1,045,253 853,211 1,233,799 1,035,634 889,054 1,088,171 1,201,979

0 0 0 0 0 0 0

4,773,760 4,864,414 4,695,814 3,150,014 2,814,386 2,883,335 3,004,518

12,857 0 37,272 43,918 156 2,000 30,398

Ethiopia

In Metric Tons Sudan

Turkey

World Total

178,829 0 0 0 8,193 0 266,892 5,880 267,691 11,430 167,896 116,577 131,995 211,021

0 0 0 0 0 0 0

6,297,344 5,866,340 6,014,304 4,690,875 4,626,171 4,474,017 4,938,629

Spain

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Grain Sorghum Price Support Program and Market Prices in the United States

Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052

------------------------------------ Price Support Operations -----------------------------------Findley B a si c Owned by ---- Price Support ---% of ProAquired Target Loan Loan C C C at Quantity duction by CCC Year End Price Rate Rate ----------------------- Million Cw t. ---------------------- ------------- $ Per Bushel -------------

12.0 9.6 8.6 9.6 3.7 3.5 5.5

4.1 2.9 3.3 3.3 1.8 1.5 2.1

.6 1.0 .4 .1 0 0 .1

.2 ------.1 0 0 0

5 5 5 5 5 5 5

NA NA NA NA 2.54 2.54 2.57

1.74 1.74 1.71 1.71 1.98 1.98 1.95

Partici- ------------ No. 2 Yellow ($ Per Cw t.) -----------Effective Texas pation B a se 3 High Los Gulf Kansas Rate4 Million Plains Angeles Ports City Acres % of Base

13.6 13.7 13.6 13.6 12.1 12.1

98.8 98.8 ----------------

3.29 3.10 3.41 3.65 4.34 4.57 3.37

3.78 3.36 3.94 4.05 4.69 5.01 3.95

----------------------

3.97 3.79 4.22 4.34 5.01 5.36 4.44

Preliminary. 2 Estimate. 3 National effective crop acreage base as determined by ASCS. 4 Percentage of effective base acres enrolled in acreage 5 reduction programs. Beginning with the 1996-7 marketing year, target prices are no longer applicable. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

119

Hay Hay is a catchall term for forage plants, typically grasses such as timothy and Sudan-grass, and legumes such as alfalfa and clover. Alfalfa and alfalfa mixtures account for nearly half of all hay production. Hay is generally used to make cured feed for livestock. Curing, which is the proper drying of hay, is necessary to prevent spoilage. Hay, when properly cured, contains about 20% moisture. If hay is dried excessively, however, there is a loss of protein, which makes it less effective as livestock feed. Hay is harvested in virtually all of the lower 48 states.

production value of hay produced in 2006-07 was $13.506 million. Supply – US hay production in 2006-07 fell –6.2% yr/ yr to 141.7 million tons. US farmers harvested 60.807 million acres of hay in 2006-07, down –1.4% yr/yr. The yield in 2006-07 was 2.33 tons per acre, down from the 2004-05 record high of 2.55. US carryover (May 1) in 2006-07 fell – 23.1% to 21.3 million tons. The largest hay producing states in the US for 2006 are California (with 6.4% of US hay production), Texas (6.1%), Missouri (4.9%), Minnesota (4%), Idaho (4.0%), Nebraska (4.0%), South Dakota (3.3%), and Oklahoma (2.5%).

Prices – The average monthly price of hay received by US farmers rose by +10.8% yr/yr to a record high of $109.00 per ton in the first ten months of the 2006-07 marketing year (i.e., May 2006 through February 2007). The farm

Salient Statistics of All Hay in the United States Crop Year Beginning May 1

Acres Harvested 1,000 Acres

2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

63,521 63,942 63,383 61,916 61,649 60,807

D i sa p Yield Supply pearance Pro- Carryover D i sa p P er Per Animal Unit May 1 pearance Acre duction Tons ---------- Millions of Tons ---------- -------- In Tons --------

2.47 2.34 2.49 2.55 2.44 2.33

156.8 149.5 157.6 158.2 151.0 141.7

21.1 22.5 22.0 25.9 27.8 21.3

155.1 149.9 152.7 156.4

2.46 2.39 2.52 2.57 2.44

2.15 2.08 2.16 2.19

1 Preliminary. 2 Estimate. 3 Roughage-consuming animal units fed annually. U.S. Department of Agriculture (ERS-USDA)

Production of All Hay in the United States, by States Year

2001 2002 2003 2004 2005 20061 1

California

Idaho

Iowa

8,915 9,774 9,485 9,220 9,206 9,048

4,938 5,288 4,950 5,350 5,382 5,720

5,565 5,645 5,515 6,240 5,860

Preliminary.

Minnesota

6,195 5,810 5,245 5,895 6,055 5,679

Retail Price Paid by Farmers -------------- for Seed, April 15 -------------Farm Farm ProAlfalfa Red Sudanduction Price Clover Grass Value (Certified) Timothy $ P er Ton Million $ --------------- Dollars Per Cw t. ---------------

Animal Units F ed3 Millions

72.1 72.0 70.7 71.6 73.0

96.5 93.7 85.7 92.1 98.4 109.0

12,597 12,338 12,007 12,212 12,585 13,506

NA = Not available.

278.00 280.00 286.00 291.00 280.00

105.00 90.00 107.00 110.00 105.00

132.00 130.00 144.00 145.00 174.00

53.00 56.00 55.30 55.60 57.40

Source: Economic Research Service,

In Thousands of Tons

Missouri

New York

North Dakota

Ohio

Oklahoma

South Dakota

Texas

Wisconsin

Total

7,853 8,323 8,122 9,420 6,718 6,944

7,578 5,750 7,600 6,423 6,945 5,675

5,065 3,920 4,598 3,666 5,646 3,137

4,275 3,400 3,974 3,232 3,630 3,421

4,025 5,985 5,304 5,958 5,084 3,598

9,150 4,815 7,210 6,870 7,560 4,180

10,837 13,410 12,388 12,295 9,140 8,675

4,790 5,340 4,380 4,880 4,470 5,404

156,764 149,467 157,585 158,247 151,017 141,666

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

Hay Production and Farm Stocks in the United States

In Thousands of Short Tons

------------------------------------------------------------ Production ---------------------------------------------------------------------Year

Alfalfa & Mixtures

All Others

All Hay

Corn for Silage1

Sorghum Silage1

2001 2002 2003 2004 2005 20062

80,327 83,014 76,273 75,481 76,149 71,666

76,437 76,453 81,312 82,766 74,868 70,000

156,764 149,467 157,585 158,247 151,017 141,666

102,077 102,293 107,378 107,293 106,486 104,849

3,728 3,913 3,552 4,776 4,218 4,642

1

Not included in all tame hay.

2

Preliminary.

2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

120

May 1

D e c. 1

21,106 22,458 22,013 25,947 27,758 21,345

110,384 102,978 111,027 114,516 105,205 96,397

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

Mid-Month Price Received by Farmers for All Hay (Baled) in the United States Year

----------------- Farm Stocks -----------------

In Dollars Per Ton

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

Average2

106.0 103.0 98.0 101.0 107.0 114.0

95.8 95.8 94.6 95.2 102.0 109.0

96.3 93.6 89.0 90.4 99.7 107.0

97.4 92.4 85.0 92.2 99.7 106.0

99.0 93.0 84.4 91.4 99.0 107.0

98.0 93.8 83.7 92.8 97.7 107.0

95.9 93.2 81.5 88.7 91.7 106.0

95.6 91.1 80.6 86.0 92.0 108.0

91.7 91.4 80.1 87.8 93.1 112.0

91.7 91.4 81.2 88.2 95.8 114.0

92.3 92.8 81.8 92.6 97.1

98.3 92.9 88.9 99.4 106.0

96.5 93.7 85.7 92.1 98.4 109.0

2

Marketing year average.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Heating Oil Heating oil is a heavy fuel oil that is derived from crude oil. Heating oil is also known as No. 2 fuel oil and accounts for about 25% of the yield from a barrel of crude oil. That is the second largest “cut” after gasoline. The price to consumers of home heating oil is generally comprised of 42% for crude oil, 12% for refining costs, and 46% for marketing and distribution costs (Source: EIA’s Petroleum Marketing Monthly, 2001). Generally, a $1 increase in the price of crude oil translates into a 2.5-cent per gallon rise in heating oil. Because of this, heating oil prices are highly correlated with crude oil prices, although heating oil prices are also subject to swift supply and demand shifts due to weather changes or refinery shutdowns. The primary use for heating oil is for residential heating. In the US, approximately 8.1 million households use heating oil as their main heating fuel. Most of the demand for heating oil occurs from October through March. The Northeast region, which includes the New England and the Central Atlantic States, is most reliant on heating oil. This region consumes approximately 70% of US heating oil. However, demand for heating oil has been dropping as households switch to a more convenient heating source like natural gas. In fact, demand for heating oil is down by about 10 billion gallons/year from its peak use in 1976 (Source: American Petroleum Institute). Refineries produce approximately 85% of US heating oil as part of the “distillate fuel oil” product family, which includes heating oil and diesel fuel. The remainder of US heating oil is imported from Canada, the Virgin Islands, and Venezuela. Recently, a team of Purdue University researchers developed a way to make home heating oil from a mixture of soybean oil and conventional fuel oil. The oil blend is made by replacing 20% of the fuel oil with soybean oil, potentially saving 1.3 billion gallons of fuel oil per year. This soybean heating oil can be used in conventional furnaces without altering existing equipment. The soybean heating oil is relatively easy to produce and creates no sulfur emissions. The “crack-spread” is the processing margin earned when refiners buy crude oil and refine it into heating oil and gasoline. The crack-spread ratio commonly used in the industry is the 3-2-1, which involves buying 1 heating oil contract and 2 gasoline futures contracts, and then selling

Average Price of #2 Heating Oil Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

3 crude oil contracts. As long as the crack spread is positive, it is profitable for refiners to buy crude oil and refine it into products. The NYMEX has a crack-spread calculator on their web site at www.NYMEX.com. Heating oil futures and options trade at the New York Mercantile Exchange (NYMEX). The heating oil futures contract calls for the delivery of 1,000 barrels of fungible No. 2 heating oil in the New York harbor. In London, gas/ oil futures and options are traded on the International Petroleum Exchange (IPE). Prices – NYMEX heating oil futures prices on the nearest-futures chart started the year 2006 at around $1.80 per gallon, rallied to a high of about $2.04 in August and then drifted lower to close the year at about $1.60 per gallon. Heating oil had posted a record high of $2.21 per gallon in September of 2005. Supply – US production of distillate fuel oil in 2006 (through December, annualized) rose by +2.6% yr/yr to 4.055 million barrels per day, which was a new record high. Stocks of distillate fuel oil in December 2006 were 140.6 million barrels, up from 133.8 million barrels in December 2005. US production of residual fuel in 2006 (through December, annualized) rose by 0.5% yr/yr to an average of 631,000 barrels per day, which less than half the production levels of well over 1 million barrels per day produced in the 1970s. US stocks of residual fuel oil as of July 2006 rose +15.5% to 43.2 million barrels from 37.4 million barrels a year earlier. Demand – US usage of distillate fuel oil in 2006 (through December, annualized) rose +1.6% yr/yr to 4.185 million barrels per day, which was a new record high. That figure includes both heating oil and diesel fuel usage. Trade – US imports of distillate fuel oil in 2005 (through December, annualized) rose 11.9% to an average of a record high 368,000 barrels per day. US exports of distillate fuel oil in 2006 (through December, annualized) rose by +67.3% yr/yr to an average of a 12-year high 224,000 barrels per day. US imports of residual fuel oil in 2006 fell –35.7% yr/yr to 341,000 barrels per day, which was less than a third of the levels of over 1 million barrels per day seen back in the 1970s. US exports of residual fuel oil in 2006 rose +11.6% to 280,000 barrels per day, which was a record high.

In Cents Per Gallon

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

69.90 46.59 33.41 91.32 84.30 53.52 90.09 97.91 132.01 174.99

61.15 44.26 30.48 94.37 78.55 54.03 112.84 91.19 134.26 163.68

54.83 42.12 38.74 77.29 74.17 63.52 99.70 90.88 155.44 177.70

57.74 42.97 43.07 75.32 78.02 66.60 79.75 91.87 152.35 198.27

56.31 41.07 41.68 75.88 77.11 66.54 74.31 101.65 140.89 197.17

52.32 37.88 43.36 78.32 75.74 64.50 75.95 99.41 161.20 191.76

53.11 36.24 50.02 78.14 69.88 67.79 79.03 109.42 163.71 192.30

54.02 34.48 54.81 89.13 73.41 69.81 81.61 116.86 180.75 198.25

53.19 40.15 60.27 98.87 71.65 77.25 73.54 125.73 196.50 169.17

57.24 38.29 58.34 97.46 62.63 76.55 81.97 148.55 188.75 154.53

56.23 35.59 64.89 102.70 54.37 72.14 83.35 138.16 168.67 165.00

51.09 31.38 67.36 94.08 52.60 81.70 89.04 127.32 170.32 167.85

56.43 39.25 48.87 87.74 71.04 67.83 85.10 111.58 162.07 179.22

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

121

HEATING OIL

Average Open Interest of #2 Heating Oil Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

100,333 171,177 167,686 135,431 138,980 166,824 178,932 153,794 155,528 170,094

105,223 163,114 160,388 132,407 127,219 173,110 174,224 145,924 152,479 165,627

122,149 177,158 166,472 108,646 120,899 160,205 134,616 161,945 174,437 168,415

139,981 174,587 172,127 100,389 127,395 144,936 111,706 174,618 179,923 170,955

135,523 176,663 170,842 117,055 130,328 139,979 118,822 176,784 176,770 171,732

141,864 196,903 168,307 129,872 141,436 136,201 124,675 167,331 185,831 169,123

151,403 205,071 182,383 153,914 149,577 131,742 127,273 193,291 182,710 179,773

149,243 198,527 188,726 169,092 145,605 141,084 146,821 206,099 185,185 185,648

151,407 188,096 192,883 177,997 145,692 147,692 150,893 197,783 174,229 208,848

141,008 188,019 179,040 168,388 155,540 153,739 156,142 188,843 172,772 221,942

126,528 192,835 165,334 155,475 162,392 161,137 145,857 176,298 178,199 228,152

145,153 184,100 146,997 142,145 153,850 156,268 145,555 163,629 178,008 216,033

Source: New York Mercantile Exchange (NYMEX)

Volume of Trading of #2 Heating Oil Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

794.4 793.6 738.9 914.0 914.4 998.5 1,340.1 1,153.8 1,090.6 1,157.5

719.0 641.8 662.3 770.3 650.7 810.8 1,158.9 1,059.7 1,046.1 1,131.2

588.6 776.4 973.3 645.2 758.0 885.5 965.9 1,139.9 1,204.2 1,121.7

710.1 578.4 706.3 556.1 728.6 844.1 757.7 1,007.8 1,062.5 974.8

592.0 688.5 768.1 673.3 722.8 789.8 811.6 910.0 999.7 1,185.1

679.4 904.9 802.7 705.9 849.9 720.1 802.9 1,100.5 1,193.5 1,114.0

679.6 720.2 770.4 663.0 712.9 798.8 849.9 920.7 1,058.5 1,027.1

694.7 683.0 707.9 1,004.4 745.8 866.0 891.3 1,105.7 1,150.4 1,166.1

828.3 748.2 720.1 954.9 694.0 794.4 1,118.5 1,060.8 1,165.1 1,235.9

742.7 768.2 819.6 878.1 853.8 1,017.9 1,095.5 1,148.6 1,019.5 1,291.1

619.3 766.5 818.6 939.0 835.5 1,039.5 817.3 1,112.7 1,009.5 1,228.6

722.9 793.9 712.7 927.3 798.1 1,129.9 971.8 1,164.4 1,136.0 1,357.5

8,371.0 8,863.8 9,200.7 9,631.4 9,264.5 10,695.2 11,581.7 12,884.5 13,135.6 13,990.6

Source: New York Mercantile Exchange (NYMEX)

122

In Thousand of Contracts

Jan.

HEATING OIL

USD Per Gallon ----- No. 2, New York Harbor

Stocks of Distillate and Residual Fuel in the United States, on First of Month

In Millions of Barrels Residual Fuel ----- Oil Stocks -----

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan. 1

July 1

126.7 139.0 156.2 124.1 118.0 144.5 134.1 136.5 126.3 136.0

111.3 133.1 147.9 106.7 118.2 137.8 112.6 122.8 121.4 138.8

105.9 127.9 142.3 105.2 117.0 130.0 97.7 112.2 116.4 134.9

101.8 124.4 125.7 96.0 105.0 123.0 98.6 104.4 104.5 120.1

97.5 125.7 125.3 100.1 104.9 122.6 97.2 101.5 104.5 115.8

108.4 136.8 134.8 105.4 107.1 127.4 106.7 107.5 111.0 123.8

118.2 139.1 133.2 106.4 113.9 130.9 112.2 114.3 118.8 129.9

123.0 148.8 138.1 112.9 125.2 133.4 118.0 121.9 132.0 138.8

132.9 150.5 142.0 111.0 122.0 130.6 126.5 130.8 139.4 144.9

138.9 152.5 145.2 115.3 127.0 126.9 131.3 123.1 127.7 149.3

136.2 147.5 137.6 116.5 128.9 121.4 132.1 118.3 124.8 143.1

140.5 154.6 140.6 121.1 138.9 124.4 136.1 123.2 133.8 140.6

45.9 40.4 44.9 35.8 36.2 41.0 31.3 37.8 42.4 37.4

39.2 39.8 42.5 37.0 41.7 32.7 35.3 37.5 37.4 43.2

Preliminary.

Source: Energy I nformation Administration; U.S. Department of Energy (EI A-DOE)

Production of Distillate Fuel Oil in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousand Barrels per Day

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

3,119 3,323 3,176 3,123 3,609 3,508 3,403 3,592 3,777 3,833

3,089 3,280 3,253 3,348 3,612 3,498 3,459 3,446 3,797 3,952

3,258 3,397 3,183 3,342 3,483 3,360 3,732 3,550 3,874 3,835

3,291 3,468 3,407 3,533 3,650 3,647 3,796 3,874 4,028 3,833

3,525 3,560 3,458 3,650 3,652 3,709 3,833 3,857 4,179 4,114

3,517 3,520 3,374 3,481 3,702 3,679 3,728 3,956 4,274 4,106

3,362 3,569 3,521 3,520 3,837 3,561 3,673 3,902 4,236 4,067

3,427 3,482 3,419 3,678 3,654 3,538 3,730 3,981 4,108 4,237

3,452 3,399 3,482 3,844 3,625 3,536 3,721 3,625 3,570 4,300

3,488 3,215 3,506 3,774 3,796 3,380 3,750 3,808 3,585 4,083

3,543 3,438 3,608 3,785 3,968 3,768 3,800 4,004 3,966 4,072

3,578 3,431 3,401 3,872 3,744 3,922 3,845 4,159 4,044 4,230

3,389 3,424 3,399 3,580 3,695 3,592 3,707 3,813 3,953 4,055

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

123

HEATING OIL Imports of Distillate Fuel Oil in the United States

In Thousand Barrels per Day

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1999 2000 2001 2002 2003 2004 2005 2006 1

304 218 789 298 325 370 353 541

322 510 635 248 503 507 344 385

248 260 348 234 460 449 257 289

213 234 288 219 246 267 264 291

261 316 310 193 287 275 281 434

238 258 302 204 337 324 236 292

234 199 209 188 299 283 243 357

273 234 212 205 375 313 263 366

249 283 317 196 352 272 275 422

216 259 253 350 281 243 507 301

265 332 244 373 241 319 486 280

188 447 241 496 305 292 435 457

250 295 344 267 333 326 329 368

1

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Exports of Distillate Fuel Oil in the United States

In Thousand Barrels per Day

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1999 2000 2001 2002 2003 2004 2005 2006 1

117 132 67 109 119 72 49 123

116 112 77 279 132 86 102 156

159 211 75 67 161 99 165 120

191 178 107 68 139 92 192 200

187 127 146 74 162 100 199 229

180 149 120 93 101 163 227 187

123 132 113 44 103 113 189 231

130 253 140 119 80 120 163 191

162 194 152 127 43 88 108 456

192 255 99 96 62 101 109 291

170 191 132 114 81 102 92 252

212 135 202 171 100 176 65 258

162 173 119 112 107 109 138 225

1

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Disposition of Distillate Fuel Oil, Total Product Supplied in the U.S. Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousand Barrels per Day

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

3,788 3,818 4,325 3,940 4,301 4,334 4,223 4,161

3,542 3,794 4,212 3,714 4,362 4,232 4,202 4,318

3,785 3,693 4,143 3,750 4,001 4,152 4,349 4,481

3,415 3,455 3,834 3,821 3,951 4,145 4,101 4,069

3,314 3,681 3,746 3,679 3,651 3,840 4,037 4,062

3,407 3,549 3,659 3,587 3,781 3,888 4,038 4,007

3,479 3,369 3,569 3,683 3,680 3,827 3,854 3,906

3,437 3,726 3,829 3,728 3,752 3,887 4,020 4,215

3,431 3,786 3,624 3,730 3,871 4,065 4,116 4,118

3,749 3,712 3,888 3,808 3,945 4,104 4,079 4,292

3,608 3,829 3,746 3,929 3,824 4,058 4,061 4,333

3,892 4,250 3,604 3,934 4,037 4,176 4,339 4,252

3,572 3,722 3,847 3,776 3,927 4,059 4,118 4,185

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Production of Residual Fuel Oil in the United States

In Thousands Barrels per Day

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1999 2000 2001 2002 2003 2004 2005 2006 1

775 640 809 625 658 656 701 659

726 627 743 613 683 659 691 634

683 649 750 617 652 635 619 644

679 620 817 601 632 701 598 643

725 640 786 582 729 668 645 580

706 679 783 540 666 648 673 645

736 741 639 566 632 618 614 658

701 760 622 583 663 631 594 651

702 702 653 607 662 617 555 619

658 747 710 593 640 610 530 597

596 778 685 648 616 703 642 594

690 768 655 641 686 723 674 648

698 696 721 601 660 656 628 631

1

Preliminary.

Source: Energy I nformation Administration U.S. Department of Energy (EI A-DOE)

Supply and Disposition of Residual Fuel Oil in the United States

Year

1999 2000 2001 2002 2003 2004 2005 20061

----------------------- Supply ----------------------- ----------------------------------- Disposition ----------------------------------Total Stock Product Production Imports Change Exports Supplied ------------------------------------------------------ Thousand Barrels Per Day ------------------------------------------------------

698 696 721 601 660 655 628 631

237 352 295 249 327 426 530 341

-25 1 13 -27 18 12 -14 17

129 139 191 177 197 205 251 280

Preliminary. 2 Less than +500 barrels per day and greater than -500 barrels per day. Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

1

124

830 909 811 700 772 865 920 675 3

Refiner price excluding taxes.

Ending Stocks Million Barrels

Average Sales to End Users3 Cents per Gallon

36 36 41 31 38 42 37 43

37.4 60.2 53.1 56.9 69.8 73.9 104.8

Hides and Leather Hides and leather have been used since ancient times for boots, clothing, shields, armor, tents, bottles, buckets, and cups. Leather is produced through the tanning of hides, pelts, and skins of animals. The remains of leather have been found in the Middle East dating back at least 7,000 years.

US production of leather footwear has been dropping off sharply in recent years due to the movement of production offshore to lower cost producers. US production of leather footwear in 2003 (latest data available) fell –46% yr/yr to 22.3 million pairs and was a mere 4% of the 562.3 million pairs produced in 1970.

Today, most leather is made of cowhide but it is also made from the hides of lamb, deer, ostrich, snakes, crocodiles, and even stingray. Cattle hides are the most valuable byproduct of the meat packing industry. US exports of cowhides bring more than $1 billion in foreign trade, and US finished leather production is worth about $4 billion.

Demand – World consumption of cowhides and skins in 2000, the last reporting year for the series, rose +1.4% to 4,774 metric tons, which was a record high for the data series, which goes back to 1984. The world’s largest consumers of cowhides and skins in 2000 were the US with 13.0% of world consumption, Italy (10.6%), Brazil (8.9%), Mexico, (6.0%), Argentina (6.0%), and South Korea (5.9%).

Prices – The average monthly price of wholesale cattle hides (packer heavy native steers FOB Chicago) in 2006 rose +7.2% yr/yr to 86.31 cents per pound, but that was still well below the record high of 90.06 cents per pound posted in 1989.

Trade – US net exports of cattle hides in 2004 (latest data available) fell –4.3% yr/yr to 17.388 million hides from the 15-year high of 21.750 million hides posted in 2001. The total value of US leather exports in 2004 rose +16.8% yr/yr to $1.344 billion. The largest destinations for US exports in 2006 were South Korea (which took 19% of US exports), Taiwan (10%), Mexico (7%), Italy (3%), and Thailand (2%). World imports of cowhides and skins in 2000 (latest data available) rose +2.8% yr/yr to a record high of 2,058 metric tons. The world’s largest importers of cowhides and skins in 2000 were South Korea (with 13% of world imports in 2000), Italy (11%) and Taiwan (7%).

Supply – World production of cattle and buffalo hides in 2005 rose by +1.8% yr/yr to a record high of 8.033 million metric tons. The world’s largest producers of cattle and buffalo hides in 2005 were the US with 13% of world production, Brazil with 10%, and Argentina with 5%. US new supply of cattle hides from domestic slaughter in 2003 fell –0.8% yr/yr to 35.454 million hides, which was far below the record high of 43.582 million hides posted in 1976.

World Production of Cattle and Buffalo Hides Year

Argentina

Australia

Brazil

388 384 338 364 372 348 345 375 432 432

206 219 233 241 238 254 243 248 243 255

605 622 637 667 670 725 750 770 792 792

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

Preliminary.

2

Forecast.

Canada Colombia

88 91 94 98 96 95 96 88 111 115

84 81 81 86 82 76 72 72 80 80

In Thousands of Metric Tons France

Germany

Italy

Mexico

Russia

United Kingdom

United States

World Total

164 163 154 151 150 150 160 157 150 150

176 176 161 162 152 153 151 141 141 141

150 148 142 145 143 130 132 130 132 132

160 161 170 170 175 176 176 176 176 176

325 294 275 229 232 220 224 229 223 220

67 64 65 64 68 61 65 63 66 66

1,065 1,063 1,070 1,099 1,116 1,031 1,054 1,046 1,046 1,046

6,927 7,195 7,214 7,304 7,416 7,266 7,444 7,642 7,894 8,033

Source: Food and Agricultural Organization of the United Nations (FAO-UN)

Salient Statistics of Hides and Leather in the United States --------- New Supply of Cattle Hides --------------- Domestic Slaughter ------

Year

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1

760 177 751 677 664 615 599 614 590

35,639 36,760 36,492 35,637 36,320 36,416 35,370 35,734 35,493 32,728

Wholesale Leather

-- Cents Per Pound -- ------ Production -------

Federally UninTotal Net Inspected spected4 Production Exports ------ Thousands of Equivalent Hides ------

34,879 36,583 35,567 34,787 36,150 36,246 34,771 35,120 34,907 32,156

In Thousands of Equivalent Hides

Wholesale Prices

18,336 18,626 17,562 15,937 15,700 19,670 21,750 19,484 18,177 17,388

Heavy Native Cows2

93.69 92.15 90.99 75.45 73.80 83.41 85.52 85.73 88.34

All U.S. CattleHeavy Tanning hide Native Steers3 In 1,000 Equiv. Hides

87.6 86.4 86.1 69.5 73.1 81.2 89.8 82.3 83.8 82.2

18,092 18,769 19,592 20,297 21,342 17,332 14,212

17,480 18,135 18,930 19,706 20,620 16,746 13,779 16,403 17,470 15,492

-------- Indexes- -------- ------- Footw ear -----Value of ProLeather --------- Upper ---------duction5 Men Women Exports Exports $1,000 ------ 1982 = 100 ------- ----- Million Pairs -----

870,247 950,510 1,145,664 1,289,547 1,137,534 1,125,957 1,221,131 1,161,944 1,150,212 1,344,017

150.1 152.4 156.4 158.0 157.0 157.2 158.4 158.8 161.4 161.7

129.0 132.1 132.2 132.4 133.0 133.6 133.8 133.5 132.1 129.2

147,550 127,315 124,444 108,536 78,581 58,870 55,600 41,100 22,300

20,571 23,726 21,958 19,009 18,176 20,157 19,472 21,582 21,319 21,464

Preliminary. 2 Central U.S., heifers. 3 F.O.B. Chicago. 4 I ncludes farm slaughter; diseased & condemned animals & hides taken off fallen animals. 5 Other than rubber. Sources: Leather I ndustries of America (LI A); Bureau of Labor Statistics, U.S. Department of Commerce (BLS)

1

125

HIDES AND LEATHER Production of All Footw ear (Shoes, Sandals, Slippers, Athletic, Etc.) in the U.S. Year

1994 1995 1996 1997 1998 1

Preliminary.

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

42.5 37.2 33.2 31.4 32.8

40.8 38.3 31.8 33.1 31.8

40.1 34.8 29.7 28.6 29.3

39.5 36.7 33.2 30.6 28.6

163.0 147.0 128.0 124.4 108.5

In Millions of Pairs

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

1999 2000 2001 2002 20031

26.7 -------------

26.1 -------------

24.5 -------------

21.7 -------------

78.6 68.7 54.8 41.1 22.3

Source: Bureau of the Census, U.S. Department of Commerce

Average Factory Price2 of Footw ear in the United States

In Dollars Per Pair

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

1994 1995 1996 1997 1998

25.77 19.61 23.65 22.42 24.39

23.60 21.46 22.78 21.56 24.21

21.49 25.37 22.14 22.21 20.27

22.44 21.26 20.38 22.24 19.78

23.22 21.79 22.07 22.11 21.84

1999 2000 2001 2002 20031

23.33 -------------

22.70 -------------

19.90 -------------

19.50 -------------

21.19 24.14 25.66 24.12 45.95

1

Preliminary.

2

Average value of factory shipments per pair.

Source: Bureau of the Census, U.S. Department of Commerce

Imports and Exports of All Cattle Hides in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

1,496 1,909 1,906 1,972 1,721 1,298 2,934 7,342 3,698 2,186

Preliminary.

1,405 1,808 1,742 1,876 1,615 1,227 1,888 6,165 2,888 1,601

19,195 17,867 17,621 21,658 23,471 20,784 19,139 18,795 19,231 10,164

1,320 1,126 829 875 716 837 530 346 141 26

469 1,164 738 1,163 920 1,099 779 417 568 324

1,802 1,407 1,252 1,529 1,343 584 483 468 334 58

7,470 4,897 6,038 7,673 7,602 5,812 4,784 4,218 4,048 1,930

Year

1992 1993 1994 1995 1996 1997 1998 1999 1 20002 P reliminary.

Brazil

Canada

Hong Kong

11 21 16 33 20 13 10 8 8

17 26 28 35 34 39 42 34 36

80 81 95 100 79 64 71 91 93

2

F orecast.

Italy

Japan

Mexi co

131 141 243 250 263 254 249 215 220

188 188 139 152 123 114 96 95 95

71 71 60 30 71 96 110 115 115

1

Australia

Brazil

Canada

Germany

144 142 96 85 93 115 111 115 108

71 76 84 148 174 216 220 230 250

74 87 79 90 97 97 86 83 85

38 40 24 34 33 35 31 28 31

75 76 93 100 72 60 69 90 92

P reliminary.

126

0 0 0 0 0 0 0 0 0 0

148 440 262 189 159 189 63 16 8 13

2,866 2,701 2,863 2,844 2,751 2,145 1,982 1,842 1,730 1,007

323 336 343 562 888 914 788 684 652 241

2

F orecast.

In Metric Tons

Portugal

Spain

Tai wan

Turkey

Uni ted States

World Total

32 39 56 43 42 37 39 42 43

385 372 356 342 341 323 229 254 260

26 35 29 42 33 44 44 29 30

91 94 112 112 124 140 142 142 142

28 37 17 43 50 68 45 55 60

65 57 49 57 60 60 59 57 57

1,266 1,426 1,556 1,715 1,692 1,985 1,876 2,002 2,058

S ource: F oreig n Ag ricult ural S ervice, U.S . Depart ment of Ag ricult ure (F AS -US DA)

Hong Kong

1992 1993 1994 1995 1996 1997 1998 1999 1 20002

55 91 46 37 54 14 6 4 2 3

Rep. of Korea

E xp o rts o f B o vin e H id es an d S kin s b y S elected C o u n tries Year

2,501 2,846 2,723 2,196 1,647 1,470 1,257 1,419 1,288 701

Source: Leather I ndustries of America

Imp o rts o f B o vin e H id es an d S kin s b y S elected C o u n tries

1

In Thousands of Hides

-------- Imports -------- ------------------------------------------------------- U.S. Exports - by Country of Destination -----------------------------------------------------------From Rep. of Total Canada Total Canada Italy Ja p a n Korea Mexico Portugal Romania Spain Taiwan Thailand

In Metric Tons

Italy

Netherlands

New Zealand

Poland

Russia

Uni ted Ki ngdom

Uni ted States

World Total

9 7 10 10 20 16 24 7 8

66 35 37 47 47 48 32 30 25

31 21 22 22 28 27 28 30 30

17 5 2 2 3 3 6 7 7

28 150 216 195 212 210 202 190 170

19 25 22 22 24 25 17 15 15

610 581 455 510 506 473 443 436 427

1,261 1,374 1,271 1,351 1,423 1,475 1,400 1,389 1,399

S ource: F oreig n Ag ricult ural S ervice, U.S . Depart ment of Ag ricult ure (F AS -US DA)

HIDES AND LEATHER

Cents Per Pound ----- Heavy Native Steers, Chicago (Jan. 1901 - date) - - - Light Native Steers, Chicago (Jan. 1901 - Feb. 1966)

U tiliz atio n o f B o vin e H id es an d S kin s b y S elected C o u n tries Year

Argenti na

1991 1992 1993 1994 1995 1996 1997 1998 1999 1 20002 1

308 298 302 304 300 308 332 285 300 285

P reliminary.

2

Brazil Colombia

396 382 510 505 493 461 387 412 415 425

F orecast.

98 97 94 96 89 91 89 91 89 89

In Metric Tons

Germany

Italy

Japan

Mexi co

Rep. of Korea

143 129 100 83 79 80 101 100 102 103

435 435 435 550 570 615 570 540 500 505

253 229 226 200 191 165 150 135 130 130

225 231 232 226 200 230 251 275 280 285

400 400 385 374 355 353 347 265 280 283

Spain

Tai wan

Turkey

Uni ted States

World Total

119 98 98 94 98 95 106 108 104 108

101 91 94 112 112 124 140 142 142 142

78 90 95 85 100 110 120 100 110 120

491 528 554 536 523 548 572 603 623 623

4,009 3,977 4,322 4,282 4,365 4,332 4,609 4,584 4,707 4,774

S ource: F oreig n Ag ricult ural S ervice, U.S . Depart ment of Ag ricult ure (F AS -US DA)

Wholesale Price of Hides (Packer Heavy Native Steers) F.O.B. Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

89.77 66.88 69.42 75.92 85.33 68.23 83.77 85.17 78.14 79.28

93.47 77.33 69.97 76.29 84.12 72.39 85.81 81.79 80.90 81.01

99.44 82.61 70.84 77.86 93.02 80.41 86.04 82.89 79.04 83.86

99.40 83.72 67.36 78.83 102.64 83.21 85.81 79.15 80.45 84.95

89.44 85.05 65.96 79.24 106.19 84.32 79.42 80.16 79.49 87.76

81.45 83.13 66.89 75.18 97.31 86.72 77.64 82.43 83.07 88.07

80.20 81.17 68.17 77.25 87.59 84.43 80.53 85.11 82.70 87.93

83.92 81.11 72.41 81.64 77.28 85.77 84.09 84.54 81.78 87.15

84.86 75.23 77.52 85.60 73.51 85.84 86.78 85.05 80.58 88.29

86.35 67.95 80.43 84.89 70.58 85.75 86.13 82.23 80.44 88.08

89.20 67.53 79.67 84.41 73.30 83.35 85.89 81.42 80.07 88.81

82.61 68.26 78.00 85.31 69.16 85.18 86.05 78.02 79.03 90.50

88.34 76.66 72.22 80.20 85.00 82.13 84.00 82.33 80.47 86.31

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

127

Hogs Hogs are generally bred twice a year in a continuous cycle designed to provide a steady flow of production. The gestation period for hogs is 3-1/2 months and the average litter size is 9 pigs. The pigs are weaned at 3-4 weeks of age. The pigs are then fed so as to maximize weight gain. The feed consists primarily of grains such as corn, barley, milo, oats, and wheat. Protein is added from oilseed meals. Hogs typically gain 3.1 pounds per pound of feed. The time from birth to slaughter is typically 6 months. Hogs are ready for slaughter at about 254 pounds, producing a dressed carcass weight of around 190 pounds and an average 88.6 pounds of lean meat. The lean meat consists of 21% ham, 20% loin, 14% belly, 3% spareribs, 7% Boston butt roast and blade steaks, and 10% picnic, with the remaining 25% going into jowl, lean trim, fat, miscellaneous cuts, and trimmings. Futures on lean hogs are traded at the Chicago Mercantile Exchange. The futures contract is settled in cash based on the CME Lean Hog Index price, meaning that no physical delivery of hogs occurs. The CME Lean Hog Index is based on the 2-day average net price of slaughtered hogs at the average lean percentage level. Prices – Lean hog futures prices on the nearest futures chart in early 2006 initially sustained the weakness that had been seen in late 2005 due to price competition from poultry. US-produced poultry backed up into US supermarkets as bird flu in Asia curbed US poultry exports. However, lean hog prices were then able to rally through summer as poultry producers curbed their inventories and price competition abated. Hog prices then trended lower through the remainder of 2006 on adequate supplies and somewhat lower export demand as US beef export bans were finally rescinded. Lean hog futures prices finally closed 2006 at 61.70 cents per pound, -5.5% yr/yr from the 2005 close of 65.27 cents per pound. Lean hog prices rallied in early 2007 the severe winter weather in the Plains caused lower carcass weights and disrupted hog production. Hog prices were also supported in late 2006 and early 2007 by the 80% rally in corn prices, which made hog production more expensive and required higher prices to keep producers in the black.

Supply – World pork production in 2006 rose +3.7% yr/yr to 98.914 million metric tons. The USDA is forecasting a further +3.6% rise in 2007 to 103.386 million metric tons. The world’s largest pork producers are China with 53.000 million metric tons of production in 2006, the European Union with 21.450 million metric tons, and the US with 9.543 million metric tons. US pork production in 2006 rose +1.6% to 9.543 million metric tons, and is forecasted by the USDA to rise another +3.6% to 9.809 million metric tons in 2007. The number of hogs and pigs on US farms in 2006 (Dec 1) rose slightly by +1.1% to a 9-year high of 62.149 million. The federally-inspected hog slaughter in the US in 2006 rose +1.1% to a record high of 103.690 million head. Demand – World consumption of pork in 2006 rose by +3.9% yr/yr to 99.914 million metric tons. The USDA is forecasting a further +3.5% rise in 2007 to 102.374 million metric tons. US consumption of pork in 2006 was virtually unchanged from last year at 8.657 million metric tons, but the USDA is forecasting a rise of +2.5% in 2007 to 8.874 million metric tons. The US accounted for 8.8% of world consumption in 2005. Trade – World pork exports in 2006 fell by –0.6% yr/yr to 5.178 million metric tons, but the USDA is forecasting an increase in growth of +2.6% in 2007 to 5.314 million metric tons. The world’s largest pork exporters are the European Union with 27% of world exports in 2006, the US with 26%, Canada with 21%, and Brazil with 10%. US pork exports in 2006 rose +11.5% yr/yr to 1.346 million metric tons and the USDA is forecasting a further +4.1% rise in 2007 to 1.402 million metric tons. World pork imports in 2006 fell –2.5% to 4.232 million metric tons, and the USDA is forecasting virtually no change for 2007 at 4.235 million metric tons. The world’s largest pork importers are Japan, which accounted for 30% of world imports in 2006, Russia (19%), Mexico (11%), the US (11%), and South Korea (7%).

Salient Statistics of Pigs and Hogs in the United States --------------------------- Pig Crop -------------------------------------- Spring3 ----------- ------------ Fall4 --------------

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062 1

Value of Hogs Quantity Hog Sows Pig Pigs on Farms, Dec. 1 Marketings Produced Sows P i g P i gs Crop Per $ Per Farrowed Crop Per Farrowed Total Thousand (Live Wt.) --- 1,000 Head --- Litter --- 1,000 Head --- Litter Head Million $ Head Mill. Lbs.

5,595 6,015 5,877 5,683 5,619 5,776 5,655 5,706 5,716 5,756

Preliminary.

128

2

48,393 52,469 51,519 50,087 49,472 50,858 50,029 50,737 51,330 52,141

Estimate.

8.65 8.73 8.77 8.81 8.81 8.81 8.85 8.89 8.98 9.06 3

5,885 6,047 5,764 5,727 5,767 5,716 5,773 5,793 5,818 5,834

51,190 52,536 50,835 50,660 51,031 50,820 51,462 52,043 52,635 53,282

December-May.

4

8.70 82.0 8.69 44.0 8.82 72.0 8.85 77.0 8.85 77.0 8.89 71.0 8.91 67.0 8.98 103.0 9.05 92.0 9.13 June-November.

4,986 2,766 4,254 4,542 4,590 4,231 4,025 6,303 5,672

104,301 117,240 121,137 118,418 119,262 124,013 124,383 127,563 129,056

23,979 25,715 25,791 25,717 25,884 26,274 26,260 26,689 27,489

-- Hogs Slaughtered in Thousand Head -Value --------- Commercial --------of Production Federally Mil. $ Inspected Other Total Farm Total

12,552 90,228 8,674 99,285 7,766 99,739 10,791 96,436 11,430 96,528 8,691 98,915 9,663 99,685 13,072 102,361 13,644 102,519 103,690

1,733 1,745 1,806 1,540 1,434 1,348 1,233 1,103 1,063 1,048

91,960 101,029 101,544 97,976 97,962 100,263 100,931 103,463 103,582 104,739

165 92,125 165 101,194 150 101,694 130 98,106 120 98,082 115 100,378 116 101,047 114 103,577 109 103,690

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

HOGS World Hog Numbers in Specified Countries as of January 1 Brazil

Canada

China

Denmark

France

Germany

Philippines

31,427 31,427 31,860 32,440 32,710 32,655 32,081 32,323 32,938 33,147

11,985 12,429 12,904 13,576 14,367 14,672 14,623 14,619 14,690 14,250

400,348 422,563 430,198 446,815 457,430 462,915 466,017 481,891 503,348 519,052

118,450 118,918 156,534 152,825 152,473 154,311 152,793 151,143 151,673 152,000

9,904 9,879 9,805 9,788 9,612 9,725 9,724 9,550 9,620 9,600

7,096 6,700 7,000 7,350 7,856 8,110 8,367 8,044 8,098 8,304

10,520 10,860 10,781 10,649 10,569 10,549 10,668 10,303 10,125 10,250

Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 20072 1

Preliminary.

2

Forecast.

In Thousands of Head Poland

Russia

Spain

Ukraine

10,210 10,398 10,764 11,715 11,816 12,218 12,518 12,139 13,041 13,693

16,579 16,400 16,100 15,780 16,570 17,000 17,200 16,500 16,550 17,610

7,967 6,539 7,243 7,495 7,165 6,794 6,779 6,819 7,172 7,102

9,479 10,083 10,073 7,652 8,317 9,204 7,321 6,466 7,052 7,970

Geargia

Illinois

Indiana

Iowa

Kansas

Minnesota

520 480 480 380 315 345 295 275 270 245

4,700 4,850 4,050 4,150 4,250 4,150 4,000 4,100 4,000 4,200

3,950 4,050 3,250 3,350 3,200 3,250 3,100 3,200 3,250 3,300

14,600 15,300 15,400 15,100 15,400 15,500 15,900 16,300 16,600 17,200

1,530 1,590 1,460 1,520 1,570 1,530 1,650 1,710 1,790 1,840

5,700 5,700 5,500 5,800 5,800 6,100 6,500 6,500 6,600 6,800

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

World Total

61,158 741,044 62,204 736,967 59,335 777,122 59,110 805,645 59,722 820,881 59,554 832,294 60,444 834,421 60,975 847,590 61,449 873,842 61,400 893,370

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Hogs and Pigs on Farms in the United States on December 1 Year

United States

In Thousands of Head

Missouri Nebraska

3,550 3,300 3,150 2,900 3,000 2,950 2,950 2,900 2,700 2,750

3,500 3,400 3,000 3,050 2,900 3,000 2,900 2,850 2,850 3,000

North Carolina

Ohio

South Dakota

Wisconsin

Total

9,600 9,700 9,500 9,300 9,800 9,700 10,000 9,900 9,800 9,500

1,700 1,700 1,480 1,490 1,430 1,440 1,520 1,450 1,560 1,680

1,400 1,400 1,260 1,320 1,290 1,330 1,280 1,340 1,490 1,330

740 690 570 610 540 520 480 430 430 440

61,158 62,206 59,342 59,138 59,804 59,554 60,444 60,975 61,449 62,149

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Hog-Corn Price Ratio2 in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

20.0 14.1 12.8 19.3 18.8 19.1 14.2 15.4 25.1 20.4

19.9 14.1 13.5 20.2 20.0 19.9 14.7 16.3 26.0 21.1

17.7 13.7 13.6 20.5 23.5 18.6 14.9 17.2 25.3 20.8

19.2 14.8 14.8 23.3 25.3 16.6 14.9 16.4 25.6 19.6

21.6 18.1 18.4 22.9 27.7 17.2 17.4 19.7 27.7 22.2

22.6 18.6 17.3 25.6 29.7 18.2 19.2 20.3 24.4 25.1

24.3 16.8 18.2 29.5 27.6 18.4 19.7 22.7 23.6 23.5

22.1 18.6 20.7 28.8 26.6 13.4 18.4 23.6 26.2 24.7

20.0 16.1 19.4 25.8 23.7 10.7 18.0 24.9 26.0 22.2

18.6 14.6 20.2 23.8 21.8 13.2 17.3 24.4 25.8 18.3

18.0 9.7 19.6 19.8 18.9 12.2 15.8 27.1 24.6 15.6

16.5 7.3 19.6 20.2 16.8 13.1 14.8 25.7 23.1 14.5

20.0 14.7 17.3 23.3 23.4 15.9 16.6 21.1 25.3 20.7

1 Preliminary. 2 Bushels of corn equal in value to 100 pounds of hog, live weight. U.S. Department of Agriculture (ERS-USDA)

Source: Economic Research Service,

Cold Storage Holdings of Froz en Pork2 in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

In Millions of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

313.8 346.4 503.5 415.4 411.5 465.0 468.5 470.7 482.9 428.5

342.2 446.1 510.3 481.4 471.4 503.9 512.7 504.1 498.7 527.7

383.9 464.5 540.9 523.5 468.3 510.9 519.7 477.1 541.2 525.1

404.7 458.8 552.8 534.7 432.3 531.5 530.5 447.3 543.8 502.6

440.2 487.0 596.9 532.1 432.6 567.7 520.0 448.6 563.8 517.4

413.4 477.4 572.7 537.9 421.5 548.0 499.7 412.8 512.9 473.3

406.2 426.8 528.6 495.5 374.1 497.8 460.0 373.0 492.5 408.4

388.7 414.6 494.6 478.5 339.5 472.2 440.7 366.8 448.0 413.5

371.8 392.6 432.6 455.6 332.6 464.4 430.2 382.1 414.5 404.4

346.6 388.9 430.6 439.5 366.9 480.2 435.2 413.8 431.6 440.7

354.2 411.9 438.1 438.6 430.6 489.8 446.8 423.1 446.5 470.7

334.1 443.4 422.5 445.6 432.7 463.9 438.9 436.3 437.4 462.1

2

Excludes lard.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

129

HOGS

Cents Per Pound ----- Top, Chicago (Jan. 1909 - Mar 1968) Farrowing, Chicago (Apr. 1968 - May 1970) Average, Omaha (June 1970 - date)

Average Price of Hogs, National Base 51-52% lean2 In Dollars Per Hundred Pounds (Cwt.) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

52.96 35.60 28.58 38.32 38.61 40.16 34.39 39.02 53.36 41.37

51.36 34.53 29.65 41.58 41.47 40.65 35.64 45.21 51.11 43.17

48.52 37.22 28.25 43.52 48.41 37.47 36.11 48.30 51.30 43.34

54.41 37.22 31.69 49.59 49.28 32.97 36.42 48.34 51.00 41.45

57.84 45.51 38.45 50.21 52.34 34.64 43.62 58.45 55.40 49.00

57.43 45.32 35.39 51.48 54.53 37.32 47.88 57.95 49.86 54.90

58.89 39.85 32.84 50.45 53.75 40.53 44.98 58.21 49.96 51.89

54.17 37.98 38.56 45.35 52.47 34.00 41.90 56.19 51.60 53.32

49.45 32.00 35.71 43.49 46.93 26.98 41.82 55.34 49.98 50.28

46.12 29.60 35.84 43.09 41.27 31.69 38.63 53.68 47.49 47.57

44.86 19.95 35.34 37.84 35.49 29.99 36.02 56.23 37.70 45.97

40.33 16.62 37.70 41.40 35.14 32.35 36.02 53.15 44.81 44.84

51.36 34.28 34.00 44.69 45.81 34.90 39.45 52.51 49.46 47.26

Preliminary.

2

Data Prior to January 1998 are for Sioux City.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price Received by Farmers for Hogs in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

130

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

53.8 36.0 26.5 36.8 37.2 37.7 33.0 36.8 53.2 40.7

52.8 35.9 27.7 39.9 39.2 38.5 34.3 42.6 50.7 42.6

49.4 34.9 28.0 41.7 45.9 36.0 34.7 47.2 51.2 42.8

53.8 35.6 30.1 47.4 47.8 31.7 34.8 47.4 51.1 41.3

58.2 42.4 36.6 48.3 50.4 33.2 41.3 56.6 54.9 48.2

57.8 42.5 34.1 48.9 52.2 35.8 45.0 56.7 49.5 53.8

58.9 36.9 31.6 48.3 51.7 39.2 42.7 57.1 49.8 50.2

55.3 35.2 36.2 43.8 50.8 31.9 39.6 55.3 51.0 51.6

50.4 29.5 33.9 41.6 45.2 26.5 39.7 54.8 49.4 48.9

47.3 27.8 34.2 41.4 40.2 30.8 36.7 52.2 47.0 46.5

45.1 18.9 33.4 36.8 35.0 27.8 34.7 55.6 43.5 44.8

41.6 15.0 35.6 39.8 33.3 30.3 34.2 52.4 44.3 43.5

52.0 32.6 32.3 42.9 44.1 33.3 37.6 51.2 49.6 46.2

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

HOGS Quarterly Hogs and Pigs Report in the United States, 10 States Year2

1997 I II III IV 1998 I II III IV 1999 I II III IV 2000 I II III IV 2001 I II III IV

Inventory3

Breeding3

56,124 56,141 55,049 57,366 60,456 61,158 61,158 60,163 62,213 63,488 62,206 62,206 60,191 60,896 60,776 59,342 59,342 57,782 59,117 59,495 59,138 59,138 57,524 58,603 59,777

6,578 6,667 6,637 6,789 6,858 6,957 6,957 6,942 6,958 6,875 6,682 6,682 6,527 6,515 6,301 6,234 6,234 6,190 6,234 6,246 6,270 6,270 6,232 6,186 6,158

Market3 Farrowings

Pig Crop

Year2

49,546 49,474 48,412 50,577 53,598 54,200 54,200 53,220 55,254 56,612 55,523 55,523 53,663 54,380 54,474 53,109 53,109 51,593 52,884 53,250 52,868 52,868 51,292 52,417 53,619

99,583 23,164 25,229 25,696 25,494 104,981 25,480 26,989 26,634 25,878 102,354 25,247 26,272 25,862 24,973 100,747 24,522 25,565 25,548 25,112 100,503 23,963 25,509 25,539 25,492

2002 I II III IV 2003 I II III IV 2004 I II III IV 2005 I II III IV 20061 I II III IV

11,480 2,684 2,911 2,946 2,939 12,062 2,929 3,086 3,054 2,993 11,641 2,891 2,986 2,920 2,844 11,410 2,798 2,885 2,889 2,838 11,385 2,748 2,870 2,878 2,889

In Thousands of Head

Inventory3

Breeding3

59,804 59,804 59,256 60,391 60,753 59,554 59,554 58,183 59,602 61,009 60,444 60,444 59,520 60,698 61,519 60,975 60,975 59,699 60,732 61,846 61,449 61,449 60,176 61,687 62,814

6,209 6,209 6,230 6,208 6,051 6,058 6,058 6,027 6,026 5,938 6,009 6,009 5,961 5,937 5,962 5,969 5,969 5,941 5,977 5,972 6,011 6,011 6,025 6,060 6,079

Preliminary. 2 Quarters are Dec. preceding year-Feb.(I ), Mar.-May(I I ), June-Aug.(I I I ) and Sept.-Nov.(I V). Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

1

Federally Inspected Hog Slaughter in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

3

Market3 Farrowings

Pig Crop

53,594 53,594 53,026 54,183 54,702 53,496 53,496 52,156 53,576 55,071 54,434 54,434 53,558 54,760 55,556 55,005 55,005 53,757 54,754 55,873 55,438 55,438 54,151 55,627 56,735

101,677 24,857 26,001 25,725 25,094 101,491 24,400 25,629 25,974 25,488 102,781 25,105 25,633 26,162 25,881 103,965 25,343 25,986 26,449 26,187 105,423 25,661 26,480 26,731 26,551

11,492 2,835 2,941 2,883 2,833 11,429 2,769 2,886 2,918 2,856 11,499 2,836 2,870 2,905 2,888 11,535 2,835 2,882 2,918 2,900 11,589 2,840 2,916 2,924 2,909

Beginning of period.

In Thousands of Head

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

7,610 8,454 8,373 8,010 8,521 8,552 8,680 8,704 8,402 8,834

6,836 7,590 7,746 7,955 7,491 7,400 7,587 7,805 8,031 7,978

7,437 8,335 8,945 8,695 8,207 7,879 8,069 8,942 8,858 9,148

7,590 8,198 8,386 7,108 7,722 8,321 8,238 8,567 8,369 7,882

6,971 7,443 7,303 7,816 7,836 8,215 7,715 7,494 7,939 8,453

6,859 7,596 8,176 7,823 7,368 7,425 7,665 8,415 8,470 8,256

7,169 8,130 7,778 7,235 7,333 7,957 8,008 8,008 7,582 7,806

7,197 8,024 8,256 8,481 8,247 8,425 7,951 8,616 8,888 8,991

7,872 8,443 8,501 7,992 7,687 8,384 8,466 8,897 8,778 8,738

8,625 9,192 8,806 8,746 9,210 9,276 9,547 8,883 9,027 9,541

7,601 8,650 8,750 8,633 8,610 8,548 8,506 8,881 9,038 9,276

8,461 9,231 8,719 7,943 8,298 8,534 9,254 9,150 9,138 8,788

90,228 99,285 99,739 96,436 96,528 98,915 99,685 102,361 102,519 103,690

Preliminary. Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Average Live Weight of all Hogs Slaughtered Under Federal Inspection

In Pounds Per Head

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

257 259 259 262 265 268 268 269 270 273

256 258 259 262 264 267 267 268 270 272

256 257 259 263 264 267 268 268 271 272

256 257 260 263 265 268 268 268 271 273

256 256 260 264 264 267 268 266 270 272

257 255 260 263 264 266 266 265 269 269

253 252 257 260 261 261 263 263 265 265

252 252 254 258 258 259 261 263 263 263

255 253 256 260 262 261 263 266 265 267

257 257 259 263 267 264 268 267 269 270

261 262 262 266 269 268 270 270 272 273

260 261 262 265 268 268 269 270 272 273

256 257 259 262 264 265 267 267 269 270

1

Preliminary. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

131

HOGS

Data through December 1996 contract are for Live Hogs * .74 Adjusted to correspond to the Lean Hogs contract.

Average Open Interest of Lean Hog1 Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

Mar.

In Contracts

Apr.

May

June

July

Aug.

Sept.

Oct.

33,105 33,953 31,289 34,071 45,908 42,241 38,965 33,610 46,003 44,211 43,803 48,277 49,209 54,094 57,472 68,535 41,425 41,892 48,381 45,296 28,720 31,662 33,056 33,472 40,660 39,862 40,446 37,883 46,380 55,058 63,889 77,756 102,580 97,550 95,841 94,008 133,258 144,506 145,020 144,250

41,978 34,257 55,951 64,938 41,910 33,161 43,672 80,271 96,662 157,259

37,398 32,456 52,398 54,208 45,715 28,719 47,338 81,370 91,871 158,276

36,141 32,085 54,723 45,730 51,661 29,338 39,706 79,860 97,160 157,899

33,712 31,199 49,915 38,233 47,760 32,030 37,700 84,840 95,841 165,781

31,483 34,165 53,055 38,802 42,072 36,136 49,469 86,092 107,617 176,336

36,928 34,051 54,089 38,254 36,983 35,245 46,295 86,423 113,754 174,971

Nov.

D e c.

39,363 39,394 42,224 45,241 54,432 50,691 40,075 45,141 32,821 27,687 42,852 43,974 43,552 43,352 94,336 98,328 116,005 124,492 188,965 179,057

Source: Chicago Mercantile Exchange (CME)

Volume of Trading of Lean Hog Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total1

180,241 180,241 218,608 175,399 183,493 145,266 186,436 212,420 347,467 561,152

159,600 182,698 171,108 186,352 159,020 120,994 137,479 170,270 237,079 319,827

200,118 174,752 196,825 231,532 197,004 168,929 186,511 249,205 380,658 597,852

212,810 132,952 189,773 158,765 142,892 196,956 156,370 211,501 287,828 356,950

222,759 155,737 214,852 218,222 165,220 163,816 209,740 295,271 412,655 658,973

188,615 167,767 237,240 235,036 184,421 158,074 210,901 304,279 398,201 826,312

181,637 185,427 239,096 172,725 198,503 166,064 199,782 315,197 354,819 578,656

146,297 157,973 167,787 145,849 164,712 140,154 124,677 215,233 315,949 478,837

149,950 164,964 190,238 146,240 152,178 174,797 232,705 356,295 391,121 577,375

175,135 173,163 187,794 142,240 177,601 167,065 207,247 242,204 295,817 533,532

152,876 218,950 205,505 153,043 163,798 165,039 164,190 376,823 421,714 649,293

130,871 241,767 139,270 146,404 129,497 164,106 148,117 255,488 310,235 342,242

2,100.9 2,136.3 2,358.1 2,111.8 2,018.3 1,931.3 2,164.2 3,204.2 4,153.5 6,481.0

I n thousands of contracts.

132

In Contracts

Jan.

Source: Chicago Mercantile Exchange (CME)

Honey Honey is the thick, supersaturated sugar solution produced by bees to feed their larvae. It is composed of fructose, glucose and water in varying proportions and also contains several enzymes and oils. The color of honey varies due to the source of nectar and age of the honey. Light colored honeys are usually of higher quality than darker honeys. The average honeybee colony can produce more than 700 pounds of honey per year but only 10 percent is usually harvested by the beekeeper. The rest of the honey is consumed by the colony during the year. American per capita honey consumption is 1 pound per person per year. Honey is said to be humanity’s oldest sweet, and beeswax the first plastic. Honey is used in many ways, including direct human consumption, baking, and medicine. Honey has several healing properties. Its high sugar content nourishes injured tissues, thus enhancing faster healing time. Honey’s phytochemicals create a form of hydrogen peroxide that cleans out the wound, and the thick consistency protects the wound from contact with air Honey has also proven superior to antibiotic ointments for reducing rates of infection in people with burns.

Year

In Metric Tons

Australia

Brazil

Canada

China

Germany

Ja p a n

Mexico

Russia

United States

Total

57,000 70,000 65,000 93,000 93,000 80,000 85,000

26,000 27,000 22,000 19,000 21,000 22,000 22,000

18,000 18,000 18,000 20,000 22,000 22,000 22,000

27,000 31,000 46,000 37,000 32,000 35,000 33,000

189,000 215,000 211,000 236,000 252,000 255,000 258,000

15,000 15,000 16,000 20,000 20,000 26,000 22,000

3,000 3,000 3,000 3,000 3,000 3,000 3,000

49,000 54,000 55,000 55,000 59,000 59,000 55,000

46,000 49,000 50,000 51,000 54,000 53,000 55,000

90,000 89,000 100,000 94,000 100,000 84,000 90,000

1,091,000 1,148,000 1,178,000 1,234,000 1,246,000 1,255,000 1,270,000

Preliminary.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Salient Statistics of Honey in the United States

Year

2001 2002 2003 2004 20051 20062 1

US production of honey in 2005 fell by –4.8% to 174.8 million pounds, and remained well below the 10-year high of 220.3 million pounds posted in 2000. Stocks rose by +2.1% to 62.5 million pounds in 2005 (Jan 1) from the 25-year low of 39.4 million pounds posted in 2002. Yield per colony rose +0.8% to 72.4 pounds per colony in 2005. The number of colonies, however, fell –5.6% to a record low of 2.413 million in 2005.

Argentina

1996 1997 1998 1999 2000 2001 20021 1

Supply – World production of honey in 2002, the latest reporting year for the series, rose +1.2% to a record 1.270 million metric tons from 1.255 million metric tons in 2001. The world’s largest producer of honey by far is China with 258,000 metric tons of production in 2002, representing about 20% of total world production, followed by the US with 90,000 metric tons, and Argentina with 85,000 metric tons.

Trade – The US in 2004 (the latest data available) imported almost as much honey as it produced, with imports of 178.8 million pounds versus US domestic production in that year of 183.6 million pounds. US exports of honey are generally small and in 2004 they totaled only 7.8 million pounds, which was only 4.2% of US production.

Prices – US average domestic honey prices in 2005 fell by –14.1% to 91.8 cents per pound from 2004’s 106.9 cents per pound, but are still far above the 10-year low of 59.7 cents in 2000. The value of US honey production in

World Production of Honey

2005 fell –18.3% to $160 million to move farther below the 2003 record of $253 million.

Imports Domestic Total D i sa p Stocks U.S. Pro- for Conduction sumption pearance Jan. 1

Number of Yield Per Colonies Colony (1,000) Pounds

2,506 2,574 2,599 2,556 2,413 2,392

Preliminary.

2

74.0 66.7 70.0 71.8 72.4 64.7

Forecast.

64.6 39.4 40.8 61.2 62.5 60.5 3

185.5 171.7 181.7 183.6 174.8 154.8

Fiscal year.

144.8 202.6 200.4 178.8

In Millions of Pounds

Exports

Total Supply

7.4 6.9 6.9 7.8

-------------

-------------

------- Program Activity ------Net Gov't ExpendCCC Placed iture3 Take Under Over Loan Mil. $

-------------

-------------

National Domestic Avg. Price Avg. Price Support All Honey - Cents Per Pound -

-------------

70.4 132.7 138.7 106.9 90.4 104.2

-------------

P er Capita Consumption Pounds

-------------

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Production and Yield of Honey in the United States Year

2001 2002 2003 2004 2005 20061 1

------------------------ Production in Thousands of Pounds ----------------------CaliMinneNorth South fornia Florida sota Dakota Dakota Total

27,625 23,500 32,160 17,550 30,000 19,760

Preliminary.

22,000 20,460 14,910 20,090 13,760 13,770

10,935 8,541 9,960 10,125 8,880 10,000

26,880 24,000 29,580 30,420 33,670 25,900

15,275 11,475 15,050 22,575 17,380 10,575

185,461 171,718 181,727 183,582 174,818 154,846

Value of -------------------- Yield per Colony in Pounds---------------------Production CaliMinneNorth South $1,000 fornia Florida sota Dakota Dakota Average

132,225 228,338 253,106 196,259 160,428 161,314

65 50 67 45 75 52

100 93 71 98 86 81

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

81 73 83 75 74 80

96 75 87 78 91 74

65 51 70 105 79 47

74.0 66.7 70.0 71.8 72.4 64.7

133

Interest Rates, U.S. US interest rates can be characterized in two main ways, by credit quality and maturity. Credit quality refers to the level of risk associated with a particular borrower. US Treasury securities, for example, carry the lowest risk. Maturity refers to the time at which the security matures and must be repaid. Treasury securities carry the full spectrum of maturities, from short-term cash management bills, to T-bills (4-weeks, 3-months, and 6-months), T-notes (2-year, 3-year, 5-year and 10-year), and 30-year T-bonds. The most active futures markets are the Treasury note and bond futures traded at the Chicago Board of Trade (CBOT) and the Eurodollar futures traded at the Chicago Mercantile Exchange (CME). Prices – The 10-year US Treasury note yield moved higher from mid-2005 to post a new 4-1/2 year high in mid2006 of 5.25% as the Fed’s persistent tightening monetary policy took its toll and as inflation moved higher through mid-2006 driven in part by rising energy prices. However, the 10-year yield then fell back in the latter half of 2006, finally closing the year at 4.40%, just 7 bp higher than the 2005 close of 4.33%. The 10-year T-note yield moved lower in the second half of 2006 after the Fed halted its tightening regime in July 2006 and as the market grew increasingly concerned about the US housing market bust. The Federal Reserve in 2006 implemented its last three 25 basis point rate hikes, with the last rate hike to 5.25% coming in June 2006. The Fed in 2004-06 raised its federal funds rate target by a total of 425 basis points from the 1.00% level that prevailed from mid-2003 to mid-2004 to 5.25% by June 2006. The Fed tightened its monetary policy over that time frame to move short-term rates back to normalized levels after the Fed in 2001-03 was forced to

U.S. Producer Price Index2 for All Commodities Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

As of March 2007, the marketplace was generally looking for US interest rates to move mildly lower through 2007. While core inflation remained elevated at that time, the US economy was showing some weakness stemming from the weak US housing and auto sectors. The market as of March 2007 was expecting the Fed to cut its funds rate target by 50 basis points by Q1-2008 to address below-par US economic growth.

1982 = 100

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

129.7 125.4 122.9 128.3 140.0 128.5 135.3 141.4 150.9 164.3

128.5 125.0 122.3 129.8 137.4 128.4 137.6 142.1 151.6 161.8

127.3 124.7 122.6 130.8 135.9 129.8 141.2 143.1 153.7 162.2

127.0 124.9 123.6 130.7 136.4 130.8 136.8 144.8 155.0 164.3

127.4 125.1 124.7 131.6 136.8 130.8 136.7 146.8 154.3 165.8

127.2 124.8 125.2 133.8 135.5 130.9 138.0 147.2 154.3 166.1

126.9 124.9 125.7 133.7 133.4 131.2 137.7 147.4 156.3 166.8

127.2 124.2 126.9 132.9 133.4 131.5 138.0 148.0 157.6 167.9

127.5 123.8 128.0 134.7 133.3 132.3 138.5 147.7 162.2 165.4

127.8 124.0 127.7 135.4 130.3 133.2 139.3 150.0 166.2 162.0

127.9 123.6 128.3 135.0 129.8 133.1 138.9 151.4 163.7 165.1

126.8 122.8 127.8 136.2 128.1 132.9 139.5 150.2 163.0 166.0

127.6 124.4 125.5 132.7 134.2 131.1 138.1 146.7 157.4 164.8

Year

2

Not seasonally adjusted.

Source: Bureau of Labor Statistics, U.S. Department of Commerce (BLS)

1982-84 = 100

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

159.1 161.6 164.3 168.8 175.1 177.1 181.7 185.2 190.7 198.3

159.6 161.9 164.5 169.8 175.8 177.8 183.1 186.2 191.8 198.7

160.0 162.2 165.0 171.2 176.2 178.8 184.2 187.4 193.3 199.8

160.2 162.5 166.2 171.3 176.9 179.8 183.8 188.0 194.6 201.5

160.1 162.8 166.2 171.5 177.7 179.8 183.5 189.1 194.4 202.5

160.3 163.0 166.2 172.4 178.0 179.9 183.7 189.7 194.5 202.9

160.5 163.2 166.7 172.8 177.5 180.1 183.9 189.4 195.4 203.5

160.8 163.4 167.1 172.8 177.5 180.7 184.6 189.5 196.4 203.9

161.2 163.6 167.9 173.7 178.3 181.0 185.2 189.9 198.8 202.9

161.6 164.0 168.2 174.0 177.7 181.3 185.0 190.9 199.2 201.8

161.5 164.0 168.3 174.1 177.4 181.3 184.5 191.0 197.6 201.5

161.3 163.9 168.3 174.0 176.7 180.9 184.3 190.3 196.8 201.8

160.5 163.0 166.6 172.2 177.1 179.9 184.0 188.9 195.3 201.6

Preliminary.

134

The US core CPI rate in mid-2006 rose sharply from the low-2% area in early 2006 to an 11-year high of +2.9% by September 2006. The Fed took that rise in the core CPI in stride because the Fed expected core inflation to moderate in late 2006 and through 2007 as US economic growth slowed and as energy prices fell back. The core CPI fell back to +2.6% by December 2006 but that was still above the generally-accepted 2.00% ceiling for inflation.

F eb.

U.S. Consumer Price Index2 for All Urban Consumers

1

The Fed finally halted its tightening regime in mid2006, even though the Fed still saw inflation risks, because the Fed was worried about the bursting US housing bubble and about the impact on the US economy of the surge in crude oil prices above $70 per barrel in May 2006 to a record high of $78.40 by July 2006. The Fed halted its tightening process in time and the US economy in the latter half of 2006 saw a soft-landing with GDP growth in the mid-2% area. The Fed also received some help in the latter half of 2006 by the drop in crude oil prices back to the $60 per barrel area.

Jan.

Preliminary.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

slash the funds rate to 1.00% to address the economic problems caused by the bursting of the stock market bubble in 2000 and the 9/11 terrorist attack in 2001.

2

Not seasonally adjusted.

Source: Bureau of Labor Statistics, U.S. Department of Commerce (BLS)

INTEREST RATES, U.S.

Volume of Trading of 3-month Eurodollar Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

7,903 10,908 7,471 8,380 17,515 19,487 13,534 20,809 27,794 35,602

6,918 7,861 7,675 9,723 12,908 14,491 12,315 16,042 28,549 34,218

8,936 8,842 8,719 10,198 15,479 17,987 18,275 22,584 34,472 47,464

9,352 9,488 7,347 10,172 15,192 17,947 15,393 26,674 42,437 37,752

8,447 7,202 8,957 10,261 15,691 18,717 19,403 25,549 36,600 44,155

8,050 8,350 9,650 9,791 14,310 17,932 21,163 28,067 37,997 45,443

7,292 5,452 7,746 7,385 12,673 20,367 18,733 25,114 26,795 36,794

9,295 9,811 8,898 7,010 14,948 17,758 18,724 24,859 32,921 45,127

7,635 13,594 7,629 8,205 16,776 15,310 18,817 32,283 45,483 45,180

12,570 11,757 7,501 9,276 14,139 18,496 20,004 25,737 35,149 46,454

6,314 9,628 6,223 7,561 21,150 13,349 15,432 27,945 34,776 42,701

7,058 6,579 5,604 10,152 13,234 10,240 16,978 21,920 27,382 41,188

99,770 109,473 93,418 108,115 184,015 202,081 208,771 297,584 410,355 502,077

Source: I nternational Monetary Market (I OM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of 3-month Eurodollar Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

2,190.8 2,713.4 2,917.9 2,971.3 3,576.4 4,592.0 4,007.1 5,128.0 7,163.3 8,833.5

2,333.2 2,821.5 3,039.5 3,261.4 3,878.6 4,937.0 4,500.1 5,624.1 7,858.5 9,574.0

2,423.1 2,797.9 2,973.5 3,138.7 4,117.4 4,727.9 4,517.3 5,640.5 8,124.1 9,586.0

2,523.1 2,892.6 2,894.7 3,156.6 4,109.3 4,411.6 4,448.6 5,602.2 8,244.1 9,679.6

2,671.3 3,089.0 3,183.2 3,331.7 4,316.3 4,421.0 5,098.7 6,060.0 8,604.5 10,126.2

2,706.5 3,093.9 3,208.8 3,272.1 4,471.7 4,295.5 5,514.2 6,117.3 8,045.7 9,995.4

2,699.2 3,027.7 3,064.4 3,160.3 4,452.4 4,123.7 5,218.4 6,026.7 7,416.0 9,572.4

2,788.0 3,223.0 3,115.6 3,225.7 4,753.5 4,482.4 5,277.9 6,236.3 8,044.7 10,153.9

2,769.3 3,359.9 2,904.0 3,181.8 4,567.8 4,243.4 5,034.1 5,992.8 8,054.2 9,949.4

2,815.1 3,303.4 2,918.2 3,067.2 4,524.0 4,237.9 4,935.4 5,968.9 8,471.9 9,809.8

2,799.5 3,297.4 2,879.7 3,201.1 4,950.8 4,553.7 5,024.2 6,527.8 9,264.8 10,345.5

2,661.6 3,000.1 2,859.4 3,349.7 4,559.1 4,072.5 4,936.1 6,706.7 9,145.1 10,201.1

Source: I nternational Monetary Market (I OM), division of the Chicago Mercantile Exchange (CME)

135

INTEREST RATES, U.S.

Prior to the March 2000 contract, prices are theoretical based on a 6% coupon.

Volume of Trading of 2-Year U.S. Treasury Note Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

32.4 93.9 77.1 104.3 64.5 132.7 51.5 159.3 174.6 299.2 195.0 332.9 146.8 392.9 310.4 829.8 953.7 1,997.5 2,053.3 3,223.3

Mar.

Apr.

79.0 44.5 107.1 52.0 67.0 62.9 97.9 76.9 160.9 194.8 290.4 159.2 292.5 153.3 630.0 462.4 1,706.1 1,548.3 3,206.5 2,090.0

July

Aug.

100.2 102.7 53.1 140.9 123.3 59.4 132.3 93.6 46.5 160.2 105.2 43.0 274.0 163.3 93.4 377.0 242.9 177.0 513.9 339.2 274.1 872.2 788.8 406.7 2,306.3 1,811.4 1,153.0 4,690.9 2,837.1 2,525.1

May

June

138.5 177.4 139.2 181.0 316.4 377.0 514.0 1,009.9 2,144.2 4,461.0

In Thousands of Contracts Sept.

Oct.

Nov.

D e c.

Total

97.0 68.5 160.1 93.1 71.3 44.0 107.4 97.4 198.1 122.9 253.0 174.8 522.8 281.1 1,014.5 678.0 2,118.0 1,344.1 2,768.3 2,422.9

107.8 140.7 124.1 287.6 303.8 387.2 496.7 1,393.3 2,451.5 4,826.4

100.6 72.9 72.3 126.5 160.6 232.3 488.5 1,058.5 1,671.3 2,862.0

1,018.3 1,308.4 1,050.1 1,493.8 2,462.0 3,198.7 4,415.9 9,454.8 21,205.4 37,966.8

Source: Chicago Board of Trade (CBT)

Average Open Interest of 2-Year U.S. Treasury Note Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

20,599 39,649 39,971 34,325 82,168 86,505 107,084 161,948 287,341 437,806

23,027 40,462 40,747 43,026 79,389 103,331 114,234 195,229 345,687 489,256

22,750 40,840 40,339 44,512 81,688 103,568 123,909 186,836 329,608 469,014

24,090 40,899 40,078 43,772 72,517 87,850 108,979 172,374 307,013 489,450

29,379 46,833 34,731 49,033 66,185 102,040 120,264 198,864 341,492 607,562

33,225 47,241 35,959 51,216 63,601 105,931 118,776 210,667 372,896 541,129

36,047 44,701 35,349 55,806 56,610 99,383 112,052 191,740 362,299 595,108

47,253 48,888 37,624 53,449 72,951 107,955 149,099 207,103 371,076 701,432

44,003 47,030 38,693 47,912 74,353 110,434 151,922 216,394 364,420 683,556

40,960 37,245 38,157 53,338 65,433 108,089 144,646 205,549 351,255 680,738

37,785 38,222 38,702 60,894 72,697 115,503 149,014 221,643 357,270 698,407

37,701 40,303 34,135 77,860 71,270 113,618 156,506 248,517 363,186 716,023

Source: Chicago Board of Trade (CBT)

136

In Contracts

Jan.

INTEREST RATES, U.S.

Prior to the March 2000 contract, prices are theoretical based on a 6% coupon.

Volume of Trading of 5-Year U.S. Treasury Note Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

928 1,452 1,120 1,801 2,423 2,868 4,436 5,857 7,798 9,388

1,157 1,482 1,554 2,874 2,592 3,826 5,178 7,389 11,168 12,142

1,271 1,391 1,337 2,010 2,281 3,848 5,534 7,776 11,849 11,865

984 1,155 1,115 1,708 2,063 3,092 4,624 7,793 10,720 7,870

1,191 1,281 1,906 2,548 3,222 4,638 7,268 10,979 12,320 12,972

1,144 1,377 1,544 1,757 2,264 4,096 6,166 9,458 9,164 9,369

761 944 1,166 1,189 1,702 4,437 6,463 7,110 7,698 8,102

1,245 2,481 2,164 2,253 2,697 5,354 7,090 10,656 12,663 13,348

1,244 1,913 1,034 1,516 2,617 4,859 7,454 10,312 11,000 9,369

1,314 1,583 1,245 1,774 2,526 5,027 6,364 7,686 8,511 8,731

1,068 1,723 1,607 2,260 4,053 5,013 6,885 11,037 11,996 13,424

1,183 1,279 1,193 1,643 2,684 3,453 6,286 9,417 7,021 8,291

13,489 18,060 16,984 23,332 31,122 50,512 73,746 105,469 121,909 124,870

Source: Chicago Board of Trade (CBT)

Average Open Interest of 5-Year U.S. Treasury Note Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

176.7 257.1 290.4 387.0 377.7 507.2 685.1 874.2 1,160.2 1,105.1

208.9 270.0 268.6 475.5 392.0 576.2 743.2 1,008.1 1,237.0 1,404.8

219.5 282.3 247.5 420.8 374.5 585.6 777.8 987.2 1,325.0 1,238.0

235.5 277.5 246.9 417.9 376.9 632.2 835.5 1,043.0 1,383.0 1,257.2

227.9 274.1 311.1 428.2 436.3 656.4 856.3 1,145.4 1,320.9 1,326.0

225.7 257.2 348.6 379.6 422.0 594.9 827.5 1,118.5 1,127.9 1,264.7

226.3 264.8 325.3 402.7 461.0 554.9 781.7 1,217.3 1,247.7 1,258.3

225.8 389.1 341.5 405.1 483.3 652.8 840.4 1,322.5 1,450.3 1,409.8

234.3 382.9 298.9 372.8 451.4 655.0 737.0 1,168.1 1,190.2 1,341.3

233.5 383.8 328.6 373.7 463.2 662.5 819.4 1,099.4 1,342.0 1,413.8

248.4 353.4 272.6 381.4 554.6 720.7 925.6 1,290.7 1,397.6 1,484.4

257.9 326.9 288.5 380.2 491.1 692.8 880.1 1,318.7 1,126.8 1,423.8

Source: Chicago Board of Trade (CBT)

137

INTEREST RATES, U.S.

Prior to the March 2000 contract, prices are theoretical based on a 6% coupon.

Volume of Trading of 10-year U.S. Treasury Note Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,781 2,394 2,269 3,557 4,633 5,540 9,121 13,608 13,901 17,189

1,940 2,749 3,562 4,975 4,915 6,407 10,746 14,569 19,565 21,263

2,052 2,817 2,994 3,750 4,501 6,521 11,321 16,984 21,133 22,740

1,703 2,342 2,145 3,530 4,299 5,463 9,377 16,478 19,487 17,241

2,026 2,696 3,519 4,712 5,483 8,309 13,817 17,786 22,689 26,175

1,942 2,682 3,153 3,706 4,084 7,548 12,149 15,184 16,779 20,311

1,510 1,704 2,438 2,581 3,493 8,981 15,285 12,954 13,895 16,645

2,536 3,632 3,736 4,460 5,683 10,590 14,249 17,419 20,120 24,797

2,063 3,560 2,509 3,780 4,390 8,529 13,707 18,468 18,348 22,125

2,594 2,883 2,471 3,824 4,145 11,199 13,587 16,622 15,357 20,603

1,826 2,912 3,202 4,514 7,270 9,679 12,475 21,006 20,705 28,414

1,991 2,112 2,048 3,313 4,690 7,020 10,912 15,039 13,144 18,070

23,962 32,483 34,046 46,701 57,586 95,786 146,745 196,119 215,124 255,572

Source: Chicago Board of Trade (CBT)

Average Open Interest of 10-year U.S. Treasury Note Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

332.3 430.3 528.5 595.2 550.3 572.9 772.9 1,145.9 1,671.3 1,700.0

343.7 508.0 549.5 653.8 541.6 643.9 896.9 1,320.6 1,888.6 1,990.4

324.0 474.9 515.4 571.9 560.0 679.6 914.9 1,312.9 1,980.2 2,048.7

348.7 494.4 510.1 615.6 595.1 699.1 897.1 1,347.7 2,003.5 2,259.7

350.8 533.2 541.1 621.4 628.7 806.5 968.1 1,392.4 2,140.8 2,321.0

336.9 513.4 574.5 583.9 512.1 793.0 993.6 1,300.3 1,869.0 2,054.2

363.7 512.2 588.3 608.4 550.2 877.6 1,009.5 1,348.2 1,859.3 2,087.1

407.1 604.9 623.8 602.1 627.3 958.3 1,032.5 1,456.6 1,992.8 2,265.3

387.3 555.3 607.3 547.6 610.4 888.7 856.2 1,503.6 1,749.4 2,271.5

398.6 482.9 653.1 564.6 590.3 970.2 985.7 1,626.9 1,677.7 2,408.2

405.0 508.3 582.0 555.2 662.0 938.0 1,140.7 1,767.4 1,778.6 2,398.2

374.4 503.5 487.9 508.9 559.9 751.6 965.0 1,642.0 1,635.6 2,236.0

Source: Chicago Board of Trade (CBT)

138

In Thousands of Contracts

Jan.

INTEREST RATES, U.S.

Prior to the March 2000 contract, prices are theoretical based on a 6% coupon.

Volume of Trading of 30-year U.S. Treasury Bond Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

8,104.7 7,522.8 9,595.3 9,368.1 8,075.2 10,031.5 7,966.4 8,157.4 5,123.0 5,545.9 4,132.7 4,721.1 3,625.3 4,840.9 5,025.4 5,762.8 6,134.8 8,973.5 7,044.8 8,511.6

Jan.

7,493.3 9,763.9 8,667.5 5,378.6 5,196.3 4,504.8 5,106.9 6,687.9 8,573.7 8,980.6

Apr.

May

June

7,519.9 8,339.1 7,400.2 8,516.7 9,054.1 10,208.6 7,196.9 9,555.8 8,072.1 5,282.3 5,972.9 4,458.6 4,584.0 6,022.2 4,233.2 3,932.8 5,191.4 4,722.2 3,795.0 7,188.4 5,896.2 5,983.2 6,463.8 5,556.9 7,293.5 8,558.9 7,407.2 6,969.2 10,354.4 7,564.5

July

Aug.

In Thousands of Contracts Oct.

Nov.

7,679.8 10,228.1 8,356.2 12,467.6 8,070.9 12,024.8 11,159.2 10,698.1 6,415.1 7,995.2 6,559.6 6,301.1 3,080.0 4,709.9 4,529.2 4,460.4 3,347.0 4,965.6 4,331.0 4,598.6 5,157.9 5,666.5 4,534.5 5,190.1 6,352.1 6,198.0 5,738.4 5,121.8 4,540.1 6,343.5 7,638.7 5,658.6 5,367.0 7,771.3 7,193.6 6,450.4 5,854.2 8,736.7 7,553.9 6,375.1

Sept.

7,735.5 8,155.0 6,909.0 5,072.8 6,746.4 4,722.8 4,823.4 7,374.2 7,928.8 9,461.6

D e c.

Total

6,980.4 99,827.7 5,609.2 112,224.1 4,263.5 90,042.3 3,682.3 62,750.8 3,886.0 58,579.3 3,605.6 56,082.3 4,835.2 63,521.5 5,914.0 72,949.0 5,274.0 86,926.6 6,348.2 93,754.9

Source: Chicago Board of Trade (CBT)

Average Open Interest of 30-year U.S. Treasury Bond Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

Mar.

Apr.

497,539 744,894 657,180 637,023 413,244 468,455 420,797 488,484 674,170 601,094

545,775 764,309 801,115 612,298 479,165 520,573 506,910 571,445 792,247 662,314

509,573 766,233 664,131 530,957 519,987 479,939 487,277 557,595 749,403 622,927

493,511 806,559 618,453 503,412 509,558 463,100 449,286 488,921 710,061 739,601

May

June

July

In Contracts

Aug.

Sept.

Oct.

Nov.

D e c.

554,418 480,669 530,011 608,474 888,215 1,040,659 1,084,889 1,061,223 717,453 674,225 672,983 748,974 434,771 390,928 394,075 440,437 503,194 455,799 458,613 531,098 472,778 458,020 427,896 465,971 566,887 596,186 554,632 521,928 553,721 512,566 517,893 594,905 735,910 665,235 579,724 600,565 858,812 760,240 760,749 813,905

624,231 837,986 647,816 402,156 525,972 496,815 423,995 584,416 595,736 763,092

723,321 769,932 621,816 399,880 567,177 467,440 443,177 594,353 586,653 737,070

719,186 782,677 637,656 443,282 602,647 459,877 489,185 640,026 618,647 810,426

737,703 662,025 561,919 445,386 478,418 440,225 471,848 634,008 574,121 803,020

Source: Chicago Board of Trade (CBT)

139

INTEREST RATES, U.S.

U.S. Federal Funds Rate

In Percent

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

5.25 5.56 4.63 5.46 5.98 1.73 1.24 1.00 2.28 4.29

5.19 5.51 4.76 5.73 5.49 1.74 1.26 1.01 2.50 4.49

5.39 5.49 4.81 5.85 5.31 1.73 1.25 1.00 2.63 4.59

5.51 5.45 4.74 6.02 4.80 1.75 1.26 1.00 2.79 4.79

5.50 5.49 4.74 6.27 4.21 1.75 1.26 1.00 3.00 4.94

5.56 5.56 4.76 6.53 3.97 1.75 1.22 1.03 3.04 4.99

5.52 5.54 4.99 6.54 3.77 1.73 1.01 1.26 3.26 5.24

5.54 5.55 5.07 6.50 3.65 1.74 1.03 1.43 3.50 5.25

5.54 5.51 5.22 6.52 3.07 1.75 1.01 1.61 3.62 5.25

5.50 5.07 5.20 6.51 2.49 1.75 1.01 1.76 3.78 5.25

5.52 4.83 5.42 6.51 2.09 1.34 1.00 1.93 4.00 5.25

5.50 4.68 5.30 6.40 1.82 1.24 0.98 2.16 4.16 5.24

5.46 5.35 4.97 6.24 3.89 1.67 1.13 1.35 3.21 4.96

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

U.S. Municipal Bond Yield1

In Percent

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

5.72 5.06 5.02 6.08 5.10 5.16 4.90 4.61 4.41 4.37

5.63 5.10 5.03 6.00 5.18 5.11 4.81 4.55 4.35 4.41

5.76 5.21 5.10 5.83 5.13 5.29 4.76 4.41 4.57 4.44

5.88 5.23 5.08 5.75 5.27 5.22 4.74 4.82 4.46 4.58

5.70 5.20 5.18 6.00 5.29 5.19 4.41 5.07 4.31 4.59

5.53 5.12 5.37 5.80 5.20 5.09 4.33 5.05 4.23 4.60

5.35 5.14 5.36 5.63 5.20 5.02 4.74 4.87 4.31 4.61

5.41 5.10 5.58 5.51 5.03 4.95 5.10 4.70 4.32 4.39

5.39 4.99 5.69 5.56 5.09 4.74 4.92 4.56 4.29 4.27

5.38 4.93 5.92 5.59 5.05 4.88 4.89 4.49 4.48 4.30

5.33 5.03 5.86 5.54 5.04 4.95 4.73 4.52 4.57 4.14

5.19 4.98 5.95 5.22 5.25 4.85 4.65 4.48 4.46

5.52 5.09 5.43 5.71 5.15 5.04 4.75 4.68 4.40 4.43

1

20-bond average.

140

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

INTEREST RATES, U.S.

U.S. Industrial Production Index1 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2

1997 = 100

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

121.3 130.3 134.1 143.6 143.9 109.0 111.2 113.2 106.9 109.1

122.1 130.2 134.5 144.3 143.5 109.2 111.6 114.4 107.4 109.4

122.5 130.7 135.1 145.2 142.9 109.6 110.8 114.1 107.3 110.0

123.1 131.3 135.5 146.3 142.0 110.1 110.1 114.7 107.2 110.9

123.3 131.9 136.2 147.2 141.6 110.4 110.0 115.5 107.4 110.9

123.5 130.6 136.6 147.9 140.3 110.8 110.0 115.1 108.3 111.9

124.5 130.5 137.4 147.6 140.4 111.6 110.8 115.9 108.3 112.3

125.2 132.4 137.7 148.7 140.0 111.3 110.9 116.0 108.6 112.5

125.6 131.9 138.1 148.8 138.5 111.2 111.5 105.1 107.2 112.2

129.3 134.1 139.1 146.3 137.7 111.0 111.8 105.8 107.1 112.1

129.9 133.8 141.9 145.8 108.8 111.2 112.7 106.0 108.2 112.0

130.3 133.8 142.8 145.1 108.3 110.6 112.9 106.7 109.2

127.0 132.4 139.2 145.7 111.5 111.0 110.9 104.7 107.7 111.2

Total I ndex of the Federal Reserve I ndex of Quantity Output, seasonally adjusted. Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

1

2

Preliminary.

U.S. Gross National Product, National Income, and Personal Income Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2 1

--------------- Gross Domestic Product --------------First Second Third Fourth Annual Quarter Quarter Quarter Quarter Average

8,114 8,587 9,067 9,629 10,022 10,333 10,706 11,431 12,173 13,008

8,250 8,658 9,174 9,823 10,129 10,427 10,832 11,649 12,346 13,197

8,382 8,790 9,314 9,862 10,135 10,527 11,086 11,799 12,574 13,323

Seasonally adjusted at annual rates.

8,471 8,954 9,520 9,954 10,226 10,591 11,220 11,970 12,731 13,450 2

In Billions of Constant Dollars1

-------------------- National Income -------------------First Second Third Fourth Annual Quarter Quarter Quarter Quarter Average

-------------------- Personal Income -------------------First Second Third Fourth Annual Quarter Quarter Quarter Quarter Average

8,304 7,115 7,220 7,361 7,473 7,292 6,773 6,847 6,957 7,084 6,915 8,747 7,573 7,688 7,823 7,927 7,753 7,247 7,376 7,486 7,583 7,423 9,268 8,074 8,161 8,255 8,456 8,237 7,658 7,729 7,824 7,999 7,802 9,817 8,681 8,750 8,858 8,892 8,795 8,266 8,372 8,514 8,566 8,430 10,128 8,988 9,002 8,890 9,040 8,980 8,689 8,720 8,733 8,755 8,724 10,470 9,131 9,212 9,248 9,327 9,229 8,815 8,892 8,895 8,926 8,882 10,961 9,407 9,538 9,699 9,885 9,632 8,998 9,111 9,204 9,341 9,164 11,712 10,084 10,207 10,244 10,489 10,256 9,498 9,641 9,768 10,019 9,731 12,456 10,702 10,795 10,643 11,106 10,812 10,049 10,162 10,263 10,484 10,239 13,245 11,551 11,612 11,734 11,632 10,721 10,807 10,939 11,068 10,884

Preliminary.

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

141

INTEREST RATES, U.S. U.S. Money Supply M12 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Billions of Dollars

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1,080.0 1,073.5 1,096.3 1,121.5 1,096.8 1,190.0 1,226.2 1,305.2 1,365.5 1,378.9

1,077.5 1,077.7 1,096.7 1,108.8 1,100.8 1,189.5 1,237.0 1,319.1 1,368.9 1,375.2

1,071.0 1,076.9 1,097.3 1,107.5 1,108.6 1,191.3 1,237.2 1,328.3 1,371.6 1,383.8

1,062.6 1,076.2 1,101.1 1,113.4 1,115.2 1,185.7 1,248.2 1,332.3 1,358.0 1,380.1

1,062.9 1,077.6 1,102.2 1,105.7 1,119.9 1,190.2 1,269.7 1,333.9 1,367.5 1,387.3

1,065.1 1,076.0 1,098.7 1,103.4 1,126.7 1,192.7 1,281.0 1,343.8 1,380.9 1,375.6

1,065.3 1,074.4 1,097.9 1,103.0 1,139.6 1,199.9 1,288.5 1,342.0 1,368.6 1,371.1

1,073.8 1,074.3 1,097.9 1,100.4 1,150.4 1,186.7 1,295.1 1,354.7 1,378.5 1,371.5

1,066.7 1,078.4 1,095.6 1,099.7 1,205.3 1,195.9 1,298.1 1,363.1 1,379.5 1,363.9

1,065.1 1,084.3 1,101.2 1,098.8 1,166.3 1,204.3 1,297.9 1,361.5 1,374.9 1,369.1

1,069.1 1,093.0 1,110.3 1,092.4 1,171.5 1,209.1 1,297.4 1,375.0 1,375.9 1,370.5

1,072.2 1,094.8 1,122.6 1,087.6 1,182.1 1,219.5 1,305.5 1,375.3 1,373.2 1,365.7

1,069.3 1,079.8 1,101.5 1,103.5 1,140.3 1,196.2 1,273.5 1,344.5 1,371.9 1,374.4

Preliminary. 2 M1 -- The sum of currency held outside the vaults of depository institutions, Federal Reserve Banks, and the U.S. Treasury; travelers checks; and demand and other checkable deposits issued by financial institutions (except demand deposits due to the Treasury and depository institutions), minus cash items in process of collection and Federal Reserve float. Seasonally adjusted. Source: Board of Governors of the Federal Reserve System

1

U.S. Money Supply M22 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Billions of Dollars

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

3,828.7 4,054.2 4,404.0 4,667.9 4,976.4 5,455.1 5,801.9 6,064.2 6,415.1 6,713.6

3,839.5 4,086.5 4,431.1 4,683.4 5,015.9 5,483.1 5,842.3 6,108.3 6,436.9 6,737.0

3,854.5 4,113.6 4,441.4 4,713.1 5,076.2 5,490.8 5,860.4 6,151.1 6,457.4 6,755.8

3,870.8 4,136.7 4,472.1 4,762.8 5,136.6 5,495.5 5,902.5 6,194.5 6,466.2 6,774.9

3,883.9 4,157.3 4,491.5 4,756.1 5,136.7 5,520.5 5,960.1 6,263.7 6,481.3 6,785.7

3,902.0 4,183.6 4,512.8 4,772.1 5,175.9 5,541.8 5,998.1 6,271.3 6,509.1 6,811.1

3,921.7 4,202.0 4,537.1 4,786.0 5,208.3 5,590.9 6,049.4 6,280.5 6,532.4 6,835.7

3,950.6 4,227.4 4,558.0 4,817.9 5,241.9 5,629.3 6,098.3 6,303.2 6,566.7 6,863.4

3,970.0 4,269.3 4,573.7 4,850.0 5,350.8 5,653.0 6,077.1 6,334.2 6,599.9 6,886.5

3,987.8 4,310.7 4,592.2 4,867.7 5,343.6 5,702.5 6,065.1 6,356.6 6,625.0 6,936.2

4,008.9 4,349.9 4,618.1 4,877.9 5,383.8 5,748.6 6,059.7 6,393.5 6,644.7 6,977.0

4,030.0 4,382.2 4,647.5 4,920.9 5,430.3 5,774.1 6,062.0 6,411.7 6,669.4 7,020.8

3,920.7 4,206.1 4,523.3 4,789.7 5,206.4 5,590.4 5,981.4 6,261.1 6,533.7 6,841.5

Preliminary. 2 M2 -- M1 plus savings deposits (including money market deposit accounts) and small-denomination (less than $100,000) time deposits issued by financial institutions; and shares in retail money market mutual funds (funds with initial investments of less than $50,000), net of retirement accounts. Seasonally adjusted. Source: Board of Governors of the Federal Reserve System

1

U.S. Money Supply M32 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Jan.

F eb.

5,013.2 5,041.7 5,508.8 5,541.3 6,080.7 6,129.5 6,605.5 6,642.2 7,237.2 7,308.5 8,063.9 8,109.3 8,588.1 8,628.7 8,930.2 9,000.3 9,487.2 9,531.6 10,242.8 10,298.7

In Billions of Dollars Mar.

Apr.

May

June

July

Aug.

5,080.2 5,119.8 5,611.5 5,647.3 6,133.6 6,172.3 6,704.0 6,767.3 7,372.0 7,507.8 8,117.3 8,142.6 8,648.8 8,686.0 9,080.7 9,149.6 9,565.3 9,620.9 Discontinued

5,147.1 5,686.9 6,201.0 6,776.9 7,564.1 8,175.1 8,741.9 9,243.8 9,665.0

5,177.4 5,728.4 6,237.7 6,823.6 7,644.7 8,190.8 8,791.6 9,275.7 9,725.3

5,235.8 5,750.0 6,269.0 6,875.2 7,691.9 8,244.2 8,888.7 9,282.7 9,762.4

5,291.4 5,815.0 6,299.1 6,945.0 7,696.3 8,298.1 8,918.2 9,314.4 9,864.6

D e c.

Average

5,332.3 5,376.3 5,417.1 5,460.5 5,882.0 5,953.7 6,010.1 6,051.9 6,323.0 6,378.4 6,464.1 6,551.8 7,003.5 7,027.0 7,038.3 7,117.6 7,853.2 7,897.8 7,973.0 8,035.4 8,331.5 8,368.9 8,498.8 8,568.0 8,906.5 8,896.8 8,880.3 8,872.3 9,351.8 9,359.4 9,395.1 9,433.0 9,950.8 10,032.0 10,078.5 10,154.0

Sept.

Oct.

Nov.

5,224.4 5,765.6 6,270.0 6,860.5 7,648.5 8,259.0 8,787.3 9,234.7 9,786.5 10,270.8

Preliminary. 2 M3 -- M2 plus large-denomination ($100,000 or more) time deposits; repurchase agreements issued by depository institutions; Eurodollar deposits, specifically, dollar-denominated deposits due to nonbank U.S. addresses held at foreign offices of U.S. banks worldwide and all banking offices in Canada and the United Kingdom; and institutional money market mutual funds (funds with initial investments of $50,000 or more). Seasonally adjusted. Source: Board of Governors of the Federal Reserve System

1

U.S. Money Supply MZM2 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Billions of Dollars

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

3,207.3 3,490.9 4,004.2 4,363.5 4,763.9 5,698.1 6,151.7 6,383.8 6,652.0 6,876.0

3,224.0 3,527.7 4,049.0 4,372.3 4,862.9 5,746.2 6,187.2 6,427.7 6,655.4 6,884.8

3,245.9 3,564.0 4,061.6 4,410.0 4,950.4 5,765.1 6,193.6 6,479.6 6,658.3 6,896.1

3,262.0 3,602.9 4,106.4 4,456.7 5,049.6 5,785.6 6,219.5 6,528.2 6,659.9 6,916.1

3,275.6 3,638.5 4,135.1 4,452.1 5,100.8 5,816.7 6,265.1 6,605.3 6,658.6 6,927.9

3,296.4 3,676.9 4,164.5 4,467.1 5,180.8 5,835.7 6,311.1 6,607.7 6,681.9 6,953.4

3,322.2 3,704.6 4,189.2 4,497.7 5,236.8 5,885.7 6,415.6 6,604.1 6,703.4 6,973.4

3,356.5 3,745.6 4,218.2 4,538.8 5,262.0 5,916.3 6,442.3 6,614.8 6,733.8 7,002.9

3,384.4 3,804.1 4,234.5 4,584.3 5,423.9 5,928.4 6,427.3 6,630.1 6,770.5 7,030.4

3,406.9 3,866.9 4,257.4 4,606.7 5,501.6 5,962.1 6,411.6 6,632.7 6,799.0 7,085.7

3,430.2 3,925.1 4,293.8 4,620.5 5,583.0 6,087.3 6,397.6 6,663.2 6,810.2 7,127.2

3,459.4 3,972.3 4,332.1 4,673.9 5,662.5 6,138.0 6,375.3 6,666.8 6,834.1 7,189.7

3,322.6 3,710.0 4,170.5 4,503.6 5,214.9 5,880.4 6,316.5 6,570.3 6,718.1 6,988.6

Preliminary. 2 MZM (money, zero maturity) -- M2 minus small-denomination time deposits, plus institutional money market mutual funds (that is, those included in M3 but excluded from M2). The label MZM was coined by William Poole (1991); the aggregate itself was proposed earlier by Motley (1988). Seasonally adjusted. Source: Board of Governors of the Federal Reserve System

1

142

INTEREST RATES, U.S.

Percent ----- Prime Rate - - - Discount Rate

Percent ----- Municipal Bonds - - - Corporate AAA Bonds

143

INTEREST RATES, U.S.

-------------

144

Percent Prime Rate 30-Year Bond Discount Rate 3-Month Treasury Bill

Interest Rates, Worldwide Interest rate futures contracts are widely traded throughout the world. The most popular futures contracts are generally 10-year government bonds and the 3-month interest rate contracts. In Europe, futures on German interest rates are traded at the all-electronic Eurex Exchange in Frankfurt. Futures on UK interest rates are traded at the Liffe Exchange in London. Futures on Canadian interest rates are traded at the Montreal Exchange. Futures on Japanese interest rates are traded at the Singapore Exchange (Simex) and at the Tokyo Stock Exchange. A variety of other interest rate futures contracts are traded throughout the rest of the world (please see the front of this Yearbook for a complete list). Euro-Zone – The Eurex 10-year Euro Bund futures contract in early 2006 fell sharply and then traded in a choppy sideways range during the remainder of the year, finally closing 2006 at 116.03, down –5.81 points from the 2005 close of 121.84. The German 10-year government bond yield in 2006 rose sharply by 115 bp early in the year from the 3.00% low posted in September 2005 to a 2-year high of 4.15% by July 2006, but then settled back to close 2006 at 3.65%. The 3-month Euribor rate in 2006 moved sharply higher from the low 2% level seen from mid-2003 through late-2005 to close 2006 at 3.72%. European interest rates generally rose during 2006 as the European Central Bank steadily raised interest rates. The ECB raised its benchmark 2-week refinancing rate by a total of 175 basis points from the 2.00% level that prevailed in mid-2003 through late-2005 to 3.75% by March 2007. The ECB steadily tightened its monetary policy in response to its perception of significant inflation risks. The Eurozone CPI moved within the high range of 2.2-2.6% from mid-2005 through mid-2006, which was above the ECB’s ceiling of 2.0%, before dropping to the 1.6-1.9% range in late 2006 in response to lower crude oil prices. The ECB in 2006 was also concerned about very strong M3 money supply growth, which rose sharply in late 2006 to as high as +9.9% by December 2006. The ECB felt that it needed to stay ahead of potential inflation risks and therefore progressively raised interest rates back to more normalized levels above 3%. The ECB in 2006 had some flexibility to raise interest rates since the Eurozone economy in 2006 performed surprisingly well. The Eurozone GDP improved from the sub-2% performance seen in 2002-05 to as high as +3.3% by December 2006. Eurozone GDP was boosted by strong export demand and improved domestic consumption. As of March 2007, the market consensus was for a further 25 bp ECB rate hike by summer 2007. UK – The Liffe 10-year Gilt futures contract in January 2006 initially extended the 2004-05 rally to post a 3-year high but then fell sharply during the year to close at 108.13, down –6.32 points. The 10-year Gilt yield, after posting a 3-year low of 3.92% in January 2006, rose during the year to close at 4.45, up 38 basis points from 4.07% in 2005. The Gilt yield then rose sharply in early 2007 to post a 1-year

high of 5.02% by February 2007. The 3-month UK Libor rate traded near 4.60% in early 2006 but then rose sharply by 95 basis points to post a 5-1/2 year high of 5.55% by early 2007. UK interest rates were driven higher in 2006 by the improving UK economy, above-target inflation, and the Bank of England’s rate hikes that started in mid-2006. UK GDP improved from the 2% area in late-2005 to +3.0% by Q4-2006. The BOE raised the base rate by 75 bp from 4.50% in mid-2006 to a 5-1/2 year high of 5.25% by early 2007. Canada – The Montreal Exchange’s Canadian 10-year T-note futures contract in early 2006 fell back from the record high posted in mid-2005, but then regained some ground through the remainder of 2006 to close the year at 113.82, down –0.56 points from 2005. The 10-year Canadian bond yield in 2006 moved mildly higher from the multidecade low of 3.72% posted in June 2005 but remained subdued in 2006 and closed the year at 3.86%, –5 bp from the 2005 close of 3.91%. The 3-month Canadian Libor rate rose by 70 bp from 2.60% in mid-2005 to 4.30% in the latter half of 2006. Canadian interest rates in 2006 rose mildly but still remained at historically low levels. The Bank of Canada raised its benchmark rate by a total of 175 basis points from 2.50% in late 2005 to 4.25% by May 2006 in response to inflation risks and generally strong GDP growth. However, the Bank of Canada stopped tightening in May 2006 and left interest rates unchanged through the remainder of the 2006 in an effort to counteract the negative impact on the Canadian economy from high crude oil prices and slower growth in the US. Canada’s GDP nevertheless faded during 2006 from the +3.1% pace in 2005 to the low2% area by the end of 2006. Japan – The SGX 10-year JGB futures contract sold off from mid-2005 through mid-2006, but then recovered somewhat in the latter half of 2006 to close at 133.93, –4.48 points on the year. The 10-year JGB yield in early 2006 continued to move higher from the 3-year low of 1.17% posted in June 2005, but then topped out near 2% and fell back to trade in the 1.60-1.80% range through the remained of the year. The 3-month Japanese Libor rate, after trading below 0.10% from mid-2001 through early-2006, finally climbed sharply by 60 bp to 0.70% by early 2007 after the BOJ ended its zero interest rate monetary policy and started raising interest rates. The Bank of Japan first raised its overnight benchmark rate by 25 basis points to 0.25% in July 2006, and then implemented a further 25 basis point rate hike to 0.50% in March 2007. The BOJ implemented those rate hikes as the Japanese economy entered a sustainable expansion mode and as inflation finally rose above the zero mark. Japan has been battling deflation since the late 1980s when its property and stock market bubble burst. Japan’s core CPI (excluding fresh foods) rose above zero in June 2006, but only rose as far as +0.3% in August 2006 and then started fading again and was back to zero by January 2007. Japan’s GDP was relatively strong during 2006 and reached a growth rate of an annualized +4.8% in Q4-2006.

145

INTEREST RATES, WORLDWIDE

9% through March 1998 contract 7% June 1998 contract to December 2003 contract 6% March 2004 contract to date

146

INTEREST RATES, WORLDWIDE

147

INTEREST RATES, WORLDWIDE

9% through March 2000 contract 6% June 2000 contract to date

148

INTEREST RATES, WORLDWIDE Australia -- Economic Statistics

Year

1999 2000 2001 2002 2003 2004 2005 20062 20073

Percentage Change from Previous Period

Real GDP

Nominal GDP

Real Private Consumption

4.4 3.4 2.4 3.9 3.3 3.3 2.9 2.6 3.0

5.0 7.7 6.2 6.9 6.4 6.9 7.7 7.0 6.6

5.0 3.6 3.1 3.9 3.8 5.9 3.1 2.6 2.4

Real Public Consumption

Grossed Fixed Investment

Real Total Domestic Demand

Real Exports of Goods & Services

Real Imports of Goods & Services

Consumer Prices1

Unemployment Rate

3.2 4.3 1.7 3.0 3.7 3.8 3.1 2.6 3.3

5.9 -1.3 -3.5 16.6 7.8 7.6 7.1 7.4 6.0

5.2 2.0 1.0 6.2 5.9 5.4 4.2 3.2 3.3

5.2 10.8 2.3 .1 -2.3 4.1 2.1 2.7 4.4

8.8 7.5 -4.3 11.1 10.4 15.1 8.2 5.8 6.0

1.5 4.5 4.4 3.0 2.8 2.3 2.7 3.7 2.8

6.9 6.3 6.8 6.4 6.0 5.5 5.1 5.0 5.0

National accounts implicit private consumption deflator. Development (OECD)

1

Canada -- Economic Statistics

Year

1999 2000 2001 2002 2003 2004 2005 20062 20073

Real GDP

Nominal GDP

5.5 5.2 1.8 2.9 1.8 3.3 2.9 2.8 2.7

7.4 9.6 2.9 4.0 5.2 6.4 6.2 4.7 3.9

3.8 4.0 2.3 3.6 3.0 3.3 3.9 3.9 3.4

Real GDP

Nominal GDP

3.0 4.0 1.8 1.1 1.1 2.0 1.2 2.1 2.2

3.0 5.6 3.8 3.5 3.0 3.8 3.1 3.9 3.9

3.3 3.5 2.5 2.4 2.2 2.5 2.1 2.6 2.5

Real Total Domestic Demand

Real Exports of Goods & Services

Real Imports of Goods & Services

Consumer Prices1

Unemployment Rate

2.1 3.1 3.9 2.5 3.5 3.0 2.7 3.5 3.3

7.3 4.7 4.0 1.6 6.5 8.0 7.1 6.3 3.4

4.2 4.7 1.3 3.3 4.6 4.3 4.8 4.3 3.5

10.7 8.9 -3.0 1.2 -2.4 5.2 2.1 1.3 1.7

7.8 8.1 -5.1 1.7 4.5 8.2 7.1 5.8 3.7

1.7 2.7 2.5 2.2 2.8 1.8 2.2 2.1 1.5

7.6 6.8 7.2 7.6 7.6 7.2 6.8 6.4 6.6

Year

2

Estimate.

3

Projection.

Source: Organization for Economic Co-opertation and

Real Public Consumption

Grossed Fixed Investment

Real Total Domestic Demand

Real Exports of Goods & Services

Real Imports of Goods & Services

Consumer Prices1

Unemployment Rate

1.4 2.0 1.1 1.9 2.0 2.2 1.1 2.2 1.8

7.9 7.5 2.3 -1.7 2.3 2.6 3.7 3.7 3.3

3.5 4.5 1.7 1.2 1.9 2.8 2.1 2.4 2.6

4.0 12.9 2.7 1.3 -1.1 3.3 3.2 7.7 5.7

5.8 15.1 2.2 1.6 1.5 6.0 6.4 8.8 6.7

.6 1.8 1.8 1.9 2.2 2.3 1.9 2.0 1.4

10.8 9.4 8.7 9.0 9.8 10.0 9.9 9.1 8.5

National accounts implicit private consumption deflator. Development (OECD)

1

1999 2000 2001 2002 2003 2004 2005 2 0 0 62 20073

Source: Organization for Economic Co-opertation and

Percentage Change from Previous Period

Real Private Consumption

Germany -- Economic Statistics

Projection.

Grossed Fixed Investment

National accounts implicit private consumption deflator. Development (OECD)

Year

3

Real Public Consumption

1

1999 2000 2001 2002 2003 2004 2005 20062 20073

Estimate.

Percentage Change from Previous Period

Real Private Consumption

France -- Economic Statistics

2

2

Estimate.

3

Projection.

Source: Organization for Economic Co-opertation and

Percentage Change from Previous Period

Real GDP

Nominal GDP

Real Private Consumption

1.9 3.5 1.4 .0 -.2 .8 1.1 2.6 1.8

2.2 2.8 2.6 1.4 .8 1.6 1.7 3.3 3.5

2.9 2.5 1.9 -.8 -.1 -.3 .3 .8 .3

Real Public Consumption

Grossed Fixed Investment

Real Total Domestic Demand

Real Exports of Goods & Services

Real Imports of Goods & Services

Consumer Prices1

Unemployment Rate

1.2 1.4 .5 1.5 .4 -1.3 .6 1.2 .4

4.5 3.8 -3.5 -6.3 -.7 -1.4 1.0 5.8 4.3

2.6 2.4 -.4 -2.0 .7 -.4 .6 2.0 1.2

5.6 14.1 6.8 4.3 2.3 8.8 7.1 10.4 6.2

8.3 10.7 1.5 -1.4 5.3 6.2 6.7 10.0 5.3

.6 1.4 1.9 1.4 1.0 1.8 1.9 1.7 1.9

7.5 6.8 6.9 7.6 8.7 9.2 9.1 8.0 7.7

National accounts implicit private consumption deflator. 2 Estimate. 3 Projection. Source: Organization for Economic Co-operation and Development (OECD)

1

149

INTEREST RATES, WORLDWIDE Italy -- Economic Statistics

Year

1999 2000 2001 2002 2003 2004 2005 20062 20073

Percentage Change from Previous Period

Real GDP

Nominal GDP

Real Private Consumption

1.9 3.8 1.7 .3 .1 .9 .1 1.8 1.4

3.2 5.9 4.8 3.7 3.2 3.8 2.2 3.9 3.3

2.6 2.4 .7 .2 1.0 .5 .1 1.6 1.0

Real Public Consumption

Grossed Fixed Investment

Real Total Domestic Demand

Real Exports of Goods & Services

Real Imports of Goods & Services

Consumer Prices1

Unemployment Rate

1.3 2.3 3.6 2.1 2.0 .5 1.2 .7 .3

3.5 6.7 2.3 4.0 -1.5 1.9 -.4 3.7 3.9

3.1 2.9 1.6 1.3 .9 .7 .4 1.2 1.4

-1.8 9.6 .3 -4.0 -2.2 2.5 .7 5.1 3.5

2.9 6.4 -.3 -.5 1.0 1.9 1.8 3.4 3.7

1.7 2.6 2.3 2.6 2.8 2.3 2.2 2.2 1.9

11.1 10.2 9.2 8.7 8.6 8.1 7.8 7.1 6.8

National accounts implicit private consumption deflator. Development (OECD)

1

Japan -- Economic Statistics

Year

1999 2000 2001 2002 2003 2004 2005 20062 20073

Real GDP

Nominal GDP

Real Private Consumption

-.2 2.9 .4 .1 1.8 2.3 2.7 2.8 2.0

-1.5 1.2 -.9 -1.4 .2 1.1 1.3 1.8 2.2

1.1 1.1 1.4 1.1 .6 1.9 2.3 1.3 1.4

Sw itz erland -- Economic Statistics

Real Exports of Goods & Services

Real Imports of Goods & Services

Consumer Prices1

Unemployment Rate

4.1 4.3 3.0 2.4 2.3 2.0 1.7 .6 1.1

-.7 1.2 -.9 -5.0 .3 1.1 3.2 4.0 2.1

-.1 2.5 1.2 -.6 1.2 1.5 2.5 2.0 1.3

1.5 12.2 -6.7 7.6 9.0 13.9 7.0 10.4 7.2

3.7 8.5 .9 .9 3.9 8.5 6.2 5.3 3.1

-.3 -.5 -.8 -.9 -.3 .0 -.6 .3 .3

4.7 4.7 5.0 5.4 5.3 4.7 4.4 4.2 3.9

Real GDP

Nominal GDP

Real Private Consumption

1.3 3.6 1.0 .3 -.2 2.3 1.9 3.0 2.2

2.0 4.4 1.7 1.9 1.0 2.9 1.9 3.9 3.2

2.3 2.3 2.0 .0 .8 1.5 1.3 1.8 1.8

2

Real GDP

Nominal GDP

Real Private Consumption

3.0 3.8 2.4 2.1 2.7 3.3 1.9 2.6 2.6

5.3 5.1 4.6 5.2 5.9 6.0 4.1 4.9 5.2

4.5 4.6 3.0 3.5 2.9 3.4 1.4 2.1 2.1

3

Projection.

Source: Organization for Economic Co-opertation and

Real Public Consumption

Grossed Fixed Investment

Real Total Domestic Demand

Real Exports of Goods & Services

Real Imports of Goods & Services

Consumer Prices1

Unemployment Rate

.3 2.6 4.2 1.7 2.6 -.8 -1.6 -1.8 .2

1.2 4.3 -3.1 .3 -1.4 4.5 3.2 5.0 3.8

.3 2.1 2.3 -.5 .4 1.5 1.1 2.8 1.9

6.5 12.2 .2 -.7 -.4 8.4 6.4 8.4 6.0

4.3 9.6 3.2 -2.6 1.0 7.4 5.3 8.8 6.1

.8 1.6 1.0 .6 .6 .8 1.2 1.0 .9

2.9 2.5 2.5 3.1 4.1 4.2 4.3 3.9 3.6

2

Estimate.

3

Projection.

Source: Organization for Economic Co-opertation and

Percentage Change from Previous Period

Real Public Consumption

Grossed Fixed Investment

Real Total Domestic Demand

Real Exports of Goods & Services

Real Imports of Goods & Services

Consumer Prices1

Unemployment Rate

3.7 3.1 2.4 3.5 3.5 3.2 2.8 2.0 1.3

2.8 2.7 2.5 3.7 .4 6.0 2.7 5.4 6.2

4.2 3.9 2.9 3.2 2.7 3.8 1.8 2.7 2.6

3.8 9.1 2.9 1.0 1.7 4.9 7.1 12.8 5.6

7.9 9.0 4.8 4.8 2.0 6.6 6.5 12.1 5.2

1.3 .8 1.2 1.3 1.4 1.3 2.0 2.2 2.0

6.0 5.5 5.1 5.2 5.0 4.7 4.8 5.5 5.7

National accounts implicit private consumption deflator. Development (OECD)

150

Estimate.

Percentage Change from Previous Period

United Kingdom -- Economic Statistics

1

Source: Organization for Economic Co-opertation and

Real Total Domestic Demand

National accounts implicit private consumption deflator. Development (OECD)

Year

Projection.

Grossed Fixed Investment

1

1999 2000 2001 2002 2003 2004 2005 20062 20073

3

Real Public Consumption

National accounts implicit private consumption deflator. Development (OECD)

Year

Estimate.

Percentage Change from Previous Period

1

1999 2000 2001 2002 2003 2004 2005 20062 20073

2

2

Estimate.

3

Projection.

Source: Organization for Economic Co-opertation and

Iron and Steel of world iron ore production in 2005. World production of raw steel (ingots and castings) in 2005 rose +5.7% to 1,120 million metric tons, with the largest producers being China (with 31% of world production), Japan (with 10%), and the US (with 8%).

Iron (symbol Fe) is a soft, malleable, and ductile metallic element. Next to aluminum, iron is the most abundant of all metals. Pure iron melts at about 1535 degrees Celsius and boils at 2750 degrees Celsius. Archaeologists in Egypt discovered the earliest iron implements dating back to about 3000 BC, and iron ornaments were used even earlier. Steel is an alloy of iron and carbon, often with an admixture of other elements. The physical properties of various types of steel and steel alloys depend primarily on the amount of carbon present and how it is distributed in the iron. Steel is marketed in a variety of sizes and shapes, such as rods, pipes, railroad rails, tees, channels, and Ibeams. Steel mills roll and form heated ingots into the required shapes. The working of steel improves the quality of the steel by refining its crystalline structure and making the metal tougher. There are five classifications of steel: carbon steels, alloy steels, high-strength low-alloy steels, stainless steel, and tool steels.

US production of steel ingots in 2006 rose by +5.7% to a 7-year high of 106.6 million short tons. US production of pig iron (excluding ferro-alloys) in 2006 rose by +4.4% to 41.780 million short tons from 40.036 million short tons in 2005. Demand – US consumption of ferrous scrap and pig iron fell –2.1% yr/yr in 2005 to 103.400 million metric tons, but still above the 102.900 million metric tons in 2003, which was the lowest level since 1986. The largest consumers of ferrous scrap and pig iron were the manufacturers of pig iron and steel ingots and castings with 88% of consumption at 91.500 million metric tons in 2005. Iron foundries and miscellaneous users accounted for 10% of consumption, and manufacturers of steel castings (scrap) accounted for 2% of consumption.

Prices – In 2006 the average wholesale price for No. 1 heavy melting steel scrap in Chicago rose by +14.3% to $225.16 per metric ton. This was a new record high. The price was holding firm into 2007.

Trade – The US imported 13.0 million metric tons of iron ore in 2005, up +10.2%yr/yr from 11.8 million metric tons in 2004. The bulk of US iron ore imports came from Canada (58% with 7.510 million metric tons) and Brazil (32% with 54.180 million metric tons).

Supply – World production of iron ore in 2006 rose by +13.4% to 1.522 billion metric tons, which was a new record high. The world’s largest producers of iron ore are China (with 24% of world production in 2005), Brazil (with 20%), and Australia (with 18%). The US accounted for only 4.0%

World Production of Raw Steel (Ingots and Castings) Brazil

Canada

China

France

Germany

Italy

Ja p a n

Rep. of Korea

Russia

Ukraine

25,237 26,153 25,800 24,600 27,865 26,718 29,605 31,150 32,918 31,631

14,735 15,554 15,930 16,300 15,900 16,300 16,300 17,000 17,000 1,700

101,237 108,911 115,590 124,260 128,500 151,630 182,370 222,340 272,450 349,360

17,633 19,767 20,126 20,211 21,002 19,431 20,524 19,578 20,770 19,481

39,793 45,007 44,046 42,056 46,376 44,775 44,999 44,809 46,374 44,524

23,910 25,842 25,798 24,964 26,544 26,483 25,930 26,832 28,317 29,061

98,801 104,545 93,548 94,192 106,444 102,866 107,745 110,511 112,718 112,471

38,903 42,554 39,896 41,042 43,107 43,852 45,390 46,310 47,521 47,820

49,253 48,502 43,822 51,524 59,098 59,030 59,777 62,710 65,646 66,186

22,332 25,629 23,461 27,390 31,780 33,110 34,538 36,900 38,740 38,636

Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 1

In Thousands of Metric Tons

Preliminary.

2

Estimate.

United Kingdom

United States

World Total

17,992 95,535 749,992 18,489 98,486 798,892 17,066 98,600 770,000 16,634 97,400 790,000 15,022 102,000 850,000 13,610 90,100 853,000 11,718 91,600 906,000 13,128 93,700 972,000 13,766 99,700 1,060,000 13,210 93,300 1,120,000

Source: U.S. Geological Survey (USGS)

Average Wholesale Prices of Iron and Steel in the United States No. 1 Heavy Melting

------------------------------------------------------------------------ Pittsburg Prices -----------------------------------------------------------------------H ot Railroad GalvanCold Carbon Hot Used ------ Sheet Bars -----Rolled Steel ized Rolled Steel Rolled Steel Hot Cold S h eet Scrap2 Sheets Strip Plates Strip Cans3 Pittsburg Chicago Rolled Finished ---- $ Per Gross Ton ---- -------------------------------------------------- Cents Per Pound -------------------------------------------------- ------ $ Per Gross Ton ------------ Steel Scrap -------

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

Preliminary.

133.38 110.10 97.86 103.73 79.34 101.06 128.32 221.05 199.10 222.39 2

139.40 118.76 102.49 96.07 74.17 89.92 113.82 220.13 196.75 225.21

Specialties scrap.

18.12 15.57 14.74 15.67 11.71 16.46 14.80 30.84 27.83 29.78 3

-------------------------------

Consumer buying prices.

25.65 25.50 23.50 23.08 22.76 23.26 25.15 38.67 44.96 44.02

-------------------------------

NA = Not available.

32.00 22.50 14.00 15.69 12.94 ----------------

-------------------------------

28.62 24.11 21.20 21.38 16.41 22.00 20.08 36.69 33.77 38.09

169.00 164.29 150.00 150.00 -------------------

108.13 109.44 68.94 82.23 68.52 66.71 116.21 192.80 172.00 212.63

Source: American Metal Market (AMM)

151

IRON AND STEEL Salient Statistics of Steel in the United States

Year

Producer Price Index for Steel Mill Products Pig Iron Production (1982=100)

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

54,679 53,164 51,002 52,787 46,424 44,341 43,122 44,731 40,036 41,781

Preliminary.

2

116.4 113.8 105.3 108.4 101.3 104.8 109.5 147.2 159.7 174.3

In Thousands of Short Tons

---------------------------------------- Raw Steel Production ---------------------------------------B a si c Oxygen

Open Hearth

Electric2

61,053 59,686 57,722 59,485 52,204 50,114 50,942 50,613 45,231 46,802

-------------------------------

47,508 49,067 49,673 52,756 47,118 51,564 48,751 58,456 57,599 61,838

I ncludes crucible steels.

Stainless

Carbon

Alloy

Total

2,382 95,933 2,214 97,054 2,086 98,694 2,104 102,141 1,836 92,946 1,894 92,518 1,952 98,772 2,073 105,161 1,903 96,636 2,081 101,572

10,246 9,484 5,421 5,379 4,666 4,779 4,901 4,851 4,935 4,956

108,561 108,752 107,395 111,903 99,322 101,679 99,693 109,069 102,830 108,640

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2

1

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

85.3 90.0 77.2 89.7 77.6 84.5 83.1 88.0 90.9 85.6

89.3 95.2 79.5 89.4 82.3 88.4 87.3 90.9 92.9 89.5

89.6 93.1 81.7 91.2 81.8 86.7 85.0 93.8 88.4 92.8

89.2 92.5 81.8 92.0 82.9 90.3 87.8 93.3 89.2 91.4

87.9 89.1 81.7 91.3 81.5 89.4 81.1 92.9 84.2 92.5

87.0 86.1 79.7 89.6 81.6 92.5 86.2 94.4 79.8 92.1

85.1 83.0 79.4 85.3 79.8 86.8 78.9 93.5 77.1 88.7

86.4 86.4 82.8 83.5 80.4 91.0 78.3 95.0 81.3 88.7

91.2 83.0 82.3 82.7 80.5 94.0 80.7 97.3 86.4 91.2

86.9 81.0 88.2 81.0 77.5 90.8 82.8 97.5 89.3 86.2

89.6 74.4 89.1 75.1 73.5 86.8 82.8 94.8 88.1 81.5

86.3 74.8 88.5 72.0 65.9 83.9 81.9 91.5 85.0 75.0

89.4 85.7 82.7 85.2 78.8 88.8 83.0 93.6 86.1 87.9

2

Preliminary.

Sources: American I ron and Steel I nstitute (AI SI );

In Thousands of Short Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

8,735 9,510 8,422 9,838 8,475 8,050 8,617 8,656 9,123 8,918

8,266 9,087 7,837 9,170 8,122 7,609 8,175 8,400 8,419 8,506

9,175 9,839 8,854 10,009 8,932 8,261 8,817 9,268 9,028 9,770

8,882 9,524 8,643 9,843 8,685 8,214 8,692 8,901 8,757 9,382

9,048 9,483 8,914 10,097 8,832 8,401 8,047 9,163 8,543 9,811

8,662 8,863 8,413 9,592 8,550 8,414 8,534 9,006 7,837 9,458

8,692 8,832 8,619 9,411 8,459 8,510 8,163 9,164 7,896 9,324

8,818 9,194 8,993 9,213 8,525 8,918 8,096 9,314 8,330 9,320

9,006 8,548 8,650 8,830 8,263 8,916 8,026 9,234 8,562 9,282

9,128 8,681 9,574 8,978 8,125 9,015 8,514 9,551 9,032 8,922

9,116 7,710 9,357 8,054 7,226 8,340 8,347 8,989 8,629 8,169

9,071 8,013 9,604 7,982 6,695 8,329 8,414 8,660 8,599 7,760

107,488 107,643 105,882 111,015 98,889 100,976 100,442 108,305 102,754 108,621

Preliminary.

Year

In Percent

Mar.

Source: American I ron and Steel I nstitute (AI SI )

Shipments of Steel Products1 by Market Classifications in the United States

1997 1998 1999 2000 2001 2002 2003 2004 2005 20064

34,389 41,520 35,731 37,957 30,080 32,686 23,125 35,808 32,108 45,272

F eb.

Production of Steel Ingots in the United States Year

7,369 5,520 5,426 6,529 6,144 6,009 8,220 7,933 9,393 9,728

Jan.

1 Based on tonnage capability to produce raw steel for a full order book. U.S. Geological Survey (USGS)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

105,858 102,420 106,201 109,050 99,448 99,191 105,625 112,085 103,474 108,609

Sources: American I ron & Steel I nstitute (AI SI ); U.S. Geological Survey (USGS)

Production of Steel Ingots, Rate of Capability Utiliz ation1 in the United States Year

Total Net S t e e l Products ----Shipments Steel Mill Products Exports Imports

------ By Type of Furnace ------

Appliances Utensils & Cutlery

1,635 1,729 1,712 1,530 1,675 1,734 1,891 1,919 1,895 1,781

ConMachinery, Constainers, Industrial Con- Electrical Packaging truction Equipment EquipAuto- & Shipping Including tractors & Tools ment Export Maint. Products motive Materials

15,251 15,842 15,639 14,697 12,767 12,562 11,937 12,527 13,031 14,003

4,163 3,829 3,768 3,684 3,193 3,251 2,949 2,978 2,504 2,535

15,885 15,289 14,685 14,763 16,339 15,729 14,403 15,114 15,858 17,544

5 5 5 5 5 5 5 5 5 5

2,434 2,255 2,260 2,039 1,694 1,336 1,200 1,139 1,088 1,228

2,610 2,556 2,292 2,752 2,281 1,844 2,572 2,426 2,592 3,068

2,355 2,147 1,547 1,513 1,210 1,137 1,108 1,332 1,300 1,360

Rail Oil Transand Gas portaion

3,811 2,649 1,544 2,268 2,134 1,658 1,800 2,043 2,056 2,459

1,410 1,657 876 994 720 751 799 957 1,019 1,242

In Thousands of Short Tons

Steel for Converting & Processing2

Steel Service Center & D i stributors

All Other3

Total Shipments

11,263 9,975 7,599 7,753 7,462 7,201 6,798 7,295 7,559 8,531

27,800 27,751 21,439 22,537 23,887 22,828 24,266 25,385 23,213 23,706

17,241 16,741 32,840 35,093 26,086 29,160 35,905 38,969 31,359 31,153

105,858 102,420 106,201 109,624 99,448 99,191 105,628 112,085 103,474 108,609

All grades including carbon, alloy and stainless steel. 2 Net total after deducting shipments to reporting companines for conversion or resale. 3 I ncludes agricultural; bolts, nuts rivets & screws; forgings (other than automotive); shipbuilding & marine equipment; aircraft; mining, quarrying & lumbering; other domestic & commercial equipment machinery; ordnance & other direct military; and shipments of non-reporting companies. 4 Preliminary. Source: American I ron and Steel I nstitute (AI SI )

1

152

IRON AND STEEL Net Shipments of Steel Products2 in the United States

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Cold Finished Bars

Rails & A cce ssories

1,809 1,780 1,775 1,756 1,369 1,404 1,426 1,520 1,495 1,487

875 938 646 783 630 789 739 843 920 1,016

Preliminary.

2

Wire Tin Mill Drawn Products

619 725 611 579 481 733 684 428 560 603

Sheet & Strip Plates (Cut & Galv. (Hot D i pped) Coils)

4,057 8,855 3,714 8,864 3,771 8,200 3,742 8,898 3,202 8,349 3,419 8,769 3,513 9,230 3,247 10,740 2,874 10,274 2,880 10,827

12,439 13,481 14,870 14,917 14,310 14,944 15,221 16,306 15,249 16,358

Hot Rolled Bars

Structural Shapes Pipe & & Steel Piling Tubing

Reinforcing Bars

Hot Rolled Sheets

Cold Rolled Sheets

Carbon

Alloy

Stainless

8,153 8,189 8,078 7,901 7,032 6,581 6,486 7,181 6,674 7,595

6,548 5,409 4,772 5,385 5,377 4,809 4,597 5,328 5,096 5,426

6,188 5,909 6,183 6,893 6,976 6,359 7,970 8,274 7,464 7,419

18,221 15,715 17,740 19,236 18,866 19,243 22,218 23,106 20,569 20,862

13,322 13,185 13,874 14,802 12,352 12,673 13,485 14,762 12,793 13,281

97,509 94,536 98,694 102,141 92,314 92,518 98,772 105,161 97,884 101,572

6,282 5,847 5,421 5,379 4,789 4,779 4,901 4,851 5,183 4,956

2,067 2,037 2,086 2,104 1,837 1,894 1,952 2,073 1,903 2,081

All grades, including carbon, alloy and stainless steel.

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

Belgium

Brazil

China

France

8,628 8,077 8,730 8,472 8,472 7,732 8,053 8,000 8,000 8,000

23,978 25,336 25,111 25,060 27,952 27,623 29,667 32,036 34,579 34,382

107,225 115,110 118,600 125,390 131,010 155,540 170,850 213,660 251,850 330,410

12,108 13,424 13,603 13,854 13,621 12,004 13,217 12,756 13,000 13,000

30,012 30,939 30,162 27,931 30,846 29,184 29,427 29,481 30,018 28,854

Preliminary.

2

Estimate.

6,029 5,595 5,995 7,402 6,789 6,729 7,437 7,812 8,070 8,652

Source: American I ron and Steel I nstitute (AI SI )

World Production of Pig Iron (Excludes Ferro-Alloys) Germany

In Thousands of Short Tons

In Thousands of Metric Tons

India

Italy

Ja p a n

Russia

Ukraine

United Kingdom

United States

World Total

19,864 19,898 20,194 20,139 21,321 21,900 24,315 24,000 25,000 25,500

10,347 11,348 10,704 10,509 11,223 10,650 9,736 10,000 10,000 10,000

74,597 78,519 74,981 74,520 81,071 78,836 80,979 82,092 82,974 83,058

36,061 37,327 34,827 40,854 44,618 44,980 46,060 48,368 50,427 48,419

18,143 20,561 20,840 21,937 25,700 26,400 27,560 29,570 31,000 30,747

12,830 13,057 12,574 12,399 10,891 9,861 8,579 8,561 10,200 10,200

49,400 49,600 48,200 46,300 47,900 42,125 40,217 40,636 42,283 37,214

549,000 577,000 572,000 578,000 616,000 624,086 653,256 711,627 760,490 837,926

Source: U.S. Geological Survey (USGS)

Production of Pig Iron (Excludes Ferro-Alloys) in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands of Short Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

4,489 4,955 4,140 4,571 3,808 3,493 3,832 3,682 3,773 3,519

4,243 4,433 3,802 4,325 3,691 3,308 3,631 3,524 3,592 3,421

4,713 4,881 4,257 4,793 4,255 3,616 3,906 4,018 4,030 3,765

4,440 4,600 4,157 4,741 4,183 3,480 3,810 3,749 3,397 3,612

4,690 4,731 4,352 4,887 4,278 3,584 3,381 3,670 3,395 3,816

4,452 4,299 4,045 4,577 4,143 3,612 3,569 3,633 2,962 3,667

4,420 4,418 4,204 4,454 4,048 3,854 3,395 3,590 2,895 3,540

4,443 4,502 4,280 4,387 4,121 3,983 3,253 3,839 3,183 3,525

4,605 4,170 4,167 4,262 3,920 4,006 3,289 3,818 3,127 3,544

4,662 4,212 4,572 4,138 3,837 4,018 3,527 3,940 3,237 3,403

4,717 3,837 4,447 3,675 3,202 3,710 3,530 3,668 3,310 3,059

4,861 4,119 4,722 3,781 2,965 3,677 3,733 3,389 3,135 2,909

54,680 53,174 51,145 52,591 46,451 44,341 42,856 44,520 40,036 41,780

Preliminary.

Source: American I ron and Steel I nstitute

Salient Statistics of Ferrous Scrap and Pig Iron in the United States

In Thousands of Metric Tons

------------------------------- Consumption: Ferrous Scrap & Pig Iron Charged To ------------------------------Mfg. of Pig Iron & Steel

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

Mfg. of Steel -------------- All Uses -------------------- Ingots & Castings ------- -------- & Misc. Users -------Pi g Pi g Pi g Grand Castings Ferrous Scrap Iron Total Scrap Iron Total (Scrap) Scrap Iron Total

56,000 58,000 58,000 56,000 59,000 57,000 56,000 54,800 57,100 54,600

50,000 51,000 49,000 48,000 49,000 47,000 42,000 39,700 38,000 36,900

106,000 109,000 107,000 104,000 108,000 104,000 98,000 94,500 95,100 91,500

13,000 13,000 13,000 13,000 13,000 12,000 11,000 4,460 8,490 9,010

1,100 1,200 1,200 1,100 1,200 1,100 1,500 655 1,020 1,090

Preliminary. 2 I ncludes tinplate and terneplate. Source: U.S. Geological Survey (USGS)

1

Stocks -- Dec. 31

Iron Foundries

3

14,100 14,200 14,200 14,100 14,200 13,100 12,500 5,115 9,510 10,100

2,700 1,800 2,000 1,900 2,200 2,200 1,800 2,680 1,330 1,810

72,000 73,000 73,000 71,000 74,000 71,000 69,000 61,900 66,500 65,400

52,000 52,000 50,000 49,000 50,000 48,000 44,000 41,000 39,100 38,000

124,000 125,000 123,000 120,000 124,000 119,000 113,000 102,900 105,600 103,400

Ferrous Scrap & Pig Imports of Scrap2

Exports ---- Iron at Consumers ---of Pi g Total Scrap3 Scrap Iron Stocks

2,600 8,440 2,870 8,930 3,060 5,570 3,360 5,000 3,040 5,230 2,390 6,750 3,130 8,950 3,480 10,800 4,660 11,800 3,840 13,000

5,200 5,500 5,300 5,450 5,300 4,920 4,960 4,430 5,420 5,130

600 510 570 724 930 787 754 381 722 665

5,800 6,010 5,870 6,174 6,230 5,707 5,714 4,811 6,142 5,795

Excludes used rails for rerolling and other uses and ships, boats, and other vessels for scrapping.

153

IRON AND STEEL

USD Per Ton ----- No. 1 Heavy, Chicago (Dec. 1900 - date) - - - No. 1 Heavy, Pittsburg (Jan. 1907 - date)

Consumption of Pig Iron in the U.S., by Type of Furnace or Equipment Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 1

Preliminary.

2

Open Hearth

Electric

Cupola

B a si c Oxygen Process

-------------------------------

2,200 2,400 4,000 3,100 2,900 2,700 3,200 2,310 3,030 3,040

530 400 590 520 530 500 520 792 354 528

49,000 50,000 46,000 45,000 47,000 45,000 40,000 37,900 35,700 34,400

Estimate.

W = Withheld.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Direct Casting

Total

W W W W W W W W W W

42 41 36 36 35 36 36 36 36 36

52,000 52,000 50,000 49,000 50,000 48,000 44,000 41,000 39,100 38,000

In Dollars Per Metric Ton

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

131.14 144.29 89.66 120.50 83.55 70.21 96.93 187.75 203.00 222.70

143.50 140.39 101.50 111.10 74.50 75.03 101.97 219.92 190.00 237.76

139.70 135.50 90.89 110.50 74.50 75.50 105.07 250.85 190.00 237.07

132.59 133.50 90.50 108.15 74.50 85.05 105.50 224.55 217.14 245.00

136.50 135.30 100.00 101.50 73.23 93.09 101.69 181.90 180.95 249.23

136.50 135.50 104.32 94.59 72.50 97.10 96.88 180.00 124.32 249.23

143.50 131.50 100.98 92.50 75.93 97.50 101.05 222.50 135.50 245.25

146.50 120.88 105.95 92.50 76.50 97.50 116.79 249.32 189.78 204.41

139.60 107.79 106.50 92.50 76.50 100.50 122.02 217.38 241.19 207.25

139.63 85.64 106.50 82.59 72.54 98.85 122.50 237.62 204.29 202.55

142.50 78.71 113.40 72.80 67.50 93.50 138.22 248.00 246.25 197.90

142.50 76.68 120.17 74.20 67.50 93.50 159.74 223.57 242.43 203.55

139.51 118.81 102.49 96.07 74.17 89.78 114.03 220.28 197.07 225.16

Source: American Metal Market (AMM)

154

Ai r & Other Furnace

Source: U.S. Geological Survey (USGS)

Wholesale Price of No. 1 Heavy Melting Steel Scrap in Chicago Year

In Thousands of Metric Tons

IRON AND STEEL World Production of Iron Ore3 Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 1

In Thousands of Metric Tons (Gross Weight)

Australia

Brazil

Canada

China

India

Mauritania

Russia

South Africa

Sweden

Ukraine

United States

Venezuela

World Total

147,100 157,766 155,731 154,268 167,935 181,553 182,704 187,219 230,955 280,000

174,157 184,970 197,500 194,000 212,576 201,430 214,560 234,470 255,000 300,000

34,400 37,277 37,808 33,900 35,427 27,119 30,902 33,322 28,256 30,000

249,550 268,000 247,000 237,000 223,000 220,000 231,000 261,000 310,000 370,000

66,657 69,453 72,532 70,220 75,950 79,200 86,400 99,100 120,600 140,000

11,360 11,700 11,400 10,400 11,345 10,302 9,553 10,100 10,600 11,000

72,100 70,900 72,343 81,311 86,630 82,500 84,236 91,760 96,980 95,000

30,830 33,225 32,948 29,508 33,707 34,757 36,484 38,086 39,333 40,000

21,020 21,893 20,930 18,558 20,557 19,486 20,300 21,500 22,300 23,000

47,600 53,000 50,758 47,769 55,883 54,650 58,900 62,498 65,550 69,000

62,083 62,971 62,931 57,749 63,089 46,192 51,570 48,554 54,724 55,000

18,480 18,503 16,553 14,051 17,353 16,902 16,684 17,954 21,600 22,000

1,018,436 1,070,000 1,050,000 1,016,289 1,078,746 1,042,657 1,093,417 1,187,901 1,341,677 1,522,000

Preliminary.

2

Estimate.

3

I ron ore, iron ore concentrates and iron ore agglomerates.

Salient Statistics of Iron Ore3 in the United States

Year

Net Import Reliance as a % of Apparent Consumption

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

14 14 17 17 19 15 11 11 8 4

In Thousands of Metric Tons ----- Stocks -- Dec. 31 -----

---------- Production ----------

Total

62,132 63,000 62,900 57,700 63,100 46,200 51,600 48,600 54,700 55,000

L a ke Other Superior Regions

61,748 62,600 62,591 57,410 62,983 46,100 51,500 NA NA NA

383 327 327 NA NA NA NA NA NA NA

Source: U.S. Geological Survey (USGS)

Shipments

Average Value Value $ MIllion $ at Mine (at Mine) Per Ton

Mines

1,750.0 1,860.0 1,970.0 1,550.0 1,560.0 1,210.0 1,340.0 1,490.0 2,080.0

4,650 4,860 6,020 5,710 9,150 3,800 4,090 4,910 3,930

62,200 62,800 63,200 58,500 61,000 50,600 51,500 46,100 54,900 52,100

28.07 29.60 31.14 26.47 25.57 23.87 26.04 32.30 37.92 44.00

C on suming Plants

L a ke Erie D o cks

18,800 20,200 20,500 17,900 16,800 12,300 12,400 10,900 NA NA

2,260 2,890 4,080 2,770 2,860 1,960 1,820 1,630 NA NA

Imports

Value Con- Million $ sumption Imports

Exports

18,400 6,260 18,500 6,340 16,900 6,000 14,300 6,120 15,700 6,150 10,700 5,610 12,500 6,750 12,600 6,770 11,800 8,400 13,000 11,000

79,600 79,500 78,200 75,100 76,500 67,300 59,700 61,600 64,500 62,000

556.0 551.0 517.0 399.0 420.0 293.0 313.0 328.0 371.0

Preliminary. 2 Estimate. 3 Usable iron ore exclusive of ore containing 5% or more manganese and includes byproduct ore. NA = Not available. Source: U.S. Geological Survey (USGS)

1

U.S. Imports (for Consumption) of Iron Ore2

In Thousands of Metric Tons

Year

Australia

Brazil

Canada

Chile

Mauritania

Peru

Sweden

Venezuela

Total

511 742 807 694 755 576 567 128 1

5,170 4,970 5,980 5,540 6,090 4,260 5,750 4,980 5,020 4,180

9,800 10,000 8,520 6,860 7,990 4,530 5,540 6,970 5,830 7,510

164 228 48 69 135 711 319 296 244 270

275 ----------------------------

43 252 126 63 40 71 86 77 56 33

48 149 373 421 250 70 44 88 111 133

2,140 2,090 970 327 349 87 49 21 262 148

18,400 18,600 16,900 14,300 15,700 10,700 12,500 12,600 11,800 13,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2 0 0 51 1

3

Preliminary.

2

I ncluding agglomerates.

3

Less than 1/2 unit.

Source: U.S. Geological Survey (USGS)

Iron Ore Stocks2 in the United States, at End of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

25,913 27,977 29,631 24,885 27,583 16,980 17,640 4,220 4,060 6,750

25,262 26,317 28,463 24,810 26,076 15,970 19,790 7,260 6,770 9,620

24,745 24,039 28,614 23,556 24,570 14,660 21,100 8,780 8,410 11,900

24,812 25,251 28,292 23,714 23,800 14,920 18,560 8,360 7,690 11,100

25,001 25,576 29,151 24,032 23,600 15,680 17,690 7,660 7,730 10,800

25,620 26,197 29,021 24,613 21,664 16,090 17,880 7,080 7,370 10,100

26,076 27,605 28,857 24,993 21,010 16,120 17,950 5,670 7,420 9,350

26,971 29,037 27,840 26,278 20,440 16,080 18,360 4,500 7,240 8,760

27,562 30,301 26,506 26,815 20,050 15,520 17,220 3,470 6,550 8,190

28,029 30,095 25,528 27,530 19,660 15,790 17,140 3,850 5,840 8,120

28,053 30,199 25,290 27,987 18,690 16,740 17,440 3,700 6,250

27,912 30,624 26,371 28,779 18,000 17,410 16,460 2,990 5,740

1 Preliminary. 2 Through August 1997 includes mines, plants and loading docks plus furnace yards and receiving/transfer docks; Beginning September 1997 includes mines, plants and loading docks. Source: U.S. Geological Survey (USGS)

155

Lard Lard is the layer of fat found along the back and underneath the skin of a hog. The hog’s fat is purified by washing it with water, melting it under constant heat, and straining it several times. Lard is an important byproduct of the meatpacking industry. It is valued highly as cooking oil because there is very little smoke when it is heated. However, demand for lard in cooking is declining because of the trend toward healthier eating. Lard is also used for medicinal purposes such as ointments, plasters, liniments, and occasionally as a laxative for children. Lard production is directly proportional to commercial hog production, meaning the largest producers of hogs are the largest producers of lard.

Supply - World production of lard in the 2005-06 marketing year rose by +3.0% yr/yr to 7.720 million metric tons, which was a new record high. The world’s largest lard producers are China (with 45% of world production), United States (7%), Germany (6%), Brazil (5%), former USSR (4%), Spain (4%), and Poland (3%). US production of lard in 200506 rose 7.9% yr/yr to 1.206 billion pounds.

Prices – The average monthly wholesale price of lard in 2006 rose by 0.2% to 21.17 cents per pound, but remained well below the 2004 22-year high of 26.35 cents per pound. The record price of 29.654 cents was seen in 1975.

Exports – US exports of lard in 2005-06 fell sharply by –67.5% to 94.0 million pounds, and accounted for only 8% of US production.

World Production of Lard Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

Preliminary.

Demand – US consumption of lard in 2005 fell –4.7% to 222.222 million pounds which is a new record low. The current level of consumption is only about 14% of the consumption seen in 1971 of 1.574 billion pounds. The decrease is probably due to concerns about healthy eating.

In Thousands of Metric Tons

Brazil

Canada

China

France

Germany

Italy

Ja p a n

Poland

Romania

Spain

United States

Former USSR

World Total

214.3 234.3 325.7 336.8 361.4 350.2 343.2 349.5 358.9

91.5 99.7 107.5 112.6 112.1 124.2 128.4 130.6 132.3

2,624.8 2,665.5 2,771.4 2,832.1 2,920.9 3,040.4 3,154.3 3,303.2 3,448.4

162.3 167.4 164.7 155.7 157.4 156.2 155.5 153.4 153.4

413.4 444.5 423.5 415.2 422.3 433.7 439.5 456.9 461.7

194.0 201.3 200.9 195.9 199.3 204.8 208.3 199.2 194.6

67.9 66.4 65.1 62.3 61.8 59.3 59.3 59.4 60.2

266.4 270.1 254.7 239.5 252.0 272.5 257.7 243.8 252.8

96.9 92.9 81.1 72.7 76.9 79.2 81.9 83.6 85.3

238.5 258.1 262.0 264.9 263.9 280.9 273.4 278.1 281.6

478.9 501.7 491.6 488.6 508.1 510.0 531.7 532.4 546.8

339.7 336.6 328.4 314.8 324.6 345.1 340.0 330.8 341.3

6,406.1 3,593.0 6,750.9 6,748.6 6,960.8 7,181.1 7,320.3 7,495.6 7,719.6

2

Estimate.

3

Forecast.

Source: The Oil World

Supply and Distribution of Lard in the United States

Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062

In Millions of Pounds

------------------------ Supply ------------------------ ------------------------------------------------------------ Disappearance -----------------------------------------------------------P er Baking Total Capita & Frying MarD i sa p Direct ProStocks Total (Lbs.) Fats pearance Use duction Oct. 1 Supply Domestic garine3 Exports

1,064.7 1,106.1 1,091.0 1,058.0 1,058.0 1,083.0 1,090.0 1,117.0 1,205.5

19.9 40.4 20.8 27.0 16.0 14.0 11.0 13.0 14.0

1,086.7 1,148.4 1,097.8 1,087.0 1,077.0 1,105.0 1,108.0 1,136.0 1,219.5

1 Preliminary. 2 Forecast. 3 I ncludes edible tallow. U.S. Department of Agriculture (ERS-USDA)

924.6 987.6 917.8 897.0 960.0 1,010.0 977.0 834.0

285.0 250.0 234.0 W W W W W W

NA = not avaliable.

17.0 26.0 14.0 12.0 7.0 16.0 16.0 6.0 3.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

156

1,046.4 1,127.5 1,072.8 1,071.0 1,064.0 1,094.0 1,094.0 1,122.0

623.3 654.0 675.0 561.0 659.0 709.0 708.0 566.0 462.0

3.4 3.6 3.5 2.0 2.3 2.5 2.4 1.9 1.6

Source: Economic Research Service,

Consumption of Lard (Edible and Inedible) in the United States Year

121.8 139.9 155.0 174.0 103.0 84.0 117.0 289.0 94.0

In Millions of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

34.1 34.6 27.3 27.8 26.4 22.6 22.9 19.0 15.7

29.9 30.2 25.7 22.2 26.1 22.3 25.8 15.4 16.4

31.1 28.8 29.1 28.3 21.8 23.4 25.9 21.4 20.6

29.6 31.1 23.3 24.5 26.7 21.4 23.9 18.7 21.4

28.5 30.5 30.3 22.5 24.8 23.3 23.5 19.9 20.2

35.9 32.9 27.6 23.3 21.2 24.0 22.0 20.4 16.7

33.0 28.9 24.4 21.8 22.9 23.0 19.1 18.9 14.9

33.0 33.0 31.3 27.1 26.4 21.4 19.7 19.5 17.7

37.1 29.2 31.1 23.2 23.6 22.5 21.3 20.1 17.8

37.7 31.2 32.6 27.9 26.4 24.3 22.4 19.7 18.9

38.9 31.3 29.6 26.7 28.1 20.2 21.9 22.2 22.3

33.9 30.3 31.7 24.4 28.7 21.0 19.9 17.9 19.7

402.7 372.1 343.9 299.8 303.2 269.5 268.1 233.1 222.2

Source: Bureau of the Census, U.S. Department of Commerce

LARD

Cents Per Pound ----- Chicago (Jan. 1910 - date)

Average Wholesale Price of Lard, Loose, Tank Cars, in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

24.93 19.09 16.89 15.66 13.57 12.69 18.61 26.50 22.10 17.16

25.47 16.03 13.91 12.38 11.92 12.50 17.11 25.83 18.30 16.44

24.69 17.36 11.98 11.99 11.07 13.07 16.85 23.77 17.71 16.82

20.82 17.64 13.12 11.96 12.09 12.42 16.72 22.58 20.72 18.00

20.94 18.66 13.43 12.68 11.84 11.38 17.29 21.31 22.95 17.13

22.68 19.38 12.98 12.64 13.38 14.64 18.90 22.50 21.30 17.63

23.83 17.93 11.87 10.32 18.05 14.60 18.93 27.53 18.08 22.21

23.95 18.65 13.89 10.35 24.11 15.00 20.08 32.06 17.75 29.91

23.14 16.58 17.44 11.14 22.00 15.21 23.98 32.38 20.97 31.86

23.41 17.39 20.55 13.04 13.04 14.39 27.50 27.95 27.38 23.55

23.97 17.60 17.74 12.06 13.18 16.28 26.40 27.26 27.76 20.78

22.85 16.27 16.12 12.14 14.92 18.42 25.18 26.50 18.60 22.58

23.39 17.72 14.99 12.20 14.93 14.22 20.63 26.35 21.14 21.17

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

United States Cold Storage Holdings of all Lard1, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20062 1

In Millions of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

18.9 22.2 28.4 26.7 16.0 13.2 10.5 13.3 13.7 9.6

16.3 30.1 30.4 27.8 14.9 18.0 14.0 19.8 14.6 11.5

18.5 38.3 30.6 29.2 14.9 16.4 19.6 18.6 20.6 13.7

19.2 42.5 34.0 30.1 17.9 16.5 18.7 20.3 19.0 13.6

18.9 41.6 27.1 20.2 13.7 20.3 16.5 20.5 17.8 9.3

18.7 47.6 39.9 22.5 13.1 22.4 13.5 15.0 12.3 9.9

23.0 43.7 30.7 18.9 10.3 18.9 11.9 12.9 12.0 13.0

23.2 44.8 25.5 19.3 12.4 18.3 9.7 10.8 12.3 12.4

21.5 38.8 29.4 17.3 11.8 12.0 8.4 10.3 12.5 13.0

19.9 40.4 20.8 17.4 13.6 10.5 9.3 11.8 13.0 11.5

21.3 34.8 19.1 16.3 13.0 14.6 10.1 11.4 12.2 16.1

19.7 26.3 22.8 16.8 11.7 11.3 12.4 13.2 14.7 16.0

Stocks in factories and warehouses (except that in hands of retailers).

2

Preliminary.

Source: Bureau of the Census, U.S. Department of Commerce

157

Lead Lead (symbol Pb) is a dense, toxic, bluish-gray metallic element, and is the heaviest stable element. Lead was one of the first known metals. The ancients used lead in face powders, rouges, mascaras, paints, condiments, wine preservatives, and water supply plumbing. The Romans were slowly poisoned from lead because of its diverse daily usage. Lead is usually found in ore with zinc, silver, and most often copper. The most common lead ore is galena, containing 86.6% lead. Cerussite and angleside are other common varieties of lead. More than half of the lead currently used comes from recycling. Lead is used in building construction, bullets and shot, tank and pipe lining, storage batteries, and electric cable sheathing. Lead is used extensively as a protective shielding for radioactive material (e.g., X-ray apparatus) because of its high density and nuclear properties. Lead is also part of solder, pewter, and fusible alloys. Lead futures and options trade at the London Metal Exchange (LME). The LME lead futures contract calls for the delivery of 25 metric tons of at least 99.970% purity lead ingots (pigs). The contract is priced in US dollars per metric ton. Lead first started trading on the LME in 1903. Prices – During the first quarter of 2006 lead prices held steady at about $1,200 per metric ton, but then fell to about $900 per metric ton by the end of the quarter. From there the price rallied the rest of the year to reach a high of about $1,900 to $2,000 per metric ton by December 2006. In early 2007 the prices fell to about $1,800 per metric ton. Supply – World smelter production of lead (both primary and secondary) in 2004 (the latest data available)

rose +2.5% yr/yr to 6.950 million metric tons and posted a new record high production level. The world’s largest smelter producers of lead (both primary and secondary) are China with 28% of world production in 2005, followed by the US with 18%, Germany with 5%, and the UK with 4%. US mine production of recoverable lead fell –4.2% yr/yr to 430,000 metric tons in 2004, to post an 8-year low. Missouri was responsible for 95% of US production, with the remainder produced mainly by Idaho and Montana. Lead recovered from scrap in the US (secondary production) rose +4.2% yr/yr in 2006 (through November, annualized) to 1.159 million metric tons, to post a new record high. The amount of lead recovered from scrap is more than twice the amount of lead produced in the US from mines (primary production). The value of US refined lead production in 2004 (latest data available) fell to $143 million, which was a record low, down considerably from the record high of $668 million posted back in 1979. Demand – US lead consumption in 2006 (through November, annualized) rose + 3.1% to 1.526 million metric tons, continuing to recover from the 9-year low of 1.417 million metric tons seen in 2004. The record level of US lead consumption was 1.680 million metric tons posted in 1999. Trade – The US relied on imports for 11% of its lead consumption in 2003 (latest data available). US imports of lead pigs and bars in 2004 rose +12.6% yr/yr to 197,000 metric tons. US lead exports in 2004 were comprised by ore concentrate (292,000 metric tons), unwrought lead (58,600 metric tons), scrap (56,300 metric tons), and wrought lead (23,800 metric tons).

World Smelter (Primary and Secondary) Production of Lead Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

Preliminary.

In Thousands of Metric Tons

Australia3

Belgium4

Canada3

China2

France

Germany

Italy

Ja p a n

Mexico3

228.0 238.0 206.0 272.8 251.8 303.0 302.0 307.0 273.0 268.0

125.0 110.8 91.5 103.2 118.0 96.0 88.0 65.0 63.0 83.0

309.4 271.4 265.5 266.4 284.8 230.9 251.6 223.4 241.4 244.0

706.0 707.0 757.0 918.0 1,100.0 1,200.0 1,330.0 1,580.0 1,930.0 2,390.0

302.8 302.3 318.0 279.0 258.0 238.0 204.0 94.0 104.0 105.0

238.1 329.2 380.2 373.6 414.5 373.4 379.9 354.6 359.2 359.0

209.8 211.6 199.3 215.3 235.0 203.0 205.0 214.0 210.0 206.0

287.4 296.8 302.1 293.4 311.7 302.4 285.8 295.3 282.9 274.6

160.0 178.0 173.0 221.1 253.2 253.5 237.2 247.5 247.1 260.0

2

Estimate.

3

Refinded & bullion.

4

I ncludes scrap.

Year

Ammun- Bearing ition Metals

1996 1997 1998 1999 2000 2001 2002 2003 2004 20051

52,100 4,350 52,400 2,490 52,800 2,210 58,300 1,570 63,700 1,490 53,600 837 57,600 406 48,800 13,500 61,500 1,300 61,300 1,180

1,810 1,860 3,130 2,020 2,010 2,370 2,250 1,550 W 1,220

Cable Calking Covering Lead

W 4,930 4,630 2,410 W W W W W W

767 1,390 1,350 971 1,140 927 1,060 822 W W

86.0 74.9 90.0 96.0 120.0 98.0 116.0 102.0 105.0 106.0

345.6 391.0 348.9 348.1 337.2 366.0 370.0 320.0 243.0 240.0

United States

World Total

1,400 1,450 1,450 1,460 1,470 1,390 1,380 1,380 1,260 1,280

5,630 5,880 5,970 6,280 6,650 6,600 6,780 6,780 6,950 7,470

Source: U.S. Geological Survey (USGS)

Consumption of Lead in the United States, by Products P i p e s, Traps & Bends2

United Spain Kingdom3

In Metric Tons

Other Casting Metal Metals Products3

Total Other Oxides4

18,900 34,000 32,600 34,300 35,100 31,800 34,800 31,700 17,900 19,500

62,100 67,000 53,400 58,200 52,400 43,900 51,900 35,600 25,700 14,100

5,220 7,570 8,160 7,130 25,800 17,100 24,200 9,730 W 500

Sheet Lead

--- Storage Battery --- Brass Grids, and Total Solder Post, etc. Oxides Bronze Consumption

19,400 9,020 635,000 19,100 9,580 634,000 15,500 10,900 685,000 15,400 13,100 765,000 23,800 11,500 796,000 22,400 6,120 655,000 25,600 6,450 554,000 24,400 6,310 523,000 31,600 7,440 657,000 29,000 8,370 581,000

706,000 761,000 742,000 707,000 690,000 694,000 641,000 642,000 630,000 705,000

5,460 4,410 3,460 3,940 3,670 2,590 2,730 2,810 2,390 2,100

1,540,000 1,620,000 1,630,000 1,680,000 1,720,000 1,550,000 1,440,000 1,390,000 1,480,000 1,460,000

Preliminary. 2 I ncluding building. 3 I ncluding terne metal, type metal, and lead consumerd in foil, collapsible tubes, annealing, plating, galvanizing and fishing weights. 4 I ncludes paints, glass and ceramic products, and other pigments and chemicals. W = Withheld proprietary data. Source: U.S. Geological Survey (USGS)

1

158

LEAD Salient Statistics of Lead in the United States

Year

Net Import Reliance Production as a % of Apparent ---- of Refined Lead From ---Con- Domestic Foreign Total Ores3 sumption Ores3 Primary

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

17 14 21 20 24 20 18 11 0 0

326.0 343.0 337.0 350.0 341.0 290.0 262.0 245.0 148.0 143.0

W W W W W W W W W W

Total Value of Refined Million $

326.0 343.0 337.0 350.0 341.0 290.0 262.0 245.0 148.0 143.0

351.0 352.0 336.0 337.0 328.0 279.0 252.0 236.0 143.0

In Thousands of Metric Tons

----- Secondary Lead Recovered ----As Soft Lead

In Antimonial Lead

In Other Alloys

625.0 663.0 667.0 635.0 651.0 734.0 754.0 829.0 841.0 869.0

420.0 411.0 417.0 444.0 428.0 291.0 289.0 303.0 283.0 271.0

9.2 14.2 16.1 18.1 36.8 75.9 72.8 4.2 3.0 4.5

Average Price Total Value of - Stocks, Dec. 31 - - Cents Per Pound Secondary ConNew Total Million $ Primary sumer4 York London5

1,070.0 1,110.0 1,120.0 1,110.0 1,130.0 1,100.0 1,120.0 1,140.0 1,130.0 1,140.0

1,150.0 1,130.0 1,110.0 1,070.0 1,090.0 1,060.0 1,070.0 1,110.0 1,370.0 1,540.0

8.1 11.9 10.9 12.3 18.6 W W W W W

72.1 89.1 77.9 78.7 106.0 100.0 111.0 84.6 59.0 64.7

48.83 46.54 45.27 43.72 43.57 43.64 43.56 43.76 55.14 61.03

31.22 28.29 23.96 22.78 20.57 21.58 20.52 23.34 40.19 44.23

Preliminary. 2 Estimate. 3 And base bullion. 4 Also at secondary smelters. 5 LME data in dollars per metric ton beginning July 1993. W = Withheld Proprietary data. E = Net exporter. Source: U.S. Geological Survey (USGS)

1

United States Foreign Trade of Lead

In Thousands of Metric Tons

------------- Imports for Consumption ------------ --------------------- General Imports From: --------------------Ores, Ore, Flue ReFlue claimed Ash Dust or -------- Dust & Matte -------- --------- Pigs & Bars --------& Re- Fume & Base Pigs & Scrap, Value etc. Million $ Australia Canada Bars Peru Canada Mexico Peru Scrap sidues Mattes Bullion

------------------------- Exports -------------------------

Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 1

Unwrought Wrought Lead3 Lead4

Ore Concentrate

59.7 42.2 72.4 93.5 117.0 181.0 241.0 253.0 292.0 390.0

Preliminary.

2

44.0 37.4 24.1 23.4 21.4 17.0 31.4 92.1 58.6 45.5 Estimate.

16.7 85.3 15.9 88.4 15.4 99.2 13.9 117.0 27.2 71.6 17.7 108.0 11.7 106.0 30.5 92.8 23.8 56.3 19.0 67.3 3

19.4 16.8 9.0 1.4 11.3 14.2 -------------

And lead alloys.

4

6.6 17.8 32.7 12.3 31.2 2.2 0.0 ----------

0.0 0.0 0.5 0.1 0.1 ----------------

268.0 265.0 267.0 311.0 356.0 271.0 210.0 175.0 197.0 298.0

Blocks, pigs, etc.

6

0.2 0.1 6

---0.0 10.2 2.6 4.2 4.8 3.3

217.0 200.3 191.9 196.5 217.1 166.8 124.9 111.9 235.3 334.8

Less than 1/2 unit.

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 1

Preliminary.

2

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

6

----------------

---3.4 18.5 8.8 10.8 ----------------

192.0 186.0 181.0 198.0 216.0 167.0 172.0 167.0 166.0 190.0

56.9 70.4 63.6 27.2 18.4 12.4 7.5 8.3 8.8 15.2

17.1 6.4 11.4 6.9 1.8 2.3 ------7.3 23.9

In Metric Tons

Total

Idaho

Missouri

Montana

Other States

Missouri's % of Total

426,000 448,000 481,000 503,000 449,000 454,000 440,000 449,000 430,000 426,000

W W W W W W W W W W

397,000 412,000 439,000 464,000 410,000 423,000 428,000 432,000 407,000 397,000

7,970 9,230 7,310 7,950 W W W W W W

21,200 26,600 35,100 31,200 38,700 30,900 12,300 17,200 23,400 29,500

93% 92% 91% 92% 91% 93% 97% 96% 95% 93%

Estimate.

W = Withheld, included in Other States.

NA = Not Avaliable.

Mine Production of Recoverable Lead in the United States Year

4.4 0.8 6.5 1.2

Source: U.S. Geological Survey (USGS)

Annual Mine Production of Recoverable Lead in the United States Year

------2.4 0.1 -------------------

Source: U.S. Geological Survey (USGS)

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

36.7 37.4 41.2 35.1 42.9 39.5 33.7 33.4 31.1 36.7

36.7 35.4 42.1 36.7 37.8 35.5 34.9 32.8 31.1 33.3

37.2 37.8 44.4 43.0 39.4 41.2 38.5 33.5 34.6 38.1

38.6 37.3 43.1 37.5 33.7 36.1 36.2 35.1 35.2 33.6

38.6 35.7 41.7 37.4 35.0 39.3 38.8 31.2 33.4 33.4

35.1 34.7 42.6 37.8 32.2 36.1 39.2 33.1 41.4 33.9

33.4 34.3 47.2 33.0 38.2 35.0 41.3 33.8 39.5 36.6

33.7 35.6 43.6 36.8 39.6 39.6 38.0 36.9 37.4 36.3

34.4 36.1 41.5 36.8 32.4 33.2 38.3 36.9 38.2 37.0

35.4 40.3 41.2 32.4 39.5 34.8 37.2 36.2 37.9 38.0

31.7 37.8 37.8 38.8 32.1 34.1 34.0 35.0 34.6 35.0

32.8 39.2 38.1 36.9 35.4 34.2 33.9 31.8 37.9

448.0 449.0 505.0 447.0 450.0 438.6 444.0 409.7 432.3 427.5

Source: U.S. Geological Survey (USGS)

159

LEAD

Cents Per Pound ----- Pig, New York (Jan. 1910 - date) - - - Scrap, Smelters’ Heavy, Soft, New York (Dec. 1985 - date)

Average Price of Pig Lead, U.S. Primary Producers (Common Corroding)1 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

50.00 48.00 45.00 45.00 45.00 45.00 23.14 38.48 50.46 66.16

50.00 48.00 45.00 45.00 45.00 45.00 24.65 44.79 52.20 67.16

48.70 48.00 45.00 45.00 45.00 45.00 23.81 45.30 54.00 63.28

48.00 48.00 45.00 45.00 45.00 45.00 23.13 39.93 53.25 61.58

48.00 48.00 45.00 45.00 45.00 45.00 24.56 42.44 53.41 61.16

48.00 48.00 45.00 45.00 45.00 45.00 24.77 45.16 53.26 51.92

48.00 48.00 45.00 45.00 45.00 45.00 26.93 48.20 47.22 56.07

48.00 48.00 45.00 45.00 45.00 45.00 26.05 47.46 47.53 61.48

48.00 48.00 45.00 45.00 45.00 45.00 27.23 48.08 49.76 69.24

48.00 48.00 45.00 45.00 45.00 45.00 30.16 48.01 54.01 77.64

48.00 45.47 45.00 45.00 45.00 45.00 32.09 49.54 54.68 82.09

48.00 45.00 45.00 45.00 45.00 45.00 35.46 49.75 59.63 86.22

48.39 47.54 45.00 45.00 45.00 45.00 26.83 45.60 52.45 67.00

New York Delivery.

Source: American Metal Market (AMM)

Refiners Production1 of Lead in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2

In Cents Per Pound

In Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

28,800 29,200 NA NA NA NA NA NA NA NA

28,500 25,900 NA NA NA NA NA NA NA NA

31,900 30,000 NA NA NA NA NA NA NA NA

30,400 29,700 NA NA NA NA NA NA NA NA

30,800 29,500 NA NA NA NA NA NA NA NA

28,700 20,300 NA NA NA NA NA NA NA NA

25,900 28,900 NA NA NA NA NA NA NA NA

28,000 NA NA NA NA NA NA NA NA NA

21,600 NA NA NA NA NA NA NA NA NA

30,500 NA NA NA NA NA NA NA NA NA

29,000 NA NA NA NA NA NA NA NA NA

28,700 NA NA NA NA NA NA NA NA

343,000 337,000 350,000 341,000 290,000 262,000 245,000 NA NA

Represents refined lead produced from domestic ores by primary smelters plus small amounts of secondary material passing through these smelters. I ncludes GSA metal purchased for remelt. 2 Preliminary. Source: U.S. Geological Survey (USGS)

1

160

LEAD Total Stocks of Lead1 in the United States at Refiners, at End of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20062 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

8,460 13,000 NA NA NA NA NA NA NA NA

11,800 15,900 NA NA NA NA NA NA NA NA

21,400 18,700 NA NA NA NA NA NA NA NA

19,900 20,900 NA NA NA NA NA NA NA NA

15,000 11,400 NA NA NA NA NA NA NA NA

10,900 11,400 NA NA NA NA NA NA NA NA

6,530 13,700 NA NA NA NA NA NA NA NA

7,790 NA NA NA NA NA NA NA NA NA

5,370 NA NA NA NA NA NA NA NA NA

7,310 NA NA NA NA NA NA NA NA NA

8,710 NA NA NA NA NA NA NA NA NA

11,900 10,900 12,300 18,600 NA NA NA NA NA

Primary refineries.

2

Preliminary.

Source: U.S. Geological Survey (USGS)

Total1 Lead Consumption in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2 1

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

139.0 116.0 128.0 139.0 145.0 132.0 134.0 119.0 125.0 124.0

138.0 115.0 129.0 139.0 135.0 131.0 129.0 118.0 117.0 130.0

138.0 119.0 130.0 139.0 133.0 133.0 126.0 119.0 109.0 129.0

140.0 128.0 127.0 139.0 130.0 142.0 120.0 119.0 108.0 128.0

137.0 127.0 128.0 140.0 138.0 142.0 121.0 117.0 134.0 128.0

141.0 129.0 130.0 140.0 136.0 144.0 121.0 119.0 130.0 128.0

116.0 128.0 137.0 135.0 135.0 143.0 121.0 118.0 124.0 125.0

119.0 128.0 136.0 141.0 136.0 145.0 122.0 118.0 129.0 126.0

122.0 129.0 141.0 139.0 142.0 141.0 123.0 117.0 126.0 127.0

123.0 129.0 136.0 139.0 146.0 145.0 127.0 117.0 126.0 128.0

117.0 134.0 140.0 136.0 138.0 142.0 122.0 117.0 126.0 126.0

117.0 125.0 133.0 132.0 138.0 133.0 125.0 119.0 126.0

1,600 1,550 1,680 1,660 1,652 1,673 1,491 1,417 1,480 1,526

Represents total consumption of primary & secondary lead as metal, in chemicals, or in alloys.

Lead Recovered from Scrap in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

1989 1990 1991 1992 1993 1994 1995 1996 1997 2 1

2

Preliminary. Source: U.S. Geological Survey (USGS)

In Thousands of Metric Tons (Lead Content)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

88.0 95.0 89.5 91.0 90.3 89.3 95.7 94.0 94.4 90.2

89.8 92.0 89.1 88.0 90.4 82.3 83.6 94.2 95.1 96.7

91.7 92.6 88.9 91.1 86.7 88.2 86.2 96.3 86.8 97.4

86.0 94.1 91.0 91.4 92.6 93.1 85.1 97.9 86.8 98.2

88.2 92.5 90.2 90.5 93.7 93.9 94.0 94.4 87.1 99.5

85.7 89.7 91.1 91.3 93.6 93.6 94.8 96.6 94.6 95.7

86.7 89.3 81.3 88.6 90.4 88.0 95.7 97.4 94.7 94.9

94.7 95.7 91.9 95.1 95.1 96.1 93.9 96.3 94.8 97.0

97.3 94.4 91.6 94.0 93.9 93.3 93.3 94.8 93.0 95.6

96.2 95.0 93.5 96.0 96.7 97.5 102.0 96.8 95.9 98.4

95.2 95.1 91.4 95.4 94.6 95.0 93.7 94.9 96.4 98.4

91.7 90.7 93.1 93.7 94.6 95.7 95.2 95.4 92.4

1,110.0 1,110.0 1,110.0 1,110.0 1,112.6 1,106.0 1,113.2 1,149.0 1,112.0 1,158.5

Source: U.S. Geological Survey (USGS)

Domestic Shipments1 of Lead in the United States, by Refiners Year

In Metric Tons

Jan.

Jan.

In Thousands of Short Tons

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

29.3 28.5 32.2 39.3 33.9 39.1 35.4 33.8 34.3 31.3 23.9 30.4 24.6 23.6 32.5 35.9 32.8 35.2 36.5 30.3 35.1 37.2 32.4 29.5 31.5 27.8 24.7 Data No longer Available

35.7 33.5 39.8 26.3 30.0 32.7 31.1 30.2 35.2

45.1 38.4 33.9 25.6 31.3 34.7 33.7 29.4 39.2

36.4 32.9 26.0 27.2 35.1 36.7 31.9 26.7 36.1

32.8 32.6 31.8 27.3 28.9 31.6 28.6 27.7 33.4

41.5 38.9 37.9 28.7 34.0 33.4 40.3 33.5 29.4

40.0 36.6 35.1 26.3 35.5 34.8 34.9 30.1 26.4

44.2 38.9 35.7 28.5 35.5 34.3 40.9 33.5 31.5

40.2 37.9 28.7 26.3 31.7 34.0 33.2 28.1 30.4

31.1 31.7 26.7 21.7 33.5 33.3 29.8 27.6 28.1

437.1 433.7 399.2 323.5 376.2 409.3 406.4 366.0 377.8

I ncludes GSA metal.

F eb.

2

Preliminary.

Source: American Metal Market (AMM)

161

Lumber & Plywood Humans have utilized lumber for construction for thousands of years, but due to the heaviness of timber and the manual methods of harvesting, large-scale lumbering didn’t occur until the mechanical advances of the Industrial Revolution. Lumber is produced from both hardwood and softwood. Hardwood lumber comes from deciduous trees that have broad leaves. Most hardwood lumber is used for miscellaneous industrial applications, primarily wood pallets, and includes oak, gum, maple, and ash. Hardwood species with beautiful colors and patterns are used for such high-grade products as furniture, flooring, paneling, and cabinets and include black walnut, black cherry, and red oak. Wood from cone-bearing trees is called softwood, regardless of its actual hardness. Most lumber from the US is softwood. Softwoods, such as southern yellow pine, Douglas fir, ponderosa pine, and true firs, are primarily used as structural lumber such as 2x4s and 2x6s, poles, paper and cardboard. Plywood consists of several thin layers of veneer bonded together with adhesives. The veneer sheets are layered so that the grain of one sheet is perpendicular to that of the next, which makes plywood exceptionally strong for its weight. Most plywood has from three to nine layers of wood. Plywood manufacturers use both hard and soft woods, although hardwoods serve primarily for appearance and are not as strong as those made from softwoods. Plywood is primarily used in construction, particularly for floors, roofs, walls, and doors. Homebuilding and remodeling account for two-thirds of US lumber consumption. The price of lumber and plywood is highly correlated with the strength of the US home-building market. The forest and wood products industry is dominated by Weyerhaeuser Company (ticker symbol WY), which has about $20 billion in annual sales. Weyerhaeuser is a forest products conglomerate that engages not only in growing and harvesting timber, but also in the production and distribution of forest products, real estate development, and construction of single-family homes. Forest products include wood products, pulp and paper, and containerboard. The timberland segment of the business manages 7.2 million acres of company-owned land and 800,000 acres of leased commercial forestlands in North America. The company’s Canadian division has renewable, long-term licenses on about 35 million acres of forestland in five Canadian provinces. In order to maximize its long-term yield from its acreage, Weyerhaeuser engages in a number of forest management activities such as extensive planting, suppression of non-merchantable species, thinning, fertilization, and operational pruning.

Lumber futures and options are traded on the Chicago Mercantile Exchange (CME). The CME’s lumber futures contract calls for the delivery of 111,000 board feet (one 73 foot rail car) of random length 8 to 12 foot 2 x 4s, the type used in construction. The contract is priced in terms of dollars per thousand board feet. Prices – CME lumber futures prices fell almost steadily throughout 2006 starting the year at about $360.00. The price hit a low of about $236 at the end of October and then rallied a bit into the end of the year to finally close at about $265 at the end of December. Supply – The US led the world in the production of industrial round wood with an increase of +3.1% yr/yr to 418.131 million cubic meters of production in 2004 (latest data available), followed by Canada with 196.442 million cubic meters (+9.7% yr/yr), and Russia with 139.500 million cubic meters (+3.2% yr/yr). The US also led the world in the production of plywood with 14.833 million cubic meters of production in 2004 (–0.2% yr/yr), followed by Canada with 2.344 million cubic meters (+6.3% yr/yr), and Russia with 2.246 million cubic meters (+3.5% yr/yr). US softwood lumber production in 2006 (through October, annualized) fell –2.0% yr/yr to 39.462 billion board feet, down from the 2005 11-year high of 40.576 billion board feet. Demand – US consumption of softwood lumber in 2005, the last full reporting year, fell by –1.9% yr/yr to 63.080 billion board feet, down from the 2004 record high of 64.279. Trade – US total lumber imports in 2005, the last full reporting year, rose +5.1% to 25.737 billion board feet, which was a record high. US imports of hardwood in 2005 rose by +8.1% to 1,075 million board feet. US imports of softwood in 2005 rose by +4.9% to 24.626 billion board feet. The leading softwood import was spruce with 1.769 billion board feet of imports in 2005, followed by cedar at 637 million board feet. Total US exports of lumber in 2005 rose +5.9% yr/yr to 2.682 billion board feet, which is a 5-year high. The record high was 4.528 billion board feet in 1988. US exports of hardwood in 2005 fell by –1.3% yr/yr to 1.477 billion board feet. US exports of softwood in 2005 rose by 9.2% yr/yr to 897 million board feet. The largest types of US softwood exports were southern pine with 235 million board feet of exports, Ponderosa white pine (112 million board feet), and Douglas Fir (93 million board feet). The world’s largest exporter of plywood in 2003 (latest data available) was Russia with 1.202 million cubic meters of exports, followed by Finland with 1.172 million cubic meters, and Canada with 1.017 million cubic meters.

World Production of Industrial Roundw ood by Selected Countries Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

Austria

Canada

Czech Repulic

11,812 11,902 10,858 10,988 10,416 10,562 11,810 13,719 12,943 12,786

177,943 183,531 173,901 190,988 197,357 184,689 193,727 187,357 205,617 196,442

11,882 12,881 13,171 13,363 13,501 13,364 13,534 13,960 14,411 14,285

Preliminary.

162

2

Estimate.

In Thousands of Cubic Meters

Finland

France

Germany

Poland

Romania

Russia

Spain

Sweden

Turkey

United States

42,178 47,757 49,541 49,593 50,147 47,727 48,529 49,246 49,281 47,116

30,643 32,162 32,718 33,237 43,440 37,471 32,736 30,540 31,289 31,620

34,538 35,488 36,441 35,063 51,088 36,502 37,755 45,415 48,657 50,905

18,824 20,097 21,793 22,842 24,489 23,375 24,995 27,204 29,337 28,531

9,441 9,837 8,629 9,484 10,116 9,806 12,092 12,537 12,794 11,542

73,005 67,508 77,400 94,600 105,800 117,800 118,600 126,600 130,600 139,500

12,433 12,433 13,164 13,160 12,721 13,276 13,850 14,075 14,235 13,352

52,500 56,400 54,700 52,800 57,400 57,300 60,700 61,200 61,400 91,700

10,229 9,773 9,979 10,065 10,429 9,976 11,191 10,729 11,225 11,202

406,625 416,092 422,034 423,298 420,619 403,212 404,958 405,613 418,131 427,971

NA = Not available.

Source: Food and Agriculture Organization of the United Nations (FAO-UN)

LUMBER & PLYWOOD Lumber Production and Consumption in the United States Year

---------------------------------------- Production --------------------------------------California Inland Southern West Other Total Redwood Region Pine Coast Softwood Softwood

1998 1999 2000 2001 2002 2003 2004 2005 I II III IV 20061 I II III 1

1,391 1,325 1,320 1,121 1,035 977 1,049 1,048 280 265 271 232 243

Preliminary.

7,298 7,580 7,078 6,563 6,759 6,716 6,742 21,386 1,789 16,394 1,692 1,511 1,601

16,151 16,922 16,672 16,094 16,686 16,841 18,050 18,986 4,725 4,939 4,731 4,591 4,890

NA = Not available.

7,797 8,625 8,782 8,764 9,244 9,904 10,934 11,599 2,914 2,928 2,877 2,880 2,925

2,040 2,153 2,115 2,035 2,106 2,151 2,300 2,139 542 548 535 514 539

34,677 36,605 35,967 34,577 35,830 36,591 39,075 40,458 10,250 10,374 10,106 9,728 10,198

7,256 7,445 6,926 6,490 6,641 6,709 6,600 6,635 1,712 1,690 1,709 1,524 1,580

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

1,409 1,358 1,257 1,132 1,056 976 1,021 1,060 246 283 291 240 190

15,788 16,525 16,374 15,937 16,571 16,743 17,935 18,829 4,615 4,934 4,720 4,560 4,693

7,502 8,115 8,300 8,471 8,966 9,585 10,705 11,346 2,708 2,948 2,844 2,846 2,833

In Thousands of Units

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1,355 1,525 1,748 1,636 1,600 1,698 1,853 1,911 2,137 2,265

1,486 1,584 1,670 1,737 1,625 1,829 1,629 1,846 2,213 2,132

1,457 1,567 1,710 1,604 1,590 1,642 1,726 1,998 1,856 1,972

1,492 1,540 1,553 1,626 1,649 1,592 1,643 2,003 2,079 1,832

1,442 1,536 1,611 1,575 1,605 1,764 1,751 1,981 2,034 1,953

1,494 1,641 1,559 1,559 1,636 1,717 1,867 1,828 2,078 1,833

1,437 1,698 1,669 1,463 1,670 1,655 1,897 2,002 2,070 1,760

1,390 1,614 1,648 1,541 1,567 1,633 1,833 2,024 2,075 1,659

1,546 1,582 1,635 1,507 1,562 1,804 1,939 1,905 2,158 1,724

1,520 1,715 1,608 1,549 1,540 1,648 1,967 2,072 2,046 1,478

1,510 1,660 1,648 1,551 1,602 1,753 2,083 1,782 2,131 1,565

1,566 1,792 1,708 1,532 1,568 1,788 2,057 2,042 2,002 1,643

1,475 1,621 1,647 1,573 1,601 1,710 1,854 1,950 2,073 1,818

Year

Total Privately owned.

Source: American Forest & Paper Association (AF&PA)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

4,019 3,970 3,595 3,704 3,864 3,735 3,177 2,904 2,994 3,100

4,113 4,048 3,688 3,811 4,013 3,826 3,202 2,904 3,076 3,111

4,067 4,062 3,726 3,887 3,951 3,756 3,249 2,873 3,056 2,978

3,963 4,158 3,698 3,960 4,095 3,273 3,308 2,966 2,866 2,952

4,017 4,084 3,581 2,738 3,955 3,316 3,211 2,966 2,687 2,925

3,915 NA 3,512 3,902 NA 3,242 3,075 2,966 2,554 2,918

3,871 NA 3,485 3,936 3,961 3,230 3,085 2,966 2,641 2,917

3,875 NA 3,533 3,878 3,938 3,136 3,081 3,030 2,497 2,956

3,927 NA 3,491 3,848 4,076 3,098 3,158 3,030 2,986 2,960

3,925 NA 3,562 3,957 4,100 3,173 3,076 3,031 3,059 3,059

3,865 NA 3,536 3,875 4,248 3,127 3,055 2,450 2,913

NA = Not available.

Source: American Forest & Paper Association (AFPA)

Lumber (Softw ood)2 Production in the United States Year

1

In Millions of Board Feet

3,973 3,884 3,519 3,639 3,919 4,784 3,175 2,904 2,912 3,004

Preliminary.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

52,209 54,262 53,934 53,828 56,050 56,952 61,819 64,279 15,368 17,014 16,308 15,589 15,770

F eb.

Stocks (Gross) of Softw ood Lumber in the United States, on First of Month

1

18,686 19,178 19,449 20,075 20,986 21,188 23,584 24,626 5,632 6,685 6,297 6,012 6,053

Jan.

Preliminary.

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061

1,567 1,641 1,629 1,724 1,832 1,750 1,971 1,781 455 472 446 408 420

Source: American Forest & Paper Association (AFPA)

U.S. Housing Starts: Seasonally Adjusted Annual Rate Year

In Millions of Board Feet

--------------------------------------- Domestic Consumption ------------------------------Inland California Southern West Other Softwood Total Region Redwood Pine Coast Softwood Imports Softwood

In Millions of Board Feet

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

3,012 2,767 2,783 3,020 2,832 3,019 2,971 3,037 3,233 3,511

2,791 2,760 2,921 3,128 2,457 2,761 2,801 2,978 3,169 3,216

2,866 2,928 3,190 3,474 2,918 3,074 2,937 3,380 3,596 3,550

3,149 3,084 3,227 3,058 2,928 3,284 2,994 3,434 3,486 3,294

2,890 2,647 3,071 3,276 NA 3,126 2,931 3,021 3,339 3,360

3,027 3,051 3,318 3,249 3,032 3,200 3,109 3,329 3,535 3,420

3,097 3,079 3,115 2,730 2,812 3,104 3,088 3,227 3,248 3,195

2,889 2,930 3,054 2,971 3,240 3,128 2,981 3,271 3,490 3,349

2,905 2,953 2,992 2,839 2,743 2,862 3,052 3,147 3,385 2,877

3,094 3,167 3,096 3,041 3,188 3,386 3,335 3,321 3,574 3,113

2,536 2,667 2,954 2,761 2,740 2,599 2,793 3,082 3,180

2,487 2,754 2,795 2,342 2,372 2,482 2,740 2,931 3,052

34,743 34,787 36,516 35,889 34,104 36,025 35,732 38,158 40,287 39,462

Preliminary.

Source: American Forest & Paper Association (AFPA)

163

LUMBER & PLYWOOD

Lumber: USD Per 1,000 Board Feet ----- White-Fir, 2x4 (Jan. 1959 - Dec. 1970) Spruce-Hem-Fir, 2x4 (Jan. 1971 - Mar. 1980) Spruce-Pine-Fir, 2x4 (Apr. 1980 - date) Plywood: USD Per 1,000 Square Feet - - - Sheathing, 1/2”-B (Aug. 1975 - date)

Lumber (Softw ood)2 Shipments in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Board Feet

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

2,966 2,685 2,689 2,953 2,859 3,032 3,018 3,067 3,264 3,423

2,697 2,685 2,829 3,039 2,372 2,815 2,742 2,840 3,087 3,122

2,890 2,863 3,177 3,394 2,981 3,049 2,843 3,262 3,506 3,536

3,253 3,019 3,227 2,974 2,974 3,212 3,134 3,582 3,506 3,280

2,834 2,684 3,071 3,292 NA 3,064 2,969 3,061 3,542 3,386

3,126 3,175 3,383 3,309 2,961 3,260 3,173 3,385 3,696 3,447

3,139 3,132 3,141 2,686 2,936 3,234 3,209 3,485 3,389 3,202

2,885 2,963 3,004 3,027 3,279 3,111 3,137 3,372 3,512 3,349

2,852 2,948 3,037 2,871 2,644 2,858 3,030 3,086 3,413 2,838

3,096 3,205 3,021 2,931 3,166 3,299 3,413 3,345 3,542 3,110

2,598 2,703 2,944 2,752 2,732 2,675 2,787 3,135 3,145

2,461 2,865 2,691 2,444 2,396 2,501 2,722 2,964 3,196

34,797 34,927 36,214 35,672 34,145 36,110 36,177 38,584 40,798 39,232

Preliminary.

Source: American Forest & Paper Association (AFPA)

Imports and Exports of Lumber in the United States, by Type

In Millions of Board Feet

------------------------------------------ Exports2 -------------------------------------------

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 I II III

------------------------------------------------ Imports2 ------------------------------------------------- -------------------------- Softw ood -------------------------Pond-------------------------------- Softw are --------------------------------erosa/ Douglas Total Total Douglas White Southern Total C edar Fir Hemlock Pine Spruce Total Hardwood Lumber Fir Hemlock Pine Pine Total Hardwood

586 514 591 694 667 648 536 630 637 180

264 417 426 455 471 385 356 570 494 88

250 268 259 184 199 69 53 67 76 31

314 363 449 450 365 445 472 580 439 100

1,040 849 803 812 838 1,046 854 1,183 1,769 432

18,014 18,686 19,178 19,449 20,075 20,986 21,188 23,483 24,626 6,054

465 589 708 795 645 739 794 995 1,075 261

18,506 19,306 19,903 20,268 20,737 21,774 22,023 24,499 25,738 6,321

436 252 249 232 168 111 96 88 93 19

105 39 54 46 26 19 18 19 19 3

Preliminary. 2 I ncludes sawed timber, board planks & scantlings, flooring, box shook and railroad ties. Source: American Forest & Paper Association (AFPA)

1

164

122 113 140 116 86 83 100 93 112 29

299 279 326 298 232 205 132 156 235 58

1,820 1,265 1,431 1,355 968 848 948 821 897 246

1,281 1,119 1,242 1,319 1,222 1,219 1,236 1,496 1,477 449

Total Lumber

3,189 2,601 2,867 2,822 2,351 2,313 2,368 2,533 2,682 695

LUMBER & PLYWOOD

Average Open Interest of Random Lumber1 Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

3,745 4,249 4,864 3,004 4,605 2,106 3,238 2,884 3,759 5,893

3,211 3,332 5,497 3,131 4,494 2,382 3,222 3,996 5,169 5,144

3,048 3,394 4,698 2,728 3,654 2,441 2,521 3,790 5,040 4,084

3,337 4,102 4,456 3,175 3,644 2,011 2,804 5,414 4,705 4,959

2,895 4,353 4,927 3,171 3,867 1,502 2,937 5,436 3,463 4,586

3,137 4,773 6,405 3,218 3,733 2,136 3,188 5,042 3,576 5,449

2,767 4,048 6,263 3,064 2,612 1,879 2,370 5,123 3,401 5,317

3,119 4,081 4,882 3,638 2,949 2,265 2,827 6,216 4,227 6,429

3,267 3,466 3,457 3,845 2,148 2,654 3,492 4,667 3,913 5,912

4,006 4,295 3,704 4,277 2,102 2,974 3,033 3,826 3,883 6,351

3,606 3,434 2,963 4,208 2,173 3,315 1,824 3,489 4,713 6,121

4,068 3,893 2,868 4,405 2,416 3,249 1,887 3,540 5,202 7,018

Source: Chicago Mercantile Exchange (CME)

Volume of Trading of Random Lumber1 Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

28,561 19,556 25,962 19,871 21,567 15,328 24,241 17,921 20,838 26,803

20,946 20,339 22,184 19,486 15,076 13,239 17,533 17,713 20,257 19,152

21,071 20,881 28,151 18,936 24,561 16,401 17,027 22,544 24,595 18,504

24,624 24,673 22,618 16,136 22,458 13,910 11,573 25,743 20,360 21,358

18,248 20,519 23,835 21,003 23,681 12,427 20,132 19,951 17,338 21,619

24,797 24,112 30,410 18,057 18,878 11,950 21,840 17,190 17,115 23,959

20,308 21,763 30,791 16,636 15,210 12,046 21,097 22,672 16,244 21,568

18,503 20,453 25,683 16,563 16,440 10,154 22,418 20,902 19,590 23,800

21,736 19,412 24,177 19,037 12,882 13,518 22,891 24,238 22,895 22,618

24,416 19,578 18,125 17,155 11,608 13,442 19,387 17,111 15,896 24,804

15,131 22,002 20,802 20,706 11,989 15,828 12,480 17,271 23,404 22,385

21,977 16,559 15,118 17,582 12,490 16,180 13,272 19,617 17,709 24,454

260,318 249,847 287,856 221,168 206,840 164,423 223,891 242,873 236,241 271,024

Source: Chicago Mercantile Exchange (CME)

165

LUMBER & PLYWOOD Production of Plyw ood by Selected Countries

In Thousands of Cubic Meters

Year

Austria

Canada

Finland

France

Germany

Italy

Ja p a n

Poland

Romania

Russia

Spain

Sweden

United States

150 155 155 186 186 186 186 195

2,049 2,228 2,244 2,026 2,176 2,206 2,344 2,323

992 1,076 1,170 1,140 1,240 1,300 1,350 1,305

541 546 558 509 459 415 435 430

428 364 357 321 285 245 283 232

420 450 450 488 520 511 485 460

3,267 3,261 3,218 2,771 2,735 3,024 3,149 3,212

178 223 261 242 261 289 342 361

76 65 72 79 90 94 117 126

1,102 1,324 1,484 1,590 1,821 1,978 2,246 2,551

382 382 380 380 360 370 375 365

114 105 110 106 87 75 71 92

17,468 17,551 17,271 15,417 15,307 14,870 14,833 14,537

1998 1999 2000 2001 2002 2003 20041 20052 1

Preliminary.

2

Estimate.

NA = Not available.

Source: Food and Agricultural Organization of the United Nations (FAO-UN)

Imports of Plyw ood by Selected Countries

In Thousands of Cubic Meters

Year

Austria

Belgium

Canada

Denmark

France

Germany

Italy

Ja p a n

Netherlands

Sweden

Switzerland

United Kingdom

United States

121 136 151 138 156 180 144 140

313 530 534 526 505 572 624 521

273 222 230 520 489 509 350 330

302 222 247 250 254 394 413 371

359 365 272 358 349 363 383 401

1,105 1,021 965 954 905 1,103 1,214 1,098

378 367 422 425 558 558 581 532

3,938 4,888 5,033 5,021 5,119 4,221 5,122 4,732

528 558 594 600 541 527 542 526

147 152 178 157 152 161 164 189

143 150 153 143 128 130 140 145

969 972 1,207 1,300 1,297 1,253 1,474 1,417

1,964 2,494 2,385 3,009 3,890 4,249 5,900 6,181

1998 1999 2000 2001 2002 2003 20041 20052 1

Preliminary.

2

Estimate.

Source: Food and Agricultural Organization of the United Nations (FAO-UN)

Exports of Plyw ood by Selected Countries Year

Austria

Belgium

Canada

Finland

France

Germany

Italy

Netherlands

Poland

Russia

Spain

United States

172 180 192 246 286 240 262 265

198 224 200 194 232 238 245 255

101 101 403 380 378 371 436 474

557 755 956 941 1,030 1,056 1,017 1,027

725 832 939 1,006 1,009 1,117 1,172 1,234

201 222 243 231 200 190 187 192

152 166 160 210 232 167 200 265

125 139 139 146 125 204 208 201

68 56 51 55 57 43 32 46

95 93 95 109 128 138 149 171

559 736 913 974 1,032 1,157 1,201 1,438

77 331 220 104 88 82 88 114

984 833 712 673 530 523 512 525

1997 1998 1999 2000 2001 2002 2003 2004 2 1

In Thousands of Cubic Meters

Baltic States

Preliminary.

2

Estimate.

NA = Not available.

Source: Food and Agricultural Organization of the United Nations (FAO-UN)

Imports of Industrial Roundw ood by Selected Countries

In Thousands of Cubic Meters

Year

Austria

Belgium

Canada

Finland

France

Germany

Italy

Norway

Poland

Portugal

Spain

Sweden

United States

1998 1999 2000 2001 2002 2003 20041 20052

5,113 7,093 8,451 7,493 7,289 7,498 8,812 8,629

2,823 3,393 3,992 4,505 2,653 2,667 2,879 3,187

6,955 6,157 6,507 7,557 6,941 6,615 5,961 6,092

9,235 10,160 9,875 11,869 12,586 12,869 12,961 16,031

1,980 2,154 2,012 1,994 1,993 2,250 2,175 2,310

2,255 2,722 3,549 3,493 2,623 2,519 2,227 2,820

5,223 4,952 5,805 5,211 4,703 4,323 4,614 4,755

3,494 3,037 3,315 2,772 2,561 2,722 2,866 3,143

371 590 732 882 726 663 943 2,009

2,122 1,432 1,340 1,109 901 468 364 362

4,136 3,228 3,771 4,128 3,374 3,191 2,973 3,513

9,172 10,280 11,721 9,505 9,705 9,021 9,398 8,686

970 1,855 2,453 2,430 2,687 2,551 2,437 3,569

1

Preliminary.

2

Estimate.

Source: Food and Agricultural Organization of the United Nations (FAO-UN)

Exports of Industrial Roundw ood by Selected Countries Year

Canada

Estonia

France

Germany

Hungary

Latvia

Lithuania

Russia

Slovakia

Sweden

Switzerland

United States

2,029 2,213 2,903 3,835 4,471 5,004 3,899 5,197

2,497 2,626 1,857 2,276 2,302 2,955 2,858 2,942

3,792 3,903 4,257 3,482 3,132 3,029 2,297 1,806

2,857 3,093 5,522 5,116 4,244 4,111 3,851 3,761

4,871 4,552 5,558 4,906 4,907 4,592 5,589 6,070

1,204 1,079 1,282 1,227 1,210 1,366 1,137 871

2,760 2,953 4,190 3,990 4,225 3,922 4,136 3,919

792 938 1,200 1,314 1,420 1,378 1,178 1,129

19,972 27,600 30,835 31,693 36,800 37,518 41,553 48,000

714 1,193 1,550 1,550 1,187 1,034 1,142 1,691

1,420 1,315 1,431 1,303 1,755 1,520 1,522 3,095

1,006 1,220 3,754 3,149 1,970 1,748 1,741 1,734

12,290 11,739 11,952 11,412 11,067 10,288 10,402 9,815

1998 1999 2000 2001 2002 2003 20041 20052 1

Preliminary.

166

In Thousands of Cubic Meters

Czech Republic

2

Estimate.

Source: Food and Agricultural Organization of the United Nations (FAO-UN)

Magnesium Magnesium (symbol Mg) is a silvery-white, light, and fairly tough, metallic element and is relatively stable. Magnesium is one of the alkaline earth metals. Magnesium is the eighth most abundant element in the earth’s crust and the third most plentiful element found in seawater. Magnesium is ductile and malleable when heated, and with the exception of beryllium, is the lightest metal that remains stable under ordinary conditions. First isolated by the British chemist Sir Humphrey Davy in 1808, magnesium today is obtained mainly by electrolysis of fused magnesium chloride. Magnesium compounds, primarily magnesium oxide, are used in the refractory material that line the furnaces used to produce iron and steel, nonferrous metals, glass, and cement. Magnesium oxide and other compounds are also used in the chemical, agricultural, and construction industries. Magnesium’s principal use is as an alloying addition for aluminum. These aluminum-magnesium alloys are used primarily in beverage cans. Due to their lightness and considerable tensile strength, the alloys are also used in structural components in airplanes and automobiles. Prices – The price of magnesium in 2005 fell to $1.20 per pound, down –16.6% from $1.44 last year, but still up by 15.4 % from $1.04 in 2003. However, the recent price of magnesium is still well below the record high in the $1.932.25 range seen in 1995.

2005 rose +5.2% yr/yr to a new record high of 626,000 metric tons. The current level of magnesium production has more than doubled since the mid-1970s (production was 249,367 metric tons in 1976). The world’s largest primary producers of magnesium are China with 470,000 metric tons of production in 2005, Russia with 45,000 metric tons, and Canada with 54,000 metric tons. The US production amount is not available because it is considered proprietary data but is probably less than about 50,000 metric tons. China’s production has increased six-fold over the past 5 years from 70,500 metric tons in 1998 to 470,000 metric tons in 2005. Brazil’s production has grown by six-fold from the early 1980s. Canada’s production has grown by more than sevenfold from the mid-1980s. Demand – Total US consumption of primary magnesium in 2005 rose +8.7% to 55,304 metric tons. US consumption of magnesium for structural products in 2005 rose +8.7% yr/yr to 55,304 metric tons. Of the structural product consumption category, 98% was for castings and the remaining 2% was for wrought products. US consumption of magnesium for aluminum alloys fell –10.6% yr/yr in 2005 to 30,300 metric tons. The consumption of magnesium for “other uses” fell by –9.8% yr/yr in 2005 to 14,800 metric tons. Trade – US exports of magnesium in 2005 fell –18.2% yr/yr to a record low of 9,650 metric tons. US imports of magnesium in 2005 fell –14.2% yr/yr to 84,700 metric tons.

Supply – World primary production of magnesium in

World Production of Magnesium (Primary and Secondary) Year

------------------------------------------------ Primary Production --------------------------------------------------- ---------------------- Secondary Production ---------------------United World United United Former World Brazil Canada China France Norway Russia States Total Japan Kingdom States USSR Total

2000 2001 2002 2003 20041 20052 1

In Metric Tons

5,700 5,500 6,000 6,000 6,000 6,000

Preliminary.

2

80,000 83,000 88,000 54,000 54,000 54,000

Estimate.

190,000 200,000 250,000 340,000 442,000 470,000

16,500 4,000 -------------

41,400 36,000 10,000 ----------

W = Withheld proprietary data.

45,000 48,000 50,000 43,000 45,000 45,000

W W W W W W

422,000 428,000 452,000 485,000 595,000 626,000

7,900 7,800 -------------

500 500 -------------

82,300 65,800 -------------

NA NA -------------

92,300 75,700 -------------

Source: U.S. Geological Survey (USGS)

Salient Statistics of Magnesium in the United States

In Metric Tons

------------------- Production ---------------------- Secondary ---Year

Primary (Ingot)

New Scrap

Old Scrap

W W W W W W

52,200 38,600 47,100 44,700 W W

30,100 27,200 26,400 25,400 20,500 19,400

2000 2001 2002 2003 20041 20052 Preliminary. Valasco, Texas.

1

2

Total Total Exports3

82,300 65,800 73,600 70,100 72,000 72,800

23,800 19,600 25,400 20,400 11,800 9,650

Imports for Consumption

Stocks D e c. 3 1 4

91,400 68,500 88,000 83,400 98,700 84,700

W W W W W W

$ Price -------- Domestic Consumption of Primary Magnesium -------Total Aluminum Other Per Castings Wrought Pound5 ----- Structural Products ----Alloys Uses6 Total

1.23-1.30 1.21-1.28 1.10-1.22 1.10-1.17 1.55-1.60 1.15-1.30

29,457 44,712 46,362 49,565 48,629 52,424

2,120 3,280 4,350 3,190 2,240 2,880

31,577 47,992 50,712 52,755 50,869 55,304

55,400 35,000 34,900 33,800 33,900 30,300

17,400 12,700 16,000 16,200 16,400 14,800

72,800 47,700 50,900 50,000 50,300 45,100

Estimate. 3 Metal & alloys in crude form & scrap. 4 Estimate of I ndustry Stocks, metal. 5 Magnesium ingots (99.8%), f.o.b. 6 Distributive or sacrificial purposes. W = Withheld proprietary data. Source: U.S. Geological Survey (USGS)

Average Price of Magnesium

In Dollars Per Pound

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

2002 2003 2004 2005 2006

1.08 1.02 1.08 1.60 1.25

1.08 1.03 1.11 1.57 1.18

1.08 1.03 1.23 1.57 1.18

1.08 1.03 1.30 1.57 1.16

1.08 1.03 1.42 1.54 1.16

1.08 1.03 1.55 1.48 1.16

1.08 1.03 1.55 1.40 1.16

1.08 1.03 1.55 1.40 1.16

1.08 1.04 1.55 1.33 1.20

1.08 1.05 1.55 1.32 1.21

1.06 1.05 1.60 1.29 1.29

1.02 1.05 1.60 1.25 1.33

1.07 1.04 1.42 1.44 1.20

Source: American Metal Market (AMM)

167

Manganese Manganese (symbol Mn) is a silvery-white, very brittle, metallic element used primarily in making alloys. Manganese was first distinguished as an element and isolated in 1774 by Johan Gottlieb Gahn. Manganese dissolves in acid and corrodes in moist air. Manganese is found in the earth’s crust in the form of ores such as rhodochrosite, franklinite, psilomelane, and manganite. Pyrolusite is the principal ore of manganese. Pure manganese is produced by igniting pyrolusite with aluminum powder or by electrolyzing manganese sulfate. Manganese is used primarily in the steel industry for creating alloys, the most important ones being ferromanganese and spiegeleisen. In steel, manganese improves forging and rolling qualities, strength, toughness, stiffness, wear resistance, and hardness. Manganese is also used in plant fertilizers, animal feed, pigments, and dry cell batteries. Prices – The average monthly price of ferromanganese (high carbon, FOB plant) rose +32.7% yr/yr in 2006 to $846.44 per gross ton but still below the record high of $1,355.90 per gross ton posted in 2004. The 2006 price, however, was still far above the 17-year low of $447.44 per gross ton posted as recently as 2001. Supply – World production of manganese ore in 2005 rose by +5.1% to 29.1 million metric tons, which was a record

World Production of Manganese Ore

high. That was well above the record low of 17.8 million metric tons posted in 1999. The world’s largest producers of manganese ore are China with 19% of world production in 2005, South Africa with 16%, Australia with 14%, Brazil with 11%, and the Ukraine with 8%. China’s production in 2005 was unchanged from 2004 at 5.5 million metric tons. Demand – US consumption of manganese ore in 2004 (latest data available) rose +10.8% to 441,000 metric tons, continuing to recover from the record low of 360,000 metric tons in 2002. US consumption of ferromanganese in 2004 rose 27.0% yr/yr to a 7-year high of 315,000 metric tons, but that was still almost a third less than US consumption of 908,000 metric tons in 1970. Trade – The US still relies on imports for 100% of its manganese consumption, as it has since 1985. US imports of manganese ore for consumption in 2004 (latest data available) rose +30.0% yr/yr to 451,000 metric tons. US imports of ferromanganese for consumption in 2004 rose +80.3% yr/yr to a 15-year high of 429,000 metric tons. US imports of silico-manganese in 2004 rose +58.1% yr/yr to 422,000 metric tons. The primary sources of US imports of manganese ore in 2004 were Gabon with 188,000 metric tons of imports, Australia (27,700 metric tons), and South Africa (13,200 metric tons).

In Thousands of Metric Tons (Gross Weight)

Year

Australia2 37-534

Brazil 374

China 20-304

Gabon 45-534

Georgia 29-304

Ghana 32-344

India 10-544

Kazakstan 29-304

Mexico 27-504

South Africa 30-48+4

Ukraine 29-304

Other

World Total

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

2,109 2,136 1,500 1,892 1,614 2,069 2,187 2,555 3,381 4,000

2,506 2,124 1,940 1,656 1,925 1,970 2,529 2,544 3,143 3,150

7,600 6,000 5,300 3,190 3,500 4,300 4,500 4,600 5,500 5,500

1,983 1,904 2,092 1,908 1,743 1,791 1,856 2,000 2,460 2,500

97 ----------------------------

448 437 537 639 896 1,077 1,136 1,509 1,624 1,915

1,797 1,596 1,557 1,500 1,550 1,600 1,700 1,650 1,700 1,750

430 400 634 980 1,136 1,387 1,792 2,361 2,318 2,208

485 534 510 459 435 277 233 310 377 470

3,240 3,121 3,044 3,122 3,635 3,266 3,322 3,501 4,207 4,612

3,070 3,040 2,226 1,985 2,741 2,700 2,470 2,591 2,362 2,260

632 608 522 458 433 490 474 490 651 762

24,300 21,900 19,900 17,800 19,600 20,900 22,200 24,100 27,700 29,100

1

Preliminary.

2

Metallurgical Ore.

3

Concentrate.

4

Ranges of percentage of manganese.

Salient Statistics of Manganese in the United States

Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

Net Import Reliance as a % of Apparent Consumption

100 100 100 100 100 100 100 100 100 100

Source: U.S. Geological Survey (USGS)

In Thousands of Metric Tons (Gross Weight)

Manganese Ore ---------------- (35% or More Manganese) ---------------- ------------- Ferromanganese ------------Imports Imports for ConConStocks, for ConConsumption Exports sumption D e c. 3 1 3 sumption Exports sumption

478 355 332 460 447 358 427 347 451 656

32 84 8 4 10 9 15 18 123 13

478 510 499 479 486 425 360 398 441 368

319 241 163 172 226 138 151 156 159 337

374 304 339 312 312 251 275 238 429 255

10 12 14 12 8 9 9 11 9 14

326 337 290 281 300 266 253 248 315 286

Avg. Price Mn. Metallurgical ---- Silicomanganese ---Ore $ Lg. Ton Unit4 Exports Imports

2.55 2.44 2.40 2.26 2.39 2.44 2.30 2.41 2.89 4.39

Preliminary. 2 Estimate. 3 I ncluding bonded warehouses; excludes Gov't stocks; also excludes small tonnages of dealers' stocks. C.I .F. U.S. Ports. Source: U.S. Geological Survey (USGS)

1

168

5.3 5.4 6.7 3.7 1.9 3.6 0.5 0.6 0.5 0.9 4

323.0 306.0 346.0 301.0 378.0 269.0 247.0 267.0 422.0 327.0

46-48% Mn,

MANGANESE

USD Per Gross Ton ----- Baltimore, (Jan. 1908 - Dec. 1920) FOB Plant (Jan. 1921 - date)

No Quotes Oct. 1984 - Apr. 1987

Imports3 of Manganese Ore (20% or More Mn) in the United States Year

Australia

Brazil

Gabon

Mexico

Morocco

South Africa

48,900 16,400 18,700 23,500 18,100 18,000 18,400 12,900 27,700 21,300

5,640 9,100 12,100 1 3,250 3,480 12,900 7 23 ----

140,000 99,400 94,900 142,000 188,000 158,000 140,000 123,000 188,000 252,000

16,100 30,100 14,600 9,130 3,250 1,720 1,100 1,520 1,640 4,320

9 37 -------------------------

20,800 ---13,800 39,100 ---17,400 41,800 36,900 13,200 33,100

1996 1997 1998 1999 2000 2001 2002 2003 2 0 0 41 20052 1

Preliminary.

2

Estimate.

3

I mports for consumption.

Average Price of Ferromanganese Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Metric Tons (Mn Content)

Jan.

477.50 175.00 510.00 482.50 473.93 430.00 509.52 610.00 904.50 707.25

F eb.

Mar.

Apr.

Total

Customs Value Thous. $

231,000 156,000 160,000 224,000 219,000 199,000 214,000 175,000 234,000 334,000

42,400 30,800 27,800 37,200 32,100 28,000 29,200 27,000 37,700 58,200

Source: U.S. Geological Survey (USGS)

In Dollars Per Gross Ton D e c.

Average

467.50 470.00 482.50 490.00 490.00 490.00 492.50 475.00 475.00 475.00 475.00 175.00 175.00 190.00 190.00 510.00 510.00 510.00 510.00 510.00 510.00 510.00 510.00 510.00 510.00 510.00 498.75 482.50 482.50 482.50 482.50 482.50 482.50 482.50 482.50 482.50 482.50 482.50 501.63 505.00 509.00 510.00 510.00 477.50 467.89 460.00 454.29 450.00 450.00 446.90 444.57 430.79 430.00 430.00 430.00 430.00 437.14 447.73 449.55 456.75 481.82 556.14 597.00 589.67 552.89 518.93 510.00 502.38 497.61 492.50 481.79 477.27 470.00 478.57 497.83 516.67 559.76 790.00 1,382.61 1,700.00 1,700.00 1,674.43 1,490.34 1,488.64 1,500.00 1,371.43 1,207.50 1,019.52 818.68 739.46 651.67 586.19 547.39 528.13 512.07 522.14 550.24 597.75 694.05 712.50 737.50 759.00 764.55 870.23 987.50 1,025.00 1,021.25 946.25 836.25 790.00

480.00 497.92 495.21 492.40 447.44 495.64 499.49 1,327.87 637.69 846.44

Domestic standard, high carbon, FOB plant, carloads.

May

June

July

Aug.

Sept.

Oct.

Nov.

Source: American Metal Market (AMM)

169

Meats US commercial red meat includes beef, veal, lamb, and pork. Red meat is a good source of iron, vitamin B12, and protein, and eliminating it from the diet can lead to iron and zinc deficiencies. Today, red meat is far leaner than it was 30 years ago due to newer breeds of livestock that carry less fat. The leanest cuts of beef include tenderloin, sirloin, and flank. The leanest cuts of pork include pork tenderloin, loin chops, and rib chops. The USDA (United States Department of Agriculture) grades various cuts of meat. “Prime” is the highest USDA grade for beef, veal, and lamb. “Choice” is the grade designation below Prime for beef, veal, and lamb. “Commercial” and “Cutter” grades are two of the lower designations for beef, usually sold as ground meat, sausage, and canned meat. “Canner” is the lowest USDA grade designation for beef and is used primarily in canned meats not sold at retail. Supply – World meat production in 2007 is forecasted to rise +3.1% to a new record high of 158.103 million metric tons. China is forecasted to be the world’s largest meat producer in 2007 with 63.710 million metric tons of production (up +5.3% yr/yr), accounting for 40% of world production. US production of meat in 2007 is forecasted to rise by +3.0% yr/yr to 49.026 billion pounds, which will be a new

World Total Meat Production3 Year

4

Demand – US per capita meat consumption in 2007 is forecasted to rise by 2.6% to 119.0 pounds per person per year, but that is only slightly above the 2006 record low of 116 pounds per person reflecting the trend towards eating more chicken and fish and the availability of meat substitutes. Per-capita beef consumption in 2007 is forecasted to rise to 66.0 pounds per person per year, which was about half the record high of 127.5 pounds seen in 1976. Per capita pork consumption in 2007 is forecasted to rise to 51.0 pounds per person per year from he record low of 49.0 pounds posted in 2006. Trade – World red meat exports in 2007 is forecasted to rise +4.9% to a new record high of 12.768 million metric tons. The world’s largest red meat exporters will be Brazil with 20% of world exports in 2007, the US with 16%, the European Union with 13%, and Australia and Canada each with 12%.

In Thousands of Metric Tons

Argentina

Australia

Brazil

Canada

China4

EU-25

India

Mexico

New Zealand

Russia5

South Africa

United States

World Total

2,840 2,880 2,640 2,700 2,800 3,130 3,200 3,100 3,150

2,318 2,353 2,428 2,496 2,492 2,475 2,490 2,530 2,668

8,105 8,530 9,125 9,805 9,945 10,575 11,392 11,595 11,995

2,802 2,886 2,981 3,148 3,072 3,432 3,437 3,260 3,195

45,110 45,642 47,333 49,112 51,491 53,775 57,221 60,500 63,710

29,941 28,941 28,511 29,083 29,211 29,199 28,872 29,330 29,380

1,660 1,700 1,770 1,810 1,960 2,130 2,250 2,375 2,500

2,894 2,935 2,990 3,015 3,050 3,249 3,320 3,375 3,450

562 575 609 589 693 720 705 650 690

3,390 3,340 3,320 3,370 3,380 3,315 3,260 3,260 3,290

584 630 665 645 613 655 679 660 656

20,882 20,894 20,674 21,356 21,095 20,573 20,709 21,440 21,977

132,243 132,130 134,586 139,252 140,583 144,128 148,601 153,287 158,103

1999 2000 2001 2002 2003 2004 2005 20061 20072 1

record high. US production of beef in 2007 is forecasted to rise 33.1% yr/yr to 26.802 billion pounds, which will be just moderately below the record of 27.192 billion pounds in 2002. Beef accounted for 55.0% of all US meat production. US production of pork in 2007 is forecasted to rise +3.7% yr/yr to a new record high of 21.870 billion pounds. Pork accounts for 45.0% of US meat production. Veal accounts for only 0.3% of US meat production, and lamb and mutton account for only 0.4% of US meat production.

Preliminary. 2 Forecast. 3 Data through 2000, includes beef, veal, pork, sheep and goat meat. Beginning 2001, excludes sheep and goat. Predominately pork production. Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Production and Consumption of Red Meats in The United States ----------------- Beef ----------------- --------------- Veal --------------- ------- Lamb & Mutton ------- ---- Pork (Excluding Lard) ---- ------------- All Meats -------------

Year

1999 2000 2001 2002 2003 2004 2005 2006 1 20072 1

CommerCommerCommerci a l ci a l ci a l -- Consumption -- Consumption - Consumption ProProProP er P er P er Total Capita Total Capita duction Total Capita duction duction

CommerCommerci a l ci a l -- Consumption --- Consumption -ProProP er P er Total Capita Total Capita duction duction

-- Million Pounds --

-- Million Pounds --

26,493 26,888 26,212 27,192 26,339 24,650 24,784 20,137 26,802

Preliminary.

170

2

26,936 27,338 27,026 27,877 27,000 27,750 27,751 27,971 28,667

Forecast.

Lbs. - Million Pounds -

68.0 68.0 66.0 68.0 65.0 66.0 66.0 65.0 66.0

235 225 205 205 202 176 165 165 164

235 225 204 204 204 177 164 166 164

Lbs. - Million Pounds -

1.0 1.0 1.0 1.0 1.0 1.0 0.5 0.5 0.5

248 234 227 223 203 200 191 192 190

358 354 368 381 367 372 355 343 362

L b s.

1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0

19,308 18,952 19,160 19,685 19,966 20,529 20,706 21,085 21,870

18,954 18,643 18,492 19,146 19,436 19,437 19,115 19,063 19,790

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Lbs. -- Million Pounds --

53.0 51.0 50.0 52.0 52.0 51.0 50.0 49.0 51.0

46,284 46,299 45,804 47,305 46,710 45,555 45,846 47,579 49,026

46,483 46,560 46,089 47,608 47,006 47,735 47,385 47,543 48,983

L b s.

122.0 121.0 118.0 121.0 118.0 119.0 117.0 116.0 119.0

MEATS Total Red Meat Imports3 (Carcass Weight Equivalent) of Principal Countries Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 20072

Brazil

Canada

EU-25

Egypt

Hong Kong

108 55 72 44 78 63 53 49 30 45

296 319 331 391 399 365 216 273 290 305

458 390 387 380 478 493 604 620 562 582

158 215 221 142 173 123 168 214 225 240

266 284 318 331 346 383 413 397 402 410

Ja p a n

Rep. of Korea

1,766 1,926 2,062 2,070 1,874 1,984 1,949 2,039 1,943 1,993

191 398 498 369 585 597 438 571 447 450

In Thousands of Metric Tons

Mexico

Philippines

Russia3

Taiwan

United States

World Total5

451 548 696 720 814 741 745 745 815 835

91 136 153 138 157 151 188 163 167 175

1,452 1,392 730 1,176 1,553 1,445 1,359 1,758 1,640 1,730

104 180 137 93 121 152 141 131 131 136

1,519 1,678 1,813 1,866 1,945 1,901 2,168 2,096 1,902 1,991

7,429 7,956 7,895 8,173 9,113 9,036 9,063 9,765 9,239 9,600

Preliminary. 2 Forecast. 3 Data through 2000, includes beef, veal, pork, sheep and goat meat. Beginning 2001, excludes sheep and goat. Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

1

Total Red Meat Exports3 (Carcass Weight Equivalent) of Principal Countries Year

In Thousands of Metric Tons

Argentina

Australia

Brazil

Canada

China

Denmark

France

India

Ireland

Netherlands

303 359 357 169 348 386 623 762 500 600

1,285 1,308 1,387 1,466 1,444 1,338 1,453 1,466 1,476 1,549

411 573 654 1,085 1,471 1,778 2,249 2,628 2,485 2,555

861 1,046 1,182 1,301 1,473 1,358 1,529 1,635 1,555 1,560

294 200 198 283 351 440 598 593 590 595

1,814 2,653 2,067 1,637 1,643 1,622 1,821 1,612 1,600 1,600

245 224 349 370 417 439 499 627 750 800

488 443 485 496 486 558 606 589 540 570

16 9 22 20 20 27 29 39 35 35

125 156 167 100 183 222 124 89 11 20

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 20072

New Zealand

United States

World Total

1,543 1,676 1,704 1,736 1,841 1,921 1,198 1,524 1,869 2,082

218 189 236 145 262 325 410 487 510 520

8,338 9,096 8,984 9,050 10,172 10,594 11,357 12,303 12,174 12,768

Preliminary. 2 Forecast. 3 Data through 2000, includes beef, veal, pork, sheep and goat meat. Beginning 2001, excludes sheep and goat. Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

1

United States Meat Imports by Type of Product ---------------- Beef and Veal ----------------

Fresh

Frozen

Other Prepared or Preserved

227,874 262,985 295,820 337,899 336,117 368,529 400,484 285,772 387,758

412,805 469,949 527,063 542,524 608,737 618,897 586,500 612,569 717,942

66,719 63,181 68,884 82,669 73,750 73,713 84,640 85,439 92,123

Year

1996 1997 1998 1999 2000 2001 2002 2003 2 0 0 41 1

Preliminary.

NSE = Not specified elsewhere.

Lamb, Mutton and Goat, Except Canned

33,009 37,848 51,630 50,209 59,968 66,785 73,863 77,546 82,930

------------------------- Pork -------------------------

Year

1996 1997 1998 1999 2000 2001 2002 2003 2 0 0 41 1

273,276 316,534 346,403 370,184 395,588 393,105 407,599 430,071 114,966

Preliminary.

324,329 359,460 352,050 414,458 417,538 362,972 393,836 390,543 20,458

14,577 15,227 17,966 19,323 21,791 23,932 27,232 37,572 9,068

Fresh and Chilled

Frozen

Other Prepared or Preserved

125,220 126,061 146,965 188,556 229,395 240,275 276,639 293,169 266,583

58,336 65,000 70,227 77,638 91,446 84,687 90,423 107,749 109,915

72,650 72,903 76,230 84,207 92,672 83,724 91,379 107,964 96,840

Variety Meats, Fresh, hilled and Frozen

Other Livestock Meats NSE

Total

32,579 44,317 47,031 51,640 57,388 62,541 55,384 47,688 33,776

13,744 14,215 13,058 13,625 14,281 16,723 19,401 21,367 23,797

1,042,934 1,156,457 1,296,907 1,428,966 1,563,753 1,615,873 1,678,713 1,639,263 1,811,664

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

United States Meat Exports by Type of Product --------------- Beef and Veal --------------Prepared Fresh and and Preserved Chilled Frozen

In Metric Tons

Lamb and Mutton, Fresh or Frozen

2,478 2,545 2,528 2,219 2,184 2,770 3,042 2,909 3,671

In Metric Tons

------------------------ Pork ---------------------------Prepared Fresh and and Preserved Chilled Frozen

101,975 134,684 147,006 160,910 208,055 240,275 276,639 293,169 266,583

166,058 151,121 209,134 225,492 185,241 83,724 91,379 107,964 96,840

38,481 38,301 43,789 47,898 44,836 84,687 90,423 107,749 109,915

Variety Meats, Fresh, Chilled or Frozen

Other Meats

Total

495,343 469,789 495,643 524,325 604,738 685,063 592,185 598,726 456,480

434,759 435,258 423,980 455,561 503,942 513,969 619,491 567,565 189,127

1,851,276 1,922,918 2,038,500 2,220,369 2,380,912 2,390,496 2,501,826 2,536,267 1,267,108

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

171

MEATS

Cents Per Pound ----- Choice, 1-3, 550-700 Pound (Jan. 1975 - date)

Exports and Imports of Meats in the United States (Carcass Weight Equivalent)3 Year

1997 1998 1999 2000 2001 2002 2003 2004 20051 20062

In Millions of Pounds

------------------------------------------- Exports ------------------------------------------- ----------------------------------------------- Imports ----------------------------------------------All B eef Lamb and All B eef Lamb and Meat and Veal Mutton Pork3 Meat and Veal Mutton Pork3

2,136 2,171 2,412 2,468 2,269 2,448 2,518 460 644 680

5 6 5 5 7 7 7 9 9 8

1,044 1,230 1,277 1,287 1,559 1,612 1,717 2,181 2,683 2,785

3,185 3,407 3,694 3,760 3,835 4,067 4,242 2,650 3,336 3,473

2,343 2,643 2,873 3,032 3,163 3,218 3,006 3,679 3,587 3,560

1 Preliminary. 2 Estimate. 3 I ncludes meat content of minor meats and of mixed products. U.S. Department of Agriculture (FAS-USDA)

Average Wholesale Prices of Meats in the United States

Pork

Net Farm Value of Pork5

C ow B eef Canner & Cutter, Central US

97.30 99.00 114.50 117.80 100.70 107.40 127.40 124.90 121.38

61.20 60.40 79.40 81.30 61.90 69.60 92.10 88.00 83.27

61.33 66.51 72.57 79.50 NA NA NA NA NA

99.86 111.06 117.51 122.61 114.42 143.58 142.15 145.78 146.82

------ Retail Price -----Wholesale

Year

of Beef, Choice, Grade 3

of Pork

3

B eef

1998 1999 2000 2001 2002 2003 2004 20051 20062

277.12 287.76 306.42 337.73 331.53 374.62 406.53 409.22 397.02

242.69 241.44 258.20 269.39 265.75 265.82 279.16 282.69 280.72

153.80 171.55 182.27 192.12 180.02 222.90 218.90 226.10 228.17

---------- Value4 ----------

634 705 827 967 951 1,071 1,185 1,099 1,002 960

Source: Economic Research Service,

Pork Carcass Cut-out, US No. 2

53.08 53.45 64.07 66.83 53.49 58.87 73.53 69.84 67.62

Lamb Carcass, Pork ChoiceLoins, Prime, East Coast, Central US, 55-65 Lbs. 14-18 Lbs.

156.75 170.29 177.78 148.96 151.28 185.21 189.08 209.88 199.10

101.63 100.38 117.13 116.97 97.98 100.96 117.14 113.22 104.46

Preliminary. 2 Estimate. 3 Sold as retail cuts (ham, bacon, loin, etc.). 4 Quantity equivalent to 1 pound of retail cuts. minus farm by-product allowance. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

172

3,061 3,461 3,813 4,128 4,260 4,448 4,359 4,959 4,768 4,695

In Cents Per Pound

Boxed Beef Cut-out, Choice 1-3, Central US, 550-700 L b s.

Composite

83 112 112 130 146 160 168 180 179 175

5

Skinned Ham, Central US, 20-26 Lbs.

Pork Bellies, Central US, 12-14 Lbs.

53.07 51.35 60.85 64.86 47.52 45.48 64.98 64.07 64.04

52.38 57.12 77.46 78.61 69.91 86.42 99.35 81.46 82.81

Portion of gross farm value

MEATS Average Wholesale Price of Boxed Beef Cut-Out1, Choice, at Central Markets Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

101.90 100.26 101.37 114.74 129.78 111.99 128.59 138.60 148.93 155.60

98.98 96.27 99.37 112.59 128.87 111.53 128.77 129.29 143.02 149.71

104.87 95.34 103.62 118.42 129.58 120.54 126.35 141.34 150.66 144.94

104.17 98.32 107.55 123.45 128.93 116.61 133.03 157.53 157.34 141.83

105.97 102.09 110.89 124.88 129.03 115.14 141.44 155.70 156.82 147.45

101.83 100.38 115.39 123.30 126.82 114.06 141.16 148.54 140.02 153.09

102.38 99.96 111.14 115.85 118.93 109.88 130.13 140.27 131.19 147.01

105.14 104.28 114.00 111.20 120.20 110.93 139.91 139.33 132.85 146.22

104.06 99.28 115.13 108.68 119.30 111.83 156.64 137.82 137.97 144.69

103.72 102.08 119.21 112.58 115.93 111.64 176.06 138.45 144.30 144.79

104.63 102.61 117.38 118.05 110.95 116.41 167.15 135.64 148.81 143.64

101.50 97.49 117.71 126.41 113.04 122.45 153.71 143.31 157.49 142.92

103.26 99.86 111.05 117.51 122.61 114.42 143.58 142.15 145.78 146.82

Choice 1-3, 550-700 pounds.

2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Production (Commercial) of All Red Meats in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Pounds (Carcass Weight)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

3,735 3,836 3,833 3,784 3,935 4,081 4,075 3,713 3,648 3,890

3,278 3,476 3,535 3,767 3,761 3,501 3,496 3,404 3,423 3,485

3,444 3,726 4,016 4,044 3,761 3,677 3,705 3,944 3,879 4,111

3,592 3,701 3,824 3,460 3,506 3,902 3,845 3,713 3,622 3,614

3,571 3,582 3,604 3,878 3,881 4,018 3,944 3,597 3,714 4,048

3,492 3,732 3,940 3,941 3,758 3,813 3,948 3,928 3,963 4,120

3,657 3,781 3,781 3,644 3,643 4,016 4,046 3,708 3,616 3,782

3,619 3,770 3,913 4,113 4,060 4,141 3,913 3,878 4,100 4,245

3,665 3,827 3,933 3,861 3,664 3,873 4,007 3,905 3,933 3,933

4,005 4,033 4,002 4,096 4,264 4,382 4,155 3,921 3,926 4,182

3,453 3,725 3,895 3,919 3,970 3,908 3,524 3,770 3,942 4,136

3,715 3,945 3,862 3,619 3,813 3,859 3,876 3,931 3,954 3,862

43,226 45,134 46,138 46,126 46,016 47,171 46,534 45,412 45,719 47,408

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Cold Storage Holdings of All2 Meats in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061

In Cents Per Pound

Jan.

In Millions of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

621.3 722.4 821.0 748.3 836.2 946.8 1,011.5 879.0 979.0 884.4

655.9 802.8 833.0 853.1 907.8 982.6 1,015.2 953.7 966.8 1,012.4

669.9 825.8 863.1 913.9 852.6 970.7 978.2 926.9 956.2 973.7

719.5 816.3 883.5 934.3 787.9 961.9 951.9 879.4 931.6 946.0

752.5 849.3 936.4 951.3 771.4 996.6 926.8 883.6 909.5 964.1

719.7 814.3 901.2 963.5 772.5 973.0 901.5 829.3 848.6 926.2

742.9 771.0 843.9 926.7 742.2 918.0 847.5 797.9 851.7 865.1

726.3 747.2 810.4 896.2 717.4 912.6 825.0 807.7 855.9 898.6

731.5 728.2 834.9 881.0 732.6 950.7 817.3 841.9 848.9 893.6

728.2 738.8 746.3 871.1 775.3 997.8 832.1 886.1 890.9 934.8

739.1 794.9 780.3 868.0 849.0 1,038.9 836.9 889.2 905.9 964.6

741.0 794.1 750.5 883.0 880.9 997.7 828.1 912.6 888.2 989.7

Preliminary. 2 I ncludes beef and veal, mutton and lamb, pork and products, rendered pork fat, and miscellaneous meats. Excludes lard. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Cold Storage Holdings of Froz en Beef in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

In Millions of Pounds

Jan. 1

F eb. 1

Mar. 1

Apr. 1

May 1

June 1

July 1

Aug. 1

Sept. 1

Oct. 1

Nov. 1

D e c. 1

284.9 350.2 296.4 314.2 401.7 460.7 524.6 395.1 484.3 434.4

290.3 331.1 301.1 350.9 410.9 455.5 482.4 434.4 453.3 465.9

261.7 334.9 300.1 369.0 360.2 439.0 441.9 435.0 400.2 428.3

290.4 329.7 309.2 378.2 332.6 410.5 403.1 416.8 372.3 424.0

285.4 335.5 316.8 396.1 315.3 405.7 389.7 421.2 329.4 428.5

278.7 310.2 306.7 401.1 325.1 401.8 385.1 402.8 318.2 434.6

305.6 316.5 293.1 405.1 340.8 396.9 371.5 411.8 342.1 436.8

302.8 303.0 292.7 391.5 351.4 416.5 368.2 427.0 385.2 466.0

324.6 306.7 377.9 398.8 373.2 461.8 371.0 446.0 410.6 471.7

349.1 323.1 294.4 405.7 382.8 494.9 379.8 457.2 438.8 477.4

351.6 358.2 322.5 404.4 395.1 525.2 375.2 452.6 439.2 475.6

378.2 328.2 308.9 411.8 427.6 512.6 373.8 463.3 429.9 507.9

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

173

Mercury Mercury (symbol Hg) was known to the ancient Hindus and Chinese, and was also found in Egyptian tombs dating back to 1500 BC. The ancient Greeks used mercury in ointments, and the Romans used it in cosmetics. Alchemists thought mercury turned into gold when it hardened. Mercury, also called quicksilver, is a heavy, silvery, toxic, transitional metal. Mercury is the only common metal that is liquid at room temperatures. When subjected to a pressure of 7,640 atmospheres (7.7 million millibars), mercury becomes a solid. Mercury dissolves in nitric or concentrated sulfuric acid, but is resistant to alkalis. It is a poor conductor of heat. Mercury has superconductivity when cooled to sufficiently low temperatures. It has a freezing point of about –39 degrees Celsius and a boiling point of about 357 degrees Celsius. Mercury is found in its pure form or combined in small amounts with silvers, but is found most often in the ore cinnabar, a mineral consisting of mercuric sulfide. By heating the cinnabar ore in air until the mercuric sulfide breaks down, pure mercury metal is produced. Mercury forms alloys called amalgams with all common metals except iron and platinum. Most mercury is used for the manufacture of industrial chemicals and for electrical and electronic applications. Other uses for mercury include its use in gold recovery from ores, barometers, diffusion pumps, laboratory instruments, mercury-vapor lamps, pesticides, batteries, and catalysts. A decline in mercury production and usage since the 1970s reflects a trend for using mercury substitutes due to its toxicity.

World Mine Production of Mercury Year

Preliminary.

1997 1998 1999 2000 2001 2002 2003 2 0 0 41 20052

The world’s largest miners of mercury are China with 66% of world production, Kyrgyzstan with 12%, Spain with 15%, and Finland with 4%. China’s production rose to 1,100 metric tons in 2005, which is more than five times the record low of 190 metric tons seen in 2001 and almost equal to its record of 1,200 metric tons posted in 1989. Demand – The breakdown of domestic consumption of mercury by particular categories is no longer available, but the data as of 1997 showed that chlorine and caustic soda accounted for 46% of US mercury consumption, followed by wiring devices and switches (17%), dental equipment (12%), electrical lighting (8%), and measuring control instruments (7%). Substitutes for mercury include lithium and composite ceramic materials. Trade – US foreign trade in mercury is still relatively small but US imports of mercury in 2005 rose by 130% yr/ yr to 212 metric tons and posted a new 9-year high. US imports were mostly from Chile and Peru. US exports of mercury in 2005 rose by 14.7% to a 12-year high of 319 metric tons.

In Metric Tons (1 tonne = 29.008216 flasks)

China

Finland

Kyrgyzstan

Mexico

Spain

Tajikistan

Russia

Ukraine

447 224 240 216 321 307 176 73

830 230 200 200 190 435 610 1,140 1,100

63 54 40 76 71 51 25 24 65

550 250 300 257 300 300 300 300 200

15 15 15 15 15 15 15 15 15

389 675 433 500 500 300 150 250 250

40 35 35 40 40 20 30 30 30

50 50 50 50 50 50 50 50 50

25 20

4 2

Estimate. W = Withheld to avoid disclosing company proprietary data.

Salient Statistics of Mercury in the United States Year

Supply – World mine production of mercury in 2005 fell by –11.1% yr/yr to 1,680 metric tons. The record low of 1,320 metric tons was posted in 1999 and the record high of 10,364 metric tons was posted in 1971.

Algeria

1997 1998 1999 2000 2001 2002 2003 20041 20052 1

Prices – The average monthly price of mercury in 2006 fell sharply by –23.2% yr/yr to $594.84 per flask (34.5 kilograms). That is down from last year’s price that was a record high of $774.04.

389 NA NA NA NA NA NA NA NA

----------------------------

174

W

2,410 1,580 1,320 1,360 1,500 1,490 1,370 1,890 1,680

Source: U.S. Geological Survey (USGS)

Consumer & Dealer Stocks, Dec. 31

Industrial Demand

Exports

Imports

203 NA NA NA NA NA NA NA NA

346 NA NA NA NA NA NA NA NA

134 63 181 182 108 201 287 278 319

164 128 62 103 100 209 46 92 212

----------------------------

Preliminary. 2 Estimate. 3 Secondary mercury shipped from the Department of Energy. Source: U.S. Geological Survey (USGS)

1

World Total

In Metric Tons

-------------------- Secondary Production -------------------Producing GovernNDS4 Mines Industrial ment3 Shipments

5 NA NA NA NA NA NA NA NA

NA = Not available.

United States

4

National Defense Stockpile.

NA = Not available.

MERCURY

USD Per 76 Lb. Flask ----- 75 Lb. Flask, New York (Dec. 1910 - Dec. 1931) 76 Lb. Flask, New York (Jan. 1932 - date)

Average Price of Mercury in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Dollars Per Flask of 76 Pounds (34.5 Kilograms)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

233.98 187.00 175.00 150.00 142.00 154.00 165.43 200.00 678.57 700.00

232.76 187.00 152.63 157.88 142.00 154.00 175.00 256.25 747.50 700.00

228.88 187.00 150.00 167.50 142.00 154.00 175.00 297.61 867.39 691.30

228.64 187.00 150.00 167.50 142.00 154.00 175.00 305.00 873.81 552.50

220.00 187.00 150.00 167.50 142.00 154.00 185.23 305.00 850.00 574.02

199.05 181.55 150.00 158.23 143.71 154.00 187.50 305.00 817.05 582.50

200.00 175.00 150.00 142.00 154.00 154.00 187.50 305.00 759.52 582.50

198.10 175.00 150.00 142.00 154.00 154.00 187.50 305.00 750.00 582.50

190.83 175.00 150.00 142.00 154.00 154.00 187.50 417.05 813.64 582.50

198.83 175.00 150.00 142.00 154.00 154.00 187.50 485.12 730.95 576.59

191.47 175.00 150.00 142.00 154.00 154.00 195.63 649.24 700.00 513.64

187.00 175.00 150.00 142.00 154.00 154.00 200.00 650.00 700.00 500.00

209.13 180.55 152.09 151.90 148.12 154.00 184.07 373.36 774.04 594.84

Source: American Metal Market (AMM)

Mercury Consumed in the United States Year

1

Dental Equip.

Electrical Lighting3

General Lab Use

Measuring Contraol Instrument

250 379 40 106 247 29 18 184 26 13 209 20 10 180 18 6 135 25 ----154 --------136 --------160 ----Data No Longer Available

39 44 41 42 35 24 32 31 40

31 33 39 55 38 27 30 29 29

18 32 30 28 26 24 -------------

87 108 90 80 65 53 43 41 24

Batteries3

1989 1990 1991 1992 1993 1994 1995 19961 19972 Preliminary.

In Metric Tons

Catalysts, Misc.

2

Chlorine & Caustic S oda

Estimate.

W = Withheld proprietary data.

Paints

Wiring Devices & Switches3

Other Uses

Total

192 14 6 -------------------------

141 70 71 82 83 79 84 49 57

32 38 49 92 103 110 93 86 36

1,212 720 554 621 558 483 436 372 346

Source: U.S. Geological Survey (USGS)

175

Milk Evidence of man’s use of animal milk as food was discovered in a temple in the Euphrates Valley near Babylon, dating back to 3,000 BC. Humans drink the milk produced from a variety of domesticated mammals, including cows, goats, sheep, camels, reindeer, buffaloes, and llama. In India, half of all milk consumed is from water buffalo. Camels’ milk spoils slower than other types of milk in the hot desert, but the vast majority of milk used for commercial production and consumption comes from cows. Milk directly from a cow in its natural form is called raw milk. Raw milk is processed by spinning it in a centrifuge, homogenizing it to create a consistent texture (i.e., by forcing hot milk under high pressure through small nozzles), and then sterilizing it through pasteurization (i.e., heating to a high temperature for a specified length of time to destroy pathogenic bacteria). Condensed, powdered, and evaporated milk are produced by evaporating some or all of the water content. Whole milk contains 3.5% milk fat. Lower-fat milks include 2% low-fat milk, 1% low- fat milk, and skim milk which has only 1/2 gram of milk fat per serving. The Chicago Mercantile Exchange has three different milk futures contracts: Milk Class III which is milk used in the manufacturing of cheese, Milk Class IV which is milk used in the production of butter and all dried milk products, and Nonfat Dry Milk which is used in commercial or consumer cooking or to reconstitute nonfat milk by the consumer. The Milk Class III contract has the largest volume and open interest. Prices – The average monthly price received by farmers for all milk sold to plants in 2006 fell by –14.8% yr/yr to

World Fluid Milk Production (Cow 's Milk) Year

2000 2001 2002 2003 2004 2005 2006 1 20072 1

In Thousands of Metric Tons

Argentina

Australia

Brazil

China

EU-25

India

Ja p a n

Mexico

New Zealand

Russia

Ukraine

9,800 9,500 8,500 7,950 9,250 9,500 10,300 10,800

11,172 10,864 11,608 10,636 10,377 10,429 10,395 10,000

22,134 22,300 22,635 22,860 23,317 24,025 24,745 25,365

8,274 10,255 12,998 17,463 22,606 27,534 32,800 38,100

129,392 130,069 131,040 131,847 130,620 131,652 130,500 130,600

36,250 36,400 36,200 36,500 37,500 37,520 38,750 40,050

8,497 8,300 8,385 8,400 8,329 8,285 8,170 8,150

9,305 9,501 9,560 9,784 9,874 9,855 9,998 10,100

12,235 13,162 13,925 14,346 15,000 14,500 15,200 15,400

31,900 33,000 33,500 33,000 32,000 32,000 32,200 32,800

12,400 13,169 13,860 13,400 13,787 13,423 12,890 13,100

Preliminary.

2

Forecast.

Year

United States

World Total

75,929 386,769 74,994 391,409 77,140 402,266 77,290 406,378 77,535 412,337 80,286 418,184 82,508 425,103 83,007 434,017

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Salient Statistics of Milk in the United States

2000 2001 2002 2003 2004 20051 20062

$12.90 per hundred pounds, moving farther below the 2004 record high of $16.04. The average monthly price received by farmers for fluid grade milk in 2006 fell by –14.7% yr/yr to $12.92. The average monthly price received by farmers for manufacturing grade milk in 2006 fell by –15.6% to $12.19. Supply – The world’s largest milk producers are the European Union with 130.500 million metric tons of production in 2006, the US with 83.000 million metric tons of production, and Russia with 32.800 million metric tons of production. US milk production in 2006 rose +2.7% yr/yr to 181.839 billion pounds, which was a new record high. The number of dairy cows on US farms has fallen sharply in the past 3 decades from the 12 million level seen in 1970. In 2005, there were 9.040 million dairy cows on US farms, up slightly from 2004’s record low of 9.010 million. Dairy farmers have been able to increase milk production even with fewer cows because of a dramatic increase in milk yield per cow. In 2005, the average cow produced a record 19,577 pounds of milk per year, more than double the 9,751 pounds seen in 1970. Demand – Per capita consumption of milk in the US fell to a new record low of 206 pounds per year in 2002 (the latest data available), down sharply by 26% from 277 pounds in 1977. The utilization breakdown for 2002 shows the largest manufacturing usage categories are cheese (64.504 billion pounds of milk) and creamery butter (30.250 billion pounds). Trade – US imports of milk in 2005 fell –12.8% yr/yr to 4.600 billion pounds, moving even farther below the record high of 5.716 billion pounds posted in 2001.

In Millions of Pounds

Average Farm Price P er Number ----- Received Per Cw t. ----Capita of Milk Cows on -------------------------------- Supply -------------------------------- -------------------- Utiliz ation -------------------Milk, ConsumpMilk All Milk, Eligible Farms3 ----- Production ----Manution6 ----- Domestic ----(Thou- Per Cow4 Beginning Fed to Total Whole- for Fluid facturing (Fluid Milk Total sale Market Grade sands) (Pounds) Stocks5 Imports Humans Use in Lbs.) Total4 Supply Exports5 Calves

9,206 9,114 9,139 9,083 9,010 9,040 9,115

18,202 18,158 18,608 18,761 18,958 19,577 19,949

167,559 165,497 170,063 170,394 170,805 176,989 181,839

6,186 7,010 7,259 9,891 8,333 7,154 7,154

4,445 5,716 5,103 5,040 5,278 4,600 4,700

178,190 178,223 182,425 185,325 184,416 188,743 193,693

1,107 1,036 959 964 956

166,256 164,123 168,944 169,276 169,699

167,363 165,159 169,903 170,240 170,655

12.33 14.98 12.10 12.52 16.04 15.14 12.90

12.38 14.99 12.10 12.53 16.04 15.14 12.92

10.54 14.78 10.92 11.77 15.41 14.45 12.19

210 208 206

Preliminary. 2 Estimate. 3 Average number on farms during year including dry cows, excluding heifers not yet fresh. 4 Excludes milk sucked by calves. 5 Government and commercial. 6 Product pounds of commercial sales and on farm consumption. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA) 1

176

MILK Utiliz ation of Milk in the United States

In Millions of Pounds (Milk Equivalent) Bulk Condensed

Year

Butter from Whey Creamery Cream Butter2

Cottage Cheese Cheese3 (Creamed)

5,392 5,538 5,612 5,791

60,154 62,257 61,804 64,504

1999 2000 2001 2002 20031 20041

28,657 28,059 27,557 30,250

Canned Milk4

Unsweetened

Sweetened

Dry Whole Milk Products

1,037 965 991 593 595 549

216 180 170 77 128 117

171 163 163 56 76 76

868 815 303 47 39 42

------ Whole Milk ------

NA NA NA NA

Ice Cream5

Other Frozen Dairy Products

2,305 2,218 2,220 2,320

14,370 14,447 14,395 14,373

Other Manu- --- Used on Farms --factured FarmPor- Churned ducts6 Butter Total

682 700 701 706

219 196 170 160 149 149

1,328 1,303 1,181 1,119 1,105 1,105

Preliminary. 2 Excludes whey butter. 3 American and other. 4 I ncludes evaporated and sweetened condensed. 5 Milk equivalent of butter and condensed milk used in ice cream. 6 Whole milk equivalent of dry cream, malted milk powder, part-skim milk, dry or concentrated ice cream mix, dehydrated butterfat and other miscellaneous products using milkfat. Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA) 1

Milk-Feed Price Ratio1 in the United States Year

1999 2000 2001 2002 2003 2004 2005 2006 2

In Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

4.09 3.07 3.08 3.03 2.40 2.70 3.45 3.17

3.67 2.94 3.03 3.00 2.35 2.60 3.50 2.93

3.57 2.91 3.24 2.89 2.27 2.80 3.35 2.70

2.97 2.84 3.29 2.81 2.25 3.11 3.18 2.46

2.89 2.63 3.41 2.64 2.19 3.15 2.93 2.33

3.17 2.96 3.74 2.54 2.21 3.12 2.87 2.35

3.61 3.29 3.60 2.34 2.60 2.96 2.93 2.35

3.85 3.38 3.62 2.27 2.89 2.93 3.08 2.47

4.09 3.34 3.75 2.30 3.16 3.22 3.27 2.58

3.96 3.12 3.55 2.46 3.23 3.27 3.42 2.53

3.87 3.03 3.29 2.44 3.05 3.57 3.45 2.46

3.24 3.04 2.99 2.44 2.89 3.67 3.28 2.41

3.58 3.05 3.38 2.60 2.62 3.09 3.23 2.56

1 Pounds of 16% protein mixed dairy feed equal in value to one pound of whole milk. U.S. Department of Agriculture (ERS-USDA)

Milk Production1 in the United States Year

2000 2001 2002 2003 2004 2005 2006 1 1

2

Preliminary.

Source: Economic Research Service,

In Millions of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

14,263 13,998 14,304 14,584 14,402 14,614 15,333

13,606 12,894 13,229 13,441 13,595 13,530 14,248

14,761 14,375 14,864 15,044 14,762 15,206 15,972

14,390 14,078 14,580 14,634 14,519 15,047 15,541

14,791 14,646 15,118 15,003 15,012 15,697 16,056

14,008 13,957 14,317 14,328 14,293 15,087 15,311

14,117 13,877 14,196 14,263 14,405 14,978 15,159

13,798 13,564 14,128 14,015 14,215 14,896 15,088

13,246 13,129 13,467 13,468 13,619 14,260 14,492

13,708 13,611 13,866 13,898 14,070 14,611 14,880

13,212 13,305 13,478 13,470 13,610 14,209 14,542

13,758 13,902 14,211 14,164 14,303 14,854 15,217

167,658 165,332 170,063 170,394 170,805 176,989 181,839

Excludes milk sucked by calves.

2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price Received by U.S. Farmers for All Milk (Sold to Plants) In Dollars Per Hundred Pounds (Cwt.) Year

2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

12.00 13.20 13.40 11.70 13.20 15.90 14.50

11.80 13.00 13.10 11.40 13.60 15.50 13.50

11.90 13.90 12.70 11.00 15.40 15.60 12.60

11.90 14.60 12.50 11.00 18.10 15.20 12.10

12.00 15.50 12.10 11.00 19.30 14.70 12.00

12.30 16.20 11.50 11.00 18.20 14.40 11.90

12.60 16.20 11.10 12.10 16.10 14.80 11.80

12.50 16.50 11.30 13.30 14.90 14.80 12.00

12.90 17.10 11.60 14.50 15.50 15.30 12.90

12.50 15.60 12.10 15.00 15.60 15.60 13.50

12.60 14.40 11.90 14.40 16.20 15.10 13.90

13.00 13.50 11.90 13.80 16.40 14.80 14.10

12.33 14.98 12.10 12.52 16.04 15.14 12.90

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Farm Price of Milk Eligible for Fluid Market Year

2000 2001 2002 2003 2004 2005 2006 1 1

In Dollars Per Hundred Pounds (Cwt.)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

12.00 13.20 13.40 11.80 13.20 15.90 14.50

11.90 13.10 13.10 11.40 13.60 15.50 13.50

12.00 13.90 12.70 11.00 15.40 15.60 12.60

11.90 14.60 12.50 11.00 18.10 15.20 12.20

12.10 15.50 12.10 11.00 19.30 14.70 12.00

12.30 16.20 11.50 11.00 18.20 14.40 11.90

12.60 16.20 11.10 12.10 16.10 14.80 11.80

12.50 16.50 11.30 13.30 14.90 14.80 12.10

13.00 17.10 11.60 14.50 15.50 15.30 12.90

12.60 15.60 12.10 15.00 15.60 15.60 13.50

12.60 14.50 11.90 14.40 16.20 15.10 13.90

13.10 13.50 11.90 13.80 16.40 14.80 14.10

12.38 14.99 12.10 12.53 16.04 15.14 12.92

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

177

Molybdenum Molybdenum (symbol Mo) is a silvery-white, hard, malleable, metallic element. Molybdenum melts at about 2610 degrees Celsius and boils at about 4640 degrees Celsius. Swedish chemist Carl Wilhelm Scheele discovered molybdenum in 1778. Molybdenum occurs in nature in the form of molybdenite and wulfenite. Contributing to the growth of plants, it is an important trace element in soils. Approximately 70% of the world supply of molybdenum is obtained as a by-product of copper mining. Molybdenum is chiefly used as an alloy to strengthen steel and resist corrosion. It is used for structural work, aircraft parts, and forged automobile parts because it withstands high temperatures and pressures and adds strength. Other uses include lubricants, a refractory metal in chemical applications, electron tubing, and as a catalyst. Prices – The average monthly US merchant price of molybdic oxide in 2006 fell sharply by –23.3% yr/yr to $25.08 per pound. That was down from last year’s 2005 record high of $32.70 per pound but still almost 11 times the decade low of $2.37 seen in 2001. Supply – World production of molybdenum in 2005 rose by +16.4% yr/yr to a record high of 185,000 metric tons,

World Mine Production of Molybdenum Year

In Metric Tons (Contained Molybdenum)

Armenia

Canada3

Chile

China

Iran

Kazakhstan

Mexico

Mongolia

Peru

Russia

United States

Uzbekisten

World Total

2,800 3,820 2,943 2,884 2,763 2,950 2,750

6,250 7,457 8,233 8,043 9,090 9,520 7,910

27,309 33,639 33,492 29,466 33,374 41,883 47,748

29,700 28,800 28,200 29,300 31,000 38,500 40,000

1,600 1,600 2,400 2,300 2,200 1,800 2,000

155 215 225 230 230 230 230

7,961 6,886 5,518 3,428 3,524 3,730 4,246

1,910 1,335 1,514 1,590 1,793 1,141 1,188

5,470 7,193 9,499 8,613 9,561 14,246 17,325

2,400 2,400 2,600 2,900 2,900 2,900 3,000

42,400 40,900 37,600 32,300 33,500 41,500 58,000

500 500 500 500 500 500 500

129,000 135,000 133,000 122,000 131,000 159,000 185,000

1999 2000 2001 2002 2003 20041 20052 1

continuing the recovery from the 11-year low of 122,000 metric tons seen in 2002. The world’s largest producers of molybdenum are the US with 31% of world production in 2005, Chili with 26%, and China with 22%. US production of molybdenum concentrate in 2005 rose +39.8% yr/yr to 58,000 metric tons, continuing the recovery from the 20-year low of 32,300 metric tons posted in 2002. US production of molybdenum primary products in 2005 rose +22.6% to 29,800 metric tons, with 28,700 metric tons of that production in molybdic oxide and 1,100 metric tons in molybdenum metal powder. Demand – US consumption of molybdenum concentrate in 2005 rose by +20.4% yr/yr to 46,600 metric tons, continuing to recover from the 11-year low of 21,200 metric tons posted in 2002. US consumption of molybdenum concentrate has more than doubled over the last 10 years. US consumption of molybdenum primary products rose by +8.6% yr/yr in 2005 to 18,900 metric tons. Trade – US imports of molybdenum concentrate for consumption in 2005 rose +35.5% yr/yr to 11,900 metric tons, continuing to recover from the 11-year low of 4,710 metric tons posted in 2002.

Preliminary.

2

Estimate.

3

Shipments.

Source: U.S. Geological Survey (USGS)

Salient Statistics of Molybdenum in the United States

In Metric Tons (Contained Molybdenum) ---------------------------------------- Primary Products4 -----------------------------------------

Year

1999 2000 2001 2002 2003 20041 20052

--------------------------------------- Concentrate --------------------------------------- -------------- Net Production -------------- ----- Shipments ----Price To Oxide for Moly----------- Shipments ----------Imports Total Producer bolic Average Domestic Exports Value F or Con- For Con- Stocks, Pro- (Includes (Groos Value DestGrand Molybolic Metal Con- Stocks, duction Exports) Million $ Exports sumption sumption Dec. 313 Total Oxide5 Powder $ / Kg.6 inations Weight) sumption Dec. 31

42,400 40,900 37,600 32,300 33,500 41,500 58,000

42,800 251.0 40,400 210.0 37,000 192.0 32,300 232.0 33,600 324.0 42,000 1,420.0 57,900 NA

----------------------

34,500 6,390 33,800 6,120 33,300 6,010 21,200 4,710 27,500 5,190 38,700 8,780 46,600 11,900

4,580 4,030 4,210 3,870 2,520 2,610 3,610

19,200 19,700 15,700 10,500 11,800 24,300 29,800

17,400 1,880 17,500 2,190 14,900 771 10,000 513 11,000 760 23,400 868 28,700 1,050

5.90 5.64 5.20 8.27 11.65 29.67 72.07

39,000 1,130 34,600 1,190 32,600 940 27,500 1,670 30,100 2,580 39,300 5,280 46,700 14,600

18,700 18,300 15,800 15,300 16,400 17,400 18,900

5,340 5,360 5,600 4,300 2,760 2,840 3,770

Preliminary. 2 Estimate. 3 At mines & at plants making molybdenum products. 4 Comprises ferromolybdenum, molybdic oxide, & molybdenum salts & metal. 5 I ncludes molybdic oxide briquets, molybdic acid, molybdenum trioxide, all other. 6 U.S. producer price per kilogram of molybdenum oxide contained in technical-grade molybdic oxide. W = Withheld proprietary data. Source: U.S. Geological Survey (USGS)

1

US Merchant Price of Molybdic Oxide Year

2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

2.86 2.38 2.33 3.63 7.63 33.00 23.70

3.55 2.38 2.33 3.74 8.15 30.15 24.54

3.40 2.38 2.33 4.62 8.93 33.59 23.12

2.55 2.38 2.75 5.20 13.11 34.79 22.93

2.55 2.38 2.99 5.20 14.00 36.41 24.82

2.55 2.38 6.93 5.77 15.03 38.32 26.31

2.55 2.38 5.32 5.86 15.75 32.79 26.01

2.64 2.38 4.75 5.60 16.70 30.00 25.60

2.70 2.38 4.73 5.84 18.27 31.93 26.96

2.70 2.40 4.70 6.25 19.50 32.33 26.02

2.70 2.33 3.82 6.25 22.66 30.33 25.41

2.39 2.33 3.48 6.25 27.50 28.72 25.50

2.74 2.37 3.87 5.35 15.60 32.70 25.08

Source: American Metal Market (AMM)

178

In Dollars Per Pound

Jan.

Nickel double the production seen in 1970. The world’s largest mine producers of nickel in 2005 were Russia (with 21% of world production), Australia (14%), Canada (13%), Indonesia (9%), and New Caledonia (8%). In 2004 (latest data available) US secondary nickel production fell –0.3% to 83,280 metric tons, down slightly from the record high of 83,960 metric tons in 2002. Demand – US consumption of nickel in 2004 (latest data available) rose 10.9% to 183,000 metric tons, but still below the 2002 record high of 197,000 metric tons. The primary US nickel consumption use is for stainless and heatresisting steels, which accounted for 63% of US consumption in 2004. Other consumption uses were nickel alloys (8%), super alloys (8%), electro-plating anodes (7%), copper base alloys (3%), chemicals (3%), alloy steels (2%), and cast irons (2%). Trade – The US relied on imports for 60% of its nickel consumption in 2006, up from 54% in 2005. US imports of primary and secondary nickel in 2004 rose +13.4% to 154,800 metric tons, up from 2002’s 12-year low of 130,110 metric tons. US exports of primary and secondary nickel in 2003 rose 5.0% to 56,300 metric tons, which was still below the record high of 58,050 metric tons posted in 2000.

Nickel (symbol Ni) is a hard, malleable, ductile metal that has a silvery tinge that can take on a high polish. Nickel is somewhat ferromagnetic and is a fair conductor of heat and electricity. Nickel is primarily used in the production of stainless steel and other corrosion-resistant alloys. Nickel is used in coins to replace silver, in rechargeable batteries, and in electronic circuitry. Nickel plating techniques, like electro-less coating or single-slurry coating, are employed in such applications as turbine blades, helicopter rotors, extrusion dies, and rolled steel strip. Nickel futures and options trade at the London Metal Exchange (LME). The nickel futures contract calls for the delivery of 6 metric tons of primary nickel with at least 99.80% purity in the form of full plate, cut cathodes, pellets or briquettes. The contract is priced in terms of US dollars per metric ton. Prices – Nickel prices rallied sharply in 2006, closing the year at $34,025 per metric ton, up +154% from the 2005 close of $13,372 per metric ton. Nickel prices extended the rally in early 2007 to post a new record high of $44,500 per metric ton. Nickel prices rallied on very strong demand combined with insufficient new mining output. Supply – World mine production of nickel in 2005 rose +7.9% yr/yr to 1.500 million metric tons. That is more than

World Mine Production of Nickel Year

Australia3 Botswana

1999 2000 2001 2002 2003 20041 20052

119,226 166,500 205,000 207,800 210,000 178,100 210,000

1

Preliminary.

2

33,733 38,420 26,714 28,600 32,740 32,980 37,100

Estimate.

3

In Metric Tons (Contained Nickel)

Brazil

Canada

China

Dominican Republic

41,522 45,317 45,456 44,928 45,160 45,200 46,000

186,236 190,793 194,058 189,297 163,244 186,546 196,000

49,500 50,300 51,500 53,700 61,000 64,000 71,000

39,997 39,943 39,120 38,859 45,400 47,000 47,000

Year

64 63 58 52 52 50 55

4,290 63,100 71,000 83,900 101,500 83,960 83,510 83,280

9,590 8,100 7,700 7,590 3,920 3,730 3,770

908 7,470 495 10,500 198 9,940 886 7,190 427 5,280 591 5,200 311 5,920

16,400 15,400 15,700 12,500 12,300 11,400 11,900

Average Price of Nickel1 in the United States

1

110,062 128,789 117,734 99,841 112,013 118,279 122,000

Russia

South Africa

World Total

20,689 17,388 27,359 26,532 19,537 16,973 22,000

300,000 315,000 320,000 305,000 310,000 315,000 315,000

36,202 36,616 36,443 38,546 40,842 39,850 41,700

1,160,000 1,290,000 1,340,000 1,350,000 1,390,000 1,390,000 1,500,000

Source: U.S. Geological Survey (USGS)

In Metric Tons (Contained Nickel)

17,500 93,000 15,200 102,000 18,200 108,000 17,900 121,000 14,200 135,000 14,600 114,000 15,400 116,000

Exclusive of scrap. 2 Preliminary. 3 Estimate. 4 Smelter & refinery. data. NA = Not avaliable. Source: U.S. Geological Survey (USGS)

2002 2003 2004 2005 2006

89,111 98,200 102,000 123,000 143,000 133,000 140,000

Phillippines

Net ----------------------------- Nickel Consumed1, By Uses ---------------------------------Import Stocks, Stainless Reliance ------ Dec. 31 -----& Heat as a % of Avg. Primary & Apparent At Con- At ProCopper ElectroReApparent --- Production --Price Secon- Alloy Cast Base plating Nickel sisting Super Chemducer Secondary Nickel LME Con- sumers' Condary5 Sheets Irons Alloys Anodes Alloys Steels Alloys icals sumption Plants Plants Exports Imports $/Lb. sumption Plant4

1

Year

16,050 19,535 20,830 22,670 21,410 21,700 22,100

Content of nickel sulfate and concentrates.

Salient Statistics of Nickel in the United States

1998 1999 2000 2001 2002 20032 20043

New Greece Indonesia Caledonia

Jan.

F eb.

Mar.

Apr.

May

261.00 365.17 720.75 685.93 693.44

261.00 406.25 714.31 723.02 705.73

261.00 397.38 650.28 763.44 702.46

261.00 377.72 615.29 761.75 841.84

288.00 395.63 532.52 804.52 982.34

Plating material, briquettes.

5

18,600 18,900 19,400 18,400 12,600 13,400 15,100

1,970 1,580 991 1,630 1,280 2,400 6,300

186,000 190,000 189,000 188,000 197,000 165,000 183,000

15,960 10,050 14,260 13,910 11,560 11,070 10,740

13,100 12,700 12,300 12,600 6,150 8,040 6,580

From purchased scrap (ferrous & nonferrous).

43,540 38,840 58,050 57,050 45,920 53,630 56,300

156,500 148,480 166,700 144,760 130,110 136,500 154,800

2.10 2.73 3.92 2.70 3.07 4.37 6.27

W = Withheld proprietary

In Cents Per Pound June

D e c.

Average

320.00 331.00 332.00 322.00 310.00 342.00 351.00 424.56 427.68 454.67 482.62 530.81 574.10 665.26 638.94 705.77 646.11 630.61 679.95 662.30 645.37 779.54 700.08 709.31 684.33 601.56 584.44 644.94 981.11 1,255.21 1,443.11 1,406.17 1,526.68 1,493.07 1,606.51

July

Aug.

Sept.

Oct.

Nov.

303.33 458.49 653.52 703.57 1,136.47

Source: American Metal Market (AMM)

179

Oats Oats are seeds or grains of a genus of plants that thrive in cool, moist climates. There are about 25 species of oats that grow worldwide in the cooler temperate regions. The oldest known cultivated oats were found inside caves in Switzerland and are believed to be from the Bronze Age. Oats are usually sown in early spring and harvested in mid to late summer, but in southern regions of the northern hemisphere, they may be sown in the fall. Oats are used in many processed foods such as flour, livestock feed, and furfural, a chemical used as a solvent in various refining industries. The oat crop year begins in June and ends in May. Oat futures and options are traded on the Chicago Board of Trade (CBOT) and the Winnipeg Commodity Exchange (WCE). Prices – Oat prices on the CBOT weekly nearest futures chart started the 2006 year at about $1.85 per bushel, showed weakness through April to post a low of $1.68, rallied into the summer to hit a high of $2.32, sank again to a low of $1.75 in August and then recovered through the remainder of the year to post a high of $2.80 at the end of December. Regarding cash prices, the average monthly price received by farmers for oats in the US in the first 9 months of the 2006-07 marketing year (i.e., June 2006 to February 2007) rose 13.2% yr/yr to $1.91 per bushel. Supply – World oat production in 2006-07 was virtually unchanged yr/yr at 23.540 million metric tons, which was a new record low. World annual oat production in the past three decades has dropped very sharply from levels above

World Production of Oats Year

US oat production in the 2006-07 marketing year fell by –18.4% yr/yr to 93.764 million bushels, which was a new record low. US oat production has fallen sharply from levels mostly above 1 billion bushels seen from the early 1900s into the early 1960s. US farmers harvested only 1.576 million acres of oats in 2006-07, which was down –13.5% from the previous year and posted a new record low. That is down from the almost 40 million acres harvested back in the 1950s. The oat yield in 2006-07 was down –5.6% to 59.5 bushels per acre, which was a new record low. Oat stocks in the US as of December 2006 were up 0.6% yr/yr to 96.244 million bushels, which was up only slightly from last year’s record low of 95.717 million bushels. The largest US oatproducing states in 2006 were the northern states of Wisconsin (with 16% of US production), Minnesota (12%), Iowa (9%), Pennsylvania (8%), and South Dakota (6%). Demand – US usage of oats in 2006-07 fell –4.3% yr/yr to a record low of 202.0 million bushels. Regarding US usage of oats in 2006-07, 62% was for feed and residual, 32% for food, alcohol and industrial, 5.4% for seed, and 1.0% for exports. Trade – US exports of oats fell –3.8% to a mere 2.0 million bushels in 2006-07. US imports of oats in 2006-07 rose +15.4% yr/yr to a 6-year high of 105.0 million bushels.

In Thousands of Metric Tons

Argentina

Australia

Belarus

Brazil

Canada

China

EU-25

Norway

Turkey

Ukraine

United States

Russia

World Total

517 383 555 645 645 500 348 508 350 400

1,634 1,798 1,118 1,050 1,434 957 2,018 1,321 1,416 1,000

822 501 368 495 530 575 500 770 600 550

286 250 250 330 277 390 413 433 517 475

3,485 3,958 3,641 3,389 2,691 2,911 3,691 3,683 3,432 3,600

400 650 600 600 600 600 600 600 600 600

6,665 6,147 8,117 8,383 8,091 9,280 8,623 8,755 7,386 7,468

360 387 356 397 330 279 333 359 349 349

280 310 290 314 265 290 285 290 290 290

1,062 778 760 881 1,116 943 925 1,000 800 900

2,428 2,406 2,114 2,165 1,707 1,684 2,096 1,679 1,667 1,361

9,400 4,600 4,400 6,000 7,700 5,700 5,200 4,950 4,550 5,000

31,035 25,691 24,110 25,977 27,033 25,599 26,572 25,930 23,546 23,540

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

50 million metric tons in the early 1970s. The world’s largest oat producers are the European Union with 32% of world production in 2006-07, Russia with 21%, Canada with 15%, the US with 6%, and Australia with 4%.

Preliminary.

2

Estimate.

3

Forecast.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Official Oats Crop Production Reports in the United States Year

1995 1996 1997 1998 1999 2000 1

July 1

181,508 154,968 182,672 183,201 ---151,380

Preliminary.

180

Aug. 1

In Thousands of Bushels

Sept. 1

Oct. 1

D e c. 1

Final

Year

July 1

Aug. 1

Sept. 1

Oct. 1

186,167 186,167 157,663 ---187,127 ---177,211 ---162,096 ---152,745 ----

-------------------

-------------------

162,027 153,245 167,246 165,981 146,218 149,545

2001 2002 2003 2004 2005 2006 1

132,150 147,584 147,895 121,860 131,314 110,322

135,445 142,580 151,345 127,950 127,819 107,423

-------------------

-------------------

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

D e c. 1

Final

---- 117,024 ---- 116,002 ---- 144,383 ---- 115,695 ---- 114,878 ---93,764

OATS Oat Stocks in the United States

In Thousands of Bushels

-------------------------- On Farms -------------------------- -------------------------- Off Farms -------------------------- ------------------------- Total Stocks ------------------------Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Mar. 1

June 1

Sept. 1

D e c. 1

Mar. 1

June 1

Sept. 1

D e c. 1

Mar. 1

June 1

Sept. 1

D e c. 1

56,200 58,800 61,700 53,300 55,800 40,200 35,000 45,600 43,500 42,200

33,100 34,500 40,700 36,000 32,050 28,650 20,600 27,500 25,350 25,190

107,950 110,300 97,300 101,200 74,800 70,500 82,100 74,300 71,700 60,800

83,200 81,500 79,800 86,900 58,100 52,500 64,400 60,400 60,100 53,000

39,362 52,418 50,850 48,500 54,128 53,158 47,879 49,414 38,946 32,673

33,576 39,498 40,678 40,031 40,677 34,552 29,233 37,348 32,592 27,376

48,972 51,502 51,151 49,177 41,592 41,212 49,637 41,458 41,803 39,284

61,051 61,835 53,872 57,237 56,117 51,284 54,900 44,513 35,617 43,244

95,562 111,218 112,550 101,800 109,928 93,358 82,879 95,014 82,446 74,873

66,676 73,998 81,378 76,031 72,727 63,202 49,833 64,848 57,942 52,566

156,922 161,802 148,451 150,377 116,392 111,712 131,737 115,758 113,503 100,084

144,251 143,335 133,672 144,137 114,217 103,784 119,300 104,913 95,717 96,244

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Supply and Utiliz ationof Oats in the United States

In Millions of Bushels

Findley F ood, Loan Target Total Ending Farm ProTotal Feed & Alcohol & Yield Per Planted Harvested Rate Price Use Stocks Price Acre duction Imports Supply Residual Industrial Seed Exports ----- 1,000 acres ----- (Bushels) -------------------------------------------- In Millions of Bushels -------------------------------------------- ----- Dollars Per Bushel ----------- Acreage -------

Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

5,068 4,892 4,668 4,473 4,403 4,995 4,597 4,085 4,246 4,168

Preliminary.

2

2,813 2,755 2,445 2,325 1,905 2,058 2,220 1,787 1,823 1,576

Forecast.

59.5 60.2 59.6 64.2 61.4 56.4 65.0 64.7 63.0 59.5

167.2 166.0 145.6 149.5 117.0 116.0 144.4 115.7 114.9 93.8

NA = Not available.

98.4 108.0 99.0 106.0 96.0 95.1 89.7 90.3 91.0 105.0

332.3 347.7 326.0 332.0 286.3 274.3 284.0 270.9 264.0 251.0

184.6 195.6 180.0 189.0 148.3 149.9 143.7 136.3 135.0 125.0

Illinois

Iowa

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

5,550 3,920 4,260 4,015 3,200 3,285 4,450 2,450 3,160 3,080

16,790 10,915 11,375 12,060 9,100 13,300 10,790 10,080 9,875 8,360

1

Preliminary.

Michigan Minnesota Nebraska New York

4,880 4,800 4,875 4,800 3,520 4,160 5,250 4,420 4,575 4,030

17,400 19,530 17,700 22,320 12,600 14,840 18,815 13,300 12,710 11,200

12.6 12.0 11.2 11.0 12.8 11.8 10.5 11.0 11.1 11.0

2.1 1.7 1.8 1.7 2.8 2.6 2.5 2.7 2.1 2.0

258.3 266.3 250.0 259.0 223.1 224.5 219.1 212.9 211.0 202.0

74.0 1.60 81.4 1.10 76.0 1.12 73.0 1.10 63.2 1.59 49.8 1.81 64.9 1.48 57.9 1.48 52.6 1.63 49.0 1.60-2.00

1.11 1.11 1.13 1.16 1.21 1.35 1.35 1.33

NA NA NA NA NA 1.40 1.40 1.44

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Production of Oats in the United States, by States Year

59.0 57.0 56.8 57.0 59.2 60.2 62.4 63.0 62.9 64.0

5,850 5,320 4,650 1,890 3,660 2,365 6,570 3,400 4,380 2,255

5,850 6,510 4,760 3,900 5,520 4,160 4,410 3,250 4,050 4,958

In Thousands of Bushels North Dakota

Ohio

Pennslyvania

South Dakota

18,700 25,200 16,830 19,845 14,880 12,600 21,240 14,080 14,160 4,920

6,660 6,500 7,000 6,840 6,205 3,355 3,960 3,150 3,600 4,125

8,990 8,480 7,975 8,265 7,475 7,015 6,490 6,050 6,050 7,040

14,850 20,100 12,800 13,420 7,800 5,400 15,640 13,940 12,960 5,415

Texas Wisconsin

6,760 6,890 4,840 4,300 7,200 6,160 6,300 6,400 4,730 3,700

20,160 18,300 18,600 19,040 12,480 15,000 15,410 13,650 13,760 14,490

Total

167,246 165,981 146,218 149,165 117,024 116,002 144,383 115,695 114,878 93,764

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Average Cash Price of No. 2 Heavy White Oats in Toledo

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

2.12 NQ NQ NQ NQ NQ NQ NQ NQ NQ

1.79 NQ NQ NQ NQ NQ NQ NQ NQ NQ

1.84 NQ NQ NQ NQ NQ NQ NQ NQ NQ

1.80 NQ NQ NQ NQ NQ NQ NQ NQ NQ

1.77 NQ NQ NQ NQ NQ NQ NQ NQ NQ

NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ

NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ

NQ NQ NQ NQ NQ NQ NQ NQ NQ

NQ NQ NQ NQ NQ NQ NQ NQ NQ

NQ NQ NQ NQ NQ NQ NQ NQ NQ

NQ NQ NQ NQ NQ NQ NQ NQ NQ

NQ NQ NQ NQ NQ NQ NQ NQ NQ

1.86 NQ NQ NQ NQ NQ NQ NQ NQ

1

Preliminary.

NQ = No quotes.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

181

OATS

Volume of Trading in Oats Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

34,238 21,150 23,747 27,073 26,377 41,516 26,149 33,743 26,439 25,667

51,608 51,247 35,706 43,332 38,040 46,435 31,892 34,605 35,921 40,534

39,607 25,551 43,671 29,707 24,903 30,662 27,766 55,216 36,808 30,437

41,988 65,381 44,974 31,653 41,482 51,889 26,022 49,746 35,199 35,799

27,028 23,490 22,399 38,647 20,516 32,386 20,442 38,951 24,696 39,362

29,632 55,376 40,722 50,461 41,926 39,229 24,113 35,356 33,748 42,812

25,473 29,870 35,812 30,885 50,440 35,217 23,230 25,451 28,353 35,751

26,486 42,156 27,928 42,814 22,883 29,647 21,562 31,023 26,134 30,790

21,241 27,131 17,893 21,846 31,252 23,968 26,658 32,322 17,708 25,700

42,630 31,426 16,155 21,476 50,580 32,847 33,621 25,443 27,080 43,724

38,187 51,172 42,029 48,890 53,578 35,412 30,273 33,942 32,687 51,304

19,214 18,924 20,370 15,406 38,877 15,932 27,170 20,650 26,766 25,435

397,332 442,874 371,406 402,190 440,854 415,140 318,898 416,448 351,539 427,315

Source: Chicago Board of Trade (CBT)

Average Open Interest of Oats in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

8,088 12,782 17,126 15,343 14,093 12,640 6,929 6,284 7,691 10,200

9,650 15,368 17,019 17,521 15,060 13,137 6,715 6,314 8,482 11,697

12,649 16,553 16,677 17,719 14,873 11,833 5,945 10,018 7,346 10,960

11,024 17,748 15,398 18,183 14,962 10,976 6,135 12,988 8,110 10,961

9,830 17,441 13,491 176,686 14,875 9,047 5,833 11,903 7,746 13,529

9,395 16,437 12,705 16,178 13,695 10,381 5,640 11,339 7,686 14,128

8,131 14,255 11,927 15,550 11,861 10,230 5,811 10,293 7,779 13,965

8,606 15,052 11,670 15,225 11,707 10,970 5,958 9,153 6,721 11,620

8,618 14,771 9,802 13,176 10,059 9,881 6,261 6,669 5,847 11,178

10,953 16,263 10,638 13,985 12,111 9,550 6,194 7,010 6,914 13,483

11,816 18,466 12,754 14,377 14,453 9,134 6,268 7,753 7,565 14,714

10,964 17,048 12,360 14,119 12,142 6,008 5,122 6,724 9,385 13,818

Source: Chicago Board of Trade (CBT)

182

In Contracts

Jan.

OATS

-----

---

Cents Per Bushel No. 3 White, Chicago (Jan. 1901 - Dec. 1947) No. 2 White, Chicago (Jan. 1948 - Nov. 1948) No. 1 White, Heavy, Chicago (Dec. 1948 - Dec. 1974) No. 2 White, Heavy, Chicago (Jan. 1975 - Aug. 1999) No. 2 Milling, Minneapolis (Jan. 1975 to date)

Average Cash Price of No. 2 Heavy White Oats in Minneapolis

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

1.89 1.52 1.34 .73 .83 1.40 1.05 1.04 .99 1.38

1.76 1.42 1.25 .72 .95 1.24 NQ .96 1.20 1.41

1.80 1.21 1.20 .69 1.08 1.23 .98 .99 1.12 1.29

1.78 1.30 1.17 .68 1.04 1.36 1.01 1.11 1.09 1.36

1.75 1.29 1.20 .70 1.29 1.36 1.00 1.01 1.16 1.52

1.65 1.32 1.20 .72 1.41 1.33 .99 1.04 1.16 1.69

1.71 1.31 1.28 .70 1.48 1.36 1.04 1.13 1.37 1.76

1.68 1.33 1.21 .70 1.41 1.44 .99 1.18 1.33 1.74

1.59 1.26 1.19 .75 1.47 1.28 1.14 1.15 1.29

1.65 1.35 1.34 .77 1.51 1.28 1.08 1.16 1.23

1.54 1.36 1.45 .80 1.31 1.22 1.22 1.13 1.25

1.58 1.39 NQ .82 1.29 1.08 1.08 .99 1.33

1.70 1.34 1.26 .73 1.26 1.30 1.05 1.07 1.21 1.52

1

Preliminary.

NQ = No quote.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price Received by U.S. Farmers for Oats

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

1.81 1.39 1.22 1.24 1.38 1.95 1.83 1.61 1.75 1.93

1.68 1.19 1.08 1.07 1.33 1.69 1.46 1.36 1.59 1.78

1.57 1.02 .97 .93 1.25 1.67 1.39 1.32 1.49 1.67

1.47 1.07 1.08 .95 1.39 1.80 1.39 1.42 1.54 1.70

1.62 1.09 1.06 1.08 1.64 1.80 1.44 1.45 1.59 1.77

1.66 1.10 1.12 1.22 1.79 1.91 1.29 1.51 1.64 2.02

1.57 1.19 1.18 1.14 1.92 1.95 1.58 1.60 1.73 1.97

1.60 1.20 1.20 1.21 1.93 2.04 1.48 1.64 1.73 2.19

1.60 1.20 1.27 1.28 1.91 2.11 1.58 1.67 1.82 2.19

1.64 1.20 1.28 1.24 1.99 2.08 1.60 1.74 1.81

1.61 1.18 1.35 1.28 1.99 1.98 1.63 1.65 1.75

1.53 1.31 1.31 1.28 1.99 1.95 1.70 1.64 1.85

1.61 1.18 1.18 1.16 1.71 1.91 1.53 1.55 1.69 1.91

1

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

183

Olive Oil Olive oil is derived from the fruit of the olive tree and originated in the Mediterranean area. Olives designated for oil are picked before ripening in the fall. Olive picking is usually done by hand. The olives are then weighed and washed in cold water. The olives, along with their oil-rich pits, are then crushed and kneaded until a homogeneous paste is formed. The paste is spread by hand onto metal plates, which are then stacked and pressed hydraulically to yield a liquid. The liquid is then centrifuged to separate the oil. It takes 1,300 to 2,000 olives to produce 1 quart of olive oil. The best olive oil is still produced from the first pressing, which is usually performed within 24 to 72 hours after harvest and is called extra virgin olive oil. Supply – World production of olive oil (pressed oil) in the marketing year 2005-06 fell –11.9% to 2.662 million metric tons, down further from the 2003-04 record high of 3.178. The world’s largest producers of olive oil in 2003-04 were Spain (with 32% of world production), Italy (24%),

World Production of Olive Oil (Pressed Oil) Year

Algeria Argentina

1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

54.5 33.5 26.5 25.5 15.0 69.5 33.5 47.5

Preliminary.

2

7.0 11.5 3.0 10.0 11.0 13.5 10.0 13.0

Estimate.

3

Trade – World olive oil imports in 2005-06 fell –3.7% to 685.3 metric tons. The US was the world’s largest importer in 2005-06 with 250,000 metric tons, representing 36% of world imports. The world’s largest exporters are Italy (with 32% of world exports), Tunisia (22%), Spain (13%), and Turkey (9%).

Greece

Italy

Jordan

Libya

Morocco

Portugal

Spain

Syria

Tunisia

Turkey

World Total

511.0 454.0 467.0 388.3 449.0 332.0 470.0 458.0

427.2 670.0 508.0 500.0 620.0 470.0 755.0 636.0

23.5 7.0 29.5 16.0 30.0 21.0 31.0 21.0

8.0 7.0 4.0 7.0 6.5 6.5 12.5 9.0

71.0 45.0 39.5 66.0 48.5 110.0 54.0 81.0

40.3 58.3 28.5 36.7 31.9 38.2 51.4 33.5

804.0 694.1 1,040.0 1,468.0 949.4 1,566.0 1,034.0 849.0

129.0 88.0 183.0 104.0 184.5 121.5 195.0 110.0

231.0 225.0 141.0 40.0 76.0 296.0 139.5 215.0

188.0 61.0 197.5 71.0 187.0 80.0 152.5 122.0

2,537.1 2,412.4 2,742.7 2,791.1 2,698.0 3,178.1 3,020.5 2,661.9

Forecast.

Source: The Oil World

In Thousands of Metric Tons

----------------------------------------------- Imports ----------------------------------------------- ------------------------------------------- Exports ------------------------------------------AustUnited World World ralia Brazil Italy Ja p a n Spain States Total Greece Italy Spain Tunisia Turkey Total

1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

Demand – World consumption of olive oil in the 200506 marketing year fell –3.1% to 2.847 million metric tons, down from the 2004-05 record high of 2.957. The US is the world’s largest consumer of olive oil with 8.1% of world consumption in 2005-06. US consumption of olive oil was 231,100 metric tons in 2005-06, only slightly below last year’s record of 235.4.

In Thousands of Metric Tons

World Imports and Exports of Olive Oil (Pressed Oil) Year

Greece (17%), Tunisia (8%), Turkey (5%), and Syria (4%). Production levels in the various countries vary considerable from year-to-year depending on various weather and crop conditions.

23.7 24.2 29.5 26.4 32.0 30.5 28.9 25.3

Preliminary.

2

23.5 25.6 24.7 24.0 21.1 23.2 25.7 26.4

Estimate.

150.4 105.1 110.5 50.8 70.1 178.2 154.6 123.9 3

Forecast.

28.1 27.2 29.6 31.2 31.4 33.1 32.8 33.0

76.8 23.4 13.3 6.6 16.6 49.1 40.7 55.0

169.9 189.3 212.5 218.1 220.1 244.8 248.7 250.0

573.5 507.1 549.1 486.0 531.7 716.6 711.9 685.3

6.3 8.8 6.3 9.5 10.6 9.7 9.1 8.3

Preliminary.

184

172.5 122.4 101.0 33.0 42.9 197.0 114.7 152.8

99.0 25.8 77.5 37.3 60.8 55.9 88.4 63.1

572.9 496.9 543.8 470.8 533.7 715.4 704.7 695.0

In Thousands of Metric Tons

------------------------------------------ Consumption ------------------------------------------ ------------------------------------- Ending Stocks ------------------------------------United World World Brazil Morocco Syria Tunisia Turkey States Total Greece Italy Spain Syria Turkey Total

1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

70.9 95.6 97.9 116.9 118.5 123.3 125.2 93.0

Source: The Oil World

World Consumption and Ending Stocks of Olive Oil (Pressed Oil) Year

141.6 176.8 194.1 199.6 198.3 201.0 218.9 220.4

23.5 25.6 24.7 24.0 21.1 23.2 25.7 26.4 2

62.5 55.7 49.6 61.1 64.2 69.8 62.4 56.2

Estimate.

107.8 99.0 121.6 111.6 117.7 135.0 144.0 130.0 3

Forecast.

64.8 63.3 61.3 38.4 31.7 59.2 59.9 62.2

74.3 76.3 79.9 73.7 91.6 61.8 61.3 55.1

Source: The Oil World

160.9 180.1 205.5 211.5 218.7 225.3 235.4 231.1

2,538.0 2,614.0 2,751.0 2,746.3 2,802.7 2,921.2 2,939.0 2,846.9

132.0 143.0 568.6 708.9 534.0 788.0 934.1 819.5

120.8 177.5 16.0 25.3 19.0 35.0 11.0 9.8

554.0 320.0 97.2 86.5 130.9 93.5 104.7 39.7

46.0 36.6 34.0 3.0 4.6 45.0 10.0 11.0

50.0 9.9 50.0 12.0 47.0 10.0 13.0 17.0

1,033.2 836.4 833.3 893.3 786.6 1,044.6 1,133.3 938.5

Onions Onions are the bulbs of plants in the lily family. Onions can be eaten raw, cooked, pickled, used as a flavoring or seasoning, or dehydrated. Onions rank in the top 10 vegetables produced in the US in terms of dollar value. Since 1629, onions have been cultivated in the US, but are believed to be indigenous to Asia.

February, rallied to $20.30 in July, but then faded after that to close 2006 at $16.50. Supply – US production in 2005 fell –11.5% to 7.350 billion pounds from the 2004 record high of 8.307 billion pounds. The farm value of the US production crop in 2005 was $849 million, down from the record high of $929 million in 2003. US farmers harvested 165,280 acres in 2005, down –2.3% from 2004. The yield per acre in 2005 was 445 pounds per acre.

The two main types of onions produced in the US are yellow and white onions. Yellow varieties comprise approximately 75% of all onions grown for bulb production in the US. Onions that are planted as a winter crop in warm areas are milder in taste and odor than onions planted during the summer in cooler regions.

Demand – US per capita consumption of onions in 2005 fell to 22.2 pounds from 23.1 pounds in 2004. Trade – US exports of fresh onions in 2005 totaled 668 million pounds, and imports were not far behind at 659 million pounds.

Prices – Onion prices in 2006 averaged $13.10 per hundred pounds, up +5.6% from $12.40 in 2004. Onion prices were weak in early 2006 reaching a low of $8.04 in

Salient Statistics of Onions in the United States Crop Year

2001 2002 2003 2004 20051 20062 1

Harvested Acres

Yield Per Acre

Production 1,000 Cwt.

164,990 162,720 160,090 169,150 165,220 162,980

419 429 442 491 445 440

69,961 69,844 73,636 83,065 73,504 71,648

Preliminary.

2

Forecast.

3

Price Per Cwt.

Farm Value $1,000

11.40 12.10 13.70 9.06 12.40 13.10

680,350 764,994 929,274 671,626 848,798 867,744

I ncludes fresh and processing.

Production of Onions in the United States Year

2001 2002 2003 2004 2005 20061 1

Per Capita3 Annual Jan. 1 Utiliz ation P a ck Imports Exports Imports P a ck Frozen Canned (Fresh) (Fresh) -- Lbs., Farm Weight -Frozen ---------------------- In Millions of Pounds ----------------------All Fresh

54.9 29.9 39.5 38.6 39.9 48.1

142.6 387.1 309.6 218.2

5.0 7.1 10.3 10.5 22.9

708.2 637.1 679.0 624.5 667.8

1,290 690 750 800 920 490

2,666 2,708 3,675 3,586 3,800 3,279

4,615 4,725 3,520 3,875 4,650 4,104

11,136 9,561 10,133 12,031 11,575 11,128

12,069 11,562 14,700 13,200 12,240 13,515

Year

18.5 19.3 19.5 21.6 21.2 20.6

Source: Economic Research Service, U.S. Department of Agiculture (ERS-USDA)

In Thousands of Hundredweight (Cwt.)

4,140 4,400 3,696 5,500 4,180 3,581

4,992 6,272 5,880 8,008 6,080 5,076

999 897 1,152 986 754 650

73 78 65 ----------

-------------------

4,224 2,829 3,808 5,200 3,808 3,861

7,006 7,800 7,198 8,658 7,360 6,136

-------------------

56,517 60,283 63,230 71,034 61,929 60,520

Grand Total

67,653 69,844 73,363 83,065 73,504 71,648

Source: Agricultural Statistics Board, U.S. Department of Agiculture (ASB-USDA)

Cold Storage Stocks of Froz en Onions in the United States, on First of Month

1

19.5 20.4 21.3 23.1 22.2 21.8

--------------------- Spring --------------------- ------------------------------------------------------------ Summer ------------------------------------------------------------------Total MinneNew New Oregon Total Arizona California Texas (All) California Colorado Idaho Michigan sota Mexico York (Malheur) Texas (All)

Preliminary.

2001 2002 2003 2004 2005 20061

632.6 595.8 646.1 689.3 659.2

In Thousands of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

40,420 29,893 39,480 38,632 39,865 48,106

39,722 33,646 39,764 32,515 40,428 52,207

39,407 34,851 43,624 34,080 44,191 55,182

36,925 35,477 37,569 36,724 48,695 54,680

36,503 40,789 35,625 39,364 50,579 54,276

38,705 41,066 35,617 41,525 47,418 53,341

38,275 40,762 36,529 37,408 45,605 45,724

29,993 33,370 35,590 34,845 47,231 43,707

28,912 36,895 35,907 34,888 44,834 47,176

26,133 36,120 33,844 35,826 40,718 47,636

27,726 39,796 38,693 38,098 43,751 50,175

28,987 39,310 39,467 39,789 45,690 48,731

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agiculture (NASS-USDA)

Average Price Received by Grow ers for Onions in the United States In Dollars Per Hundred Pounds (Cwt.) Year

2001 2002 2003 2004 2005 20061 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

11.40 9.48 12.30 18.20 6.29 11.70

10.60 8.27 14.90 21.30 5.61 8.04

10.70 6.92 21.80 12.80 6.13 9.89

12.80 16.20 39.30 20.80 18.20 9.81

15.50 16.10 32.00 18.10 19.70 13.40

15.30 15.60 22.10 16.50 17.80 17.10

15.50 15.10 16.70 16.40 14.00 20.30

12.30 12.20 13.80 13.40 11.10 15.40

10.70 10.00 12.20 11.30 13.10 13.60

9.20 9.61 12.60 9.22 12.90 12.20

7.41 9.79 13.90 9.01 14.00 12.40

9.35 11.50 12.70 8.58 12.30 16.50

Preliminary.

S e a so n Average

11.40 12.10 13.70 9.06 12.40

Source: Economic Research Service, U.S. Department of Agiculture (ERS-USDA)

185

Oranges and Orange Juice The orange tree is a semi-tropical, non-deciduous tree, and the fruit is technically a hesperidium, a kind of berry. The three major varieties of oranges include the sweet orange, the sour orange, and the mandarin orange (or tangerine). In the US, only sweet oranges are grown commercially. Those include Hamlin, Jaffa, navel, Pineapple, blood orange, and Valencia. Sour oranges are mainly used in marmalade and in liqueurs such as triple sec and curacao. Frozen Concentrated Orange Juice (FCOJ) was developed in 1945, which led to oranges becoming the main fruit crop in the US. The world’s largest producer of orange juice is Brazil, followed by Florida. Two to four mediumsized oranges will produce about 1 cup of juice, and modern mechanical extractors can remove the juice from 400 to 700 oranges per minute. Before juice extraction, orange oil is recovered from the peel. Approximately 50% of the orange weight is juice, the remainder is peel, pulp, and seeds, which are dried to produce nutritious cattle feed. The US marketing year for oranges begins December 1 of the first year shown (e.g., the 2005-06 marketing year extends from December 1, 2005 to November 30, 2006). Orange juice futures prices are subject to upward spikes during the US hurricane season (officially June 1 to November 30), and the Florida freeze season (late-November through March). Frozen concentrated orange juice future and options

are traded on the NYCE division of the New York Board of Trade (NYBOT). The NYCE orange juice futures contract calls for the delivery of 15,000 pounds of orange solids and is priced in terms of cents per pound. Prices – NYCE orange juice futures prices in 2006 rallied sharply to extend the 2004-07 rally to a total of 286% and close 2006 up +61% yr/yr at 201.25 cents per pound. OJ prices in February 2007 posted a new 30-year high of 209.50 cents, which was just slightly below the record high of 220 cents per pound posted in November 1977. Bullish factors in 2006 included (1) lasting hurricane damage to orange groves from the 2004 and 2005 seasons which caused a –10.8% yr/yr decline in the 2006-07 Florida orange crop even without any hurricanes in 2006, (2) citrus canker and greening disease, and (3) urban sprawl which is reducing the size of Florida’s orange groves. The Florida OJ crop for three straight years has been less than half the average crop size seen during 1994-2003. Supply – World production of oranges in the 2005-06 marketing year rose +3.5% yr/yr to 47.048 million metric tons, but still below the record level of 50.755 million metric tons seen in 2003-04. The world’s largest producers of oranges are Brazil with 39% of world production, followed by the US (17%), and Mexico (8%). US production of oranges in 2005-06 fell –4.2% yr/yr to 207.450 million boxes from 216.500 million boxes in 2004-05. (1 box equals 90 lbs.) Florida’s production in 2005-06 fell –1.3% yr/yr to 147.9 million boxes from 149.8 million boxes in 2004-05.

World Production of Oranges

In Thousands of Metric Tons

Year

Argentina

Australia

Brazil

Egypt

Greece

Italy

Mexico

Morocco

South Africa

Spain

Turkey

United States

World Total

841 921 660 789 913 780 700 750 770 700

556 448 515 624 437 633 407 453 547 450

18,972 15,912 18,360 17,136 14,729 18,360 15,382 19,054 16,565 18,523

1,613 1,350 1,442 1,637 1,610 1,696 1,734 1,740 1,775 1,789

946 987 795 1,040 976 1,076 1,145 550 764 962

2,100 2,100 1,422 1,750 1,800 1,724 1,723 1,835 1,997 2,230

3,917 3,331 2,903 3,385 3,885 4,020 3,734 3,901 4,000 3,800

774 1,131 900 845 693 720 800 705 813 810

895 961 1,048 1,119 1,119 1,263 1,148 1,113 1,144 1,210

2,200 2,744 2,442 2,828 2,688 2,822 2,950 3,052 2,691 2,260

890 740 970 1,100 1,070 1,250 1,250 1,250 1,300 1,300

11,618 12,495 8,989 11,875 11,139 11,290 10,527 11,734 8,420 8,101

48,438 46,282 43,961 48,286 44,588 49,828 45,775 50,755 45,469 47,048

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

Preliminary.

2

Estimate.

3

Forecast.

NA = Not available.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Salient Statistics of Oranges & Orange Juice in the United States Froz en Concentrated ----------- Florida Crop Processed ----------- --------------- Orange Juice - Florida --------------------------- Production4 -------------

Year

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063

Total California Florida U.S. ------------ Million Boxes ------------

64.0 69.0 36.0 64.0 54.5 51.5 62.0 50.5 64.5 57.5

226.2 244.0 186.0 233.0 223.3 230.0 203.0 242.0 149.8 147.9

293.0 315.5 224.6 299.8 280.9 283.8 267.0 294.6 216.5 207.5

Farm Price $ P er B ox

Farm Value Million $

6.16 6.13 7.41 5.56 5.88 6.37 5.80 5.88 6.68 8.44

1,836.7 1,965.4 1,687.9 1,666.1 1,682.8 1,846.2 1,564.7 1,774.5 1,475.4 1,766.3

Yield Total Total Frozen Pro- Per Box S e a so n ConcenChilled Total cessed Gallons5 Carry-in P a ck trates Products Supply Movement ------------------- Million Boxes ------------------- ----- In Millions of Gallons (42 Deg. Brix) -----

153.8 160.9 97.2 134.2 124.1 136.0 102.1 139.7 54.3 51.9

65.7 74.8 80.1 90.1 89.6 85.9 92.5 93.4 88.5 88.7

220.4 236.6 175.1 226.7 215.9 223.2 196.0 233.6 143.9 141.9

1.6 1.6 1.6 1.5 1.6 1.6 1.5 1.6 1.6 1.6

Preliminary. 2 Estimate. 3 Forecast. 4 Fruit ripened on trees, but destroyed prior to picking not included. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA); Florida Department of Citrus

1

186

41.2 69.7 104.7 105.2 112.6 128.3 120.2 124.0 151.8 5

289.6 290.2 216.9 254.0 245.2 253.2 203.3 249.7 86.3

342.9 359.9 321.6 359.2 357.8 381.5 323.5 373.7 238.1

42 deg. Brix equivalent.

273.9 263.8 209.1 239.7 226.0 249.9 200.1 213.8 175.2

ORANGES AND ORANGE JUICE

Average Open Interest of Froz en Concentrated Orange Juice Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

29,171 38,885 25,917 23,727 28,852 15,716 25,080 36,079 33,821 30,485

26,929 37,893 28,965 24,647 28,011 16,593 26,588 35,325 33,619 35,479

26,331 36,843 28,707 19,684 28,073 18,515 22,707 32,806 30,008 36,603

28,955 33,146 31,199 22,475 27,794 22,328 21,466 36,112 32,523 36,617

29,868 35,749 26,669 23,456 24,199 23,498 20,634 34,704 26,171 34,418

33,639 32,608 28,362 27,087 24,428 26,581 23,794 42,299 28,730 29,180

31,799 25,503 28,087 27,386 22,591 28,137 25,467 39,970 32,221 27,169

34,339 26,394 30,021 30,272 22,073 33,206 26,518 38,259 29,034 29,872

36,057 28,017 28,922 30,090 17,789 27,323 27,788 39,877 23,603 29,515

40,365 26,506 27,498 32,328 18,026 23,758 30,767 38,990 28,602 30,852

41,811 21,984 26,893 30,192 21,506 22,651 31,575 33,342 34,966 29,873

46,169 24,562 25,887 30,757 19,275 23,461 36,336 36,072 35,795 28,342

Source: New York Board of Trade (NYBOT)

Volume of Trading of Froz en Concentrated Orange Juice Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

84,982 96,020 64,149 45,680 46,655 31,709 45,945 52,908 54,140 65,978

89,875 81,554 92,868 78,532 66,561 50,898 63,224 86,600 85,349 98,034

Mar.

Apr.

66,340 82,772 66,235 101,651 40,027 92,522 33,617 71,024 27,994 63,012 30,316 58,644 23,926 70,846 41,941 99,532 57,557 87,595 82,293 92,312

May

June

July

Aug.

62,890 78,690 47,242 118,286 70,909 79,319 48,844 85,544 49,180 78,627 48,177 99,531 50,475 80,372 46,548 67,312 38,447 66,773 40,870 64,860 37,283 52,238 45,316 78,111 35,791 64,209 27,056 73,792 45,741 123,815 105,220 118,021 40,785 94,913 61,610 92,195 73,517 87,429 63,429 84,160

Sept.

In Contracts Oct.

Nov.

D e c.

Total

55,081 108,413 100,941 134,349 1,029,861 81,187 98,639 29,541 75,171 914,614 49,323 71,914 42,532 68,734 797,584 38,485 64,831 45,966 89,362 712,204 22,246 68,364 23,376 48,338 577,496 36,053 71,635 24,111 61,443 577,757 40,782 87,055 42,084 78,005 652,715 65,655 89,064 56,502 85,438 970,437 46,868 117,355 50,098 113,574 902,039 50,871 95,955 54,975 74,743 923,696

Source: New York Board of Trade (NYBOT)

187

ORANGES AND ORANGE JUICE Cold Storage Stocks of Orange Juice Concentrate2 in the U.S., on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

1,069.4 1,503.4 1,791.9 1,330.7 1,382.0 1,571.7 1,673.6 1,585.8 1,468.8 1,044.7

1,522.6 1,945.9 1,999.4 1,540.6 1,610.8 1,721.3 1,851.9 1,613.0 1,553.8 1,065.9

1,677.6 2,029.7 2,204.2 1,632.7 1,825.1 1,770.9 1,833.4 1,646.1 1,578.9 1,076.8

1,752.9 2,025.0 2,191.3 1,857.9 1,735.5 1,794.4 1,856.6 1,790.5 1,578.2 1,005.7

1,993.4 2,487.0 2,485.7 1,812.5 1,872.2 1,886.0 1,936.8 1,987.6 1,652.4 1,087.5

2,176.0 2,627.5 2,115.6 1,965.6 2,061.8 1,982.8 2,102.6 2,128.7 1,668.1 1,157.7

1,977.7 2,457.7 1,969.7 2,037.9 2,035.6 1,934.0 2,021.2 2,075.7 1,548.8 1,104.2

1,761.8 2,249.0 1,823.0 1,843.7 1,913.2 1,870.9 1,848.9 1,953.4 1,501.6 1,002.6

1,571.8 2,025.1 1,618.5 1,457.7 1,691.1 1,680.9 1,672.2 1,823.3 1,397.3 888.8

1,287.8 1,803.9 1,443.4 1,346.6 1,537.7 1,543.6 1,529.9 1,644.2 1,243.3 776.0

1,140.9 1,470.7 1,182.0 1,169.4 1,398.9 1,409.6 1,335.6 1,516.8 1,139.9 714.3

1,214.4 1,540.2 1,102.7 1,202.0 1,406.7 1,471.2 1,428.5 1,458.0 1,027.5 650.3

Preliminary. 2 Adjusted to 42.0 degrees Brix equivalent (9.896 pounds per gallon). Agriculture (ASB-USDA)

1

Producer Price Index of Froz en Orange Juice Concentrate Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Source: Agricultural Statistics Board, U.S. Department of

1982 = 100

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

106.9 94.9 119.7 110.0 98.9 103.0 110.2 103.4 103.3 138.3

106.9 101.2 118.6 108.9 99.2 102.9 110.2 103.2 103.3 142.1

106.0 104.1 118.0 108.0 98.3 103.1 110.7 102.7 105.0 150.1

107.6 103.2 115.5 107.1 96.8 102.9 110.4 101.6 109.0 160.9

107.7 108.8 113.3 106.9 96.8 102.8 108.5 101.6 109.0 161.0

107.3 109.1 113.2 106.6 97.4 103.2 109.4 101.6 109.0 164.1

105.3 109.5 112.5 105.4 97.3 103.2 109.1 98.9 109.3 172.3

105.8 109.6 111.3 104.8 97.2 103.5 108.9 98.9 109.3 174.8

102.7 109.5 112.4 101.5 97.3 107.4 107.1 98.9 108.1 185.4

101.4 110.2 112.5 100.4 97.3 107.4 106.6 98.9 107.9 185.4

95.0 119.1 113.1 99.8 99.6 109.7 105.1 103.3 108.4 NA

94.2 121.2 112.4 99.1 102.5 110.2 103.0 103.3 126.4 208.7

103.9 108.4 114.4 104.9 98.2 104.9 108.3 101.4 109.0 167.6

Preliminary.

Source: Bureau of Labor Statistics, U.S. Department of Labor (BLS)

Average Price of Oranges (Equivalent On-Tree) Received by Grow ers in the U.S. Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

188

In Millions of Pounds

Jan.

In Dollars Per Box

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

3.59 3.14 4.52 3.35 2.85 3.75 3.00 2.45 3.39 5.16

3.67 3.55 4.99 3.18 3.20 4.05 3.14 3.02 3.69 5.27

4.82 5.05 5.90 3.24 4.93 4.64 4.17 3.68 4.84 5.70

4.68 5.44 5.96 4.20 4.84 4.65 4.43 3.68 4.80 6.27

4.74 5.70 6.48 4.39 4.64 4.47 4.43 3.60 5.11 6.81

4.62 6.05 8.04 4.34 4.47 4.00 4.41 4.13 5.43 8.21

6.48 6.77 8.58 2.45 4.63 4.06 3.91 8.85 6.55 6.86

7.45 5.56 6.66 0.35 5.01 6.61 4.27 8.49 4.90 12.03

7.15 5.64 9.96 0.29 6.20 5.33 2.80 15.85 4.29 14.48

4.48 5.98 9.50 1.43 4.99 5.18 2.78 20.87 4.04 16.28

3.09 5.03 4.70 3.20 2.90 3.11 2.32 5.34 5.90 7.94

3.14 4.82 3.42 2.95 3.20 3.23 2.55 3.27 4.46 7.47

4.83 5.23 6.56 2.78 4.32 4.42 3.52 6.94 4.78 8.54

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Palm Oil Palm oil is an edible vegetable oil produced from the flesh of the fruit of the oil palm tree. The oil palm tree is a tropical palm tree that is a native of the west coast of Africa and is different from the coconut palm tree. The fruit of the oil palm tree is reddish, about the size of a large plum, and grows in large bunches. A single seed, the palm kernel, is contained in each fruit. Oil is extracted from both the pulp of the fruit (becoming palm oil) and the kernel (palm kernel oil). About 1 metric ton of palm kernel oil is obtained for every 10 metric tons of palm oil. Palm oil is commercially used in soap, ointments, cosmetics, detergents, and machinery lubricants. It is also used worldwide as cooking oil, shortening, and margarine. Palm kernel oil is a lighter oil and is used exclusively for food use. Crude palm oil and crude palm kernel oil are traded on the Kuala Lumpur Commodity Exchange. Prices – The monthly average wholesale price of palm oil (CIF, bulk, US ports) in 2005 fell by –13.7% yr/yr to 29.43 cents per pound. That was down from the record high of 34.09 cents per pound posted in 2004. Supply – World production of palm oil in the 2005-06 marketing year rose by +5.5% to 35.160 million metric tons.

World Production of Palm Oil Crop Year

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063 1

Preliminary.

World palm oil production has grown by almost 17 times from the production level of 1.922 million metric tons seen back in 1970. Malaysia and Indonesia are the world’s two major global producers of palm oil. Malaysian production in 2005-06 rose +0.4% to 15.260 million metric tons and Malaysian production accounted for 43% of world production. Indonesian production rose +11.4% to 14.980 million metric tons in 2005-06 and Indonesian production also accounted for 43% of world production. Other smaller global producers include Nigeria with 2.3% of world production, Thailand (2.02%), and Columbia with (1.9%). Demand – US total disappearance of palm oil in 200405 (latest data available) rose +39.1% yr/yr to 316.300 metric tons from 227,400 metric tons in 2003-04. Trade – World palm oil exports in 2005-06 rose by 6.1% to 27.730 million metric tons, which was a new record high. The world’s largest exporters are Malaysia with a 49% share of world exports, followed by Indonesia with a 41% share. The world’s largest importers are China with an 18% share of world imports, followed by India (10%), Pakistan (6%), the Netherlands (6%), UK (3%), and Germany (3%).

In Thousands of Metric Tons

Brazil

Cameroon

Colombi a

Costa Rica

Ecuador

Ghana

Indonesia

Ivory C o a st

Malaysi a

Nigeria

Papua/N Guinea

Thailand

World Total

90 88 91 105 109 115 128 138 155 171

161 140 133 136 138 143 142 145 152 159

440 439 466 513 561 517 537 614 647 684

97 108 117 136 147 131 148 179 190 220

200 205 247 228 199 231 265 272 316 346

83 107 110 109 108 109 111 110 116 120

5,078 5,320 6,011 6,855 7,775 9,060 10,370 11,970 13,450 14,980

258 270 265 283 211 239 224 249 273 270

9,000 8,509 9,759 10,492 11,940 11,856 13,180 13,418 15,195 15,260

678 688 713 735 763 774 782 789 798 815

248 206 257 300 334 338 310 344 330 335

438 469 540 533 601 606 630 664 680 715

17,569 17,305 19,501 21,266 23,773 25,021 27,752 29,877 33,328 35,160

2

Estimate.

3

Forecast.

World Trade of Palm Oil

Source: The Oil World

In Thousands of Metric Tons

Crop Year

---------------------------------------------- Imports ---------------------------------------------- ----------------------------------------- Exports ----------------------------------------NetherUnited World Hong IndoMalay- Papua/N SingaWorld China Germany India lands Pakistan Kingdom Total Kong nesia si a Guinea pore Total

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063

1,851 1,490 1,433 1,474 2,147 2,600 3,167 3,570 4,319 4,950

1

Preliminary.

2

Estimate.

498 370 406 431 497 592 562 646 766 810 3

1,300 1,684 2,762 3,482 3,856 3,233 4,110 3,574 3,342 2,900

Forecast.

649 670 738 780 907 1,101 1,132 1,174 1,438 1,525

1,020 1,210 1,053 1,086 1,191 1,333 1,442 1,405 1,683 1,700

516 457 528 558 607 721 776 819 869 910

11,751 11,971 12,977 14,759 17,356 18,708 21,572 23,420 25,943 27,604

145 120 113 130 180 302 209 154 63 27

2,419 2,459 3,219 3,898 4,617 6,094 7,167 8,706 9,862 11,300

7,794 7,847 8,482 9,051 10,707 10,758 12,133 12,186 13,585 13,680

203 207 248 292 334 332 329 336 322 324

829 253 289 251 228 217 253 227 223 232

11,974 11,795 13,246 14,628 17,340 18,943 21,584 23,459 26,140 27,730

Source: The Oil World

189

PALM OIL Supply and Distribution of Palm Oil in the United States

Year Beginning Oct. 1

Stocks Oct. 1

Imports

Total Supply

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-041 2004-052 2005-063

14.0 21.4 16.1 21.1 25.7 27.5 24.1 22.1 64.0 76.4

146.4 128.0 128.8 156.6 175.5 218.7 189.3 282.5 345.5 460.0

160.4 149.4 144.9 177.7 201.2 246.2 213.4 304.6 409.5 536.4

In Thousands of Metric Tons

------------- Consumption ------------Edible Inedible Total End Products Products Products ------- In Millions of Pounds -------

W W W W W W W 51.9 62.3 436.4

91.8 93.8 72.4 55.0 36.0 22.6 W 37.5 W W

W W W W W 75.1 76.7 67.9 62.3 436.4

Total D i sa p pearance

Exports

134.8 128.8 118.6 148.5 167.7 215.9 183.2 227.4 316.3 430.0

4.2 4.4 5.2 3.4 6.0 6.2 8.1 13.1 16.8 24.4

---------------------- Prices ----------------------Palm Kernal U.S. Malaysia, Oil, Malaysia, Import F.O.B., Value4 RBD C.I.F. Rotterdam ----------- U.S. $ Per Metric Ton -----------

432 464

544 640 514 338 272 359 428 489 420 438

680 653 708 533 313 379 439 619 638 597

Preliminary. 2 Estimate. 3 Forecast. 4 Market value in the foreign country, excluding import duties, ocean freight and marine insurance. Sources: The Oil World; Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Average Wholesale Palm Oil Prices, CIF, Bulk, U.S. Ports Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

27.08 28.68 29.30 31.06 18.65 18.05 17.75 31.75 34.00 28.20

26.52 29.25 29.59 28.58 17.66 18.05 17.06 31.75 35.38 28.00

26.33 28.00 30.53 25.52 17.73 13.50 17.30 31.35 35.25 28.67

27.52 28.18 32.10 25.52 18.21 13.50 17.75 31.25 36.40 30.00

28.57 28.93 31.11 24.50 18.12 12.50 18.85 31.25 36.50 30.00

25.43 27.25 31.42 21.30 16.52 13.00 21.44 31.75 36.50 30.00

24.78 26.17 32.33 18.15 16.85 15.50 20.50 32.25 36.50 30.00

24.46 25.55 33.14 18.70 16.23 18.00 21.85 32.25 36.50 30.00

27.24 25.37 33.14 21.00 15.90 16.75 32.00 32.25 34.00 30.00

26.13 27.33 33.06 20.00 13.19 15.60 31.75 32.25 30.00 30.00

26.95 27.28 33.30 20.00 13.56 16.85 31.75 32.44 29.00 29.25

27.45 25.05 34.00 20.00 12.75 17.45 31.75 33.75 29.00 29.00

26.54 27.25 31.92 22.86 16.28 15.73 23.31 32.02 34.09 29.43

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

190

In Cents Per Pound

Jan.

Paper The earliest known paper that is still in existence was made from cotton rags around 150 AD. Around 800 AD, paper made its appearance in Egypt but was not manufactured there until 900 AD. The Moors introduced the use of paper to Europe, and around 1150, the first papermaking mill was established in Spain, followed by England in 1495, and the US in 1690.

Prices – The average monthly index price for paperboard in 2006 rose 9.3% yr/yr to 191.9, continuing to recover from the 5-year low of 162.7 posted in 2003. The average monthly producer price index of standard newsprint paper in 2006 rose by +10.0% to 152.4, continuing the upward rebound from the 20-year low of 105.7 posted in 2002.

During the 17th and 18th centuries, the increased usage of paper created a shortage of cotton rags, which were the only source for papermaking. The solution to this problem lead to the introduction of the ground-wood process of pulpmaking in 1840 and the first chemical pulp process 10 years later.

Supply – US production of paper and paperboard in 2005 fell slightly by –0.8% yr/yr to 81.437 million metric tons. The US is the world’s largest producer of paper and paperboard by far, followed by Germany with 21.679 million metric tons and Canada with 19.673 million metric tons.

Today, the paper and paperboard industries, including newsprint, are sensitive to the economic cycle. As the economy strengthens, paper use increases, and vice versa.

US production of newsprint fell by –2.4% yr/yr to a record low of 416.6 metric tons per month in 2005. US production of newsprint is second in the world, after Canada, which had production of 657.200 metric tons per month in 2005.

Production of Paper and Paperboard by Selected Countries Year

Austria

Canada

Finland

France

Germany

Italy

Netherlands

2000 2001 2002 2003 2004 2005 1

4,386 4,250 4,419 4,565 4,852 4,950

20,921 19,834 20,226 20,120 20,599 19,673

13,509 12,502 12,789 13,058 14,036 12,391

10,006 9,625 9,809 9,939 10,255 10,332

18,182 17,879 18,526 19,310 20,391 21,679

9,129 8,926 9,317 9,491 9,667 9,999

3,332 3,174 3,346 3,339 3,459 3,471

1

Preliminary.

In Thousands of Metric Tons Norway

Russia

Spain

Sweden

United Kingdom

United States

2,300 2,220 2,114 2,186 2,294 2,223

5,310 5,625 5,978 6,377 6,830 7,024

4,765 5,131 5,365 5,437 5,526 5,697

10,786 10,534 10,724 11,062 11,589 11,736

6,605 6,434 6,452 6,455 6,442 6,235

86,252 81,249 81,879 80,712 82,084 81,437

Source: Food and Agriculture Organization of the United Nations (FAO-UN)

Production of New sprint by Selected Countries (Monthly Average) Year

Australia

Brazil

Canada

China

Finland

France

Germany

India

Ja p a n

Rep. of Korea

Russia

Sweden

31.8 32.7 32.3 34.0 35.2

22.2 19.4 20.6 13.6 11.1 11.1 10.9

768.5 697.7 671.4 673.3 648.0 657.2

121.0 127.4 156.0 170.9 248.4 283.2 325.4

116.1 106.5 87.3 78.9 60.2 47.9

86.6 86.0 82.0 60.0 93.8 95.7

150.5 170.5 173.5 178.1 185.9 226.0

48.9 53.0 49.6 58.2 58.1 71.8 84.8

284.9 288.7 299.7 292.9 307.6 310.0 318.5

151.5 136.6 137.9 133.3 145.4 135.8 138.6

141.2 144.3 142.8 151.2 164.8 167.3 169.2

211.5 205.3 202.0 210.7 220.8 213.0 211.5

2000 2001 2002 2003 2004 2005 1 20062 1

Preliminary.

2

Estimate.

Year

1

1982 = 100

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

163.1 179.4 165.0 166.8 157.8 179.7 175.3

163.6 176.6 164.0 166.5 157.4 180.0 184.0

173.6 175.8 162.6 164.4 157.5 180.1 184.3

176.6 175.2 162.8 163.5 162.2 180.7 184.3

180.4 174.1 161.1 163.6 165.5 180.9 193.7

180.3 172.4 161.1 163.4 170.0 176.6 196.7

180.9 172.3 161.8 162.5 175.2 174.6 196.8

181.2 169.8 165.8 162.5 178.5 168.5 197.2

180.9 169.0 166.7 160.5 179.2 168.5 197.5

180.4 167.1 167.1 159.9 179.4 168.6 197.9

180.2 166.8 167.3 159.6 180.1 174.1 197.3

179.5 167.0 166.6 159.7 179.3 173.9 197.2

176.7 172.1 164.3 162.7 170.2 175.5 191.9

Source: Bureau of Labor Statistics, U.S. Department of Commerce (BLS) (0914)

Producer Price Index of Standard New sprint Year

1

547.5 480.8 437.4 429.2 424.7 414.6

Jan.

Preliminary.

2000 2001 2002 2003 2004 2005 2006 1

United States

Source: United Nations

Index Price of Paperboard 2000 2001 2002 2003 2004 2005 2006 1

In Thousands of Metric Tons

1982 = 100

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

117.2 140.6 113.6 106.1 116.5 130.3 148.8

116.8 141.4 106.2 107.4 116.7 131.9 148.0

116.5 143.0 106.5 106.3 118.8 131.6 150.5

118.3 150.9 105.7 110.2 122.4 132.8 149.8

123.1 146.8 98.9 112.6 125.0 133.2 152.0

127.1 148.5 100.5 112.5 126.0 135.9 153.7

127.6 146.6 101.0 111.0 125.6 138.8 154.3

130.7 142.4 101.8 114.3 125.7 141.4 153.3

131.5 134.5 104.7 116.8 125.8 152.2 153.9

139.4 130.1 112.2 118.1 129.5 143.5 153.2

141.2 121.6 109.6 114.6 129.8 144.9 152.3

140.5 117.3 107.9 115.0 132.4 145.6 158.4

127.5 138.6 105.7 112.1 124.5 138.5 152.4

Preliminary.

NA = Not available.

Source: Bureau of Labor Statistics, U.S. Department of Commerce (BLS) (0913-02)

191

Peanuts and Peanut Oil Peanuts are the edible seeds of a plant from the pea family. Although called a nut, the peanut is actually a legume. Ancient South American Inca Indians were the first to grind peanuts to make peanut butter. Peanuts originated in Brazil and were later brought to the US via Africa. The first major use of peanuts was as feed for pigs. It wasn’t until the Civil War that peanuts were used as human food when both Northern and Southern troops used the peanut as a food source during hard times. In 1903, Dr. George Washington Carver, a talented botanist who is considered the “father of commercial peanuts,” introduced peanuts as a rotation crop in cotton-growing areas. Carver discovered over 300 uses for the peanut including shaving cream, leather dye, coffee, ink, cheese, and shampoo. Peanuts come in many varieties, but there are four basic types grown in the US: Runner, Spanish, Valencia, and Virginia. Over half of Runner peanuts are used to make peanut butter. Spanish peanuts are primarily used to make candies and peanut oil. Valencia peanuts are the sweetest of the four types. Virginia peanuts are mainly roasted and sold in and out of the shell. Peanut oil is extracted from shelled and crushed peanuts through hydraulic pressing, expelled pressing, or solvent extraction. Crude peanut oil is used as a flavoring agent, salad oil, and cooking oil. Refined, bleached and deodorized peanut oil is used for cooking and in margarines and shortenings. The by-product called press cake is used for cattle feed along with the tops of the plants after the pods are removed. The dry shells can be burned as fuel. Prices – The average monthly price received by farmers for peanuts (in the shell) in the first 7 months of the 200607 marketing year (i.e., Aug 2006-Feb 2007) was unchanged from last year at 17.4 cents per pound. The record high is 34.7 cents posted in 1990-91. The average monthly price of peanut oil in the 2006-07 marketing year (through January 2007) rose +14.9% yr/yr to 51.11 cents per pound. The average monthly price of peanut meal (50% Southeast Mills) fell by –7.3% yr/yr in 2006-07 (through January 2007) to a record low of $98.38 per short ton.

World Production of Peanuts (in the Shell) Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

Preliminary.

192

Argentina

Burma

China

897 486 600 564 517 316 420 585 450 500

559 540 562 634 731 756 878 715 715 720

9,648 11,886 12,639 14,437 14,415 14,818 13,420 14,340 14,340 14,610

2

Estimate.

Supply – World peanut production in 2006-07 fell by – 4.6% yr/yr to 32.303 million metric tons, down from last year’s record high of 33.865. The world’s largest peanut producers are China with 45% of world production, India with 18%, US with 5%, and Nigeria also with 5%. US peanut production in the 2006-07 marketing year fell by –30.8% to 3.372 billion pounds, far below the record high of 4.927 billion pounds posted in 1991-92. US farmers harvested 1.213 million acres of peanuts in 2006-07, down –25.5% yr/yr. That was the lowest level since 1930. US peanut yield in 2006-07 fell –7.0% yr/yr to 2,780 pounds per acre, farther down from the record high of 3,159 pounds seen in 2003-04. The largest peanut producing states in the US are Georgia (with 45% of US production in 2006), Texas (17%), Virginia (15%), Alabama (10%), Florida (9%), and North Carolina (9%). US peanut oil production in 2006 rose +19.3% to 191.804 million pounds, but that was still only about half of the record high level of 358,195 million pounds posted in 1996. Demand – US disposition of peanuts in 2005-06 rose by +7.5% yr/yr to 4.332 billion pounds. Of that disposition, 60% of the peanuts went for food, 15% for crushing into peanut oil, 13% for seed, loss and residual, and 12% for exports. The most popular type of peanut grown in the US is the Runner peanut with 86% of US production in 200506. This was followed by the Virginia peanut with 13% of production and the Spanish peanut far behind with only 2% of production. Peanut butter is a primary use for Runner and Virginia peanuts. It accounts for 55% of Runner peanut usage and 53% of Virginia peanut usage. In a poor third place, only 5% of Spanish peanuts are used for peanut butter. Snack peanuts is also a key usage category and accounts for 40% of Spanish peanut usage, 35% of Virginia peanut usage, and 23% of Runner peanut usage. Candy accounts for 53% of Spanish peanut usage, 22% of Runner peanut usage, and 11% of Virginia peanut usage. Trade – US exports of peanuts in 2005-06 rose by +4.9% yr/yr to 515 million pounds. US imports of peanuts fell by – 45.9% yr/yr in 2005-06 to a 12-year low of 20 million pounds.

In Thousands of Metric Tons

India

Indonesia

Nigeria

Senegal

South Africa

Sudan

Thailand

United States

Zaire

World Total

7,580 7,450 5,500 5,700 7,600 5,400 7,700 7,000 7,200 5,900

990 930 1,020 1,040 1,033 1,086 1,130 1,150 1,170 1,200

1,250 1,430 1,450 1,470 1,490 1,510 1,510 1,520 1,520 1,520

506 541 764 1,003 903 260 445 573 700 700

97 138 165 186 120 60 115 85 93 85

370 370 370 370 370 370 370 370 370 370

130 135 137 132 107 112 113 130 130 130

1,605 1,798 1,737 1,481 1,940 1,506 1,880 1,945 2,209 1,576

400 410 396 382 368 355 360 364 365 365

27,561 29,951 29,417 31,426 33,817 30,841 32,808 33,428 33,865 32,303

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

PEANUTS AND PEANUT OIL Salient Statistics of Peanuts in the United States Crop Year

Acreage Harvested Agreage for Nuts Planted ----- 1,000 Acres -----

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

1,434.0 1,521.0 1,534.5 1,536.8 1,541.2 1,353.0 1,344.0 1,430.0 1,657.0 1,242.0

1

Preliminary.

2

Average Yield Per Acre In Lbs.

Production 1,000 Lbs.

S e a so n Farm Price Cents/Lb.

Farm Value Million Dollars

2,503 2,702 2,667 2,444 3,029 2,571 3,159 3,076 2,989 2,780

3,539,380 3,963,440 3,829,490 3,265,505 4,276,704 3,321,040 4,144,150 4,288,200 4,869,860 3,372,150

28.3 28.4 25.4 27.4 23.4 18.2 19.3 18.9 17.3 17.2

1,002.7 1,125.9 971.6 896.1 1,000.5 599.7 799.4 813.6 843.4 602.1

1,413.8 1,467.0 1,436.0 1,336.0 1,411.9 1,291.7 1,312.0 1,394.0 1,629.0 1,213.0

Estimate.

----- Thousand Pounds (Year Beginning August 1) ----------------- Exports -------------- ------------- Imports ------------Unshelled

Shelled

Unshelled

Shelled

682,000 562,000 727,000 527,000 700,000 490,000 516,000 491,000

455,264 ----------------------

141,000 155,000 178,000 216,000 203,000 75,000 39,000 37,000

101,792 ----------------------

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Supply and Disposition of Peanuts (Farmer's Stock Basis) & Support Program in the United States -------------------------------- Disposition --------------------------- -------- Government Support Program ------------------------------- Supply ------------------------Crop Year

Amount Put Total S eed, ProStocks Crushed Support Addi- --- Under Support --D i sa p L o ss & Total Exports Food pearance duction Imports Aug. 1 fior Oil Residual Price tional Quantity % of Pro-------------------------------------------------- In Millions of Pounds ----------------------------------------------------------- ---- Cents per Lb. ---- Mil. Lbs. duction

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 1

3,539 3,963 3,829 3,266 4,277 3,321 4,144 4,288 4,870

Preliminary.

2

141 155 178 216 203 75 39 37 20

Estimate.

795 848 1,392 1,233 1,097 1,476 875 1,121 1,415

4,475 4,966 5,399 4,715 5,576 4,873 5,058 5,446 6,256

682 562 727 527 700 490 516 491 515

544 460 713 548 693 857 536 393 662

303 374 493 360 482 410 429 547 555

2,099 2,153 2,233 2,184 2,225 2,241 2,456 2,600 2,600

3,627 3,574 4,166 3,618 4,100 3,998 3,937 4,031 4,332

Year

Alabama

Florida

Georgia

New Mexico

1997 1998 1999 2000 2001 2002 2003 2004 2005 2 0 0 61

372,490 432,415 448,050 271,180 532,325 379,800 508,750 557,200 613,250 331,800

228,060 233,100 260,380 213,710 250,100 197,800 345,000 364,000 410,400 288,000

1,333,830 1,511,655 1,400,800 1,328,400 1,711,620 1,313,000 1,863,000 1,817,800 2,130,000 1,523,750

46,710 62,040 61,600 54,990 67,044 54,000 45,900 59,500 66,500 56,000

Preliminary.

6.6 8.8 8.8 6.6 6.6 NA NA NA NA

417 -------------------------

11.8 -------------------------

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Production of Peanuts (Harvested for Nuts) in the United States, by States

1

30.50 30.50 30.50 30.50 30.50 NA NA NA NA

In Thousands of Pounds

North Carolina

Okla homa

South Carolina

Texas

Virgina

Total

329,640 397,155 298,840 338,250 356,475 210,000 320,000 367,500 288,000 289,000

184,800 159,750 189,600 120,600 197,890 159,600 98,000 102,300 107,910 66,000

30,450 28,175 25,300 29,500 30,600 19,140 57,800 112,200 168,000 168,000

822,150 917,900 926,800 698,500 895,900 868,000 810,000 803,700 975,000 555,000

191,250 221,250 218,120 210,375 234,750 119,700 95,700 104,000 66,000 496,000

3,539,380 3,963,440 3,829,490 3,265,505 4,276,704 3,321,040 4,144,150 4,288,200 4,869,860 3,372,150

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

Supply and Reported Uses of Shelled Peanuts and Products in the United States In Thousands of Pounds Shelled Peanuts Crop Year Beginning Aug. 1

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061

Shelled Peanuts

---------------------------------- Reported Used (Shelled Peanuts -- Raw Basis) ----------------------------------C a ke & Shelled Crude Oil Meal Peanuts ProProOil Sandwich Other duction duction Stock2 Candy3 Snacks4 Spread Butter5 Products Total Crushed6

--- Stocks, Aug. 1 --- ------- Production ------- ----------------------------- Edible Grades Used In -----------------------------

Edible

Oil Stock2

Edible

498,954 580,370 855,572 707,672 680,850 504,186 603,529 621,190 501,868

41,000 14,091 16,587 14,463 16,648 24,231 17,686 17,686 15,305

1,694,016 2,227,037 2,157,828 1,939,736 2,090,776 1,983,016 2,439,231 2,357,314 2,411,471

290,882 310,459 448,875 337,324 485,092 611,627 390,893 246,663 357,600

351,017 380,177 354,953 355,610 349,729 354,232 365,983 389,696 376,777

306,908 349,806 394,121 361,516 360,916 344,913 414,588 450,781 454,324

----------------------------

760,230 744,706 772,104 753,239 818,927 828,529 901,637 938,514 974,223

35,471 22,131 20,227 19,998 17,284 24,379 15,930 22,547 12,092

1,453,626 1,496,820 1,541,405 1,490,363 1,546,856 1,552,053 1,698,138 1,801,538 1,817,416

409,249 345,825 536,164 411,558 521,173 644,194 402,958 295,769 407,817

175,853 145,254 228,839 178,523 230,791 285,685 172,977 126,249 181,085

228,276 192,425 291,491 230,099 296,874 356,888 226,995 172,668 232,868

Preliminary. 2 I ncludes straight run oil stock peanuts. 3 I ncludes peanut butter made by manufacturers for own use in candy. 4 Formerly titled Salted Peanuts. 5 I ncludes peanut butter made by manufacturers for own use in cookies and sandwiches, but excludes peanut butter used in candy. 6 All crushings regardless of grade. Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

1

193

PEANUTS AND PEANUT OIL Shelled Peanuts (Raw Basis) Used in Primary Products, by Type

In Thousands of Pounds

Year

------------------------- Virginia ------------------------- ------------------------------ Runner ------------------------------ ------------------------- Spanish ------------------------Snack Peanut Snack Peanut Snack Peanut Peanuts Butter3 Peanuts Butter3 Peanuts Butter3 Candy2 Total Candy2 Total Candy2 Total

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061

48,428 36,178 23,173 19,101 26,640 26,930 23,580 25,466 25,738

80,309 99,401 100,384 100,650 97,046 75,100 68,257 70,216 81,617

59,228 57,864 73,926 102,050 106,573 77,018 88,053 112,027 123,402

182,100 196,935 200,804 225,072 233,356 183,226 181,559 209,411 231,893

302,791 321,838 315,467 320,304 303,668 312,192 328,560 349,437 335,748

206,718 234,486 278,440 247,739 250,079 257,259 333,198 367,671 361,176

676,839 670,705 690,564 643,229 702,454 734,844 805,852 824,876 849,176

1,206,946 1,244,748 1,300,393 1,227,156 1,269,776 1,323,846 1,481,457 1,562,692 1,557,025

19,798 22,161 16,313 16,205 19,421 15,110 13,843 14,793 15,291

19,581 15,919 15,297 13,127 13,791 12,555 13,133 12,894 11,531

24,163 16,137 7,614 7,960 9,900 16,667 7,732 1,611 NA

64,580 55,137 40,208 38,135 43,724 44,981 35,122 29,435 28,498

Preliminary. 2 I ncludes peanut butter made by manufacturers for own use in candy. 3 I ncludes peanut butter made by manufacturers for own use in cookies and sandwiches, but excludes peanut butter used in candy. Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA) 1

Production, Consumption, Stocks and Foreign Trade of Peanut Oil in the U.S. Crop Year Beginning Aug. 1

--------------- Production --------------- -------------- Consumption -------------- -------------- Stocks Dec. 31 -------------

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

Preliminary.

2

Crude

Refined

In Refining

172.9 262.9 222.1 278.5 267.7 180.7 135.7 188.0 184.9

118.3 195.9 206.3 179.1 166.3 115.8 91.0 119.9 119.1

123.7 238.9 258.9 291.9 W W W W W

Forecast.

In End Products

Crude

180.1 260.4 277.3 282.5 277.6 203.8 181.9 152.1 W

47.2 19.7 23.1 8.2 52.9 23.0 40.3 15.4 35.5

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 Preliminary.

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

30.3 9.6 19.5 -------------------

4.3 5.8 5.5 -------------------

In Millions of Pounds

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

19.9 16.0 16.2 35.2 17.3 24.8 21.7 12.6 14.4 W

16.1 14.5 18.2 32.1 15.7 25.5 16.6 15.7 13.1 16.5

18.8 14.3 15.8 27.4 20.1 32.8 19.4 13.0 9.9 W

17.9 13.0 18.2 31.9 15.3 28.5 20.5 14.7 11.3 15.6

13.3 10.8 16.4 30.4 12.4 33.8 20.0 11.8 13.3 18.1

15.9 10.0 20.7 28.0 19.1 24.3 23.2 13.7 14.6 15.6

9.9 9.5 20.8 24.1 16.3 22.6 19.8 10.7 8.9 15.7

12.1 6.3 17.8 28.8 16.7 27.7 17.3 9.8 14.5 19.7

6.1 5.8 16.3 21.5 12.9 27.2 18.3 5.8 11.3 16.2

12.2 6.9 13.5 25.4 17.1 26.5 24.1 10.0 15.3 18.0

11.6 13.6 22.6 16.4 13.8 24.9 15.6 11.9 16.4 14.4

14.0 13.9 22.7 15.2 25.6 20.2 13.2 12.6 17.7 10.1

167.7 134.5 219.2 316.3 202.4 319.0 229.6 142.4 160.8 191.8

Source: Bureau of the Census, U.S. Department of Commerce

In Dollars Per Short Ton

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Average

210.00 161.00 98.00 118.00 115.00 NA 147.10 100.38 105.50 98.50

210.00 100.00 103.00 118.00 111.25 130.00 161.00 99.25 102.50 98.50

210.00 103.75 103.00 118.00 100.00 122.50 163.25 93.50 100.88 98.00

210.00 105.00 104.00 142.50 102.50 118.50 163.35 93.25 NA 98.50

210.00 102.50 104.75 120.00 100.00 114.25 168.75 99.25 114.50

210.00 91.25 110.00 118.00 105.00 124.00 200.40 112.00 113.50

210.00 94.50 115.00 110.75 110.00 125.00 226.00 122.75 113.17

210.00 93.75 115.00 112.50 105.00 135.00 237.50 137.25 113.33

210.00 100.00 119.60 NA NA 135.00 204.00 145.25 107.13

210.00 100.00 118.00 123.50 130.00 135.75 199.33 140.83 107.50

207.50 105.00 118.00 130.50 135.00 130.00 143.33 132.50 100.00

205.00 102.50 118.00 126.25 136.88 130.00 133.00 109.00 98.75

209.60 104.94 108.15 121.64 113.69 127.27 178.92 115.43 106.98 98.38

Preliminary.

194

Exports

3.8 1.7 1.9 1.7 3.5 1.8 2.4 3.7 5.6

Jan.

Average Price of Peanut Meal 50% Southeast Mills Year

Refined

Imports for Consumption

Source: Bureau of the Census, U.S. Department of Commerce

Production of Crude Peanut Oil in the United States

1

In Millions of Pounds

NA = Not available.

Source: Agricultural Marketing Service, U.S. Department of Agriculture (AMS-USDA)

PEANUTS AND PEANUT OIL

-----

Cents Per Pound Received by Farmers, U.S. (Sept. 1930 - date)

Average Price Received by Producers for Peanuts (in the Shell) in the U.S.

In Cents Per Pound

Year

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Average1

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-072

23.3 NQ 25.7 NQ 24.1 NQ NQ 19.0 17.0 17.0

27.1 26.8 27.0 27.7 24.9 17.9 18.3 19.2 17.0 17.3

25.4 26.3 25.4 26.5 22.8 17.9 18.5 20.1 17.4 17.2

25.0 24.6 24.1 26.1 21.0 18.0 18.4 20.3 17.5 17.2

30.7 27.2 21.8 27.3 19.5 17.5 19.6 18.3 17.4 17.6

24.7 NQ 14.9 31.4 13.5 19.1 20.6 18.9 17.3 17.8

NQ NQ NQ NQ 10.7 19.6 18.9 18.6 18.6 17.9

NQ NQ NQ NQ NQ 22.6 18.6 18.5 17.9

NQ NQ NQ NQ NQ 18.4 19.8 18.0 17.4

NQ NQ NQ NQ NQ 19.6 20.6 17.8 17.3

NQ NQ NQ NQ NQ 17.7 20.3 17.6 17.0

NQ NQ NQ NQ NQ NQ 17.4 16.0 17.0

26.0 26.2 23.2 27.8 19.5 18.8 19.2 18.5 17.4 17.4

1 Weighted average by sales. 2 Preliminarly. U.S. Department of Agriculture (NASS-USDA)

NQ = No quote.

Source: National Agricultural Statistics Service,

Average Price of Domestic Crude Peanut Oil (in Tanks) F.O.B. Southeast Mills Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

In Cents Per Pound

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Average

49.63 45.40 40.40 34.63 36.25 NA 61.60 55.00 45.50 52.67

51.00 45.00 41.00 35.50 37.00 42.00 63.25 55.00 45.50 52.50

51.25 44.25 35.40 36.40 37.00 43.67 64.50 55.67 45.00 50.00

51.60 44.00 33.00 37.25 35.00 45.75 65.00 56.00 42.50 49.25

51.00 39.75 32.50 37.00 28.00 46.00 61.67 55.00 42.50

51.00 34.75 31.60 35.90 27.50 47.00 60.00 50.00 42.50

50.00 35.20 33.00 34.00 27.00 50.25 60.00 50.00 42.50

47.20 35.00 36.25 33.00 27.00 52.75 56.50 53.25 42.50

45.50 37.75 36.00 33.00 30.00 56.60 NA 52.50 43.75

44.00 39.00 35.63 33.00 34.00 58.25 56.00 52.38 45.00

43.75 38.75 35.00 34.00 35.20 60.00 53.75 52.25 47.30

43.88 38.00 34.90 34.00 36.25 60.67 55.00 50.06 49.25

48.32 39.74 35.39 34.81 32.52 51.18 59.75 53.09 44.48 51.11

Source: Agricultural Marketing Service, U.S. Department of Agriculture (AMS-USDA)

195

Pepper The pepper plant is a perennial climbing shrub that originated in India and Sri Lanka. Pepper is considered the world’s most important spice and has been used to flavor foods for over 3,000 years. Pepper was once considered so valuable that it was used to ransom Rome from Attila the Hun. Black pepper alone accounts for nearly 35% of the world’s spice trade. Unlike many other popular herbs and spices, pepper can only be cultivated in tropical climates. The pepper plant produces a berry called a peppercorn. Both black and white pepper are obtained from the same plant. The colors of pepper are determined by the maturity of the berry at harvest and by different processing methods. Black pepper is picked when the berries are still green and immature. The peppercorns are then dried in the sun until they turn black. White pepper is picked when the berries are fully ripe and bright red. The red peppercorns are then soaked, washed to remove the skin of the berry, and dried to produce a white to yellowish-white peppercorn. Black pepper has a slightly hotter flavor and stronger aroma than white pepper. Piperine, an alkaloid of pyridine, is the active ingredient in pepper that makes it hot. Black pepper oil is obtained from crushed berries using solvent extraction. Black pepper oil is used in the treatment of pain, chills, flu, muscular aches, and in some perfumes. It is also helpful in promoting digestion in the colon. The world’s key pepper varieties are known by their

place of origin. Popular types of pepper include Lampong Black and Muntok White from Indonesia, Brazilian Black, and Malabar Black and Tellicherry from India. Prices – The average monthly price for black pepper in 2006 rose by +33.1% to 101.1 cents per pound, up sharply from the 13-year low of 75.6 cents per pound in 2004. The average monthly price for white pepper in 2006 rose sharply by +29.6% to 150.3 cents per pound, but that was still only 42% of the record 356.5 cents seen in 1998. Trade – The world’s largest exporters of pepper in 2003 (latest data available) were Vietnam (with 74,100 metric tons of exports), Indonesia (51,546 metric tons), Brazil (38,972 metric tons), Malaysia (18,346 metric tons), and India (15,318 metric tons). US imports of black pepper in 2005 rose +2.4% to a record high of 52,152 metric tons. The primary source of US imports of black pepper was Brazil, which accounted for 27% of US imports, followed by Indonesia with 26%, and India with 7%. Imports from Malaysia have dropped by 90% since 2003. US imports of white pepper in 2005 fell –0.6% to 7,247 metric tons. The primary source of US imports of white pepper was Indonesia, which accounted for 57% of US imports, followed by Brazil with 6%, Singapore with 4%, and Malaysia with 3%.

World Exports of Pepper (Black and White) and Prices in the United States

In Metric Tons

-------- New York Spot Prices (Cents Per Pound) ----------------------------------------------- Exports (In Metric Tons) ---------------------------------------- ------ Indonesian -----IndoMadaMalaySri Lampong Muntok Brazil India nesia g a sca r si a Mexico Lanka Vietnam Black White

Year

1996 1997 1998 1999 2000 2001 2002 2003 1 20041 20051 1

24,178 13,962 17,249 19,617 20,469 36,975 38,230 38,972

Preliminary.

2

47,211 35,403 32,859 35,635 19,125 19,641 21,066 15,319

Extra bold.

36,849 33,386 38,723 36,293 47,502 53,432 63,214 51,546

1,570 894 339 619 588 811 880 863

28,124 29,000 18,717 21,804 23,684 25,537 22,840 18,346

4,200 4,210 3,365 4,026 4,534 4,658 4,344 3,861

2,612 3,485 5,493 3,754 4,855 2,161 7,915 6,676

25,300 24,713 15,000 34,800 36,400 57,000 78,400 74,100

Year

1

114.8 206.7 239.5 254.5 228.1 116.2 92.9 85.8 75.6 76.0

114.8 206.7 239.5 254.5 228.1 116.2 92.9 85.8 75.6 76.0

140.0 225.8 286.6 296.3 282.6 179.3 127.8 128.8 118.8 109.9

In Metric Tons

------------------------------------------ Black Pepper ----------------------------------------------- ------------------------------------- White Pepper ------------------------------------IndoMalaySingaSri IndoMalaySingaBrazil India nesia si a pore Lanka Total Brazil China nesia si a pore Total

4,267 4,328 5,806 7,093 7,853 11,699 11,300 13,792 15,606 13,935

Preliminary.

196

178.9 304.6 356.5 334.9 227.1 132.6 120.6 139.3 120.9 116.0

--------- Indian --------Malabar TelliBlack cherry2

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

United States Imports of Unground Pepper from Specified Countries

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

114.8 206.7 239.5 254.5 228.1 116.2 92.9 85.8 75.6 76.0

Brazilian Black

18,350 23,404 15,540 24,931 10,981 7,998 7,407 4,950 2,039 3,828

17,213 13,610 13,045 8,429 15,713 19,606 13,638 16,370 13,210 13,502

1,084 2,203 422 2,392 4,148 2,957 3,213 1,416 97 144

101 678 185 525 306 508 110 163 25 50

411 285 578 441 516 279 564 504 187 269

41,602 45,319 36,508 47,591 43,539 48,749 50,155 51,124 50,925 52,152

519 75 32 32 15 48 18 198 472 460

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

54 522 108 451 210 7 73 180 98 73

4,370 3,755 4,571 5,202 6,345 5,807 6,559 4,567 4,034 4,134

150 199 195 420 185 120 103 224 192 192

391 750 203 342 215 161 219 904 422 300

5,765 5,751 5,393 6,789 7,311 6,365 7,207 6,758 7,290 7,248

PEPPER

-----

Cents Per Pound Brazilian Black, New York (Dec. 1919 - date)

Average Black Pepper in New York (Braz ilian) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

138.6 199.4 222.5 260.0 157.5 85.0 93.8 78.0 73.0 78.0

151.8 205.5 225.8 256.3 146.3 80.0 89.0 75.5 73.0 78.0

149.0 243.8 252.5 246.0 144.0 81.4 88.5 75.5 73.8 77.8

161.8 262.8 248.0 260.0 150.0 100.5 85.5 75.4 75.2 78.5

173.4 262.8 252.5 265.0 143.8 101.0 83.8 77.3 75.5 80.0

193.8 247.5 250.0 265.0 123.0 92.0 89.0 78.0 77.0 80.4

229.5 253.0 229.0 263.8 97.3 84.8 90.0 76.8 77.0 89.0

255.0 253.8 249.3 252.5 87.0 86.8 86.6 75.0 77.0 112.7

251.3 246.3 263.8 205.0 90.0 93.5 83.5 75.0 77.6 146.0

264.8 243.0 282.0 167.5 89.3 103.5 81.6 74.2 78.0 152.0

266.3 231.3 297.5 147.5 81.6 106.0 80.0 73.3 77.0 139.5

245.0 225.0 281.0 149.0 85.3 100.8 78.0 73.0 77.4

206.7 239.5 254.5 228.1 116.2 92.9 85.8 75.6 76.0 101.1

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Average White Pepper in New York (Indonesian)1 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

256.0 348.0 361.3 295.0 159.0 111.3 152.4 118.0 119.0 115.0

264.5 346.3 355.0 293.8 151.3 100.3 148.8 118.0 118.0 117.5

255.0 362.5 365.0 264.0 144.0 95.6 150.0 125.8 118.0 125.0

250.0 390.0 355.0 253.8 133.8 108.8 150.0 130.0 116.4 125.0

241.0 393.0 352.5 246.3 130.0 108.0 142.6 130.0 115.0 125.0

248.8 358.8 335.0 242.0 127.0 105.0 133.0 125.0 115.0 126.2

280.3 354.0 310.0 226.3 122.5 104.5 133.0 127.0 115.0 145.0

324.0 356.3 313.8 227.5 129.6 118.8 138.2 120.5 115.0 160.0

332.5 348.8 325.0 205.0 128.0 130.0 137.5 119.0 115.2 210.0

362.0 340.0 327.0 171.3 125.5 154.0 133.6 113.8 115.0 212.5

433.8 340.0 316.3 150.0 120.0 157.5 127.5 109.5 115.0 192.5

407.5 340.0 303.0 150.0 120.0 153.0 125.0 114.6 115.0

304.6 356.5 334.9 227.1 132.6 120.6 139.3 120.9 116.0 150.3

Muntok White.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

197

Petroleum Crude oil is petroleum that is acquired directly from the ground. Crude oil was formed millions of years ago from the remains of tiny aquatic plants and animals that lived in ancient seas. Ancient societies such as the Persians, 10th century Sumatrans, and pre-Columbian Indians believed that crude oil had medicinal benefits. Around 4,000 BC in Mesopotamia, bitumen, a tarry crude, was used as caulking for ships, as a setting for jewels and mosaics, and as an adhesive to secure weapon handles. The walls of Babylon and the famed pyramids were held together with bitumen, and Egyptians used it for embalming. During the 19th century in America, an oil find was often met with dismay. Pioneers who dug wells to find water or brine, were disappointed when they struck oil. It wasn’t until 1854, with the invention of the kerosene lamp, that the first largescale demand for petroleum emerged. Crude oil is a relatively abundant commodity. The world has produced approximately 650 billion barrels of oil, but another trillion barrels of proved reserves have yet to be extracted. Crude oil was the world’s first trillion-dollar industry and accounts for the single largest product in world trade. Futures and options on crude oil trade at the New York Mercantile Exchange (Nymex) and at the International Petroleum Exchange in London (IPE). The Nymex trades two main types of crude oil: light sweet crude oil and Brent crude oil. The light sweet futures contract calls for the delivery of 1,000 barrels of crude oil in Cushing, Oklahoma. Light sweet crude is preferred by refiners because of its low sulfur content and relatively high yield of high-value products such as gasoline, diesel fuel, heating oil, and jet fuel. The Brent blend crude is based on a light, sweet North Sea crude oil. Brent blend crude production is approximately 500,000 barrels per day, and is shipped from Sullom Voe in the Shetland Islands. Prices – NYMEX crude oil prices in the first half of 2006 extended the rally that began in 2001 and posted a record high of $78.40 in July 2006. Oil prices were driven higher by continued strong physical and speculative demand, lagging production, and fears of another active US hurricane season that might close down US oil production in the Gulf of Mexico for the third straight year. However, no hurricanes emerged in 2006 to threaten the Gulf of Mexico, which meant that inventories were far too high going into autumn 2006. Producers were forced to liquidate inventories, thus pushing crude oil and petroleum product

World Production of Crude Petroleum Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2

Canada

China

Indonesia

1,893 1,981 1,907 1,977 2,029 2,171 2,306 2,398 2,369 2,512

3,200 3,198 3,206 3,249 3,300 3,390 3,409 3,485 3,609 3,684

1,520 1,518 1,472 1,423 1,340 1,249 1,155 1,096 1,067 1,022

I ncludes lease condensate.

198

1

Preliminary.

prices sharply lower and causing a washout of long speculators. By January 2007, crude oil prices fell as low as $50 per barrel. However, OPEC in late 2006 and early 2007 cut production to address the excessive inventory situation with a 1.2 million barrel per day cut announced for November 1, 2006 (only half of which was actually implemented) and a 500,000 bpd cut for February 1, 2007. Those production cuts succeeded in boosting prices from $50 to the $62 area. Crude oil prices were also boosted in early 2007 by various US refinery snafus, which caused the US refinery-operating rate to remain below the 10-year average. Looking ahead, Saudi Arabia and OPEC appear to be targeting crude oil prices roughly in the $50-65 per barrel area. The crude oil markets remain nervous about possible supply disruptions from hurricanes during the US 2007 season, Nigerian production disruptions due to rebel activity, and any US or global confrontation with Iran over its nuclear research program. Supply – World crude oil production in 2006 rose +0.2% yr/yr to 73.485 million barrels per day, which was a new record high. The world’s largest oil producers are Russia (with 12.6% of world production in 2006), Saudi Arabia (12.5%), the United States (7.0%), Iran (5.5%), China (5.0%), and Mexico (4.5%). US crude oil production in 2006 fell – 0.5% yr/yr to 5.152 million barrels per day, which was the lowest level in over 30 years. Alaskan production in 2006 fell –14.2% yr/yr to 741,000 barrels per day, the lowest level since 1977 and only 35% of the peak level of 2.107 million barrels per day seen in 1988. Demand – US demand for crude oil in 2006 rose +0.3% yr/yr to 15.263 million barrels per day, down from the 2004 record high of 15.475. Most of that demand went for US refinery production into products such as gasoline fuel, diesel fuel, aviation fuel, heating oil, kerosene, asphalt, and lubricants. Trade – The US is highly dependent on imports of crude oil to meet its energy needs. US imports in 2005 (latest data available) rose +0.6% yr/yr to 10.074 million barrels per day, which was a new record high. US imports of petroleum products in 2006 fell –2.3% to 3.504 million barrels per day, imports of distillate fuel oil rose +11.9% yr/ yr to 368,000 barrels per day, and imports of residual fuel oil fell -35.7% yr/yr to 341,000 barrels per day.

In Thousands of Barrels Per Day

Iran

Kuwait

Mexico

Nigeria

Russia

Saudi Arabia

United Kingdom

United States

Venezuela

World Total

3,664 3,634 3,557 3,696 3,724 3,444 3,743 4,001 4,139 4,029

2,083 2,085 1,898 2,079 1,998 1,894 2,136 2,376 2,529 2,543

3,023 3,070 2,906 3,012 3,157 3,177 3,371 3,383 3,334 3,281

2,317 2,153 2,130 2,165 2,256 2,118 2,275 2,329 2,627 2,436

5,920 2,854 6,079 6,479 6,917 7,408 8,132 8,805 9,043 9,231

8,562 8,389 7,833 8,404 8,031 7,634 8,775 9,101 9,550 9,190

2,517 2,616 2,684 2,275 2,282 2,292 2,093 1,845 1,649 1,489

6,452 6,252 5,881 5,822 5,801 5,746 5,681 5,419 5,178 5,123

3,315 3,167 2,826 3,155 3,010 2,604 2,335 2,557 2,565 2,512

65,690 66,921 65,848 68,342 67,942 66,784 69,235 72,224 73,653 73,485

2

Estimate.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

PETROLEUM Refiner Sales Prices of Residual Fuel Oil Year

2001 2002 2003 2004 2005 20061

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

64.5 51.8 86.6 84.3 86.9 134.6

61.9 52.2 97.2 80.6 90.8 137.8

57.2 53.5 98.1 76.3 98.0 136.0

57.3 59.4 77.3 75.7 106.6 139.7

58.2 63.5 74.9 80.7 112.2 143.5

53.0 61.4 71.9 80.5 111.8 148.1

50.0 63.2 74.5 78.2 116.8 145.1

50.4 67.4 75.4 81.8 129.2 145.1

51.2 67.8 72.0 90.3 138.4 132.4

44.8 72.7 70.7 91.5 142.7 120.1

40.5 73.6 76.7 96.6 134.3

40.0 73.9 79.3 87.2 134.6

51.7 64.0 80.4 83.6 116.9 138.2

Sulfur 1% or less, excluding taxes.

1

Preliminary.

Refiner Sales Prices of No. 2 Fuel Oil Year

2001 2002 2003 2004 2005 20061

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

In Cents Per Gallon

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

90.3 57.6 90.0 97.0 131.4 175.6

82.5 57.8 108.6 93.0 134.4 171.1

76.3 64.5 105.3 93.6 153.5 179.1

79.2 68.3 83.0 95.4 155.9 197.2

82.7 68.4 75.8 103.0 144.4 201.3

79.3 66.0 76.9 101.9 159.1 198.4

72.8 68.9 78.9 109.5 164.7 200.6

77.0 71.3 83.6 118.8 178.4 206.1

79.0 78.3 77.3 127.0 199.3 179.7

68.5 79.6 84.2 147.9 207.1 171.3

60.6 74.8 84.2 139.4 175.2

56.6 80.8 88.6 129.9 172.4

75.6 69.4 88.1 113.0 164.7 188.0

Excluding taxes.

1

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Refiner Sales Prices of No. 2 Diesel Fuel Year

2001 2002 2003 2004 2005 20061

In Cents Per Gallon

Jan.

In Cents Per Gallon

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

90.7 54.6 89.2 96.2 130.6 181.0

85.8 56.7 107.8 96.8 139.1 180.6

78.1 66.6 102.5 101.0 158.8 190.1

82.6 70.9 86.4 107.6 163.8 212.2

89.8 70.6 79.2 112.1 152.2 218.7

85.3 68.2 81.0 107.1 167.0 218.7

75.5 71.0 83.7 115.4 171.5 225.0

80.8 75.7 88.8 124.4 189.8 234.3

84.1 83.4 80.7 133.0 212.7 191.3

71.4 85.7 87.0 153.0 232.3 182.3

61.6 78.9 86.5 142.2 182.6

54.7 82.0 89.2 127.2 175.5

78.4 72.4 88.3 118.0 173.0 203.4

Excluding taxes.

1

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Refiner Sales Prices of Kerosine-Type Jet Fuel Year

2001 2002 2003 2004 2005 20061

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

88.2 57.2 89.8 99.7 131.7 182.4

86.8 57.1 103.1 100.0 138.3 182.5

80.5 63.9 102.4 101.4 158.2 186.2

79.5 69.1 82.3 103.3 165.5 203.2

83.5 69.6 75.1 114.9 155.8 213.2

82.6 67.8 76.9 108.5 165.0 213.3

75.9 71.4 81.3 115.6 171.2 217.4

77.6 73.8 86.2 126.9 184.7 221.4

80.7 81.5 80.8 132.6 206.9 194.7

68.5 84.5 83.7 155.1 233.5 181.6

61.9 75.1 86.5 145.2 181.4

55.3 79.9 90.7 132.8 173.8

76.3 71.6 87.1 119.7 172.2 199.6

Excluding taxes.

1

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Refiner Sales Prices of Propane Year

2001 2002 2003 2004 2005 20061

In Cents Per Gallon

Jan.

In Cents Per Gallon

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

86.4 37.4 60.5 71.7 NA 104.3

66.9 36.4 72.7 70.1 NA 97.4

60.1 39.7 69.2 61.9 NA 96.6

58.6 41.6 53.8 60.4 86.0 102.2

56.2 40.8 54.3 65.5 82.0 103.2

48.7 37.9 57.1 66.1 83.0 106.1

43.6 37.5 55.9 72.2 86.0 110.8

45.6 41.5 58.6 83.0 93.2 111.3

46.4 47.1 56.7 80.4 108.2 103.2

46.1 48.9 59.7 88.6 111.6 100.4

41.6 49.4 58.7 88.3 103.3

38.1 53.3 64.8 83.5 106.8

54.1 43.1 60.7 74.3 95.6 103.6

Consumer Grade, Excluding taxes.

1

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Supply and Disposition of Crude Oil in the United States

In Thousands of Barrels Per Day

------------------------------------------- Supply -------------------------------------------- Field Production -Yearly Average

1999 2000 2001 2002 2003 2004 2005 2006 1

Unaccounted ---------- Stock ---------- ------ Disposition ------ ------------ Ending Stocks -------------------------- Imports --------------Withdraw al3 Refinery Other Total for Crude 2 Alaskan Total SPR Inputs Primary Other SPR2 Other Exports Total SPR2 Domestic Oil -------------------------------------------------------- In Thousands of Barrels Per Day -------------------------------------------------------- ------- In Millions of Barrels -------

5,881 5,822 5,801 5,746 5,681 5,419 5,178 5,152

1,050 970 963 984 974 908 864 741

8,731 9,071 9,328 9,140 9,665 10,010 10,074 NA

8 8 11 16 0 77 52 NA

8,722 9,062 9,318 9,124 9,665 10,088 10,126 10,095

191 155 117 110 54 143 76 40

-11 -73 26 134 108 102 25 11

-107 3 73 -94 -24 46 104 -10

14,804 15,067 15,128 14,947 15,304 15,475 15,220 15,263

118 50 20 9 12 27 32 24

852 826 862 877 907 961 1,008 1,006

567 541 550 599 638 676 685 689

284 286 312 278 269 286 324 318

Preliminary. 2 Strategic Petroleum Reserve. 3 A negative number indicates a decrease in stocks and a positive number indicates an increase. Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

1

199

PETROLEUM Crude Petroleum Refinery Operations Ratio1 in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Percent of Capacity

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

89.3 93.3 90.4 85.7 90.2 87.7 87.2 89.1 91.3 87.0

87.3 91.3 90.0 86.4 90.5 86.6 87.4 88.8 90.6 86.5

90.7 94.4 90.9 89.8 89.4 87.9 90.5 88.5 90.2 85.7

92.6 96.4 94.6 92.6 94.9 93.0 94.1 92.5 92.6 88.1

97.3 97.1 93.9 94.7 96.4 91.5 95.8 95.6 94.1 91.1

97.7 98.9 93.5 96.2 95.6 93.1 94.7 97.5 96.7 93.0

97.1 99.2 94.9 96.9 93.9 93.5 94.0 96.8 94.0 92.4

98.6 99.8 95.5 95.9 93.3 92.9 95.0 97.1 92.1 93.2

99.7 95.0 94.1 94.3 92.2 90.4 93.1 90.1 83.9 93.0

96.7 89.7 91.1 92.4 92.0 87.5 92.4 90.2 81.6 88.0

95.6 94.7 92.0 92.7 92.2 92.6 93.6 94.4 89.0 88.2

97.2 95.1 90.4 94.0 90.2 91.1 93.0 95.0 89.0

95.0 95.4 92.7 92.6 92.6 90.7 92.6 93.0 90.4 89.7

Based on the ration of the daily average crude runs to stills to the rated capacity of refineries per day. Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

1

Crude Oil Refinery Inputs in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

2

Preliminary.

In Thousands of Barrels Per Day

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

13,632 14,313 14,442 13,779 14,789 14,487 14,338 14,782 15,254 14,806

13,425 14,034 14,309 14,028 14,813 14,306 14,381 14,706 15,142 14,579

14,047 14,590 14,498 14,613 14,649 14,526 14,933 14,787 15,214 14,580

14,283 14,961 15,094 15,053 15,536 15,325 15,575 15,541 15,494 14,936

15,083 15,104 14,973 15,494 15,763 15,301 15,910 15,992 15,905 15,519

15,139 15,368 14,959 15,643 15,650 15,397 15,620 16,240 16,401 15,838

14,958 15,496 15,237 15,819 15,369 15,430 15,546 16,142 15,850 15,667

15,217 15,660 15,299 15,640 15,259 15,338 15,693 16,142 15,664 15,794

15,297 14,854 15,107 15,407 15,005 14,861 15,446 14,980 13,986 15,737

14,790 14,001 14,589 15,029 15,002 14,303 15,342 14,941 13,646 15,000

14,654 14,769 14,704 15,023 15,001 15,155 15,455 15,664 15,032 15,142

14,898 14,832 14,410 15,232 14,688 14,900 15,345 15,750 15,046 15,512

14,662 14,889 14,804 15,067 15,128 14,947 15,304 15,472 15,220 15,259

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Production of Major Refined Petroleum Products in Continental United States Gasoline

Je t Fuel

Kerosene

Natural Gas Plant Liquids

2,769 2,826 2,865 2,896 2,664 2,913 2,983 2,992 3,013 3,014

554.5 567.3 554.6 571.3 536.6 558.2 552.3 543.1 566.3 561.5

22.8 23.9 28.6 24.4 20.4 26.7 20.8 20.4 23.2 23.6

669.8 663.3 639.9 675.1 649.4 680.3 686.5 626.7 662.7 623.9

---------- Fuel Oil ---------Year

Asphalt

Aviation Gasoline

Distillate

Residual

167.8 177.0 179.7 184.3 180.6 177.3 179.9 181.0 185.6 186.0

7.3 7.2 7.3 7.5 6.2 6.5 6.4 5.8 6.2 6.1

1,213.6 1,238.0 1,248.6 1,240.8 1,189.9 1,348.4 1,309.8 1,355.5 1,397.6 1,441.4

265.5 258.3 278.0 254.8 234.3 262.8 218.8 241.8 238.0 227.9

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1 1

Preliminary.

2

Gas processing plants.

3

Refineries.

In Millions of Barrels

Lubricants

63.3 65.9 67.2 66.8 60.9 64.1 63.3 60.6 62.0 60.8

------------ Liquified Gasses -----------at at Total L.P.G.2 L.P.G.3

789.1 799.4 771.2 811.0 788.0 810.1 822.5 766.1 797.2 736.9

546.7 547.3 526.3 564.5 545.5 569.1 576.8 526.4 561.3 527.2

242.5 252.2 244.9 246.5 242.5 241.0 245.7 239.6 235.9 209.8

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Stocks of Petroleum and Products in the United States on January 1

In Millions of Barrels

------------------------------------------------------------------------- Refined Products ----------------------------------------------------------------------------Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Crude Petroleum

Strategic Reserve

Total

849.7 868.1 894.9 851.7 826.2 862.2 876.7 906.3 961.9 1,007.8

565.8 563.4 571.4 567.2 540.7 550.2 599.1 638.4 675.6 684.5

452.6 451.6 407.1 407.1 415.7 445.6 425.1 413.1 405.6 403.6

----- Fuel Oil ----Aviation Asphalt Gasoline Distillate Residual

20.5 22.1 21.4 16.9 25.0 20.6 21.3 19.3 22.1 21.0

2.3 1.7 1.8 1.6 1.3 1.5 1.4 1.2 1.3 1.2

126.7 138.4 156.1 125.5 118.0 144.5 134.1 136.8 126.0 136.0

1 Preliminary. 2 I ncludes ethane & ethylene at plants and refineries. U.S. Department of Energy (EI A-DOE)

200

45.9 40.5 44.9 35.8 36.2 41.0 31.3 37.8 42.4 37.3 3

Finished Gasoline

Je t Fuel

Kerosene

Liduified Gases2

157.0 166.4 171.8 154.1 153.0 161.5 161.9 146.8 143.1 134.8

39.9 44.0 44.7 40.5 44.5 42.0 39.2 38.7 40.2 41.8

7.0 7.3 6.9 4.9 4.1 5.4 5.5 5.6 4.9 5.1

86.2 89.5 115.1 89.3 82.5 120.9 105.7 94.4 111.0 117.6

I ncludes oxygenated.

Lubri- --- Motor Gasoline --cants Total Finished3

12.7 12.9 13.2 11.8 12.1 13.8 12.0 10.0 10.4 9.7

202 213 219 196 207 214 199

Source: Energy I nformation Administration,

157 166 172 154 153 161 162 147 143 135

PETROLEUM Stocks of Crude Petroleum in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

849.7 868.1 894.4 851.6 826.2 862.2 876.7 907.3 961.3 1,007.7

865.9 884.3 896.6 852.4 836.0 874.9 873.2 912.8 968.3 1,007.3

862.1 885.7 897.4 855.2 824.2 887.4 870.3 931.2 985.6 1,026.4

877.6 899.8 908.0 866.5 850.8 895.0 880.8 949.4 1,007.0 1,028.5

883.9 914.6 902.3 873.2 873.0 891.3 891.0 961.5 1,022.5 1,035.5

890.5 916.1 914.8 864.1 871.7 898.3 888.6 965.8 1,026.5 1,029.3

885.3 896.4 902.8 859.5 851.5 894.1 893.1 967.2 1,025.6 1,024.0

873.0 902.6 906.0 852.6 856.6 882.8 897.3 960.1 1,018.5 1,018.8

864.2 893.5 889.1 858.7 851.6 878.5 897.8 947.6 1,012.1 1,019.0

866.6 873.0 878.0 848.2 854.1 857.8 911.1 943.3 1,000.8 1,020.4

879.3 897.4 875.7 842.4 858.4 881.1 925.5 957.0 1,006.9 1,025.1

886.9 906.2 866.2 833.9 859.5 884.0 914.8 961.0 1,007.4 1,020.8

Preliminary.

Source: Energy I nformation Administration; U.S. Department of Energy (EI A-DOE)

Production of Crude Petroleum in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Barrels

Jan.

In Thousands of Barrels Per Day

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

6,402 6,541 5,963 5,784 5,799 5,848 5,785 5,570 5,441 5,047

6,514 6,476 5,966 5,852 5,780 5,871 5,791 5,556 5,494 5,048

6,452 6,408 5,883 5,918 5,880 5,883 5,817 5,607 5,601 5,016

6,441 6,483 5,887 5,854 5,863 5,859 5,774 5,527 5,556 5,067

6,474 6,347 5,875 5,847 5,829 5,924 5,733 5,548 5,581 5,100

6,442 6,267 5,760 5,823 5,766 5,915 5,701 5,398 5,460 5,219

6,409 6,194 5,798 5,739 5,749 5,770 5,526 5,458 5,240 5,171

6,347 6,203 5,780 5,789 5,725 5,811 5,595 5,333 5,218 5,155

6,486 5,789 5,804 5,758 5,709 5,411 5,683 5,062 4,204 5,188

6,467 6,143 5,947 5,809 5,746 5,363 5,635 5,156 4,534 5,195

6,459 6,140 5,960 5,833 5,881 5,597 5,560 5,396 4,837 5,254

6,531 6,043 5,959 5,855 5,887 5,699 5,579 5,413 4,984 5,360

6,452 6,252 5,881 5,822 5,801 5,746 5,681 5,419 5,179 5,152

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

U.S. Foreign Trade of Petroleum and Products

In Thousands of Barrels Per Day

Year

----- Exports ----- ---------------------------- Imports ---------------------------PetroPetroleum Distillate Residual Net leum Crude Products Fuel Oil Fuel Oil Imports3 Total2 Products

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

764 815 859 857 1,001 950 1,003 942 949 981

613 661 717 748 885 861 904 843 855 871

4,674 5,107 5,843 5,894 5,782 6,083 6,787 7,063 7,230 7,508

2,004 2,295 2,217 2,123 1,844 1,805 1,833 1,933 1,605 1,971

1 Preliminary. 2 I ncludes crude oil. U.S. Department of Energy (EI A-DOE)

3

255 302 306 278 205 216 184 203 193 230

565 644 629 504 453 375 373 314 187 248

5,914 6,587 7,202 7,161 6,626 6,938 7,618 8,054 7,886 8,498

Equals imports minus exports.

------ Exports ------ ---------------------------- Imports ---------------------------PetroPetroleum Distillate Residual Net leum Crude Products Fuel Oil Fuel Oil Imports3 Year Total2 Products

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

1,003 945 940 1,040 971 984 1,027 1,048 1,165 1,336

896 8,225 835 8,706 822 8,731 990 9,071 951 9,328 975 9,140 1,014 9,665 1,021 10,088 1,133 10,126 1,312 10,095

1,936 2,002 2,122 2,389 2,543 2,390 2,599 3,057 3,588 3,504

In Dollars Per Barrel

Year

1

194 275 237 352 295 249 327 426 530 341

9,158 9,764 9,912 10,419 10,900 10,546 11,237 12,097 12,549 12,264

Source: Energy I nformation Administration,

Domestic First Purchase Price of Crude Petroleum at Wells1 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2

228 210 250 295 344 267 333 325 329 368

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

21.76 13.48 8.57 23.53 24.58 15.89 28.35 30.35 40.18 57.85

19.38 12.16 8.60 25.48 25.27 16.92 31.85 31.21 42.19 55.69

17.85 11.53 10.76 26.19 23.02 20.04 30.09 32.86 47.56 55.59

16.64 11.64 12.82 23.20 23.41 22.14 25.46 33.23 47.26 62.51

17.24 11.49 13.92 25.58 24.06 23.51 24.96 36.07 44.03 64.31

15.90 10.00 14.39 27.62 23.43 22.59 26.83 34.53 49.83 64.36

15.91 10.46 16.12 26.81 22.94 23.51 27.53 36.54 53.35 67.72

16.21 10.18 17.58 27.91 23.08 24.76 27.94 40.10 58.90 67.21

16.44 11.28 20.03 29.72 22.37 26.08 25.23 40.62 59.64 59.36

17.68 11.32 19.71 29.65 18.73 25.29 26.52 46.28 56.99 53.26

16.84 9.65 21.35 30.36 16.49 23.38 27.21 42.81 53.20

15.06 8.05 22.55 24.46 15.54 25.29 28.54 38.22 53.24

17.23 10.87 15.56 26.72 21.84 22.51 27.54 36.90 50.53 60.79

Buyers posted prices.

2

Preliminary.

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

201

PETROLEUM

Volume of Trading of Crude Oil Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,949.9 2,468.3 2,533.6 3,139.0 3,035.0 3,481.1 4,552.9 4,117.8 4,352.1 5,481.9

1,973.7 2,208.3 2,326.0 3,076.6 2,855.2 3,150.4 4,039.2 3,887.3 4,032.4 5,593.8

2,086.6 2,902.8 3,767.7 3,380.2 3,448.7 3,790.4 4,150.7 4,495.3 5,720.8 5,936.5

2,033.7 2,451.1 3,166.8 2,578.9 3,312.1 4,315.3 3,354.8 4,326.0 5,404.3 5,284.6

2,134.9 2,603.6 3,037.9 3,001.8 3,468.5 4,317.4 3,329.1 4,250.2 5,044.9 5,860.9

2,098.6 3,079.5 3,306.8 3,232.2 3,572.4 3,428.8 3,533.6 4,633.3 5,326.1 5,133.9

2,221.4 2,375.0 3,471.3 2,749.7 3,170.1 3,465.5 3,401.3 4,062.9 4,629.4 4,500.1

2,053.7 2,066.7 3,354.8 3,149.3 3,315.8 3,882.6 3,732.3 4,987.4 6,091.1 5,408.6

2,027.5 2,617.8 3,388.4 3,712.0 2,773.2 3,938.7 3,825.6 4,710.9 5,251.9 6,066.9

2,574.0 2,592.4 3,571.2 3,418.0 2,912.7 4,397.0 4,247.7 4,793.8 5,022.0 7,492.4

1,770.2 2,552.9 3,465.1 2,824.5 3,210.3 3,477.9 3,623.8 4,510.2 4,487.9 7,554.9

1,847.2 2,577.3 2,470.4 2,620.5 2,454.6 4,034.4 3,646.0 4,108.3 4,287.6 6,738.8

24,771.4 30,495.6 37,860.1 36,882.7 37,530.6 45,679.5 45,436.9 52,883.2 59,650.5 71,053.2

Source: New York Mercantile Exchange (NYMEX)

Average Open Interest of Crude Oil Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

365,522 424,810 501,655 512,049 432,892 448,063 608,254 647,658 707,934 903,481

384,737 445,167 524,677 519,090 437,188 454,154 640,979 656,889 745,226 927,471

Mar.

May

June

In Contracts July

Aug.

Sept.

Oct.

Nov.

D e c.

408,751 409,719 401,663 397,245 411,292 424,529 405,389 419,821 404,597 424,333 468,438 463,961 450,611 467,998 476,516 486,499 486,047 481,657 487,175 501,591 581,072 611,727 594,032 582,058 601,212 584,962 622,257 595,743 564,488 531,567 513,359 467,259 453,042 462,476 432,571 416,934 461,298 478,242 479,008 438,118 432,627 419,904 442,950 462,321 451,005 461,851 434,967 430,774 435,178 436,332 497,405 488,061 512,413 474,087 457,033 454,219 505,530 528,548 482,227 531,078 568,526 495,456 478,886 494,078 517,539 542,573 507,191 532,024 550,369 580,586 673,520 690,021 722,494 705,104 692,850 705,577 684,819 716,973 705,218 676,250 829,222 833,759 799,038 785,384 820,131 901,639 870,641 848,728 832,329 841,290 954,158 1,000,436 1,055,652 1,016,206 1,068,699 1,163,972 1,181,796 1,168,730 1,176,647 1,200,038

Source: New York Mercantile Exchange (NYMEX)

202

Apr.

Plastics Plastics are moldable, chemically fabricated materials produced mostly from fossil fuels, such as oil, coal, or natural gas. The word plastic is derived from the Greek plastikos, meaning “to mold,” and the Latin plasticus, meaning “capable of molding.” Leo Baekeland created the first commercially successful thermosetting synthetic resin in 1909. More than 50 families of plastics have since been produced. All plastics can be divided into either thermoplastics or thermosetting plastics. The difference is the way in which they respond to heat. Thermoplastics can be repeatedly softened by heat and hardened by cooling. Thermosetting plastics harden permanently after being heated once. Prices – Plastics prices in 2006 showed the fourth consecutive year of strong to moderate gains following the recessionary lows seen in 2001 and 2002. Specifically, the average monthly producer price index of plastic resins and materials in the US in 2006 rose +3.1% yr/yr to 199.0, rebounding farther above the 7-year low of 130.7 posted in 2002. The average monthly producer price index of thermoplastic resins in the US in 2006 rose +2.9% yr/yr to 201.1, rebounding farther above the 7-year low of 129.1 posted in 2002. The average monthly producer price index of styrene plastic materials (also a thermoplastic) in the US in 2003 (latest available data) rose +21.2% to 115.7 from the 25-year low of 95.5 posted in 2002. The average monthly producer price index of thermosetting resins in the US in

Plastics Production by Resin in the United States

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

2006 rose by +4.1% yr/yr to a record high of 203.1. Supply – Total US plastics production in 2005 fell by – 2.9% yr/yr to 110.606 billion pounds, down from the 2004 record high of 113.940 billion pounds. US plastics production has more than doubled in the past two decades. By sector, the thermoplastics sector is by far the largest, with 2005 production falling –2.9% yr/yr to 89.595 billion pounds and accounting for 81% of total US plastic production. Production in the thermosetting plastic sector (polyester unsaturated, phenolic, and epoxy) rose +0.4% yr/yr in 2005 to 8.186 billion pounds and accounted for 7% of total US plastics production. The category of “other plastics” fell by –4.8% to 12.825 billion pounds and accounted for 12% of total US plastics production. Demand – The breakdown by market for the usage of plastic resins shows that the largest single consumption category is “Packaging” with 25.144 billion pounds of usage in 2005, accounting for 30% of total US consumption. After packaging, the largest categories are “Consumer and Industrial” (21% of US consumption), and “Building and Construction” (19% of US consumption). Trade – US exports of plastics in 2005 fell –1.1% yr/yr to 9.790 billion pounds, but still not far below the record high of 10.048 billion pounds seen in 2002. US exports accounted for 12% of US supply disappearance in 2004.

In Millions of Pounds

------------------------------------------ Thermoplastics -----------------------------------------High Low ----------------- Thermosets ----------------Total Total Total ThermoPolyester Density Density plastic Polyvinyl PolyPolyThermoUnsatPolye- Thermo- Selected Polyesets Polyester Chloride styrene propylene Nylon thylene1 urated Phenlic Epoxy thylene plastics Plastics

1,557 1,621 1,713 2,985 3,149 3,021 3,197 3,152 3,294 3,338

3,476 3,734 3,940 4,388 3,965 3,894 4,076 4,015 4,200 4,246

I ncludes LDPE and LLDPE.

662 654 639 657 669 597 620 587 658 602

8,129 8,647 9,163 8,030 7,783 7,512 7,893 7,754 8,152 8,186

4,031 4,260 4,423 6,735 7,239 6,972 7,480 7,950 8,632 9,139

13,220 14,084 14,502 14,912 14,364 14,626 15,250 14,938 15,883 15,382

6,065 6,380 6,237 7,075 6,676 6,223 6,768 6,478 6,765 6,356

11,991 13,320 13,825 15,493 15,583 16,135 17,084 17,497 18,523 18,061

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

14,145 14,579 14,805 15,807 19,588 18,389 19,515 18,915 20,390 19,827

12,373 12,557 12,924 13,864 16,439 15,195 16,190 15,906 17,519 16,492

64,526 72,655 67,872 76,519 71,209 78,659 78,457 86,487 84,553 92,336 81,726 89,238 86,762 94,655 86,071 93,825 92,317 100,469 89,595 97,781

Total Plastics

11,640 12,287 13,026 13,467 13,604 12,720 13,607 12,641 13,471 12,825

84,295 88,806 91,685 99,954 105,940 101,958 108,262 106,466 113,940 110,606

Source: American Plastics Council (APC)

Total Resin Sales and Captive Use by Important Markets Year

1,103 1,222 1,285 1,349 1,395 1,159 1,284 1,306 1,357 1,268

Other Plastics

Adhesive, Inks & Coatings

Building & Construction

Consumer & Industrial

Electrical & Electronics

1,833 1,713 1,758 1,753 1,167 1,143 1,165 1,170 1,196 1,160

15,413 11,418 12,077 13,793 14,439 13,988 14,729 14,495 15,676 15,483

9,662 10,357 11,031 11,645 13,495 13,409 17,649 17,571 18,714 17,400

3,022 2,806 2,816 3,036 2,787 2,501 3,037 2,862 3,096 2,917

In Millions of Pounds (Dry Weight Basis)

Exports

Furniture & Furnishings

Industrial & Machinary

P a ckaging

Transportation

Other

Total

7,997 8,647 8,208 8,424 9,771 9,295 10,048 9,009 9,900 9,790

3,468 3,099 3,293 2,885 3,572 3,226 3,507 3,361 3,458 3,406

965 729 710 802 1,084 968 998 962 1,042 1,087

18,691 19,135 19,396 21,210 23,933 25,948 24,170 24,087 25,952 25,144

3,469 3,411 3,588 3,632 4,389 4,207 4,738 4,732 4,899 4,711

8,701 8,640 9,211 10,189 3,003 2,705 2,283 2,021 2,168 2,133

73,221 69,955 71,994 77,123 77,640 77,390 82,324 80,270 86,101 83,231

Source: American Plastics Council (APC)

203

PLASTICS Average Producer Price Index of Plastic Resins and Materials (066) in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

137.0 134.0 115.9 133.2 137.8 122.0 137.2 146.2 190.3 203.9

137.5 132.2 115.8 135.7 139.3 121.3 141.8 150.4 190.8 200.0

138.7 131.0 117.3 139.4 141.4 123.1 149.6 151.4 192.1 198.9

138.9 130.7 118.6 143.7 141.9 125.4 153.2 154.8 192.3 194.4

139.1 128.8 122.1 147.4 139.9 128.0 152.4 156.5 190.3 195.9

139.6 126.8 123.1 147.8 137.6 130.1 149.2 159.6 186.3 198.5

139.3 125.0 127.9 146.4 135.1 135.3 144.9 161.1 185.0 199.2

137.4 123.7 130.0 146.3 131.3 136.4 143.6 164.9 183.4 202.3

136.0 119.6 133.8 142.4 126.8 136.7 144.9 170.6 188.2 202.4

135.9 118.6 135.6 140.7 128.3 138.2 146.2 175.6 203.9 202.6

134.6 117.1 135.8 138.8 126.6 137.0 145.8 181.4 208.6 197.8

133.9 115.9 134.3 137.3 123.9 135.3 144.0 185.2 205.2 192.4

137.3 125.3 125.8 141.6 134.2 130.7 146.1 163.1 193.0 199.0

Preliminary.

Source: Bureau of Labor Statistics, U.S. Department of Commerce (BLS)

Average Producer Price Index of Thermoplastic Resins (0662) in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

(1982 = 100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

136.7 133.0 112.3 133.8 136.3 118.4 136.3 146.7 193.2 207.9

137.3 130.7 112.5 136.0 138.0 117.8 142.2 151.9 193.8 202.8

138.6 129.5 114.4 140.4 140.2 120.3 151.4 152.6 195.3 201.5

138.8 129.2 116.1 145.2 140.8 123.8 155.8 156.4 194.9 195.6

139.0 127.0 120.4 149.3 138.4 126.2 153.6 157.5 192.0 197.6

139.7 124.7 121.6 149.6 135.7 128.6 149.5 160.9 187.0 201.1

139.3 122.5 127.5 147.6 133.1 135.0 144.3 162.3 185.4 201.6

137.0 121.0 129.9 147.4 128.6 135.9 142.8 165.5 183.7 205.1

135.5 116.4 134.5 142.7 123.4 136.2 144.7 171.3 189.3 205.0

135.3 115.3 136.7 140.3 125.7 137.6 146.3 176.6 208.4 204.6

133.8 113.7 137.0 137.9 123.9 136.1 146.2 182.3 213.7 198.7

133.0 112.2 135.2 136.0 120.8 133.8 143.9 186.9 209.4 192.2

137.0 122.9 124.9 142.2 132.1 129.1 146.4 164.2 195.5 201.1

Preliminary.

Source: Bureau of Labor Statistics, U.S. Department of Commerce (BLS)

Average Producer Price Index of Styrene Plastics Materials (0662-06) in the United States Year

1995 1996 1997 1998 1999 2000 2001 2002 2003 1 20041 1

(1982 = 100)

Jan.

(1982 = 100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

129.0 125.7 120.6 113.3 103.5 103.0 110.5 85.7 102.9 NA

127.0 123.5 123.1 113.9 102.4 104.3 109.2 85.8 110.2 NA

132.5 125.0 123.0 115.5 103.5 110.5 107.9 87.9 119.5 NA

134.7 118.3 121.6 114.9 104.7 113.0 108.0 88.5 127.2 NA

135.9 120.1 121.6 114.1 103.0 116.2 101.8 90.4 126.7 NA

137.5 122.7 121.6 112.8 102.3 116.9 99.9 91.7 119.1 NA

135.1 123.4 122.7 111.3 103.1 118.5 97.6 93.7 118.0 NA

133.2 123.3 117.7 111.2 101.5 116.5 95.7 100.6 113.3 NA

132.1 123.6 118.0 107.6 101.4 115.0 87.3 100.5 112.8 NA

130.1 122.8 116.5 107.9 99.8 114.1 89.4 108.9 113.6 NA

127.9 122.0 113.5 107.1 99.4 112.1 90.0 108.1 113.7 NA

126.1 120.9 113.7 106.3 100.5 110.4 85.4 103.9 111.6 NA

131.8 122.6 119.5 111.3 102.1 112.5 98.6 95.5 115.7 NA

Preliminary.

Source: Bureau of Labor Statistics, U.S. Department of Commerce (BLS)

Average Producer Price Index of Thermosetting Resins (0663) in the United States

(1982 = 100)

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

142.1 143.6 139.9 136.8 152.1 146.2 150.4 154.0 189.9 200.0

142.3 144.0 138.1 141.1 152.9 144.6 149.7 154.2 190.3 200.8

142.7 143.2 137.7 141.3 154.5 143.8 151.7 155.9 190.5 200.8

143.1 142.9 137.4 142.8 154.4 141.2 152.0 158.3 193.5 201.7

143.2 142.6 136.9 144.9 154.2 144.1 156.8 162.2 195.8 201.6

143.0 142.7 136.5 146.0 154.2 145.5 157.9 164.3 195.8 200.5

142.8 142.5 136.2 147.6 152.3 145.8 157.1 166.4 195.5 202.1

142.9 142.2 136.5 147.8 151.3 147.6 156.4 173.2 194.6 203.6

143.0 141.2 136.5 147.5 150.4 148.4 155.7 179.0 196.1 204.2

143.1 140.9 136.5 149.5 148.2 150.3 155.6 183.0 197.5 207.4

142.9 140.1 136.3 150.3 146.3 150.3 153.8 189.3 199.9 207.7

142.9 140.3 136.2 151.0 146.1 150.6 153.8 189.8 200.2 206.2

142.8 142.2 137.0 145.6 151.4 146.5 154.2 169.1 195.0 203.1

Preliminary.

204

Source: Bureau of Labor Statistics, U.S. Department of Commerce (BLS)

Platinum-Group Metals Platinum is a relatively rare, chemically inert metallic element that is more valuable than gold. Platinum is a grayish-white metal that has a high fusing point, is malleable and ductile, and has a high electrical resistance. Chemically, platinum is relatively inert and resists attack by air, water, single acids, and ordinary reagents. Weighing almost twice as much as gold, platinum is the heaviest of the precious metals. Platinum is the most important of the six-metal group, which also includes ruthenium, rhodium, palladium, osmium, and iridium. The word “platinum” is derived from the Spanish word platina meaning silver. Platinum is one of the world’s rarest metals with new mine production totaling only about 5 million troy ounces a year. All the platinum mined to date would fit in the average-size living room. Platinum is mined all over the world with supplies concentrated in South Africa. South Africa accounts for nearly 80% of world supply, followed by Russia, and North America. Because platinum will never tarnish, lose its rich white luster, or even wear down after many years, it is prized by the jewelry industry. The international jewelry industry is the largest consumer sector for platinum, accounting for 51% of total platinum demand. In Europe and the US, the normal purity of platinum is 95%. Ten tons of ore must be mined and a five-month process is needed to produce one ounce of pure platinum. The second major consumer sector for platinum is for auto catalysts, with 21% of total platinum demand. Catalysts in autos are used to convert most of vehicle emissions into less harmful carbon dioxide, nitrogen, and water vapor. Platinum is also used in the production of hard disk drive coatings, fiber optic cables, infra-red detectors, fertilizers, explosives, petrol additives, platinumtipped spark plugs, glassmaking equipment, biodegradable elements for household detergents, dental restorations, and in anti-cancer drugs. Palladium is very similar to platinum and is part of the same general metals group. Palladium is mined with platinum, but it is somewhat more common because it is also a by-product of nickel mining. The primary use for palladium is in the use of automotive catalysts, with that sector accounting for about 63% of total palladium demand. Other uses for palladium include electronic equipment (21%), dental alloys (12%), and jewelry (4%). Rhodium, another member of the platinum group, is also used in the automotive industry in pollution control devices. To some extent palladium has replaced rhodium. Iridium is used to process catalysts and it has also found use in some auto catalysts. Iridium and ruthenium are used in the production of polyvinyl chloride. As the prices of these metals change, there is some substitution. Therefore, strength of platinum prices relative to palladium should lead to the substitution of palladium for platinum in catalytic converters. Platinum futures and options and palladium futures are traded on the New York Mercantile Exchange (NYMEX).

Platinum and palladium futures are traded on the Tokyo Commodity Exchange (TOCOM). The NYMEX platinum futures contract calls for the delivery of 50 troy ounces of platinum (0.9995 fineness) and the contract trades in terms of dollars and cents per troy ounce. The NYMEX palladium futures contract calls for the delivery of 50 troy ounces of palladium (0.9995 fineness) and the contract is priced in terms of dollars and cents per troy ounce. Prices – NYMEX platinum futures prices started 2006 at about $1,040 per troy ounce, rallied to a high of $1,327 per troy ounce in May, but then drifted lower the rest of the year to end the year at about $1,120. A rally began in early 2007 to near $1050 per troy ounce in February of 2007. NYMEX palladium futures prices started 2006 at about $285 per troy ounce, rallied to a high of $409.00 per troy ounce in May, but then drifted lower the rest of the year to end the year at about $330. A slight rally began in early 2007 to near $358 per troy ounce in February of 2007. Supply – World mine production of platinum in 2005, the latest reporting year, rose by +4.3% yr/yr to 217,000 kilograms, which was a record high production level. South Africa is the world’s largest producer of platinum by far with 78% of world production in 2005, followed by Russia (13%), Canada (3%) and the US (2%). World mine production of palladium in 2005 rose +0.9% to 222,000 kilograms, which was a record high production level. The world’s largest palladium producers are Russia with 44%, South Africa with 38% of world production in 2005, Canada with 7%, and the US with 6%. World production of platinum group metals other than platinum and palladium in 2005 rose by +16.2% yr/yr to a new record high of 75,400 kilograms. US mine production of platinum in 2005 fell by –3.0% yr/yr to 3,920 kilograms, down farther from the record high of 4,390 kilograms posted in 2002. US mine production of palladium in 2005 fell by –2.9% yr/yr to 13,300 kilograms, down farther from the record high of 14,800 kilograms posted in 2002. US refinery production of scrap platinum and palladium in 2005 fell by –2.8% to 21,570 kilograms, which was still just above the record low of 20,900 kilograms in 2002. Demand – The total of platinum-group metals sold to consuming industries in the US in 2004, the latest data available, rose +7.1% to 91,434 kilograms. The two main US industries that use platinum are the auto industry, which accounts for more than 74% of US platinum usage, and the jewelry industry, which accounts for about 27% of US platinum usage. Trade – US imports of refined platinum and palladium in 2005 for consumption rose +14.5% yr/yr to 284,849 kilograms, which was well above the 9-year low of 222,356 kilograms seen in 2002. US exports of refined platinum and palladium fell –6.7% yr/yr to 49,385 kilograms, but still up from the 9-year low of 45,124 kilograms seen in 2003. The US relied on imports for 91% of its platinum and palladium consumption in 2005.

205

PLATINUM-GROUP METALS World Mine Production of Platinum Year

Australia

1997 1998 1999 2000 2001 2002 2003 20041 20052

300 150 90 171 174 200 225 230 240

1

Preliminary.

2

In Kilograms

Canada

Colombi a3

Finland

Ja p a n

Russia

Serbia/ Montenegro

South Africa

United States

Zimbabwe

World Total

4,813 5,640 5,663 6,302 7,733 9,202 6,990 7,813 6,400

406 411 448 339 674 661 828 1,209 1,082

60 500 500 441 510 508 461 705 800

693 533 737 782 791 762 770 750 730

30,000 30,000 32,000 34,000 27,000 27,000 28,000 28,000 30,000

10 10 5 5 5 5 5 5 ----

115,861 116,483 121,304 114,459 130,307 132,897 148,348 159,862 168,749

2,610 3,240 2,920 3,110 3,610 4,390 4,170 4,040 3,920

345 2,730 479 505 519 2,306 4,270 4,438 4,834

155,000 160,000 164,000 160,000 172,000 178,000 195,000 208,000 217,000

Estimate.

3

Placer platinum.

Source: U.S. Geological Survey (USGS)

World Mine Production of Palladium and Other Group Metals Year

1997 1998 1999 2000 2001 2002 2003 20041 20052 1

In Kilograms

------------------------------------------------------------------------ Palladium ------------------------------------------------------------------------- -------- Other Group Metals -------AustSerbia/ South United World South World ralia Canada Finland Ja p a n Russia Montenegro Africa States Zimbabwe Total Russia Africa Total

400 800 816 812 828 810 820 830 840

Preliminary.

2

7,545 8,905 8,939 9,949 8,972 12,210 12,808 18,551 15,000

Estimate.

180 150 150 -------------------

1,899 4,151 5,354 4,712 4,805 5,618 5,500 5,300 5,200

70,000 70,000 67,000 71,000 96,000 96,000 97,000 97,000 97,400

50 50 25 25 25 25 20 20 ----

55,675 56,608 58,164 55,818 62,601 63,758 70,946 78,455 84,908

8,430 10,600 9,800 10,300 12,100 14,800 14,000 13,700 13,300

245 1,855 342 366 371 1,943 3,449 3,564 3,879

144,000 153,000 151,000 153,000 187,000 196,000 207,000 220,000 222,000

13,500 13,500 13,400 14,100 14,500 14,500 15,000 15,000 15,500

25,068 26,862 37,011 36,493 37,005 39,986 46,856 48,265 58,218

39,200 41,300 51,200 51,400 52,300 55,700 63,500 64,900 75,400

Source: U.S. Geological Survey (USGS)

Platinum-Group Metals Sold to Consuming Industries in the United States Dental &

In Kilograms

Jew elry &

--- Automotive --- ---- Chemical ---- ----- Electrical ----- ----- Medical ----- --- Decorative --- ---- Petroleum ---- ------ All Platinum-Group Metals -----Year

Platinum

1996 1997 1998 1999 2000 2001 2002 2003 1 20042

28,550 28,923 29,483 31,100 32,344 33,411 17,727 27,524 24,880

Other3 Platinum

19,282 20,402 26,528 29,390 31,100 34,832 19,904 37,476 44,940

2,115 2,239 2,301 2,364 2,457 2,644 3,110 2,955 2,799

Other3 Platinum

2,457 2,426 2,488 2,519 2,139 715 2,333 2,177 2,644

4,541 4,945 5,194 5,443 5,691 5,909 2,955 2,644 2,799

Other3 Platinum Other3 Platinum

17,665 19,997 20,215 21,148 19,282 17,354 6,531 6,687 6,376

778 840 902 933 964 995 1,244 778 622

6,285 6,376 6,376 6,065 3,732 3,670 6,687 6,998 7,309

1,493 2,115 2,333 3,110 3,670 4,043 9,641 9,641 9,019

Other3 Platinum

1,493 1,617 1,617 1,679 1,400 1,431 ----------

Preliminary. 2 Estimate. 3 I ncludes Palladium, iridium, osmium, rhodium, and ruthenium. American Metal Market (AMM)

1

Salient Statistics of Platinum and Allied Metals3 in the United States

Year

1997 1998 1999 2000 2001 2002 2003 20041 20052

Net Import Reliance as a % of Mine Apparent ---- Production ---Consumption Platinum Palladium

84 94 ---83 66 93 96 91 91

2,610 3,240 2,920 3,110 3,610 4,390 4,170 4,040 3,920

8,430 10,600 9,800 10,300 12,100 14,800 14,000 13,700 13,300

Refinery Production (Secondary)

Total Refined Platinum Palladium

NA NA 23,300 23,780 24,790 20,900 24,250 22,180 21,570

NA 14,100 NA 13,700 23,300 7,060 23,780 5,190 24,790 3,680 20,900 649 24,250 649 22,180 649 21,570 261

206

902 871 809 778 660 715 ----------

44,489 46,184 47,396 50,310 52,808 55,399 33,433 37,476 33,588

Other3

45,157 50,227 61,827 65,248 61,889 62,293 28,768 47,894 57,846

In Kilograms

Refiner, Importer & Dealer Imports for ----------- Stocks as of Dec. 31 ----------- ---- Consumption ----- ------- Exports -------

39,300 38,800 28,200 19,000 16,300 5,870 1,170 568 ----

Other4

Total

920 920 784 784 784 784 562 501 189

54,320 53,420 36,044 24,974 20,764 7,303 2,381 1,718 450

Total

---- 89,646 ---- 96,411 ---- 109,223 ---- 115,558 ---- 114,697 ---- 117,692 ---- 62,200 ---- 85,370 ---- 91,434

Sources: U.S. Geological Survey (USGS);

Total

Refined

Total

Apparent Consumption

253,114 258,424 297,101 303,351 337,973 ---316,633 ---267,957 ---222,356 ---223,653 ---248,705 ---284,849 ----

67,656 52,716 64,165 84,087 67,334 70,943 45,124 52,904 49,385

81,249 73,162 ----------------------

----------------------------

Refined

Preliminary. 2 Estimate. 3 I ncludes platinum, palladium, iridium, osmium, rhodium, and ruthenium. ruthenium. W = Withheld proprietary data. Source: U.S. Geological Survey (USGS)

1

Other3 Platinum Palladium

3,514 3,390 3,390 3,514 3,639 4,199 1,400 1,244 1,089

4

I ncludes iridium, osmium, rhodium, and

PLATINUM-GROUP METALS

-----

---

Platinum: USD Per Troy Ounce Producer, New York (Jan. 1910 - Dec. 1977) Merchant, New York (Jan. 1978 - date) Palladium: USD Per Troy Ounce Dealer, New York (Jan. 1968 - date)

Average Merchant's Price of Platinum in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

D e c.

Average

360.13 362.35 382.82 371.18 385.20 427.12 409.93 423.48 424.00 428.59 396.68 369.55 375.30 390.56 396.18 412.82 392.60 357.38 379.34 372.24 361.40 347.27 348.42 352.76 353.53 361.55 370.80 357.30 354.75 357.75 350.30 352.24 365.62 421.52 436.48 438.00 432.95 517.02 478.28 493.53 519.57 557.45 558.53 572.76 592.53 576.91 592.73 608.28 623.43 453.56 566.67 589.63 611.07 588.91 643.88 457.37 453.50 437.43 427.25 450.24 471.52 470.68 511.95 539.20 533.66 554.70 526.32 545.48 556.05 580.11 588.15 594.89 629.52 681.79 675.00 624.48 649.43 661.43 682.02 692.48 705.33 732.65 760.08 807.10 851.28 846.33 900.26 880.14 807.28 807.55 809.60 848.43 847.88 841.43 853.81 850.89 859.03 865.16 865.89 864.55 866.26 880.36 876.60 901.04 918.10 933.76 962.19 977.25 1029.52 1044.21 1041.65 1104.32 1263.64 1192.73 1233.68 1236.74 1183.30 1085.32 1187.10 1125.20

395.42 373.85 376.44 541.49 531.93 539.39 691.78 845.41 897.52 1143.95

Preliminary.

F eb.

Mar.

Apr.

May

June

July

Year

1

Aug.

Sept.

Oct.

Nov.

Source: American Metal Market (AMM)

Average Dealer2 Price of Palladium in the United States 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Dollars Per Troy Ounce

In Dollars Per Troy Ounce

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

121.48 222.55 317.28 447.45 1054.10 412.62 258.19 221.00 188.45 275.25

134.26 237.25 351.38 607.33 984.37 377.79 255.68 237.95 184.16 291.89

151.13 258.01 351.78 687.72 792.68 377.15 226.38 272.43 200.55 312.61

152.75 310.81 358.83 580.00 699.15 372.50 164.76 299.52 200.57 355.74

167.52 353.58 330.70 574.89 663.41 360.00 168.90 249.55 191.29 372.59

203.62 284.34 339.84 640.80 619.67 339.20 181.76 231.86 188.36 319.00

176.84 307.53 333.17 686.63 525.90 325.41 174.91 222.95 186.95 320.58

210.90 287.48 341.64 759.63 459.83 327.55 185.76 217.36 188.13 332.57

190.17 283.88 358.55 731.15 444.47 330.50 213.24 213.95 191.24 324.40

206.52 277.89 387.05 734.91 340.52 319.09 204.17 220.43 209.71 315.18

209.93 281.82 400.38 778.73 333.14 289.20 200.17 216.00 246.45 326.70

200.70 306.73 420.17 887.33 405.95 243.57 200.86 193.09 266.00 327.95

177.15 284.32 357.50 676.55 610.27 339.55 202.90 233.01 203.49 322.87

Preliminary.

2

Based on wholesale quantities, prompt delivery.

Source: U.S. Geological Survey (USGS)

207

PLATINUM-GROUP METALS

Volume of Trading of Platinum Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

60,515 38,198 37,700 33,226 19,278 12,848 15,545 16,337 15,410 20,604

83,325 35,538 53,698 31,352 12,885 13,807 15,157 15,574 20,253 27,572

86,242 65,871 68,350 35,013 31,617 24,434 38,170 42,249 41,297 42,804

57,719 36,169 36,900 28,057 14,961 11,066 13,472 29,228 16,267 17,215

67,000 36,208 26,507 22,741 15,714 12,294 18,968 13,125 20,135 34,684

72,481 47,464 75,444 47,197 23,245 27,176 30,961 28,495 55,588 45,985

37,836 35,223 57,536 16,527 14,494 14,198 10,852 15,598 25,132 16,220

Sept.

Oct.

Nov.

D e c.

Total

36,391 62,462 27,505 58,302 36,115 102,196 14,739 36,643 12,477 17,040 18,583 29,762 11,878 37,686 18,180 34,076 26,604 52,535 21,428 44,000

Aug.

46,188 44,381 30,637 12,122 9,957 11,834 19,275 24,393 21,827 21,182

28,913 42,658 32,176 12,662 11,401 9,878 14,040 18,606 30,447 46,754

58,625 60,752 40,009 30,645 22,890 33,891 42,301 39,834 50,684 34,671

698,597 528,629 597,268 320,924 205,969 219,771 268,305 295,695 376,179 373,119

Source: New York Mercantile Exchange (NYMEX)

Average Open Interest of Platinum Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

25,890 10,791 12,311 10,858 8,449 6,587 8,694 8,210 6,800 10,625

26,092 10,932 14,481 10,952 7,311 6,213 8,132 7,379 7,486 9,995

22,364 13,220 16,493 9,218 6,855 7,121 8,034 8,879 8,047 8,407

16,568 13,559 11,471 8,484 6,715 6,823 6,322 7,698 8,132 9,486

18,933 12,048 12,256 9,057 7,436 6,031 6,599 5,555 8,496 9,681

18,440 11,471 12,436 10,585 5,751 6,901 6,847 5,590 10,109 8,265

13,280 10,607 14,703 9,566 6,210 5,516 7,450 5,376 8,497 8,575

14,180 9,733 13,777 9,731 5,996 6,405 8,556 6,282 11,729 9,889

13,639 11,950 15,014 9,716 5,646 6,930 8,794 6,091 12,478 9,076

13,466 14,601 14,892 8,106 5,395 7,211 8,489 6,092 13,024 7,276

12,396 15,709 13,402 8,163 6,102 7,406 9,421 7,208 12,377 8,332

13,501 13,289 12,017 8,507 6,033 8,388 9,373 7,184 11,327 8,186

Source: New York Mercantile Exchange (NYMEX)

208

In Contracts

Jan.

PLATINUM-GROUP METALS

Volume of Trading of Palladium Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

13,908 11,506 3,092 4,584 2,171 1,275 4,200 17,093 7,728 28,447

43,160 17,786 11,614 13,976 6,090 3,372 7,266 41,036 43,268 59,279

22,796 18,678 4,082 2,803 1,397 1,538 3,256 20,508 16,979 32,573

21,604 14,042 7,097 1,833 1,121 1,527 3,971 30,214 13,316 23,135

36,422 17,942 8,890 7,034 3,325 6,126 8,420 27,343 46,112 64,863

17,647 7,370 3,411 2,622 1,013 2,166 3,430 11,433 13,594 25,857

18,097 4,241 5,053 3,120 1,173 2,154 4,221 7,606 17,185 13,464

18,751 8,737 6,868 5,169 3,221 8,971 15,645 28,895 49,268 41,123

8,331 6,214 5,826 2,523 523 1,452 8,152 10,690 17,747 16,222

13,094 4,962 3,722 2,460 1,255 1,710 7,587 15,036 21,680 14,351

13,143 12,839 10,670 3,041 3,261 8,118 18,323 41,269 50,643 47,797

11,763 6,933 5,069 1,601 1,375 2,644 11,142 16,429 24,403 11,005

238,716 131,250 75,394 50,766 25,925 41,053 95,613 267,552 321,923 378,116

Source: New York Mercantile Exchange (NYMEX)

Average Open Interest of Palladium Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

8,291 4,062 2,846 3,129 1,828 1,217 2,000 9,119 12,824 14,353

10,946 4,873 3,234 3,101 1,666 1,208 2,039 11,878 13,821 16,632

10,528 5,220 2,957 2,367 1,525 1,042 1,948 11,465 12,946 15,426

9,759 5,369 3,015 2,359 1,577 1,199 1,997 11,039 13,116 17,783

9,947 4,371 2,796 2,628 1,613 1,554 2,315 8,828 13,345 18,002

7,072 4,219 2,757 2,015 1,385 1,806 2,609 7,861 13,527 14,251

5,538 4,166 2,823 2,118 1,420 2,103 2,680 8,055 13,794 14,087

4,973 3,488 2,496 1,974 1,318 2,298 3,605 8,688 14,465 13,166

3,822 2,959 2,755 1,757 1,383 1,878 5,184 8,933 13,340 11,247

4,282 3,048 3,210 1,905 1,286 1,976 5,533 9,965 13,488 11,836

4,291 2,938 3,301 1,859 1,477 1,977 6,096 11,192 14,676 12,511

4,030 2,700 3,045 1,837 1,244 2,025 6,737 12,188 14,477 11,210

Source: New York Mercantile Exchange (NYMEX)

209

Pork Bellies Pork bellies are the cut of meat from a hog from which bacon is produced. A hog has two belly slabs, generally weighing 8-18 pounds each, depending on the hog’s commercial slaughter weight. Total hog slaughter weights average around 255 pounds, equal to a dressed carcass weight of about 190 pounds. Bellies account for about 12% of a hog’s live weight, but represent a larger 14% of the total cutout value of the realized pork products. Pork bellies can be frozen and stored for up to a year before processing. The pork belly futures contract at the Chicago Mercantile Exchange calls for the physical delivery of 40,000 pounds of frozen pork bellies, which have been slaughtered at USDA federally inspected slaughtering plants. Each deliverable belly typically weighs 12-14 pounds each. There are definite seasonal patterns in pork belly prices. Bellies are storable and the movement into cold storage builds early in the calendar year, peaking about mid-year. Net withdrawals from storage then carry stocks to a low around October. The cycle then starts again. Retail bacon demand also follows a time worn trend, peaking in the summer and tapering off to a low during the winter months. While demand patterns would suggest the highest prices in the summer and the lowest in the winter, just the opposite is not unusual. Such contra-seasonal price moves can be partially attributed to supply logistics, notably the availability of frozen storage stocks deliverable against futures at CME exchange-approved warehouses. When stocks prove either too large or small, the underlying demand variables for bacon can be relegated to the backburner as a market-moving factor. The fact that no contract months are traded between August and the

Average Retail Price of Bacon, Sliced Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

following February adds to the late fall futures price distortion. Belly prices (cash and futures) are sensitive to the inventory in cold storage and to the weekly net movement in and out of storage, which affords some insight to demand, although a better measure is the weekly quantity of bellies being sliced into bacon. Higher retail prices tend to encourage placing more supply into storage because of lower retail bacon demand. Bacon is not a necessary foodstuff so demand can be buoyed by favorable consumer disposable income. However, dietary standards have changed dramatically in recent years and do not favor the consumption of high fat and salt content food, such as bacon. In addition, alternatives to pork bacon have emerged in recent years such as turkey bacon, which has lower fat and calorie content. Prices – Pork belly futures prices in 2006 rallied during most of the year and closed the year at 91.77 cents per pound, up +12% yr/yr. Pork belly prices in 2006 were boosted mainly by firm domestic and export demand. Pork belly prices in early 2007 rallied to a new 1-1/2 year high due to the severe weather during winter 2007, which caused low carcass weights and reduced supplies. Pork belly prices in 2006 remained well below the record high of 126 cents per pound that was posted in mid-2004. Supply – The average monthly level of frozen pork belly storage stocks fell sharply in 2006 to 43.985 million pounds, down –18.6% from 2005. As of December 2006, there were 30.553 million pounds of pork bellies in storage.

In Dollars Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

2.66 2.64 2.52 2.75 2.99 3.27 3.20 3.16 3.37 3.36

2.65 2.62 2.52 2.87 3.07 3.32 3.28 3.19 3.40 3.39

2.66 2.54 2.51 2.93 3.16 3.27 3.22 3.13 3.36 3.36

2.66 2.44 2.45 2.95 3.11 3.26 3.29 3.20 3.33 3.34

2.63 2.44 2.47 3.01 3.26 3.18 3.09 3.33 3.56 3.31

2.69 2.46 2.50 3.13 3.25 3.19 3.14 3.42 3.46 3.40

2.72 2.52 2.50 3.17 3.32 3.23 3.16 3.47 3.48 3.51

2.76 2.51 2.93 3.20 3.47 3.29 3.23 3.62 3.44 3.56

2.75 2.58 2.58 3.21 3.49 3.16 3.22 3.59 3.40 3.55

2.73 2.57 2.57 3.07 3.34 3.24 3.16 3.61 3.33 3.61

2.67 2.62 2.66 3.05 3.30 3.21 3.23 3.44 3.26 3.44

2.61 2.58 2.75 3.03 3.30 3.24 3.18 3.37 3.33 3.46

2.68 2.54 2.58 3.03 3.25 3.24 3.20 3.38 3.39 3.44

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Froz en Pork Bellie Storage Stocks in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

37,930 44,763 72,657 40,300 47,099 44,301 28,254 49,017 56,026 47,925

38,030 55,249 82,605 43,802 50,145 50,849 35,354 63,095 63,417 54,902

44,277 55,368 93,323 49,983 47,154 57,569 38,278 57,123 75,321 64,638

54,767 54,441 106,194 60,527 45,440 60,721 42,971 50,126 81,265 67,631

54,015 58,600 109,521 63,461 43,878 63,293 48,542 48,363 89,360 69,540

55,274 59,462 108,257 68,292 46,029 62,269 45,870 41,366 81,694 64,857

52,274 52,010 93,383 60,097 39,552 51,019 43,504 37,185 70,657 52,535

33,657 31,433 69,675 50,515 24,996 29,925 32,075 23,383 50,315 37,328

18,346 14,786 34,814 33,005 12,754 14,250 17,900 15,230 22,149 11,962

11,148 9,452 19,273 21,341 8,960 9,452 10,180 11,344 14,117 10,199

14,408 16,440 22,489 20,589 28,216 10,354 21,135 15,970 15,211 15,751

25,365 41,711 26,170 38,674 36,297 18,059 33,073 33,955 28,613 30,553

Preliminary.

210

In Thousands of Pounds

Jan.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

PORK BELLIES Weekly Pork Belly Storage Movement -------------------------- Stocks1 In Thousands of Pounds -------------------------Net MoveWeek On ment Ending In Out Hand

Jan 01, 2005 Jan 08, 2005 Jan 15, 2005 Jan 22, 2005 Jan 29, 2005 F eb 0 5 , 2 0 0 5 F eb 1 2 , 2 0 0 5 F eb 1 9 , 2 0 0 5 F eb 2 6 , 2 0 0 5 Mar 05, 2005 Mar 12, 2005 Mar 19, 2005 Mar 26, 2005 Apr 02, 2005 Apr 09, 2005 Apr 16, 2005 Apr 23, 2005 Apr 30, 2005 May 07, 2005 May 14, 2005 May 21, 2005 May 28, 2005 Ju n 04, 2005 Ju n 11, 2005 Ju n 18, 2005 Ju n 25, 2005 Ju l 02, 2005 Ju l 09, 2005 Ju l 16, 2005 Ju l 23, 2005 Ju l 30, 2005 A u g 06, 2005 A u g 13, 2005 A u g 20, 2005 A u g 27, 2005 Sep 03, 2005 Sep 10, 2005 Sep 17, 2005 Sep 24, 2005 Oct 01, 2005 Oct 08, 2005 Oct 15, 2005 Oct 22, 2005 Oct 29, 2005 Nov 05, 2005 Nov 12, 2005 Nov 19, 2005 Nov 26, 2005 Dec 03, 2005 Dec 10, 2005 Dec 17, 2005 Dec 24, 2005 Dec 31, 2005 1

8,459 7,156 1,494 2,176 1,462 1,032 2,217 2,332 2,645 NA 1,472 492 218 1,542 1,483 2,119 2,268 1,391 632 2,382 101 631 95 44 318 86 112 42 489 675 462 116 367 1,315 181 105 76 30 55 55 56 48 215 1,480 2,280 1,403 2,087 3,304 1,989 4,633 1,919 0 4,608

-42 0 -3,754 -4,460 -162 -40 -162 -905 -108 NA -41 -452 -337 -246 -84 -81 -368 -294 -318 -1,666 -4,655 -1,841 -610 -1,088 -1,718 -1,944 -1,096 -1,866 -3,227 -5,173 -6,440 -7,415 -7,732 -5,577 -3,919 -4,945 -2,326 -1,388 -1,764 -1,400 -677 -264 -480 -169 0 -202 -162 -200 0 -201 -342 0 -287

44,042 51,197 48,937 46,653 49,515 50,507 52,648 53,332 55,868 58,843 60,274 60,315 60,196 61,492 62,891 64,929 66,829 67,926 68,241 68,957 64,403 63,193 63,473 62,429 61,029 59,171 58,186 56,314 53,624 49,126 43,148 35,848 28,483 24,220 20,483 15,643 13,392 12,034 10,326 8,981 8,360 8,263 7,998 9,309 11,438 12,639 14,442 17,668 19,656 24,088 25,665 0 34,892

8,417 7,156 -2,260 2,284 1,300 992 2,055 1,427 2,537 2,975 1,431 40 -119 1,296 1,399 2,038 1,900 1,097 314 716 -4,554 -1,210 -515 -1,044 -1,400 -1,858 -984 -1,824 -2,738 -4,498 -5,978 -7,299 -7,365 -4,262 -3,738 -4,840 -2,250 -1,358 -1,709 -1,345 -621 -97 -265 1,311 2,280 1,201 1,925 3,104 1,989 4,432 1,577 0 4,321

------------------------------ Stocks1 In Thousands of Pounds -----------------------------Net MoveWeek On ment Ending In Out Hand

Jan 07, 2006 Jan 14, 2006 Jan 21, 2006 Jan 28, 2006 F eb 0 4 , 2 0 0 6 F eb 1 1 , 2 0 0 6 F eb 1 8 , 2 0 0 6 F eb 2 5 , 2 0 0 6 Mar 04, 2006 Mar 11, 2006 Mar 18, 2006 Mar 25, 2006 Apr 01, 2006 Apr 08, 2006 Apr 15, 2006 Apr 22, 2006 Apr 29, 2006 May 06, 2006 May 13, 2006 May 20, 2006 May 27, 2006 Ju n 03, 2006 Ju n 10, 2006 Ju n 17, 2006 Ju n 24, 2006 Ju l 01, 2006 Ju l 08, 2006 Ju l 15, 2006 Ju l 22, 2006 Ju l 29, 2006 A u g 05, 2006 A u g 12, 2006 A u g 19, 2006 A u g 26, 2006 Sep 02, 2006 Sep 09, 2006 Sep 16, 2006 Sep 23, 2006 Sep 30, 2006 Oct 07, 2006 Oct 14, 2006 Oct 21, 2006 Oct 28, 2006 Nov 04, 2006 Nov 11, 2006 Nov 18, 2006 Nov 25, 2006 Dec 02, 2006 Dec 09, 2006 Dec 16, 2006 Dec 23, 2006 Dec 30, 2006

60 Chicago and Outside Combined Chicago Mercantile Exchange approved warehouses.

2,459 3,519 2,461 2,506 1,830 1,289 1,108 1,374 124 564 1,416 640 690 257 713 560 134 21 2 465 0 0 42 0 83 125 40 15 2 444 162 85 41 0 86 8 62 161 1,132 795 310 898 3,287 1,848 2,014 1,918 1,682 3,604 1,517 1,367 2,970 3,393

-41 -57 -411 -319 -38 0 -9 0 -243 -205 -53 -84 -140 -123 -195 -242 -165 -908 -1,020 -837 -872 -2,086 -2,896 -3,028 -2,604 -3,202 -3,738 -4,486 -3,202 -3,639 -4,421 -3,760 -3,612 -4,034 -1,606 -1,249 -400 -325 -230 -597 -292 -167 -215 0 -160 -41 0 -41 -10 0 -3

37,310 40,772 42,822 45,009 46,801 48,090 49,189 50,563 5,044 50,803 52,166 57,225 57,831 57,948 58,538 58,903 58,795 58,651 57,745 57,190 56,353 55,481 53,437 50,541 47,596 45,117 41,955 38,232 33,748 30,990 27,513 23,177 19,458 8,599 4,651 3,053 1,865 1,626 2,433 2,998 2,711 3,317 6,437 8,070 10,084 11,842 13,483 17,087 18,563 19,920 22,890 26,280

2,418 3,462 2,050 2,187 1,792 1,289 1,099 1,374 -119 359 1,363 640 606 117 590 365 -108 -144 -906 -555 -837 -872 -2,044 -2,896 -2,945 -2,479 -3,162 -3,723 -4,484 -2,758 -3,477 -4,336 -3,719 -3,612 -3,948 -1,598 -1,187 -239 807 565 -287 -606 3,120 1,633 2,014 1,758 1,641 3,604 1,476 1,357 2,970 3,390

Source: Chicago Mercantile Exchange (CME)

211

PORK BELLIES

Volume of Trading of Pork Belly Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

60,761 41,894 39,925 37,650 15,861 16,495 13,635 11,519 7,736 10,806

53,604 50,105 36,293 38,943 16,200 16,650 13,956 14,738 13,995 12,890

56,750 47,249 33,322 39,061 16,675 14,279 13,137 17,699 10,767 11,682

76,072 61,910 31,558 31,464 18,274 17,758 18,279 18,412 13,713 13,183

62,190 36,058 31,321 40,311 18,708 13,648 18,112 17,366 11,020 10,342

54,043 48,913 45,030 31,229 16,989 15,764 16,993 15,136 15,226 12,616

55,043 41,133 36,513 25,051 20,187 16,773 19,540 16,012 12,869 9,842

36,153 33,832 23,536 17,875 18,823 7,490 9,967 10,518 11,275 9,634

31,154 24,006 16,544 10,711 12,719 6,857 7,909 9,410 5,099 4,885

44,277 30,538 20,392 11,854 12,905 8,107 10,235 5,713 9,370 4,375

31,663 30,093 28,920 11,737 15,984 8,659 8,542 7,643 6,438 4,568

33,609 35,521 24,955 13,690 13,034 9,574 11,024 7,783 6,910 2,741

595,319 481,252 368,309 309,576 196,359 152,054 161,329 151,949 124,418 107,564

Source: Chicago Mercantile Exchange (CME)

Average Open Interest of Pork Belly Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

7,504 9,187 7,217 5,872 2,719 2,574 2,842 2,431 2,013 2,273

7,930 9,145 6,192 6,011 2,908 2,768 2,805 3,213 3,010 2,407

7,260 9,082 4,623 6,320 2,935 2,879 2,915 3,491 2,858 1,949

7,165 7,825 5,113 6,563 3,138 3,271 3,082 3,998 2,891 2,146

8,950 6,786 6,030 5,836 2,808 3,224 3,383 3,880 3,743 2,049

7,203 5,406 6,639 5,306 2,354 2,821 3,410 3,158 3,725 1,938

5,905 4,185 5,003 3,650 2,526 1,885 2,858 2,675 2,507 1,812

4,791 3,493 2,415 1,877 2,579 986 1,632 1,473 1,599 1,006

5,242 2,933 2,320 1,860 2,695 1,116 1,899 1,399 1,143 782

7,520 3,841 3,206 2,093 2,321 1,329 1,885 1,200 1,451 907

8,302 4,987 4,011 2,409 2,441 2,020 2,075 1,491 1,323 1,039

9,009 7,085 4,868 2,610 2,451 2,548 2,484 1,900 1,868 1,069

Source: Chicago Mercantile Exchange (CME)

212

In Contracts

Jan.

PORK BELLIES

-----

Cents Per Pound 12-14 Lb., Chicago (Jan. 1949 - Sept. 1975) 12-14 Lb., Midwest (Oct. 1975 - date)

Average Price of Pork Bellies (12-14 lbs.), Central U.S. Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

72.04 43.00 48.80 80.45 66.61 70.87 78.02 79.78 78.00 75.00

68.42 45.89 50.76 82.40 66.68 70.75 79.54 90.76 82.13 71.83

59.05 42.28 46.51 85.00 78.04 72.55 85.80 103.67 84.20 78.67

80.54 54.65 49.23 93.70 85.80 63.48 84.94 109.15 78.13 78.83

82.58 57.87 53.76 97.85 77.91 58.65 96.58 117.53 87.31 87.00

80.68 63.10 53.41 91.99 91.50 65.90 97.05 113.00 68.73 101.25

86.70 68.46 47.78 90.38 102.42 81.06 102.37 118.22 77.48 94.29

85.43 72.99 67.29 75.64 98.39 67.98 85.65 99.92 94.00 90.67

72.25 57.49 57.87 63.94 81.91 57.05 83.15 92.00 89.67 82.56

57.97 42.05 70.83 57.83 61.30 76.24 84.46 88.90 84.07 75.44

53.77 39.13 67.81 51.97 63.68 75.50 78.53 91.50 78.82 78.64

47.52 36.31 71.37 58.36 69.13 78.92 81.00 87.81 75.00 79.50

70.58 51.94 57.12 77.46 78.61 69.91 86.42 99.35 81.46 82.81

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price of Pork Loins (12-14 lbs.)2 Central, U.S. Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Cents Per Pound

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

112.50 76.50 105.82 99.29 110.80 106.95 91.83 111.98 116.08 95.00

109.50 103.03 92.35 110.66 114.32 105.73 95.75 117.30 114.83 96.21

106.58 104.56 83.47 110.06 128.53 100.08 92.43 110.00 115.88 101.31

117.16 102.51 99.35 127.48 117.98 94.13 96.90 115.48 115.03 107.25

125.68 130.64 107.44 115.38 130.72 101.71 108.93 140.65 133.45 112.77

116.28 113.13 97.62 132.53 132.33 104.80 126.51 130.30 115.62 124.61

122.53 106.51 105.72 131.73 126.41 108.64 102.50 121.36 115.03 114.95

119.28 105.90 111.55 120.45 121.22 97.85 104.85 116.93 119.82 109.35

112.07 97.23 104.99 119.22 116.21 87.17 111.38 119.22 111.31 99.58

99.68 99.63 98.98 119.90 108.69 93.04 97.71 110.00 103.78 99.27

85.99 79.90 94.64 104.19 97.87 82.60 89.06 102.92 96.72 92.02

79.44 72.49 102.75 114.68 98.50 93.03 93.72 109.50 101.12 101.15

108.89 99.34 100.39 117.13 116.97 97.98 100.96 117.14 113.22 104.46

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

213

Potatoes The potato is a member of the nightshade family. The leaves of the potato plant are poisonous and a potato will begin to turn green if left too long in the light. This green skin contains solanine, a substance that can cause the potato to taste bitter and even cause illness in humans. In Peru, the Inca Indians were the first to cultivate potatoes around 200 BC. The Indians developed potato crops because their staple diet of corn would not grow above an altitude of 3,350 meters. In 1536, after conquering the Incas, the Spanish Conquistadors brought potatoes back to Europe. At first, Europeans did not accept the potato because it was not mentioned in the Bible and was therefore considered an “evil” food. But after Marie Antoinette wore a crown of potato flowers, it finally became a popular food. In 1897, during the Alaskan Klondike gold rush, potatoes were so valued for their vitamin C content that miners traded gold for potatoes. The potato became the first vegetable to be grown in outer space in October 1995. The potato is a highly nutritious, fat-free, cholesterolfree and sodium-free food, and is an important dietary staple in over 130 countries. A medium-sized potato contains only 100 calories. Potatoes are an excellent source of vitamin C and provide B vitamins as well as potassium, copper, magnesium, and iron. According to the US Department of Agriculture, “a diet of whole milk and potatoes would supply almost all of the food elements necessary for the maintenance of the human body.” Potatoes are one of the largest vegetable crops grown in the US, and are grown in all fifty states. The US ranks about 4th in world potato production. The top three types of potatoes grown extensively in the US are white, red, and Russets (Russets account for about two-thirds the US crop). Potatoes in the US are harvested in all four seasons, but the vast majority of the crop is harvested in fall. Potatoes harvested in the winter, spring and summer are used mainly to supplement fresh supplies of fall-harvested potatoes and are also important to the processing industries. The four principal categories for US potato exports are frozen, potato chips, fresh, and dehydrated. Fries account for approximately 95% of US frozen potato exports.

Prices – The average monthly price received for potatoes by US farmers in 2006 rose +5.1% to a record high of $7.42 per hundred pounds. Supply – The total potato crop in 2006 rose by +3.2% to an estimated 43.479 billion pounds, but that was still well below the record high of 50.936 billion pounds posted in 2000. The fall crop in 2006 rose by 2.3% to an estimated 39,092 billion pounds, accounting for 90% of the total crop. Stocks of the fall crop (as of Dec 1) were estimated at 25.220 billion pounds. In 2006, the spring crop rose +5.6% to 1.977 billion pounds, the summer crop rose +5.0% to 1.844 billion pounds, and the winter crop fell –8.1% to 450 million pounds. The largest producing states for the fall 2006 crop were Idaho (with 31.1% of the crop), Washington (22.9%), Wisconsin (7.5%), North Dakota (6.5%), and Colorado (5.8%). For the spring crop, the largest producing states were Florida (with 32.6% of the crop), and California (with 30.6% of the crop). Farmers harvested 1.119 million acres in 2006, up +2.9% from 2005 but still with the second lowest acreage planting since 1980. The yield per harvested acre in 2006 fell by –0.3% to 38,900 pounds per acre. Demand – Total utilization of potatoes in 2006 fell – 7.0% yr/yr to 42.393 billion pounds. The breakdown shows that the largest consumption category for potatoes is frozen French fries with 31.6% of total consumption, followed closely by table stock (30.8%), chips and shoestrings (13.1%), and dehydration (10.8%). US per capita consumption of potatoes in 2006 fell by –2.5% to 125.9 pounds, which was a 16-year low and well below the record high of 145.0 pounds per capita seen in 1996. Trade – US exports of potatoes in 2005 rose sharply by +35.1% to 646.800 million pounds. US exports hit a record high of 693.196 million pounds in 2003. US imports rose +7.4% to 617.700 million pounds. The US record high for imports of 737.223 million pounds was posted in 1998.

Salient Statistics of Potatoes in the United States -- Foreign Trade4 --

Farm Disposition Yield Per ------ Acreage ------- Harvested Crop Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1 4

Planted Harvested ---- 1,000 Acres ----

1,384 1,417 1,377 1,384 1,247 1,300 1,273 1,193 1,109 1,137

1,354 1,388 1,332 1,348 1,221 1,266 1,249 1,167 1,087 1,119

Acre Cwt.

345 343 359 381 358 362 367 391 390 389

----- Value of ----Consumption4 Total ---- Used Where Grow n ----(Fresh) Per Capita Seed Shrinkage ProProStocks on Domestic Farm & L o ss duction & Feed Sold2 Price duction3 Sales Imports -- In Pounds -Jan. 1 Exports ---------- In Thousands of Cw t. ---------- $/Cwt. ----- Million $ ----- 1,000 Cwt. -- Millions of Lbs.-- Fresh Total

467,091 475,771 478,216 513,621 437,673 458,171 457,814 456,041 423,926 434,789

5,475 32,183 429,433 5,766 35,454 434,551 5,569 35,531 437,116 5,288 43,688 464,645 5,387 31,208 401,293 5,622 30,905 421,644 5,543 35,294 416,977 4,796 37,408 413,837 4,791 28,519 390,616

5.64 5.56 5.77 5.08 6.99 6.67 5.89 5.66 7.06 7.42

2,623 2,635 2,746 2,591 3,058 3,045 2,686 2,575 2,991 3,226

2,421 2,416 2,522 2,360 2,805 2,812 2,458 2,344 2,758

246,550 246,230 239,910 275,270 224,680 231,690 233,590 236,700 220,500 220,000

670,270 650,918 599,066 676,577 636,176 693,196 589,756 478,856 646,800

512,321 737,223 610,538 502,706 487,889 621,475 634,971 575,400 617,700

48.5 141.4 47.0 138.1 48.0 136.5 47.1 137.9 46.6 138.8 44.3 132.1 47.2 138.7 45.8 134.7 42.4 125.6 42.6 126.2

Preliminary. 2 For all purposes, including food, seed processing & livestock feed. 3 Farm weight basis, excluding canned and frozen potatoes. Calendar Year. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

214

POTATOES Cold Storage Stocks of All Froz en Potatoes in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

In Millions of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

1,098.4 1,163.5 1,151.3 1,165.4 1,189.7 1,239.8 1,131.2 1,120.4 1,074.8 1,051.1

1,111.5 1,147.2 1,219.7 1,140.9 1,228.6 1,274.2 1,173.1 1,167.3 1,168.8 1,076.2

1,180.1 1,235.7 1,272.9 1,270.1 1,254.7 1,271.5 1,211.0 1,207.4 1,152.8 1,147.1

1,177.1 1,278.3 1,278.8 1,283.4 1,220.9 1,271.4 1,217.4 1,192.5 1,093.7 1,159.0

1,195.8 1,225.1 1,236.2 1,239.4 1,280.4 1,222.7 1,150.5 1,158.7 1,174.3 1,175.5

1,213.3 1,282.8 1,255.5 1,250.4 1,270.3 1,182.3 1,106.6 1,185.9 1,178.1 1,105.2

1,271.4 1,316.5 1,234.1 1,186.3 1,355.0 1,223.5 1,181.8 1,128.7 1,190.5 1,108.1

1,214.3 1,234.7 1,142.3 1,180.3 1,282.6 1,106.6 1,130.4 1,117.1 1,154.9 996.4

1,130.8 1,204.5 1,169.8 1,185.7 1,197.5 1,040.6 1,070.4 1,127.0 1,121.3 964.1

1,270.0 1,266.8 1,235.5 1,291.5 1,323.8 1,141.4 1,151.7 1,178.6 1,180.4 1,009.6

1,354.7 1,341.0 1,307.8 1,351.5 1,338.5 1,252.2 1,248.0 1,274.9 1,200.0 1,066.6

1,313.5 1,290.5 1,254.5 1,285.9 1,297.4 1,214.4 1,232.8 1,219.3 1,122.5 1,052.1

Preliminary.

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

Potato Crop Production Estimates, Stocks and Disappearance in the United States

In Millions of Cwt.

------------------------------ Fall Crop ------------------------------------------- 1,000 Cw t. --------------------- Crop Production Estimates -------- ------------------- Total Storage Stocks2 --------------------------- Total Crop --------- ---------- Fall Crop ---------- ------------------ Follow ing Year -----------------Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Oct. 1

Nov. 1

D e c. 1

Oct. 1

-------------------------------

459.4 471.0 481.5 509.4 441.8 459.7 459.2 450.2 421.3 434.8

-------------------------------

-------------------------------

Preliminary.

2

Nov. 1 Dec. 1

417.5 429.0 435.6 463.4 400.7 415.0 413.5 407.8 382.2 390.9

278.8 280.9 275.1 310.3 258.8 264.5 267.9 271.1 253.8 252.2

Jan. 1

F eb. 1

Mar. 1

246.6 246.2 239.9 275.3 224.7 231.5 233.6 236.7 220.5 220.0

212.6 209.6 207.2 234.3 192.1 199.0 200.2 203.5 189.1 187.8

175.9 173.7 169.6 197.7 158.6 165.2 166.3 168.0 155.5

Held by growers and local dealers in the fall producing areas.

Apr. 1

May 1

134.2 92.8 131.2 87.9 128.4 86.9 153.5 109.2 120.0 81.2 125.8 83.0 126.1 85.0 128.9 88.6 115.7 75.9

Year

1

387,089 392,922 390,210 420,279 358,812 378,796 371,755 369,781 351,083

278,830 280,910 275,100 310,300 258,750 264,485 267,900 271,100 253,800 252,200

5.20 5.07 5.29 4.55 6.54 5.89 5.23 5.08 6.53 6.73

2,011,004 1,994,030 2,064,564 1,910,833 2,348,006 2,232,627 1,943,986 1,877,912 2,290,850

Source: Agricultural Statistics Board, U.S. Department of Agriculture

Production of Potatoes by Seasonal Groups in the United States

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

413,513 423,170 420,567 467,504 393,631 413,581 410,588 410,253 382,743 391,978

Value of Sales $ 1,000

Average Dec. 1 Price Stocks $/Cwt.

D i sa p Pro- pearance duction (Sold)

In Thousands of Cwt.

- Winter - ------------- Spring ------------- --------- Summer ---------- ---------------------------------------------------------- Fall ----------------------------------------------------------CaliNew ColoMinneNorth WashingWisTotal fornia Florida Total Mexico Virginia Total rado Idaho Maine sota Dakota Oregon ton consin Total

3,431 2,980 4,070 4,960 4,115 4,206 4,027 4,818 4,892 4,495

Preliminary.

8,073 6,198 7,600 7,426 6,045 7,695 8,360 8,313 6,116 6,044

7,150 7,358 8,820 6,343 7,970 7,883 8,008 7,678 6,527 6,441

22,299 1,248 1,268 18,171 21,121 962 1,380 18,933 25,327 1,247 1,050 18,972 21,921 1,050 1,292 19,236 21,814 770 1,386 18,209 22,452 736 1,386 17,932 24,433 532 1,550 18,766 22,663 340 1,200 18,307 18,724 1,029 17,567 19,766 1,512 18,444

24,993 140,314 25,360 138,000 25,762 133,330 27,972 152,320 21,357 120,200 27,885 133,385 23,652 123,180 23,791 131,970 22,910 118,288 22,686 121,820

19,080 18,060 17,813 17,920 16,430 16,960 17,030 19,065 15,455 18,270

20,440 21,170 18,020 21,240 18,425 18,810 22,330 18,920 17,630 20,400

22,000 28,670 26,400 26,950 26,400 23,460 27,440 26,765 20,500 25,480

27,319 88,160 26,229 93,225 28,020 95,200 30,683 105,000 20,730 94,400 24,936 92,340 20,991 93,150 19,775 93,810 22,023 95,480 18,533 89,900

30,175 423,190 30,895 432,737 34,000 429,847 33,800 467,504 31,955 393,631 30,750 413,581 32,800 410,588 30,450 410,253 2,780 382,743 29,370 391,978

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

Utiliz ation of Potatoes in the United States

In Thousands of Cwt.

Crop Year

---------------------------------------------------------------------- Sales -------------------------------------------------------------------------- ------------------ Non-Sales ------------------------------------------------------ For Processing ------------------------------------ ---------- Other Sales ---------- Used on Other Other Frozen F or Chips, Total ShrinkLiveFarms French Frozen Canned Canned Starch stock Shoe- DehydTable Nonage Total Where Fries Products Potatoes Products2 & Flour ration strings Stock Sales Total & L o ss F eed S eed Sales Grown

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

131,446 131,670 125,413 134,130 139,590 122,552 131,889 133,143 130,418 120,372

1

Preliminary.

2

48,305 48,130 51,471 52,916 52,405 54,080 51,640 52,790 50,068 50,998

54,261 48,389 55,522 50,831 54,332 40,759 51,357 48,418 48,541 42,312

145,489 131,628 142,932 140,196 146,869 126,711 124,875 126,515 131,592 123,298

Hash, stews and soups.

28,972 33,397 24,964 23,593 26,723 23,598 28,951 23,870 23,003 24,747

2,785 2,822 2,730 3,311 2,368 2,590 2,744 3,086 2,843 2,120

2,167 2,675 1,964 2,394 2,709 1,722 2,089 1,168 984 934

1,956 12,073 1,311 3,603 1,585 3,111 1,310 3,141 1,966 14,265 1,015 3,496 1,050 3,044 1,379 2,005 1,531 1,942 1,582 1,999

24,341 25,808 24,859 25,294 23,345 24,537 24,005 24,603 22,915 22,254

451,795 429,433 434,551 437,116 464,572 401,060 421,644 416,977 413,837 390,616

4,797 4,167 4,358 4,415 3,792 4,088 4,144 4,000 3,601 3,604

41,238 32,183 35,454 35,531 43,685 31,227 30,905 35,294 37,408 28,519

47,459 37,658 41,220 41,100 48,972 36,613 36,527 40,837 42,204 33,310

499,254 467,091 475,771 478,216 513,544 437,673 458,171 457,814 456,041 423,926

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

215

POTATOES

-----

USD Per Cwt. No. 1 White, New York (Jan. 1913 - Dec. 1960) Received by Farmers, U.S. (Jan. 1961 - date)

Per Capita Utiliz ation of Potatoes in the United States

Year

1997 1998 1999 2000 2001 2002 2003 2004 20051 20062 1

Preliminary.

2

Total

Fresh

137.8 137.7 136.2 137.9 138.8 132.1 138.2 134.7 129.1 125.9

47.3 46.9 47.7 47.1 46.6 44.3 46.8 45.8 43.1 42.1

Forecast.

In Pounds (Farm Weight)

-------------------------------------------------------------- Processing ---------------------------------------------------------------Chips & ShoeDehystring drating Canning Total Freezing

57.8 58.1 58.5 57.5 58.2 55.2 57.2 57.3 54.7 53.0

15.5 14.7 15.9 15.9 17.6 16.5 17.3 16.6 16.4 16.2

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

216

1.7 1.5 1.7 1.7 1.6 1.4 1.4 1.2 1.1 1.1

90.5 90.8 88.5 90.8 92.2 87.8 91.4 88.9 86.0 83.8

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

Average Price Received by Farmers for Potatoes in the United States Year

15.5 16.5 12.4 15.7 14.8 14.7 15.5 13.8 13.8 13.5

In Dollars Per Cwt.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

S e a so n Average

4.22 5.40 5.50 5.68 4.56 6.90 6.67 5.75 5.59 7.07

4.56 5.94 5.75 5.92 5.26 7.34 6.33 5.87 5.79 6.76

4.64 6.41 6.12 6.26 5.12 8.26 6.87 6.09 6.44 8.21

4.67 6.27 6.50 6.46 5.47 8.00 6.94 6.62 6.20 7.97

5.31 6.45 6.13 6.31 5.24 8.62 6.96 6.47 6.23 8.05

5.67 6.16 6.54 6.14 5.75 9.39 6.68 6.16 6.29 8.60

5.66 5.81 7.35 6.93 6.46 10.40 6.30 6.46 7.63 11.02

6.31 5.46 6.02 5.56 7.61 8.00 5.75 5.77 7.02 7.95

5.08 4.97 5.09 4.49 6.04 6.14 5.24 5.32 5.69 6.35

4.93 4.47 4.86 4.27 5.15 5.44 5.03 4.70 5.37 5.97

5.12 4.86 5.52 4.31 5.96 6.38 5.46 5.02 6.26 6.67

5.36 5.30 5.44 4.48 6.66 6.67 5.77 5.36 6.83 6.90

5.64 5.56 5.77 5.08 6.99 6.67 5.89 5.66 7.06 7.42

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

POTATOES Potatoes Processed1 in the United States, Eight States

In Thousands of Cwt.

Storage S e a so n

to D e c. 1

to Jan. 1

to F eb. 1

to Mar. 1

to Apr. 1

to May 1

to June 1

Entire S e a so n

I daho and OregonMalheur Co

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

27,510 27,970 29,290 20,940 28,380 24,310 24,360 22,840 26,130

34,700 34,490 35,720 27,330 34,860 30,730 30,840 29,300 32,810

42,670 40,790 43,470 33,620 41,200 36,260 36,820 35,970 40,100

51,210 49,220 50,580 40,860 48,600 43,640 44,610 43,300

60,040 57,820 58,910 47,710 56,240 49,570 51,000 50,820

68,550 66,080 66,760 54,150 63,840 56,380 58,090 57,830

76,410 74,110 75,270 61,200 71,280 63,770 65,800 65,030

92,860 88,210 93,460 73,390 85,390 77,530 84,600 77,360

Maine2

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

1,430 1,270 1,845 1,975 2,230 1,590 1,540 1,365 1,755

1,935 1,700 2,475 2,440 2,715 2,085 1,970 1,880 2,360

2,530 2,385 3,105 3,110 3,345 2,720 2,600 2,485 2,910

2,985 3,070 3,695 3,700 3,905 3,420 3,135 3,090

3,595 3,765 4,225 4,285 4,505 4,095 3,700 3,800

4,180 4,560 4,760 4,775 5,225 4,740 4,340 4,450

4,705 5,150 5,340 5,515 5,905 5,400 4,910 5,130

5,945 6,670 7,015 7,195 7,835 7,270 6,590 6,825

Wash. & OregonOther

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

33,630 33,320 34,770 29,320 33,680 32,670 32,305 30,310 30,980

38,890 39,620 40,970 35,310 39,490 38,520 38,130 35,895 37,060

45,650 45,500 47,720 40,540 44,190 43,610 43,570 40,545 42,190

53,290 53,350 55,250 47,910 51,920 51,210 50,730 48,290

60,930 61,080 62,860 54,970 58,710 58,500 57,140 55,320

67,180 67,230 69,850 61,360 64,300 64,160 63,855 61,855

74,190 74,840 78,010 69,400 71,480 72,350 71,355 69,360

83,730 83,210 91,130 77,180 79,110 79,800 78,680 78,550

Other States3

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

11,570 12,455 12,665 13,170 12,675 13,835 12,490 11,055 13,465

14,465 15,035 16,215 14,925 15,530 16,505 15,000 14,070 16,905

18,030 17,950 18,975 19,000 18,735 19,590 17,965 17,005 20,450

20,850 20,855 22,095 22,115 21,780 22,685 20,910 19,895

24,850 24,305 25,410 24,655 24,810 25,920 24,150 22,520

28,190 27,220 28,695 27,815 27,405 29,480 27,480 25,270

31,365 30,410 31,765 30,460 30,655 32,845 30,945 27,740

39,865 36,435 39,020 37,740 38,700 42,160 41,175 35,535

Total

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

74,140 75,015 78,570 65,405 76,965 72,405 70,695 65,570 72,330

89,990 90,845 95,380 80,005 92,595 87,840 85,940 81,145 89,135

108,880 106,625 113,270 96,270 107,470 102,180 100,955 96,005 105,650

128,335 126,495 131,620 114,585 126,205 120,955 119,385 114,575

149,415 146,970 151,405 131,620 144,265 138,085 135,990 132,460

168,100 165,090 170,065 148,100 160,770 154,760 153,765 149,405

186,670 184,510 190,385 166,575 179,320 174,365 173,010 167,260

222,400 214,525 230,625 195,505 211,035 206,760 211,045 198,270

Dehydrated4

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

---15,675 14,250 14,525 11,920 12,860

---19,660 18,440 18,540 15,655 17,130

---23,710 22,050 21,875 19,225 21,270

---27,950 26,090 25,970 22,765

---31,915 30,290 30,020 26,605

---36,105 34,630 33,685 30,065

---40,455 39,070 38,505 34,130

38,581 48,940 47,750 47,805 41,625

States

Total quantity received and used for processing regardless of the State in which the potatoes were produced. Amount excludes quantities used for potato chips in Maine, Michigan and Wisconsin. 2 I ncludes Maine grown potatoes only. 3 Colorado, Minnesota, Nevada, North Dakota and Wisconsin. 4 Dehydrated products except starch and flour. I ncluded in above totals. I ncludes CO, I D, NV, ND, OR, WA, and WI . Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

1

217

Rayon and Other Synthetic Fibers World Cellulosic Fiber Production

In Thousands of Metric Tons

Year

Brazil

Bulgaria

China

CIS

Czech Republic

India

Indonesia

Ja p a n

Mexico

Taiwan

Thailand

United States

World Total

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062

36.4 29.2 34.6 36.2 28.7 34.2 47.2 46.8 40.1 46.9

4.2 13.1 13.5 15.0 12.2 5.6 5.2 5.0 5.0 6.0

450.0 451.5 472.1 552.3 608.6 682.1 800.2 966.1 1,107.0 1,285.0

108.7 99.6 88.0 83.7 64.4 72.9 78.8 77.2 46.6 62.8

27.3 26.9 17.6 7.1 7.6 7.3 9.1 9.2 9.5 9.7

242.4 264.4 248.5 297.5 251.9 285.7 283.0 311.5 295.4 361.9

212.9 222.0 195.6 207.0 205.0 214.0 223.0 234.0 245.0 260.0

184.1 164.5 135.5 126.2 107.1 68.1 68.3 67.1 66.6 96.5

14.8 15.5 13.5 14.8 22.6 16.8 14.8 12.2 ÑÑ ÑÑ

148.4 142.6 143.7 141.5 127.4 114.2 121.5 134.9 114.5 145.2

60.2 45.7 55.3 65.0 65.0 71.1 73.8 79.4 79.2 110.0

208.1 165.5 134.7 158.8 103.0 80.7 75.3 66.8 46.8 30.0

2,314 2,227 2,074 2,215 2,083 2,125 2,269 2,485 2,529 2,943

1

Preliminary.

2

Producing capacity.

Source: Fiber Economics Bureau, I nc. (FEB)

World Noncellulosic Fiber Production (Except Olefin) Brazil

China

India

Indonesia

248.3 268.6 292.6 311.1 288.8 293.1 314.2 330.9 303.9 429.1

3,527.2 4,406.8 5,235.1 6,158.4 7,322.9 8,849.4 10,456.0 12,475.0 14,235.6 22,645.0

1,240.7 1,361.3 1,493.3 1,568.4 1,570.2 1,695.3 1,792.0 1,904.2 1,849.2 3,023.3

956.1 881.5 1,037.8 1,142.7 1,190.6 1,132.8 1,144.2 1,064.5 1,116.2 1,456.0

Year

1997 1998 1999 2000 2001 2002 2003 2004 20051 20062 1

Preliminary.

2

Producing capacity.

3

In Thousands of Metric Tons

Ja p a n

Korea

Mexico

Pakistan

Taiwan

Thailand

Turkey

United States3

World Total

1,433.6 1,363.6 1,299.7 1,307.9 1,239.5 1,129.1 1,030.3 989.2 955.4 1,213.8

2,403.3 2,446.0 2,592.8 2,659.0 2,471.9 2,455.7 2,418.0 2,191.3 1,707.6 1,911.0

612.7 591.1 571.2 586.8 536.4 509.6 457.6 473.4 390.9 488.5

322.7 427.8 478.0 503.9 528.4 581.5 646.8 659.3 575.3 823.0

2,932.4 3,111.5 2,927.7 3,122.9 2,977.5 3,091.3 3,060.9 2,965.0 2,584.9 3,274.1

575.4 542.6 694.2 769.5 784.5 852.6 872.5 949.0 953.3 1,138.0

500.7 529.8 613.5 744.5 669.2 728.1 767.1 849.5 800.4 1,029.2

3,420.0 3,222.7 3,169.5 3,149.2 2,687.6 2,805.0 2,693.2 2,823.9 2,627.0 2,940.1

22,396 23,254 24,885 26,219 26,243 28,052 29,468 31,511 31,761 44,989

Beginning 1995; data for USA and Canada.

World Production of Synthetic Fibers

Source: Fiber Economics Bureau, I nc. (FEB)

In Thousands of Metric Tons

------------ Noncellulosic Fiber Production (Except Olefin) ------------

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062 1

------------------- By Fibers ------------------Nylon Acrylic Other & & Modacrylic Aramid Polyester Fibers3

2,706 2,656 2,513 2,634 2,562 2,713 2,698 2,813 2,632 3,068

Preliminary.

2

4,028 3,792 3,800 4,117 3,784 3,941 3,972 4,017 3,924 4,851

15,406 16,539 17,879 19,155 19,563 21,048 22,374 24,208 24,701 36,316

Producing capacity.

256 268 294 313 335 350 425 491 504 754 3

---------- World Total ---------Yarn & Staple, ------------------------------ Glass Fiber Production ------------------------------ Cigarette Tow & MonofilOther United ExTow Proaments Fiberfill Total Europe Japan Americas States China USSR Total duction

12,093 12,959 13,660 14,771 14,968 15,993 16,879 17,990 18,222 26,114

10,303 10,295 10,825 11,448 11,276 12,059 12,589 13,538 13,539 18,875

22,396 23,254 24,485 26,219 26,243 28,052 29,468 31,528 31,761 44,989

610 660 674 728 701 718 724 740

Alginate, azion, spandex, saran, etc.

Year

1998 1999 2000 2001 2002 2003 2004 2005 20061 1

Preliminary.

218

111.2 111.0 76.7 54.3 41.2 32.5 26.7 22.6 22.4

3.5 3.0 37.8 33.7 33.2 35.5 38.7 41.4 37.6

114.7 114.0 114.5 88.0 74.4 68.0 65.4 64.0 60.0

38.1 28.2 23.2 14.5 12.7 11.7 12.2 9.3 7.7

Source: Fiber Economice Bureau, I nc. (FEB)

149.3 139.3 99.9 68.8 53.9 44.2 38.9 31.9 30.1

100 96 96 96 93 96 100 104

1,007 1,018 1,126 1,143 1,016 1,222 1,307 1,363

75 60 60 60 67 90 120 150

27 30 30 28 32 34 37 40

2,431 2,416 2,538 2,580 2,431 2,661 2,790 2,903

582 551 544 570 590 603 595 604

Source: Fiber Economics Bureau, I nc. (FEB)

Artificial (Cellulosic) Fiber Distribution in the United States ------------------------------ Yarn & Monofilament ------------------------Domestic -------------- Producers' Shipments -------------ConDomestic Exports Total Imports sumption

328 300 300 280 273 251 250 250

In Millions of Pounds

------------------------------ Staple & Tow -----------------------------Domestic --------------- Producers' Shipments -------------ConDomestic Exports Total Imports sumption

184.4 168.8 162.3 117.2 91.1 86.7 77.4 40.2

31.4 29.9 69.3 35.5 12.6 13.1 9.9 8.1 8.9

215.8 198.7 231.5 152.7 103.7 99.8 87.2 48.2 8.9

47.4 47.5 37.5 33.9 56.2 44.5 63.9 91.0 141.4

231.8 216.3 199.7 151.2 147.4 131.2 141.3 131.2 141.4

Glass F i ber Shipments

----------------------------

RAYON AND OTHER SYNTHETIC FIBERS Man-Made Fiber Production in the United States

In Millions of Pounds

-- Artificial (Cellulosic) Fibers --- Rayon & Acetate --

Year

Staple & Tow

Total Cellulosic

187 144 115 114 -------------------

266 216 199 232 153 104 100 ----------

453 360 314 345 153 104 100 ----------

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062 1

--------------------------------------------------------- Synthetic (Noncellulosic) Fibers ---------------------------------------------------------

Filament Yarn & Monofilament

Preliminary.

2

Estimate.

---------- Yarn & Monofilament ---------Total Nylon Polyester Olefin Yarn

2,039 1,887 1,896 1,947 1,642 1,772 1,762 1,837 1,806 1,733

1,644 1,541 1,595 1,509 1,188 1,218 1,145 1,166 1,018 1,914

2,058 2,212 2,278 2,406 2,181 2,331 2,349 2,383 2,404 2,243

5,740 5,640 5,769 5,860 5,011 5,321 5,255 5,386 5,436 4,877

---------------------- Staple & Tow ---------------------Acrylic Total & ModNylon Polyester Olefin Staple acrylic

797 799 787 733 606 681 697 680 598 556

2,446 2,357 2,291 2,405 2,040 2,050 1,886 2,064 2,019 1,840

461 346 316 339 310 340 270 240 140 7

623 712 797 816 721 749 680 676 699 629

Total Total ManuNoncel- factured lulosic Fibers

4,327 10,067 4,214 9,853 4,192 9,960 4,293 10,153 3,676 8,687 3,820 9,141 3,533 8,788 3,660 9,047 3,455 8,635 3,032 7,932

Total Glass F i ber

10,465 10,314 10,263 10,236 -------------------

2,408 2,490 2,570 2,738 2,638 2,759 2,789 ----------

Source: Fiber Economics Bureau, I nc. (FEB)

Domestic Distribution of Synethic (Noncellulosic) Fibers in the United States

In Millions of Pounds

------------------------------------------- Staple & Tow -------------------------------------------------------------------------- Yarn & Monofilament ------------------------------------- ------------------------- Producers' Shipments ------------------------

Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

------------------ Domestic -----------------PolyNylon ester Olefin Total Exports

1,790 1,765 1,795 1,606 1,668 1,666 1,722 1,688 1,589

Preliminary.

1,426 1,463 1,353 1,189 1,113 1,051 1,061 938 801

2,167 2,251 2,371 2,144 2,289 2,318 2,347 2,369 2,198

5,383 5,480 5,519 4,938 5,070 5,035 5,130 4,995 4,588

218 244 250 155 189 179 249 197 211

Dome- ---------------------- Domestic ---------------------stic Acrylic Poly- & ModConTotal Imports sumption Nylon ester acrylic Olefin Total Exports

Total Imports

Domestic Consumption

4,072 777 4,190 788 4,176 727 3,698 757 3,791 875 3,452 829 3,583 766 3,411 914 2,981 1,007

4,509 4,640 4,576 4,146 4,312 4,035 4,053 4,034 3,719

-------------------- Producers' Shipments ---------------------

5,601 5,724 5,769 5,093 5,259 5,214 5,379 5,192 4,799

637 719 790 697 765 766 785 849 819

6,020 6,199 6,309 5,635 5,834 5,801 5,915 5,845 5,407

763 756 674 607 637 673 658 582 492

2,105 2,138 2,174 1,881 1,823 1,688 1,788 1,765 1,624

267 233 244 228 255 211 200 122 ----

596 726 757 673 723 635 641 650 596

3,732 3,852 3,849 3,389 3,438 3,206 3,287 3,120 2,713

Source: Fiber Economice Bureau, I nc. (FEB)

Mill Consumption of Fiber & Products and Per Capita Consumption in the U.S.

Year

1997 1998 1999 2000 2001 2002 2003 2004 20051

340 338 327 308 353 246 296 292 268

-------- Cellulosic Fibers Yarn & Monofil- Staple Net ament & Tow Waste

189 149 139 133 96 85 78 75 64

257 232 216 200 151 147 131 141 131

2.5 1.4 1.6 1.9 2.4 1.8 1.3 1.5 1.7

-------- ---- Noncellulosic Fibers ---Total Total Cellu- NoncelluNet Noncellulosic losic losic Waste

448 10,520 383 10,529 357 10,839 335 10,884 249 9,838 235 10,050 210 9,778 218 10,490 196 9,991

103 165 177 190 193 280 266 145 166

10,623 10,694 11,016 11,075 10,031 10,329 10,045 10,636 10,157

Total Manufactured Fibers2

Other Cotton Wool Fibers3

11,071 11,077 11,373 11,409 10,281 10,564 10,255 10,854 10,353

5,448 5,225 4,996 4,754 3,983 3,609 3,115 3,000 2,851

164 42.8 126 44.2 99 40.1 101 38.2 87 30.1 56 28.7 43 35.4 45 123.4 42 141.3

In Millions of Pounds

Per Capita4 Mill Consumption (Lbs.) ManTotal All Grand made Other Total Fibers2 Cotton Wool Fibers3 Fibers

16,726 16,472 16,509 16,302 14,381 14,257 13,449 14,023 13,387

45.7 46.4 48.0 48.5 44.5 47.6 48.6 50.6 50.3

31.9 33.7 34.5 34.9 33.0 34.4 34.5 34.8 37.0

1.3 1.3 1.2 1.3 1.4 1.3 1.4 1.5 1.4

2.0 1.8 1.9 2.1 1.6 1.9 2.5 3.4 3.1

80.9 83.1 85.5 86.8 80.5 85.2 86.9 90.2 91.7

Preliminary. 2 Excludes Glass Fiber. 3 I ncludes silk, linen, jute and sisal & others. 4 Mill consumption plus inports less exports of semimanufactured and unmanufactured products. Source: Fiber Economics Bureau, I nc. (FEB)

1

Producer Price Index of Grey Synthetic Broadw ovens Year

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1 1

(1982 = 100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

114.3 115.6 115.7 119.0 119.6 113.5 114.8 114.3 117.9 120.1

112.0 115.7 114.7 119.9 119.1 112.8 116.8 114.1 118.3 120.4

112.2 115.6 114.4 120.3 119.1 112.9 116.7 116.9 118.3 119.7

112.2 115.7 114.1 120.9 119.2 113.2 116.3 117.9 117.9 120.2

112.1 115.5 114.3 121.8 117.1 113.2 116.6 116.8 118.4 119.8

113.1 115.6 113.9 122.0 118.4 113.3 117.1 115.7 119.0 119.7

114.7 115.7 114.8 122.6 118.0 113.1 115.4 116.1 118.8 118.0

115.0 115.2 116.4 122.0 118.0 113.3 114.8 117.1 118.5 118.1

115.0 115.3 116.5 121.7 116.9 114.1 116.9 116.9 119.4 116.7

115.8 115.6 116.5 120.8 117.3 111.8 116.4 117.2 118.7 114.2

115.9 115.8 116.8 119.4 115.2 112.9 114.7 116.6 117.6 115.1

115.3 116.1 118.2 119.9 114.5 113.8 116.2 117.0 119.6 115.0

114.0 115.6 115.5 120.9 117.7 113.2 116.1 116.4 118.5 118.1

Preliminary.

Source: Bureau of Labor Statistics, U.S. Department of Commerce (BLS) (0337-03)

219

Rice down from the record high of 621.054 million metric tons in 2005-06. The world’s largest rice producers were China with 30% of world production in 2006-07, India with 22% of world production, Indonesia with 8%, Bangladesh with 7%, Vietnam with 6%, and Thailand with 5%. US production of rice in 2006-07 fell –13.4% yr/yr to 193.3 million cwt (hundred pounds), continuing the downward slide to fall further from the 2004-05 record high of 232.4 million cwt.

Rice is a grain that is cultivated on every continent except Antarctica and is the primary food for half the people in the world. Rice cultivation probably originated as early as 10,000 BC in Asia. Rice is grown at varying altitudes (sea level to about 3,000 meters), in varying climates (tropical to temperate), and on dry to flooded land. The growth duration of rice plants is 3-6 months, depending on variety and growing conditions. Rice is harvested by hand in developing countries or by combines in industrialized countries. Asian countries produce about 90% of rice grown worldwide. Rough rice futures and options are traded on the Chicago Board of Trade (CBOT).

Demand – World utilization of rice in 2006-07 rose +1.0% to a record high of 415.943 million metric tons. US rice consumption in 2006-07 rose +2.9% yr/yr to a 5-year high of 122.8 million cwt (hundred pounds) and only slightly below the record high of 123.3 million cwt posted in 19992000.

Prices – Rough rice prices on the CBOT nearest futures chart in early 2006 were about $8.50 per hundred pounds. Prices held fairly steady until April and then rallied the rest of the year to about $10.21 per hundred pounds at the end of the year. Regarding cash prices, the average monthly price of rice received by farmers in the US in the first 7 months of the 2006-07 marketing year (i.e., August through December 2006) rose by +25.8% yr/yr to $9.60 per hundred pounds (cwt.).

Trade – World exports of rice in 2006-07 rose +3.8% yr/yr to 29.142 million metric tons, which was a new record high. The world’s largest rice exporters are Thailand with 30% of world exports, Vietnam with 17%, India with 15%, the US with 11%, and Pakistan with 10%. US rice imports in 2006-07 rose by +5.3% yr/yr to a new record high of 18.0 million cwt (hundred pounds). US rice exports in 2006-07 fell by –16.2% yr/yr to 97.0 cwt, far below the record of 124.6 million cwt posted in 2002-03.

Supply – World rice production in the 2006-07 marketing year fell –0.5% to 617.988 million metric tons,

World Rice Supply and Distribution Year

2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

In Thousands of Metric Tons

---------------------------------------------- Imports ---------------------------------------------- ---------------- Utiliz ation ----------------- ------------ Ending Stocks -----------European Saudi Brazil Indonesia Union Iran Nigeria Arabia Total China India Total China India Total

625 1,117 813 550 750 850

Preliminary.

2

3,500 2,750 650 500 550 1,800

Estimate.

3

1,138 1,198 1,020 1,000 1,100 1,100 Forecast.

964 900 950 983 1,200 900

1,906 1,897 1,448 1,369 1,777 1,600

Year

Brazil

Burma

China

2001-02 2002-03 2003-04 2004-051 2005-062 2006-073

36,469 37,784 39,232 38,404 43,141 43,654

10,393 10,368 12,807 13,229 11,579 11,324

18,000 18,600 18,500 16,500 18,000 18,103

177,580 174,543 160,660 179,090 180,591 182,857

2

Estimate.

3

Forecast.

79,156 63,311 43,915 38,931 36,782 36,582

24,480 11,000 10,800 8,500 11,270 10,470

136,387 106,522 85,394 78,146 81,839 79,066

India Indonesia

World Total

140,024 107,741 132,808 124,707 137,699 136,514

51,101 51,800 54,301 54,000 54,200 51,628

Ja p a n

Rep. of Korea

Pakistan

Philippines

Thailand

Vietnam

11,321 11,111 9,740 10,912 11,342 10,907

7,407 6,687 6,151 6,737 6,435 6,324

5,824 6,719 7,273 7,381 8,321 8,401

13,000 13,000 14,154 14,500 15,108 15,462

26,514 26,058 27,289 26,303 27,576 27,652

31,873 593,880 32,617 562,134 33,458 584,298 34,418 595,784 34,503 621,054 34,500 617,988

In Thousands of Metric Tons

Australia

Burma

China

EU-25

Guyana

India

Pakistan

Thailand

Uruguay

Vietnam

United States

World Total

134 175 294 325 450 450

247 150 175 80 325 125

1,002 388 130 190 75 150

1,963 2,583 880 656 1,216 1,200

336 250 225 175 160 150

209 193 200 243 182 170

6,300 5,440 3,100 4,687 3,800 4,300

1,628 1,992 1,868 2,801 3,000 3,000

7,245 7,552 10,137 7,274 7,376 8,700

475 615 725 775 825 650

3,245 3,795 4,295 5,174 4,694 4,900

2,954 3,860 3,310 3,496 3,689 3,262

26,882 28,660 27,354 28,360 28,073 29,142

Preliminary.

220

411,096 404,900 410,393 405,667 411,673 415,943

Argentina

2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

87,611 79,860 85,630 80,743 85,220 87,500

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Exports of Rice (Milled Basis) Year

136,500 135,700 132,100 130,300 128,000 127,800

In Thousands of Metric Tons

Banglad e sh

Preliminary.

25,985 26,190 24,830 26,305 26,407 27,359

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Production of Rough Rice

1

1,053 938 1,150 1,500 1,357 1,000

2

Estimate.

3

Forecast.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

RICE

-----

---

USD Per Cwt. Fancy (Honduras), New Orleans (Oct. 1914 - Dec. 1924) Fancy (Blue Rose), New Orleans (Jan. 1925 - Dec. 1933) Medium to Good (Blue Rose), New Orleans (Jan. 1934 - July 1947) Fancy, No. 2 Zenith Milled, New Orleans (Aug. 1947 - Apr. 1972) No. 2 Medium, Southwest Louisiana (May 1972 - date) Received by Farmers, U.S. (Aug. 1982 - date)

Average Wholesale Price of Rice No. 2 (Medium)1 Southw est Louisiana Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-072 1

In Dollars Per Cwt. Bagged

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Average

18.25 18.35 18.60 13.00 11.06 11.13 16.75 18.60 17.00 21.94

18.35 18.75 17.50 12.34 11.50 11.50 17.70 15.69 17.50 22.00

18.63 19.00 14.88 12.48 11.50 12.25 19.00 15.23 18.45 22.00

19.00 19.00 14.70 12.41 11.50 12.25 19.75 15.13 20.13 23.50

19.00 20.00 14.67 12.38 11.08 12.25 21.08 15.13 21.38

19.00 20.00 14.35 12.38 11.50 12.63 21.38 16.31 22.50

19.00 20.00 14.00 12.25 11.50 13.50 22.25 14.88 22.50

18.20 20.00 13.83 12.00 11.44 14.05 22.47 14.88 22.50

18.00 20.00 13.75 11.82 11.03 14.25 22.50 14.88 22.50

18.13 20.00 13.40 11.53 11.13 14.44 23.25 14.88 22.50

18.50 20.00 12.50 11.25 11.13 14.50 21.60 14.88 22.50

18.50 20.00 12.63 11.25 11.13 14.88 21.50 14.94 22.35

18.55 19.59 14.57 12.09 11.29 13.13 20.77 15.45 20.98 22.36

U.S. No. 2 -- broken not to exceed 4%.

2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price Received by Farmers for Rice (Rough) in the United States

In Dollars Per Cwt.

Year

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Average2

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

9.94 9.01 6.91 5.72 5.10 3.71 5.47 8.96 6.58 8.65

9.92 9.42 6.17 5.53 4.78 3.94 6.18 8.47 6.76 8.99

10.00 9.31 5.91 5.57 4.36 3.69 6.44 7.60 6.99 9.46

9.82 9.02 5.96 5.72 4.08 3.70 6.99 7.36 7.46 10.00

9.77 9.10 6.01 5.69 4.07 4.13 7.57 7.37 7.49 9.87

9.57 9.09 5.98 5.86 4.30 4.66 8.57 7.39 7.80 10.20

9.75 9.02 5.82 5.72 4.16 4.24 8.23 6.90 8.02 10.00

9.67 8.93 5.64 5.66 3.99 4.31 8.45 6.97 8.10

9.40 8.49 5.75 5.68 3.94 4.61 8.65 6.98 8.19

9.38 8.21 5.62 5.40 3.98 4.84 9.30 6.98 7.96

9.58 8.25 5.69 5.14 3.92 5.43 9.37 6.96 8.04

9.58 8.26 5.59 5.32 3.81 5.31 8.79 6.82 8.16

9.70 8.89 5.93 5.61 4.21 4.38 7.83 7.40 7.63 9.60

1

Preliminary.

2

Weighted average by sales.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

221

RICE Salient Statistics of Rice, Rough & Milled (Rough Equivalent) in the United States

In Millions of Cwt.

-------------- Government Support Program ------------- Loan Rate ($ Per Cw t.) --------------------------------- Disappearance ----------------------------Put Crop 3 -------------------- Supply -------------------Total Under ---------- Rough ---------CCC Year Disap- Stocks Price ResiAll Milled Beginning Stocks ProTotal ------------- Domestic ------------Total dual Exports pearance July 31 Support Long Medium Classes Long Aug. 1 Aug. 1 duction Imports Supply Food Brewers Seed

2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

28.5 39.0 26.8 23.7 37.7 43.0

215.3 211.0 199.9 232.4 223.2 193.3

13.2 14.8 15.0 13.2 17.1 18.0

256.9 119.3 264.8 109.7 241.7 110.8 269.2 118.5 278.1 115.8 254.3 118.9

4.0 3.7 4.1 4.2 3.5 4.0

4 4 4 4 4 4

123.3 113.4 115.0 122.7 119.3 122.8

94.7 124.6 103.1 108.8 115.8 97.0

4 4 4 4 4 4

218.0 238.0 218.0 231.5 235.1 219.8

0 0 0 0 0 0

-------------------

6.67 6.66 6.64 6.66 6.66 6.64

6.09 6.06 6.09 6.04 6.04 6.07

6.50 6.50 6.50 6.50 6.50 6.50

10.69 10.66 10.65 10.61 10.54 10.52

Preliminary. 2 Forecast. 3 Loan rate for each class of rice is the sum of the whole kernels' loan rate weighted by its milling yield (average 56%) and the broken kernels' loan rate weighted by its milling yield (average 12%). 4 I ncluded in food. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Acreage, Yield, Production and Prices of Rice in the United States Yield Acreage Harvested

Milled Rice, Average

Per Harvested

Wholesale Prices ----- C.I.F. at Rotterdam ------

Production

Value U.S. of Pro- ---- ($ Per Cw t.) ---No. 24 Thai "A"5 Thai "B"5 duction ArkanHous$1,000 sa s 2 ton3 ------ $ Per Metric Ton -------

---------- (1,000 Acres) ---------- --- Acre (In Lbs.) --- --------------- 1,000 Cw t. --------------Crop Year

Southern States California

2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

2,843 2,679 2,490 2,735 2,838 2,297

471 528 507 590 526 526

United States California

United States

Southern States California

3,314 3,207 2,997 3,325 3,364 2,823

6,496 6,578 6,670 6,942 6,636 6,847

176,780 167,971 160,861 180,059 184,399 153,316

8,170 8,140 7,700 8,600 7,380 7,600

38,490 42,989 39,036 50,759 38,836 39,976

United States

215,270 210,960 199,897 230,818 223,235 193,292

925,055 979,628 1,628,948 1,701,822 1,741,721 1,906,895

11.25 13.39 21.18 14.36 19.03

12.88 11.76 17.60 17.46 17.53

Preliminary. 2 F.O.B. mills, Arkansas, medium. 3 Houston, Texas (long grain). 4 Milled, 4%, container, FAS. NA = Not available. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

U.S. Exports of Milled Rice, by Country of Destination

5

208 221 358 316 293

----------------

225 NA NA NA NA

SWR, 100%, bulk.

In Thousands of Metric Tons

Year Beginning October

Canada

Haiti

Iran

Ivory C o a st

Jamaica

Mexico

Netherlands

Peru

Saudi Arabia

South Africa

Switzerland

United Kingdom

Total

2000-01 2001-02 2002-03 2003-04 2004-05 2005-061

182.4 174.5 168.6 208.4 230.8 235.1

212.3 247.1 324.8 242.2 299.1 343.0

------10.3 ---0 0

22.2 25.0 65.8 32.7 32.6 25.0

32.0 28.7 60.7 44.5 48.2 53.5

516.0 740.4 740.6 738.0 725.8 802.9

50.8 52.9 71.7 30.4 44.8 38.6

1.0 11.2 23.8 3.5 45.7 1.7

156.3 97.0 97.6 87.7 101.4 93.4

65.9 67.3 73.1 .0 .6 .0

33.2 18.0 26.2 10.6 18.0 12.4

104.0 106.0 126.4 100.2 130.9 120.3

3,058 3,536 4,469 3,690 4,248 4,045

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

U.S. Rice Exports by Export Program

F i sca l Year

P L 480

Section 416

2001 2002 2003 2004 2005 20061

144 241 263 129 126 53

30 56 0 0 0 0

In Thousands of Metric Tons

CCC Credit Programs2

CCC African Reliel Exports

-------------------

0 0 0 0 0 0

EEP3

Export Programs4

Exports Outside Specified Export Programs

Total U.S. Rice Exports

% Export Programs as a Share of Total Exports

0 0 0 0 0 0

231 356 310 214 150 96

2,828 3,181 4,169 3,484 4,108 3,959

3,059 3,537 4,478 3,699 4,258 4,055

8 10 7 6 4 2

Preliminary. 2 May not completely reflect exports made under these programs. 3 Sales not shipments. 4 adjusted for estimated overlap between CCC export credit and EEP shipments. Source: Economice Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Production of Rice (Rough) in the United States, by Type and Variety Year

1997 1998 1999 2000 2001 1

Preliminary.

222

Long Grain

Medium Grain

Short Grain

Total

124,485 139,328 151,863 128,756 167,555

57,091 43,404 50,540 59,514 46,105

1,416 1,711 3,624 2,602 1,610

182,992 184,443 206,027 190,872 215,270

In Thousands of Cwt.

Year

Long Grain

Medium Grain

Short Grain

Total

2002 2003 2004 2005 20061

157,243 149,011 170,445 177,527 143,674

52,201 48,180 58,689 42,408 45,969

1,516 2,706 3,228 3,300 3,649

210,960 199,897 232,362 223,235 193,292

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Rubber Rubber is a natural or synthetic substance characterized by elasticity, water repellence, and electrical resistance. PreColumbian Native South Americans discovered many uses for rubber such as containers, balls, shoes, and waterproofing for fabrics such as coats and capes. The Spaniards tried to duplicate these products for many years but were unsuccessful. The first commercial application of rubber began in 1791 when Samuel Peal patented a method of waterproofing cloth by treating it with a solution of rubber and turpentine. In 1839, Charles Goodyear revolutionized the rubber industry with his discovery of a process called vulcanization, which involves combining rubber and sulfur and heating the mixture. Natural rubber is obtained from latex, a milky white fluid, from the Hevea Brasiliensis tree. The latex is gathered by cutting a chevron shape through the bark of the rubber tree. The latex is collected in a small cup, with approximately 1 fluid ounce per cutting. The cuttings are usually done every other day until the cuttings reach the ground. The tree is then allowed to renew itself before a new tapping is started. The collected latex is strained, diluted with water, and treated with acid to bind the rubber particles together. The rubber is then pressed between rollers to consolidate the rubber into slabs or thin sheets and is air-dried or smoke-dried for shipment. During World War II, natural rubber supplies from the Far East were cut off, and the rubber shortage accelerated the development of synthetic rubber in the US. Synthetic rubber is produced by chemical reactions, condensation or polymerization, of certain unsaturated hydrocarbons. Synthetic rubber is made of raw material derived from petroleum, coal, oil, natural gas, and acetylene and is almost identical to natural rubber in chemical and physical properties. Natural rubber and Rubber Index futures are traded on the Osaka Mercantile Exchange (OME). The OME’s natural rubber contract is based on the RSS3 ribbed smoked sheet No. 3. The OME’s Rubber Index Futures Contract is based on a composite of 8 component grades from 6 rubber markets in the world. Rubber futures are also traded on the Shanghai Futures Exchange (SHFE) and the Tokyo Commodity Exchange (TOCOM). Prices – The average monthly price for spot crude rubber (No.1 smoked sheets, ribbed, plantation rubber), basis in New York, in 2006 was sharply higher by +38.7% to a record high of 104.91 cents per pound. A 3-decade low

of 33.88 cents per pound was seen as recently as 2001 during that recessionary year. Supply – World production of natural rubber in 2005 rose +1.4% to 8.777 million metric tons. The world’s largest producers of natural rubber in 2005 were Thailand with 33.5% of world production, Indonesia (25.9%), Malaysia (12.8%), India (8.8%), Vietnam (5.3%), and China (4.9%). In 2005, world production of synthetic rubber rose by +0.6% to 12.057 million metric tons. The world’s largest producers of synthetic rubber in 2005 were the US with 19.6% of world production, Japan (13.5%), Russia (9.5%), and Germany (7.1%). US production of synthetic rubber in 2005 rose +1.8% to 2.366 million metric tons from the 14-year low of 2.064 million metric tons posted in 2001. US production of car and truck tires in 2005 fell –4.3% to 223.203 million tires. Demand – World consumption of natural rubber in 2005 rose by +4.9% to 9.001 million metric tons. The largest consumers of natural rubber in 2005 were the US with 13% of consumption, Japan with 10%, and France, Germany, and the UK with a combined 6%. The world’s consumption of natural rubber has tripled since 1970.World consumption of synthetic rubber in 2005 rose by +1.0% to 12.005 million metric tons. The largest consumers of synthetic rubber in 2005 were the US with 16% of consumption, Japan with 10%, and France, Germany, and the UK with a combined 10%. The world’s consumption of synthetic rubber has more than doubled since 1970. US consumption of natural rubber in 2005 rose by +1.3% to 1.159 million metric tons. US consumption of natural rubber has more than doubled since 1970. US consumption of synthetic rubber in 2005 rose +2.5% to 1.955 million metric tons. The US consumption of synthetic rubber has remained about the same as it was in 1970. Trade – World exports of natural rubber in 2005 rose +2.8% to a record 6.336 million metric tons. The world’s largest exporters of natural rubber in 2005 were Thailand with 42% of world exports and Indonesia with 32% of world exports. US imports of natural rubber in 2005 rose +1.4% to a 5-year high of 1.159 million metric tons. US exports of synthetic rubber in 2005 rose +2.4% to a record high of 1.105 million metric tons.

U.S. Imports of Natural Rubber (Includes Latex & Guayule) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

94.2 104.4 91.8 127.4 85.2 104.8 104.1 116.2 99.8 113.3

92.0 76.6 90.7 88.2 69.1 71.2 86.2 76.6 101.9 71.8

93.9 102.8 93.4 114.1 93.9 79.2 106.8 101.7 97.1 98.9

88.2 81.0 101.6 107.9 80.0 90.8 99.8 96.5 115.5 80.5

93.0 98.0 84.8 114.9 74.9 106.1 91.4 112.6 80.9 115.6

65.1 92.9 80.0 120.1 63.8 92.2 97.6 92.0 95.7 72.5

76.8 96.4 76.6 65.9 101.1 108.6 94.5 87.6 84.5 724.0

90.1 100.8 112.2 96.2 109.2 109.7 67.4 81.7 91.7 97.3

87.5 123.2 88.7 79.2 69.9 81.1 100.1 85.5 113.5 58.8

86.8 104.8 127.5 96.2 92.4 94.7 70.6 120.4 92.2 83.9

87.6 84.5 83.1 92.2 69.2 83.0 72.3 71.0 82.7

89.0 111.4 85.9 89.3 63.4 88.9 86.2 101.8 103.7

1,044.2 1,176.8 1,116.3 1,191.6 972.1 1,110.3 1,077.0 1,143.6 1,159.2 1,819.9

Preliminary.

Source: I nternational Rubber Study Group (I RSG)

223

RUBBER World Production1 of Rubber Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

In Thousands of Metric Tons

---------------------------------------------------------- Natural ---------------------------------------------------------- -------------------------------- Synthetic -------------------------------IndoSri World GerUnited World China India nesia Malaysia Lanka Thailand Vietnam Total many Ja p a n States Russia Total

430.0 444.0 450.0 460.0 445.0 464.0 468.0 480.0 486.0 428.0

540.1 580.3 591.1 620.1 629.0 631.5 640.8 707.1 742.6 770.5

1,527.0 1,504.8 1,714.0 1,599.2 1,501.1 1,607.3 1,630.0 1,792.2 2,066.2 2,269.8

I ncluding rubber in the form of latex.

2

1,082.5 971.1 885.7 768.9 927.6 882.1 889.8 985.6 1,168.7 1,130.7 Preliminary.

112.5 105.8 95.7 96.6 87.6 86.2 90.5 92.0 94.7 94.7

1,970.4 2,032.7 2,075.9 2,154.6 2,346.4 2,319.6 2,615.1 2,876.0 2,984.3 2,910.8

220.0 212.0 220.0 262.0 293.0 331.0 372.0 380.0 415.0 435.5

160.7 161.0 185.3 184.1 226.6 215.9 233.4 255.5 281.5 310.9

Preliminary.

775.1 724.9 621.0 737.0 837.1 919.2 919.0 1,070.0 1,116.1 1,147.1

9,760 10,080 9,840 10,336 10,819 10,485 10,882 11,448 11,978 11,965

182.2 192.3 223.0 240.0 270.0 282.0 230.7 300.2 230.1 233.9

193.0 214.0 247.0 226.0 250.0 246.0 247.0 260.3 242.3 260.1

714.5 713.0 707.3 734.2 751.8 729.2 749.0 784.2 814.8 859.4

111.0 119.0 139.0 127.0 122.5 98.0 76.0 90.9 86.3 82.3

1,001.7 1,044.1 1,157.4 1,116.3 1,194.8 974.1 1,110.8 1,078.5 1,143.6 1,159.2

6,110 6,470 6,580 6,646 7,315 7,223 7,546 7,967 8,319 8,742

436.1 416.2 451.4 434.3 481.5 464.5 469.3 493.2 420.1 350.7

497.0 509.0 582.0 565.0 632.0 613.0 612.0 615.0 624.5 635.0

Preliminary.

1,124.5 1,163.0 1,115.7 1,132.9 1,137.5 1,085.1 1,096.0 1,110.7 1,146.3 1,180.9

230.0 235.0 177.0 189.0 188.0 167.0 210.0 203.9 211.2 206.5

2,186.6 2,322.7 2,354.4 2,217.5 2,189.5 1,839.5 1,895.0 1,926.4 1,906.8 1,954.6

9,590 10,010 9,830 10,196 10,764 10,253 10,723 11,381 11,860 11,917

Source: I nternational Rubber Study Group (I RSG)

Total Synthetic

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

2,486.0 2,589.0 2,600.0 2,354.0 2,396.8 2,062.1 2,164.4 2,270.1 2,325.1 2,365.8

In Thousands of Metric Tons

World Stocks1 of Natural & Synthetic Rubber (by Countries) on January 1 Year

1,519.9 1,591.5 1,520.1 1,576.7 1,591.7 1,465.5 1,522.0 1,577.4 1,616.1 1,626.9

--------------------------------------------------- Natural -------------------------------------------------- ---------------------------------------- Synthetic ---------------------------------------GerUnited United World GerUnited United World Brazil France many Japan Kingdom States Total France many Japan Kingdom States Total

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1 1

548.1 555.1 619.0 720.1 849.2 828.4 869.2 888.0 905.0 842.5

Source: I nternational Rubber Study Group (I RSG)

World Consumption of Natural and Synthetic Rubber Year

6,440 6,470 6,820 6,872 6,739 7,261 7,345 7,992 8,645 8,682

1,057 1,081 1,116 1,103 1,159 1,139 1,161 1,127 1,040 988

In Thousands of Metric Tons

---------------------------------- In Producing Countries --------------------------------------- ------ In Consuming Countries (Reported Stocks) -----IndoSri ThaiTotal United Africa nesia Malaysia Lanka land Vietnam Natural Brazil India Ja p a n States Total

20.5 25.5 25.3 28.2 28.9 29.1 27.7 28.0 29.6 33.1

70 40 30 33 48 26 25 15 18 20

190.3 209.5 234.2 236.6 151.1 138.2 135.6 162.6 195.0 166.2

17.6 17.9 18.6 18.6 18.7 19.0 19.0 19.0 19.0 19.0

147.7 159.4 209.5 250.9 188.6 213.0 196.7 202.2 249.4 258.0

28.0 28.0 30.0 32.0 27.0 26.0 19.0 14.0 17.0 20.0

510 510 750 929 595 566 482 471 559 549

13.0 13.0 13.0 34.0 40.0 42.0 42.0 42.0 42.0 42.0

123.4 157.0 194.0 215.1 203.3 225.5 151.7 123.3 122.9 65.0

86.8 87.2 58.0 79.1 95.2 46.9 65.0 73.0 58.1 47.3

79.3 57.2 70.4 46.0 44.6 42.6 42.1 40.6 40.9 40.9

427 385 406 475 484 429 301 279 264 245

Source: I nternational Rubber Study Group (I RSG)

Net Exports of Natural Rubber from Producing Areas

In Thousands of Metric Tons

Year

Cambodi a

Guatemala

Indonesia

Liberia

Malaysia

Nigeria

Sri Lanka

Thailand

Vietnam

Other Africa2

Other A si a 3

World Total

1996 1997 1998 1999 2000 2001 2002 2003 2004 20051

31.0 32.0 29.0 42.0 39.0 38.0 40.0 41.0 40.5 41.0

29.2 28.3 24.6 27.7 31.8 33.0 40.1 41.0 52.9 54.0

1,434.3 1,403.8 1,641.2 1,494.6 1,379.6 1,496.9 1,502.2 1,660.5 1,875.1 2,074.5

30.0 67.2 75.0 75.0 73.5 71.7 73.0 71.5 71.3 69.1

709.7 586.8 424.9 435.5 196.4 162.1 430.0 509.7 679.9 659.9

48.8 53.0 46.5 38.0 36.0 30.0 24.0 19.0 24.0 23.0

72.1 61.4 41.4 42.7 32.6 32.0 36.1 35.2 40.3 29.9

1,763.0 1,837.1 1,839.4 1,886.3 2,166.2 2,042.1 2,354.4 2,573.4 2,637.1 2,580.7

194.5 194.2 181.0 218.0 254.0 283.0 325.0 325.0 352.0 371.0

166.7 186.1 181.7 200.4 205.7 212.4 199.8 210.8 222.0 233.0

65.3 58.6 62.8 60.5 62.8 76.5 83.2 94.7 84.3 86.3

4,380 4,580 4,650 4,648 4,977 5,113 5,233 5,687 6,175 6,309

Preliminary. 2 I ncludes Cameroon, Cote d'I voire, Gabon, Ghana and Zaire. Source: I nternational Rubber Study Group (I RSG)

1

224

3

I ncludes Myanmar, Papua New Guinea and the Philippines.

RUBBER

-----

Cents Per pound Para, New York (1860 - 1907) Smoked Sheets, New York (Jan. 1908 - date)

Average Spot Crude Rubber Prices (Smoked Sheets1) in New York Year

1999 2000 2001 2002 2003 2004 2005 2006 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

38.99 38.16 35.98 32.21 47.95 65.63 64.20 93.04

38.58 40.36 35.66 34.45 49.25 67.28 66.18 104.01

36.34 38.17 34.78 36.50 54.96 68.09 66.80 104.48

34.98 37.80 34.50 36.38 52.04 68.84 66.70 105.20

35.75 37.76 34.80 36.93 49.32 70.40 68.07 115.03

34.64 37.07 35.00 43.53 51.76 69.90 73.75 131.74

33.60 36.65 34.80 44.32 51.99 68.10 80.50 124.01

33.63 37.90 34.48 45.20 53.71 66.50 82.34 114.94

34.45 37.35 33.07 47.90 57.61 66.39 85.51 95.17

37.58 37.61 31.98 45.70 65.88 67.30 87.90 94.77

42.57 37.02 31.14 44.97 67.63 66.80 83.75 87.95

38.88 36.90 30.35 45.39 65.20 63.90 81.99 88.53

36.67 37.73 33.88 41.12 55.61 67.43 75.64 104.91

No. 1, ribbed, plantation rubber.

Source: I nternational Rubber Study Group (I RSG)

Natural Rubber Prices in London Year

Jan.

F eb.

Mar.

Buyers' Price RSS 1 (CI F) 2002 461.8 502.5 522.1 2003 1,058.7 1,133.6 1,211.6 2004 1,446.8 1,483.2 1,501.2 2005 1,415.4 1,459.1 1,472.7 2006 2,051.1 2,293.1 2,303.3 Buyers' Prices RSS 3 (CI F) 2002 444.2 486.5 511.3 2003 930.6 987.3 1,046.6 2004 1,063.3 1,084.9 1,172.4 2005 957.2 992.6 1,066.7 2006 1,657.1 1,840.3 1,846.7 Sellers' Prices SMR 20 (CI F) 2002 428.0 461.3 510.6 2003 915.0 937.7 942.2 2004 1,030.2 1,072.0 1,104.7 2005 950.5 985.8 991.1 2006 1,564.6 1,727.5 1,704.7 1

In Cents Per Pound

Jan.

In Euro1 Per Metric Ton

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

511.9 1,147.2 1,517.6 1,470.5 2,319.2

518.9 1,087.4 1,552.1 1,500.7 2,536.0

NQ 1,141.2 1,541.0 1,626.0 2,904.3

NQ 1,146.1 1,501.3 1,774.7 2,734.0

NQ 1,184.2 1,466.1 1,815.2 2,533.9

NQ 1,270.0 1,463.6 1,885.2 2,098.2

NQ 1,452.5 1,483.7 1,937.8 2,089.4

NQ 1,491.0 1,472.7 1,846.4 1,938.9

NQ 1,437.5 1,408.8 1,807.5 1,951.7

503.4 1,230.1 1,486.5 1,667.6 2,312.8

500.2 968.7 1,219.8 1,094.0 1,864.2

515.4 905.6 1,206.4 1,142.5 2,016.0

959.9 949.7 1,204.9 1,292.6 2,267.5

893.4 956.9 1,123.4 1,492.2 2,112.0

932.2 1,021.4 1,101.9 1,405.8 1,839.5

981.1 1,086.1 1,051.4 1,484.3 1,487.3

---1,197.3 1,045.6 1,525.3 1,511.1

---1,182.0 1,026.6 1,454.3 1,327.8

---1,091.5 973.2 1,528.5 1,356.6

691.6 1,027.0 1,106.2 1,286.3 1,760.5

500.6 888.2 1,118.2 1,012.1 1,694.2

503.5 795.4 1,094.0 1,018.7 1,788.7

921.3 800.0 1,042.5 1,138.6 1,952.6

864.6 834.4 996.8 1,292.6 1,949.4

898.5 911.0 1,006.9 1,254.0 1,797.4

978.9 1,040.7 1,008.1 1,385.5 1,490.4

------1,174.7 1,166.0 1,037.3 1,000.2 1,410.0 1,442.3 1,475.6 13,113.3

---1,087.6 959.5 1,485.8 1,294.3

674.1 957.7 1,039.2 1,197.3 2,629.4

Data prior to June 2002 are in British Pound per metric ton.

Source: I nternational Rubber Study Group (I RSG)

225

RUBBER Consumption of Natural Rubber in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

94.2 104.4 92.0 110.0 85.5 104.9 104.2 116.0 99.8 113.3

92.0 76.6 92.0 110.0 69.4 71.3 86.3 76.5 101.9 71.8

93.9 102.7 93.0 110.0 94.1 79.2 106.9 101.5 97.1 98.9

88.2 81.0 88.0 114.0 80.2 90.4 100.1 96.5 115.5 80.5

93.0 98.0 88.0 114.0 75.1 106.3 91.2 112.5 80.9 115.6

65.1 92.9 88.0 114.0 64.1 92.3 97.7 92.5 95.7 72.5

76.8 96.4 92.0 80.0 101.2 108.7 94.6 87.5 84.5 72.4

90.1 91.7 92.0 80.0 109.3 109.7 67.5 82.0 91.7 97.3

87.5 119.1 92.0 80.0 70.0 81.2 101.3 86.0 113.5 58.8

86.8 104.8 100.0 93.0 92.4 94.7 69.9 120.0 92.2 83.9

87.5 78.4 100.0 93.0 69.4 83.1 72.5 71.0 82.7

89.0 111.4 100.0 93.0 63.4 89.0 86.3 101.8 103.7

1,044.1 1,157.4 1,116.3 1,194.8 974.1 1,110.8 1,078.5 1,143.8 1,159.2 1,038.0

Preliminary.

Source: I nternational Rubber Study Group (I RSG)

Stocks of Natural Rubber in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

Preliminary.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

79.3 57.2 70.4 46.0 46.6 42.6 42.1 40.6 40.6 40.6

74.2 61.2 68.0 63.4 44.3 42.5 42.0 40.8 40.6 40.6

74.2 65.5 66.0 41.6 44.0 42.4 41.9 40.9 40.6 40.6

76.9 63.5 64.0 45.7 43.8 42.4 41.8 40.9 40.6 40.6

77.5 60.9 62.0 39.6 43.6 42.8 41.5 40.9 40.6 40.6

62.2 66.7 60.0 40.5 43.4 42.6 41.7 40.9 40.6 40.6

55.2 53.6 58.0 46.6 43.1 42.5 41.6 40.9 40.6 40.6

53.6 57.9 56.0 32.5 43.0 42.4 41.5 40.9 40.6 40.6

52.1 54.7 54.0 48.7 42.9 42.4 41.4 40.9 40.6 40.6

51.2 58.3 52.0 47.9 42.8 42.3 40.2 40.9 40.6 40.6

52.4 58.9 50.0 51.1 42.8 42.3 40.9 40.9 40.6 40.6

55.2 66.5 48.0 50.3 42.6 42.2 40.7 40.9 40.6 40.6

Source: I nternational Rubber Study Group (I RSG)

Stocks of Synthetic Rubber in the United States, on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

400.5 377.7 409.3 406.0 433.0 392.0 390.0 343.0 260.0 248.0

400.4 382.2 404.0 416.0 451.0 377.0 325.0 347.0 255.0 240.0

408.4 375.7 404.0 413.0 467.0 379.0 330.0 335.0 240.0 225.0

412.7 379.5 406.0 402.0 4,559.0 393.0 325.0 315.0 240.0 215.0

411.9 387.5 399.0 405.0 448.0 398.0 336.0 310.0 235.0 210.0

403.5 402.8 420.0 416.0 433.0 384.0 336.0 300.0 235.0 210.0

393.1 394.6 410.0 409.0 426.0 385.0 332.0 300.0 240.0 210.0

376.9 406.8 419.0 418.0 420.0 381.0 332.0 290.0 245.0 210.0

378.4 394.2 413.0 400.0 394.0 364.0 331.0 280.0 245.0 210.0

364.4 398.7 390.0 412.0 400.0 375.0 328.0 280.0 245.0 210.0

365.2 395.7 391.0 407.0 394.0 364.0 317.0 280.0 245.0 210.0

377.7 396.5 389.0 419.0 379.0 358.0 338.0 270.0 245.0 210.0

Source: I nternational Rubber Study Group (I RSG)

Production of Synthetic Rubber in the United States Year

1

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

220.0 230.0 200.0 202.0 203.0 176.1 185.6 208.3 206.9 212.9

200.0 200.0 181.0 202.0 188.6 171.9 180.9 199.0 204.8 213.7

220.0 230.0 209.0 214.0 184.3 192.3 193.6 203.5 209.4 212.9

230.0 220.0 195.0 193.0 172.1 190.6 179.8 193.5 202.7 210.2

220.0 240.0 205.0 216.0 175.5 187.0 182.9 187.1 196.9 195.5

200.0 210.0 190.0 202.0 162.3 184.6 166.3 183.5 188.9 191.8

220.0 220.0 199.0 198.0 166.7 183.5 174.2 183.5 187.3 202.0

220.0 210.0 192.0 187.0 164.7 177.3 172.9 184.1 193.7 202.2

230.0 230.0 180.0 193.0 174.3 175.1 188.4 193.5 182.7 193.5

210.0 210.0 204.0 197.0 178.6 175.0 189.7 198.5 185.8 192.2

210.0 200.0 197.0 194.0 155.1 160.4 192.0 202.1 206.9

203.0 210.0 202.0 184.0 139.2 176.4 185.6 188.5 199.8

2,589 2,610 2,354 2,382 2,064 2,150 2,192 2,325 2,366 2,432

Preliminary.

226

In Thousands of Metric Tons

Jan.

Preliminary.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Thousands of Metric Tons

Jan.

Source: I nternational Rubber Study Group (I RSG)

RUBBER Consumption of Synthetic Rubber in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

191.7 196.5 164.0 173.0 170.8 155.5 166.1 170.0 174.7 173.7

181.4 192.5 166.0 185.0 149.6 146.8 156.4 166.2 184.0 182.7

190.0 214.8 195.0 202.0 166.8 153.0 167.7 176.0 180.6 178.0

187.9 194.4 178.0 178.0 153.3 165.8 157.8 156.5 171.5 170.7

192.2 199.8 170.0 194.0 159.8 173.4 162.0 152.2 156.8 140.2

187.7 201.4 186.0 196.0 148.6 160.4 163.0 141.9 147.9 141.5

205.9 192.0 177.0 177.0 156.4 161.5 163.3 158.8 145.2 141.6

208.0 204.5 176.0 189.0 173.0 169.3 152.3 149.2 148.9 142.1

204.2 202.2 191.0 172.0 145.7 154.8 159.0 152.9 153.7 136.5

203.0 200.3 171.0 182.0 162.7 166.7 175.6 155.0 161.2 135.4

181.9 181.2 178.0 168.0 140.8 148.2 147.3 170.0 166.8

188.8 174.8 161.0 147.0 112.0 139.6 155.9 158.1 163.3

2,323 2,354 2,218 2,190 1,840 1,895 1,926 1,907 1,955 1,851

Preliminary.

Source: I nternational Rubber Study Group (I RSG)

U.S. Exports of Synthetic Rubber Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands of Metric Tons

Jan.

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

63.1 61.1 57.6 64.3 74.6 67.9 73.1 82.0 86.3 103.4

58.2 60.8 63.3 73.4 67.3 71.6 70.1 87.3 89.6 97.3

57.5 62.8 65.0 83.8 76.4 69.5 80.1 97.0 91.8 106.7

74.2 59.8 70.5 70.2 78.2 74.9 85.2 90.9 98.4 103.2

66.9 66.9 64.7 73.2 75.1 78.5 78.4 96.8 98.3 109.2

61.6 61.8 66.0 72.3 69.6 73.6 75.3 92.6 96.9 106.8

64.1 60.1 61.5 72.4 70.6 74.5 74.4 88.9 91.5 110.0

70.0 64.4 68.2 78.6 71.6 72.8 72.4 91.6 100.4 112.5

65.6 63.7 65.1 78.6 68.1 70.9 73.9 94.8 76.4 101.3

65.6 62.3 79.0 75.2 70.7 73.1 83.7 89.0 87.0 103.3

63.0 59.2 70.2 73.3 62.4 70.8 74.5 87.0 101.3

58.7 59.2 65.7 70.7 59.4 66.3 79.3 81.6 87.5

768.5 742.1 796.8 886.0 844.4 864.4 920.4 1,079.5 1,105.4 1,264.4

Preliminary.

Source: I nternational Rubber Study Group (I RSG)

Production of Tyres (Car and Truck) in the United States

In Thousands of Units

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

1989 1990 1991 1992 1993 1994 1995 1996 1997

56,716 55,915 51,296 57,890 61,809 63,586 63,800 64,000 ----

56,626 53,856 52,796 57,319 60,752 63,331 63,800 64,000 ----

50,086 51,163 49,183 57,554 57,702 57,018 63,800 64,000 ----

49,444 49,729 51,115 57,487 57,184 59,442 63,754 63,700 ----

212,870 210,663 202,391 230,250 237,447 243,696 255,521 255,723 263,860

1998 1999 2000 2001 2002 2003 2004 20051 20062

---------65,367 62,937 62,686 60,272 57,377 56,787

---------62,809 64,362 59,311 59,774 58,832 53,452

---------62,366 60,524 58,441 58,389 54,920 49,612

---------56,106 58,241 55,565 54,824 52,074

1

Preliminary.

2

Estimate.

Source: I nternational Rubber Study Group I RSG)

U.S. Foreign Trade of Tyres (Car and Truck) Year

1

In Thousands of Units

-------------------------------------------- Imports ------------------------------------------First Second Third Fourth Quarter Quarter Quarter Quarter Total

1997 1998 1999 2000 2001 2002 2003 2004 2 0 0 51 20062 Preliminary.

13,359 17,046 19,471 24,200 19,563 21,554 26,310 28,996 32,704 34,562 2

Estimate.

Total

270,905 267,652 276,765 255,700 246,064 236,003 233,259 223,203 213,135

14,487 17,728 22,295 24,698 22,251 25,831 28,557 31,998 36,924 36,863

15,314 18,016 22,194 23,561 22,072 24,868 28,472 30,788 34,391

16,064 19,346 23,784 22,123 20,956 24,950 27,536 32,707 33,584

----------------------------------------------- Exports ---------------------------------------------First Second Third Fourth Quarter Quarter Quarter Quarter Total

59,434 72,124 87,768 94,019 84,842 97,203 110,875 124,489 137,603 142,850

9,466 12,840 9,874 11,200 10,087 10,438 9,293 10,272 9,808 10,129

11,386 10,678 9,580 10,200 10,362 10,379 2,648 10,902 10,071 10,617

10,456 10,018 10,480 10,200 11,004 10,167 10,263 10,108 10,659 10,692

11,085 10,372 10,537 10,100 10,691 10,380 10,794 10,299 10,570

42,452 43,923 40,945 44,164 42,144 41,363 32,998 41,581 41,108 41,917

Source: I nternational Rubber Study Group (I RSG)

227

Rye Rye is a cereal grain and a member of the grass family. Hardy varieties of rye have been developed for winter planting. Rye is most widely grown in northern Europe and Asia. In the US, rye is used as an animal feed and as an ingredient in bread and some whiskeys. Bread using rye was developed in northern Europe in the Middle Ages where bakers developed dark, hearty bread consisting of rye, oat and barley flours. Those were crops that grew more readily in the wet and damp climate of northern Europe, as opposed to wheat which fares better in the warmer and drier climates in central Europe. Modern rye bread is made with a mixture of white and rye flours. Coarsely ground rye flour is also used in pumpernickel bread and helps provide the dark color and course texture, along with molasses. The major producing states are North and South Dakota, Oklahoma, and Georgia. The crop year runs from June to May.

US production of rye fell off in the 1970s, and fell to a record low of 6.971 million bushels in 2001-02. US acreage harvested with rye in 2006-07 fell –1.8% to 274,000 acres, which was only modestly above the record low of 255,000 acres in 2001-02. US farmers in the late 1800s through the 1960s typically harvested more than 1 million acres of rye, showing how domestic planting of rye has dropped off sharply in the past several decades. Rye yield in 2005-06 fell –2.6% to 26.3 bushels per acre, which was well below the record high of 33.1 bushels per acre posted in 1984-85. Modern rye production yields are more than double the levels in the teens seen prior to the 1960s when yields started to rise. Demand – Total US domestic usage of rye in 2005-06 fell –9.9% yr/yr to 12.200 million bushels. The breakdown of domestic usage shows that 27% of rye in 2005-06 was used for food, 25% by industry, 25% as seed, and 24% as feed and residual.

Supply – World rye production in 2006-07 fell by – 14.8% yr/yr to a new record low of 12.384 million metric tons. The world’s largest producers of rye are the European Union with 53% of world production in 2006-07, followed by Russia with 24%, Belarus with 10%, and the Ukraine with 5%. US production of rye accounted for only 1.5% of world production in 2006-07.

Trade – World exports of rye in the 2006-07 marketing year fell –1.1% yr/yr to a 21-year low of 603,000 metric tons. The largest exporter was the European Union with exports of 400,000 metric tons. World imports of rye fell –13.8% to 537,000 metric tons. US imports of rye in 2006-07 fell – 8.6% yr/yr to 127,000 metric tons.

US production of rye in 2006 fell –4.6% to 7.193 million bushels. That was far below the production levels above 20 million bushels seen from the late 1800s through the 1960s.

World Production of Rye Year

Argentina

Australia

Belarus

Canada

Union

Kazakhstan

Romania

Russia

Switzer land

Turkey

Ukraine

United States

World Total

62 66 116 125 81 80 37 89 55 55

20 20 20 20 20 20 20 20 20 20

1,788 1,384 929 1,360 1,294 1,600 1,200 1,400 1,150 1,200

320 408 387 260 228 134 327 420 359 300

6,021 6,345 11,413 10,203 11,891 9,190 6,907 9,966 7,671 6,591

60 20 20 50 75 50 50 50 50 50

50 45 50 50 50 50 50 50 50 50

7,500 3,300 4,800 5,450 6,600 7,150 4,200 2,850 3,600 3,000

46 20 20 20 20 20 20 20 20 20

235 232 233 260 220 255 240 240 240 240

1,348 1,140 919 966 1,822 1,511 625 1,600 1,050 600

207 309 280 213 175 165 219 210 191 183

24,125 20,074 19,278 19,064 22,568 20,310 13,976 16,998 14,543 12,384

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

In Thousands of Metric Tons

Preliminary.

2

Estimate.

3

Forecast.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Imports and Exports of Rye

In Thousands of Metric Tons

-------------------------------------------------- Imports -------------------------------------------------- ------------------------------------------ Exports -----------------------------------------Rep. of United World United World Crop Year EU-25 Ja p a n Korea Turkey Russia States Total Belarus Canada EU-25 Russia States Total

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

Preliminary.

228

4 368 486 433 501 76 6 9 10 2

323 391 397 337 335 414 341 261 279 200

Estimate.

3

4 175 476 57 121 31 114 8 7 10 Forecast.

------183 ---20 43 43 59 7 5

2 306 464 193 7 ---6 172 49 75

141 84 87 82 126 156 83 143 139 127

676 1,470 2,276 1,224 1,150 1,433 822 788 623 537

---------50 30 110 60 50 50 50

142 68 87 91 66 53 171 122 132 150

487 939 2,085 1,288 730 748 626 575 359 400

1 ---------4 291 156 ----------

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

2 1 7 10 5 3 1 4 ---3

651 1,443 2,387 1,440 1,129 1,493 1,025 855 610 603

RYE

-----

Cents Per Bushel No. 2 Minneapolis (July 1909 to Dec. 1997)

Production of Rye in the United States Year

Georgia

Kansas

1,430 1,050 1,050 1,170 875 560 800 600 810 650

300 375 300

450 420 756

400 837 775

240 288 405

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

In Thousands of Bushels

Preliminary.

2

Michigan Minnesota Nebraska

2

Estimates not published beginning in 2000.

1,080 1,540 1,045 1,470 1,150 1,300 1,540 1,620 1,400 1,040

Pennsylvania

South Carolina

South Dakota

400 495 600

250 400 500

330 400 450

432 360 384

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

728 1,400 1,012 546 350 270 672 649

2

2

2

2

2

2

2

2

2

2

2

2

Texas Wisconsin

Total

8,132 12,161 11,038 8,386 6,971 6,488 8,634 8,255 7,537 7,193

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

In Thousands of Bushels

-------------------------------------- Disappearance -------------------------------------- ------- Acreage ------------------------------ Supply ----------------------- ----------------------- Domestic Use ------------------------

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

513 2,562 1,517 704 340 210 750 780 2

Salient Statistics of Rye in the United States Crop Year Beginning June 1

North Dakota Oklahoma

Preliminary.

Stocks June 1

Production

754 764 2,449 1,589 1,190 568 445 584 783

8,132 12,161 11,038 8,386 6,971 6,488 8,634 8,255 7,537 7,193

2

Estimate.

3

Imports

Total Supply

F ood

Industry

5,562 3,322 3,424 3,230 4,945 6,140 3,286 5,626 4,500

14,448 16,247 16,911 13,205 13,106 13,196 12,365 14,465 12,820

3,298 3,639 3,300 3,300 3,300 3,300 3,300 3,300 3,300

3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

Forecast

F eed & Seed Residual

2,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

5,306 4,392 5,736 2,307 2,970 3,329 2,425 4,237 2,900

Total

13,604 14,031 15,036 11,607 12,270 12,629 11,725 13,537 12,200

Yield Per Harvested Harvested Total Disap- Planted for Grain Acre Exports pearance ----- 1,000 Acres ----Bushels

80 33 286 390 193 122 60 145 100

13,684 14,064 15,322 11,997 12,463 12,751 11,785 13,682 12,300

1,400 1,566 1,582 1,329 1,328 1,355 1,348 1,380 1,433 1,396

316 418 383 296 255 263 319 300 279 274

25.7 29.1 28.8 28.3 27.3 24.8 27.1 27.5 27.0 26.3

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

229

Salt Supply – World production of salt in 2005, the last full reporting year, rose +3.9% yr/yr to 238.0 million metric tons. The world’s largest salt producers are the US and China, both with 19% of world production in 2005. US salt production in 2005 fell –2.8% yr/yr to 45.200 million metric tons.

Salt, also known as sodium chloride, is a chemical compound that is an essential element in the diet of humans, animals, and even many plants. Since prehistoric times, salt has been used to preserve foods and was commonly used in the religious rites of the Greeks, Romans, Hebrews, and Christians. Salt, in the form of salt cakes, served as money in ancient Ethiopia and Tibet. As long ago as 1450 BC, Egyptian art shows records of salt production.

Demand – US consumption of salt in 2005 fell –3.9% to 53.600 million metric tons, down from the 2004 record high of 55.800 million metric tons.

The simplest method of obtaining salt is through the evaporation of salt water from areas near oceans or seas. In most regions, rock salt is obtained from underground mining or by wells sunk into deposits. Salt is soluble in water, is slightly soluble in alcohol, but is insoluble in concentrated hydrochloric acid. In its crystalline form, salt is transparent and colorless, shining with an ice-like luster.

Trade – The US relied on imports for 16% of its salt consumption in 2006, down from 21% in 2005. US imports of salt for consumption in 2005 rose +0.8% yr/yr to 12.000 million metric tons, but still below 2003’s record high of 12.9 million metric tons. US exports of salt in 2005 fell by –29.4% to 879 million metric tons, with the bulk of those exports (686,000 metric tons) going to Canada.

Prices – Salt prices in 2005 (vacuum and open pan, FOB mine) rose +1.8% yr/yr to $130.75 per ton, which was a new record high.

World Production of All Salt

In Thousands of Metric Tons

Year

Australia

Canada

China

France

Germany

India

Italy

Mexico

Poland

Spain

United Kingdom

United States

World Total

1998 1999 2000 2001 2002 2003 20041 20052

9,033 9,888 8,778 9,536 9,887 9,800 11,221 12,384

13,296 12,686 12,164 13,725 12,736 13,718 14,125 14,500

22,420 28,124 31,280 34,105 36,024 32,424 37,101 44,547

7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000

15,700 15,700 937 14,343 15,632 16,300 18,696 18,700

11,964 14,453 14,453 14,503 14,503 15,003 15,003 15,503

3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600

8,412 8,236 8,884 8,501 7,802 7,547 8,566 9,242

4,005 1,623 1,576 3,476 3,558 4,660 5,142 5,000

3,500 3,200 3,200 3,200 3,200 3,200 3,200 3,200

6,600 5,800 5,800 5,800 5,800 5,800 5,800 5,800

41,300 45,000 45,600 44,800 40,300 43,700 46,500 45,200

200,000 207,000 195,000 214,000 212,000 218,000 229,000 238,000

1

Preliminary.

2

Estimate.

Source: U.S. Geological Survey (USGS)

Salient Statistics of the Salt Industry in the United States

Year

1998 1999 2000 2001 2002 2003 20041 20052 1

Net Import Reliance as a % of Apparent Consumption

17 16 15 17 18 23 20 21

Preliminary.

114.93 112.49 113.95 120.02 120.02 124.24 128.39 130.75 2

In Thousands of Metric Tons

Average Value ---------------------- Production ----------------------- ----- Sold or Used Producers -----FOB Mine Imports ---- Exports ---- Apparent Open & Vacuum & Open & Rock Total Value3 for ConConVacuum Open Pan Vacuum To Total Rock Brine Salt Brine Salt Million $ sumption P an $ Per Ton Pan Solar Total Canada sumption

Estimate.

41,200 44,900 45,600 44,800 40,300 43,700 46,500 45,900 3

4,040 4,190 4,200 4,120 4,100 4,070 4,100 4,170

3,190 3,580 3,810 3,310 3,390 3,330 3,520 3,430

12,900 14,400 15,000 17,000 13,500 16,300 18,300 17,700

21,100 22,700 22,500 20,400 19,300 20,000 20,500 19,900

4,040 4,190 4,190 4,090 4,070 4,010 4,040 3,970

12,700 14,700 13,600 14,600 11,400 14,100 17,400 18,100

21,100 22,700 22,500 20,400 19,300 20,000 20,500 19,800

40,800 44,400 43,300 42,200 37,700 41,100 45,000 45,000

986.0 1,110.0 1,040.0 1,110.0 1,010.0 1,130.0 1,270.0 1,310.0

Values are f.o.b. mine or refinery & do not include cost of cooperage or containers.

8,770 731 8,870 892 8,960 642 12,900 1,120 8,160 689 12,900 718 11,900 1,110 12,000 879

533 730 500 984 585 585 971 686

48,800 52,400 51,600 54,000 45,100 53,200 55,800 53,600

Source: U.S. Geological Survey

Salt Sold or Used by Producers in the U.S. by Classes & Consumers or Uses In Thousands of Metric Tons

Year

1998 1999 2000 2001 2002 2003 2004 20051 1

AgriF eed cultural DistriFeed ManuMeat Chem- Tanning Textile & ical2 Leather Dyeing Packers Canning Baking bution Dealers facturers Rubber

22,000 22,400 22,400 20,100 19,500 20,100 20,400 19,700

Preliminary.

230

2

93 103 82 87 79 71 56 55

250 235 209 172 154 151 145 149

440 405 402 411 395 374 385 398

275 225 220 213 230 231 225 211

219 234 234 242 215 210 209 204

Chloralkali producers and other chemical.

362 254 262 280 245 215 242 227

1,190 1,210 1,240 1,170 1,040 1,090 1,090 1,140

536 533 540 533 507 460 451 477

68 72 71 61 61 67 69 65

Metal ProP aper Oil & Pulp cessing

2,320 2,430 2,510 2,260 2,010 2,210 2,350 2,210

Source: U.S. Geological Survey (USGS)

115 112 106 100 93 88 86 81

Water Ice CondiWater Treat- Grocery tioning ment Stores Distrib.

170 531 153 899 112 589 124 512 118 662 126 777 112 858 107 1,140

807 831 823 824 781 802 794 803

598 600 568 560 525 537 514 511

Control and/or Stabilization

9,490 15,300 19,700 16,800 13,300 18,500 18,000 21,000

Sheep & Lambs Sheep and lambs are raised for both their wool and meat. In countries that have high wool production, there is also demand for sheep and lamb meat due to the easy availability. Production levels have declined in New Zealand and Australia, but that has been counteracted by a substantial increase in China. Prices – The average monthly price received by farmers for lambs in the US in 2006 fell by -15.3% to 93.70 cents per pound, but remained above the 10-year low of 67.61 cents seen in 2001. The average monthly price received by US farmers for sheep in 2006 fell by -24.8% to 34.56 cents per pound, but remained above the 12-year low of 29.03 cents in 2002. The average monthly wholesale price of slaughter

lambs (choice) at San Angelo, Texas in 2005 fell by -20.9% to 77.31 cents per pound, down from last year’s record high of 97.76 cents per pound. Supply – World sheep and goat numbers in 2004 rose by +2.1% to a new record high of 1.851 billion. The world’s largest producers of sheep and goats are China with 18% of world production in 2004, India (10%), Australia (6%), and New Zealand (2%). The number of sheep and lambs on US farms in 2007 (Jan 1) fell –0.7% to 6.185 million head, but up slightly from the 2004 record low of 6.105 million head. The US states with the most sheep and lambs were Texas (with 17% of the US total), California (10%), Wyoming (7%), Colorado (7%), and South Dakota (6%).

World Sheep and Goat Numbers in Specified Countries on January 1 Year

1995 1996 1997 1998 1999 2000 2001 2002 20031 20042 1

Argentina

Australia

China

India

Kazakhstan

21,626 17,956 17,295 15,232 13,953 17,550 16,887 16,400 16,650 16,650

121,100 121,200 120,228 117,494 117,091 113,310 116,495 106,600 101,420 104,400

240,528 279,535 236,961 255,055 268,143 298,464 290,521 297,370 316,714 340,693

171,626 173,519 175,976 178,462 180,130 182,800 181,700 182,800 181,886 182,500

25,132 19,600 13,742 10,896 9,556 10,479 9,981 10,479 11,273 12,247

Preliminary.

2

Forecast.

New Zealand

Romania

50,135 48,816 47,394 46,970 46,150 43,325 45,568 39,700 39,707 39,408

12,119 11,086 10,317 9,747 9,167 7,776 8,195 7,776 7,945 8,086

In Thousands of Head

Russia

South Africa

Spain

Turkey

United Kingdom

World Total

34,500 28,336 23,519 20,697 18,213 15,327 14,772 15,327 16,051 17,030

33,385 35,145 35,830 36,821 34,910 35,939 35,350 35,939 32,178 31,732

23,058 21,322 23,981 24,857 24,199 27,415 27,230 27,415 26,650 25,505

43,000 42,400 41,100 39,500 37,300 33,994 35,693 33,994 31,954 32,203

29,484 28,797 28,256 30,027 31,080 35,832 36,697 35,834 35,846 35,890

874,912 897,009 842,179 853,061 897,310 1,777,382 1,772,173 1,776,729 1,812,446 1,851,394

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Salient Statistics of Sheep & Lambs in the United States (Average Live Weight)

In Thousands of Head

-- Inventory, Jan. 1 --

Year

1998 1999 2000 2001 2002 2003 2004 2005 1 20062

With Without New Crop New Crop Lambs Lambs

7,825 7,215 7,032 6,965 6,685 6,300 6,105 6,135 6,230

7,825 7,215 7,032 6,965 6,685 6,321 6,105 6,135 6,230

---------- Slaughter ---------Lamb Crop

5,013 4,733 4,622 4,495 4,357 4,140 4,096 4,117 4,085

3 Total --- Marketings --Supply Sheep Lambs

12,838 11,948 11,654 11,460 11,042 10,461 10,201 10,252 10,315

Preliminary. 2 Estimate. 3 Excludes interfarm sales. U.S. Department of Agriculture (ERS-USDA)

1

977 790 788 711 855 828 695 671 4

5,510 5,208 4,827 4,795 4,794 4,387 4,184 4,206

Farm

Commercial

Total4

57 65 67 68 66 67 65 64

3,804 3,701 3,460 3,222 3,286 2,979 2,839 2,698

3,861 3,766 3,527 3,290 3,352 3,046 2,904 2,762

I ncludes all commercial and farm.

Sheep and Lambs3 on Farms in the United States on January 1 Year

1999 2000 2001 2002 2003 2004 2005 2006 1 20072

California

Colorado

Idaho

810 800 840 800 730 680 670 650 610

440 440 420 370 380 360 365 390 400

265 275 275 260 260 260 270 260 260

Iowa Minnesota

260 265 270 250 255 250 245 235 235

175 165 170 160 145 140 145 155 150

618 393 329 299 266 105

5,260 4,922 4,554 4,303 4,380 3,804

555.7 533.6 508.9 495.6 485.1 470.1 464.0 475.5

797.8 637.6 668.8 694.5 618.1 656.6 723.8 799.3 875.5

102.0 88.0 95.0 100.0 94.0 104.0 119.0 130.0 141.0

Source: Economic Research Service,

In Thousands of Head

Montana

New Mexico

Ohio

South Dakota

Texas

Utah

Wyoming

Total

380 370 360 335 310 300 305 295 290

275 290 255 230 175 160 145 155 130

125 134 142 140 150 140 142 141 141

420 420 420 400 380 370 375 385 380

1,350 1,200 1,150 1,130 1,040 1,100 1,070 1,090 1,070

400 400 390 365 310 265 270 280 295

630 570 530 480 460 430 450 450 460

7,215 7,032 6,965 6,685 6,300 6,105 6,135 6,230 6,185

Preliminary. 2 Estimate. 3 I ncludes sheep & lambs on feed for market and stock sheep & lambs. U.S. Department of Agriculture (ERS-USDA)

1

Total Net D i sa p Exports pearance

ProFarm Value duction --------- Jan. 1 --------(Live Weight) All $ P er Mil. Lbs. Million $ Head

Source: Economic Research Service,

231

SHEEP & LAMBS Average Wholesale Price of Slaughter Lambs (Choice) at San Angelo Texas Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Dollars Per Cwt.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

74.38 69.31 73.71 81.25 65.85 89.25 99.44 107.25 86.75

74.31 67.88 76.83 87.00 70.00 90.25 99.94 109.69 76.87

71.50 68.54 78.17 82.63 64.00 96.25 102.50 101.37 67.47

63.00 70.50 78.25 83.30 65.15 88.13 92.31 99.37 60.60

73.00 82.70 89.65 86.07 64.06 95.75 97.50 96.94 68.16

91.21 81.06 78.30 75.21 68.75 97.25 101.37 99.50 70.94

82.21 77.29 84.17 69.82 75.83 87.88 97.50 95.00 74.00

82.05 81.17 82.20 54.47 74.35 85.81 91.12 92.14 84.00

69.50 77.00 82.00 56.50 73.69 91.44 92.25 91.56 85.30

67.20 74.81 77.50 57.67 76.20 91.31 91.75 93.00 85.18

63.33 78.00 76.70 59.00 83.00 91.00 95.58 93.33 85.40

71.44 83.29 75.33 71.60 86.88 96.17 99.12 94.00 83.00

73.59 75.96 79.40 72.04 72.31 91.71 96.70 97.76 77.31

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Federally Inspected Slaughter of Sheep & Lambs in the United States

In Thousands of Head

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1998 1999 2000 2001 2002 2003 2004 2005 2006 1

301 260 271 258 244 227 207 195 210

300 291 284 236 244 211 199 204 193

377 411 334 316 311 252 295 268 240

367 295 330 275 263 280 238 208 236

270 260 248 227 267 209 175 198 215

283 259 247 221 216 216 220 210 200

269 253 229 229 241 225 207 188 191

263 283 269 258 246 226 219 216 213

295 294 257 230 259 241 231 219 205

312 293 266 274 284 251 228 217 223

290 317 286 273 255 223 228 213 212

344 341 287 266 262 246 229 219 212

3,671 3,557 3,308 3,065 3,092 2,805 2,676 2,555 2,549

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Cold Storage Holdings of Lamb and Mutton in the U.S., on First of Month Year

1998 1999 2000 2001 2002 2003 2004 2005 20061 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

13,741 11,721 8,740 13,455 11,905 7,124 3,795 3,497 9,967

13,920 10,452 10,394 13,833 13,110 6,232 3,671 7,549 15,730

15,284 12,134 10,335 13,141 11,269 4,063 3,355 7,585 11,887

16,226 12,374 11,437 13,729 10,528 3,900 3,164 7,650 10,911

16,306 13,146 13,345 13,551 13,172 5,016 3,251 8,739 10,345

16,666 12,313 13,137 14,586 12,938 5,838 3,504 9,719 10,248

16,040 12,459 13,984 15,443 13,553 5,427 3,872 9,362 9,951

16,188 11,975 13,557 15,744 14,215 5,929 3,376 11,756 10,360

14,530 12,240 14,042 15,266 14,458 5,855 3,878 11,790 10,583

12,253 9,815 12,867 13,979 11,961 6,210 4,179 10,942 10,082

12,558 9,210 12,195 13,238 12,004 4,485 4,166 10,137 10,216

11,914 9,446 12,486 11,336 9,255 4,883 3,715 9,332 10,634

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price Received by Farmers for Sheep in the United States Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Thousands of Pounds

Jan.

In Dollars Per Cwt.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

42.00 32.40 36.80 43.30 36.20 41.30 43.80 53.50 47.70

39.60 30.20 39.50 47.50 34.30 44.00 40.80 52.40 46.00

41.00 32.70 38.80 46.60 31.80 40.90 36.70 49.00 39.50

34.40 31.80 35.00 36.90 26.00 31.10 36.70 45.10 34.90

30.30 31.50 30.50 36.30 25.30 31.30 36.00 43.70 33.20

30.20 28.90 30.00 31.70 23.50 29.40 31.30 41.20 28.60

29.40 32.00 34.20 34.10 25.60 28.60 37.10 41.00 27.40

28.30 29.80 30.70 32.20 25.60 29.20 37.30 43.00 28.40

26.80 29.20 30.30 29.90 24.50 32.50 41.20 43.70 31.70

26.10 26.40 29.50 27.20 25.60 35.00 40.40 43.60 31.10

26.40 30.20 33.60 27.10 31.30 40.50 41.40 46.20 30.90

30.10 33.40 36.20 34.00 38.70 45.10 44.60 49.30 35.30

32.05 30.71 33.76 35.57 29.03 35.74 38.94 45.98 34.56

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price Received by Farmers for Lambs in the United States

In Dollars Per Cwt.

Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

78.40 68.20 70.90 74.10 65.50 92.00 104.00 114.00 96.10

75.00 67.20 72.00 80.10 67.80 92.40 106.00 114.00 96.80

70.10 67.40 80.20 84.00 66.70 97.10 103.00 114.00 91.10

66.00 67.40 82.60 84.30 64.70 93.70 100.00 114.00 86.80

63.00 82.80 96.40 80.00 64.40 97.60 103.00 114.00 88.90

88.90 81.30 89.70 71.60 72.90 89.30 105.00 114.00 92.00

81.30 77.00 87.00 64.30 75.60 89.40 101.00 110.00 93.10

80.10 80.30 83.60 54.80 75.30 88.60 97.90 109.00 94.80

71.80 75.30 80.80 52.50 76.30 95.10 100.00 110.00 98.50

67.60 72.60 76.80 51.40 79.60 96.80 97.70 108.00 98.10

62.60 76.30 71.50 52.80 84.00 99.70 99.90 107.00 95.00

64.70 77.60 71.80 61.40 87.20 97.70 101.00 100.00 93.20

72.46 74.45 80.28 67.61 73.33 94.12 101.54 110.67 93.70

Preliminary.

232

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Silk Silk is a fine, tough, elastic fiber produced by caterpillars, commonly called silkworms. Silk is one of the oldest known textile fibers. Chinese tradition credits Lady Hsi-Ling-Shih, wife of the Emperor Huang Ti, with the discovery of the silkworm and the invention of the first silk reel. Dating to around 3000 BC, a group of ribbons, threads, and woven fragments was found in China. Also found, along the lower Yangzi River, were 7,000 year-old spinning tools, silk thread, and fabric fragments. Silk filament was first woven into cloth in Ancient China. The Chinese successfully guarded this secret until 300AD, when Japan, and later India, learned the secret. In 550 AD, two Nestorian monks were sent to China to steal mulberry seeds and silkworm eggs, which they hid in their walking staffs, and then brought them back to Rome. By the 17th century, France was the silk center of the West. Unfortunately, the silkworm did not flourish in the English climate, nor has it ever flourished in the US. Sericulture is the term for the raising of silkworms. The blind, flightless moth, Bombyx mori, lays more than 500 tiny eggs. After hatching, the tiny worms eat chopped mulberry leaves continuously until they are ready to spin their cocoons. After gathering the complete cocoons, the first step in silk manufacturing is to kill the insects inside the cocoons with heat. The cocoons are then placed in boiling water to loosen the gummy substance, sericin, holding the filament together. The filament is unwound, and then

World Production of Raw Silk Year

1993 1994 1995 1996 1997 1998 1999 2000 2001 1 20022 1

Preliminary.

Supply – World production of silk in 2002, the latest reporting year, rose +0.8% to 132,000 metric tons, which was a record high and sharply above the 12-year low of 85,000 posted in 1997. China is the world’s largest producer of silk by far with 71% of world production in 2002. Other key producers include India with 11% of world production, Vietnam (9%), and Turkmenistan (3%). Trade – In 2003, the latest reporting year, the world’s largest exporters of silk were China with 62% of world exports, Japan with 2.4%, and Brazil with 1.5%. In 2003,the world’s largest importers of silk were India (with 33% of world imports), Italy (13%), Japan (10%), and South Korea (6%).

Brazil

China

India

Iran

Ja p a n

North Korea

South Korea

Kyrgyzstan

Thailand

Turkmenistan

Uzbekistan

V i et Nam

World Total

2,450 2,450 2,450 2,000 2,000 2,000 2,000 2,000 2,000 1,000

76,801 84,001 80,001 51,000 51,000 68,000 70,000 78,000 94,000 94,000

14,168 14,500 15,000 16,000 16,000 16,000 16,000 15,000 15,000 15,000

480 600 600 1,000 1,000 1,000 1,000 1,000 1,000 1,000

4,254 2,400 2,400 3,000 2,000 1,000 1,000 1,000 1,000 1,000

4,600 4,700 4,700 5,000 4,000 5,000 5,000 5,000 -------

683 700 700 ----------------------

1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 ----

1,500 1,600 1,600 1,000 1,000 1,000 1,000 1,000 2,000 2,000

500 500 500 5,000 5,000 5,000 5,000 5,000 5,000 4,000

2,000 2,000 2,000 2,000 2,000 2,000 1,000 1,000 1,000 1,000

550 600 650 1,000 1,000 1,000 1,000 3,000 10,000 12,000

109,790 115,796 112,350 88,000 85,000 102,000 98,000 107,000 131,000 132,000

2

Estimate.

Source: Food and Agricultural Organization of the United Nations (FAO-UN)

In Metric Tons

-------------------------------------------------- Imports -------------------------------------------------- ------------------------------------------ Exports -----------------------------------------Hong South World Hong North World France Kong India Italy Ja p a n Korea Total Brazil China Kong Ja p a n Korea Total

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 1 1

Raw silk is traded on the Kansai Agricultural Commodities Exchange (KANEX) in Japan. Dried cocoons are traded on the Chuba Commodity Exchange (CCE). Raw silk and dried cocoons are traded on the Yokohama Commodity Exchange.

In Metric Tons

World Trade of Silk by Selected Countries Year

rewound in a process called reeling. Each cocoon’s silk filament is between 600 and 900 meters long. Four different types of silk thread may be produced: organzine, crepe, tram, and thrown singles. During the last 30 years, in spite of the use of man-made fibers, world silk production has doubled.

Preliminary.

1,047 663 675 582 592 579 481 452 706 312

6,165 4,775 3,978 4,320 2,030 1,258 866 256 51 88

5,750 4,276 2,980 2,437 2,846 5,120 4,732 6,929 9,266 9,539

9,235 5,612 4,400 5,482 4,088 4,985 5,906 4,506 3,498 3,687

5,772 4,331 6,098 4,229 3,357 3,792 4,020 2,823 2,853 2,852

4,128 3,513 3,737 2,796 1,510 2,265 1,843 1,628 2,108 1,704

44,136 37,854 37,615 45,817 31,908 35,352 32,279 26,876 26,877 28,810

1,739 966 1,071 905 780 408 370 232 331 416

21,004 16,788 15,791 14,384 12,250 16,251 17,520 14,485 17,842 17,264

6,149 5,176 4,165 4,501 2,105 1,153 936 259 128 43

1,265 925 946 936 612 227 239 124 116 684

1,400 1,000 1,000 1,000 180 130 120 90 170 296

41,998 40,633 38,587 37,233 29,611 35,041 35,033 26,329 30,767 27,935

Source: Food and Agricultural Organization of the United Nations (FAO-UN)

233

Silver Silver is a white, lustrous metallic element that conducts heat and electricity better than any other metal. In ancient times, many silver deposits were on or near the earth’s surface. Before 2,500 BC, silver mines were worked in Asia Minor. Around 700 BC, ancient Greeks stamped a turtle on their first silver coins. Silver assumed a key role in the US monetary system in 1792 when Congress based the currency on the silver dollar. However, the US discontinued the use of silver in coinage in 1965. Today Mexico is the only country that uses silver in its circulating coinage. Silver is the most malleable and ductile of all metals, with the exception of gold. Silver melts at about 962 degrees Celsius and boils at about 2212 degrees Celsius. Silver is not very chemically active, although tarnishing occurs when sulfur and sulfides attack silver, forming silver sulfide on the surface of the metal. Because silver is too soft in its pure form, a hardening agent, usually copper, is mixed into the silver. Copper is usually used as the hardening agent because it does not discolor the silver. The term “sterling silver” refers to silver that contains at least 925 parts of silver per thousand (92.5%) to 75 parts of copper (7.5%). Silver is usually found combined with other elements in minerals and ores. In the US, silver is mined in conjunction with lead, copper, and zinc. In the US, Nevada, Idaho, Alaska, and Arizona are the leading silver-producing states. For industrial purposes, silver is used for photography, electrical appliances, glass, and as an antibacterial agent for the health industry. Silver futures and options are traded on the Comex division of the New York Mercantile Exchange, the Chicago Board of Trade (CBOT), and the London Metal Exchange (LME). Silver futures are traded on the Tokyo Commodity Exchange (TOCOM). The Nymex silver futures contract calls for the delivery of 5,000 troy ounces of silver (0.999 fineness) and is priced in terms of dollars and cents per troy ounce. Prices – Nymex silver futures prices rallied sharply in early 2006 to post a new 26-year high of $14.97 per troy ounce, which meant that silver prices more than tripled from the $4 level seen in 2001. The highest month-end price ever posted for cash silver was about $38 per troy ounce back in

World Mine Production of Silver Year

Demand – US consumption of silver in 2003, the latest reporting year, fell –1.0% yr/yr to 175.3 million troy ounces. The largest consumption of silver is for photographic materials with 35% of total usage, followed by electrical contacts and conductors (23%), jewelry (9%), coinage (7%), and brazing alloys and solders (5%). The world’s largest consuming nation of silver for industrial purposes is the US with 20% of world consumption in 2004, followed by Japan (16%), India (10%), and Italy (7%). Trade – US exports of refined silver in 2005 fell –21.4% yr/yr to 9.709 million troy ounces, which was less that one tenth of the record high of 99.022 million troy ounces seen in 1997. The major destinations for US silver exports are Canada (38%), Switzerland (29%), and the UK (12%). US imports of silver ore and concentrates fell –80.5% yr/yr to 14,000 troy ounces in 2005. US imports of refined silver bullion rose +11.2% yr/yr to 134.387 million troy ounces in 2004. The bulk of those imports came from Mexico (65.908 million troy ounces), Canada (41.474 million troy ounces), and Peru (20.319 million troy ounces).

In Thousands of Kilograms In Metric Tons

Bolivia

Canada3

Chile

China

Kazakhstan

Mexico

Peru

Poland

Russia

Sweden

United States

World Total2

1,013 1,106 1,474 1,720 2,060 1,970 2,077 1,868 2,183 2,047

384 387 404 422 434 411 450 465 407 419

1,309 1,224 1,196 1,174 1,212 1,320 1,408 1,310 1,337 1,122

1,047 1,091 1,340 1,381 1,242 1,349 1,210 1,313 1,360 1,400

1,140 1,300 1,300 1,320 1,600 1,910 2,200 2,400 2,450 2,500

468 690 726 905 927 982 893 827 733 832

2,528 2,679 2,686 2,467 2,620 2,760 2,747 2,569 2,569 2,894

1,970 2,090 2,025 2,231 2,438 2,571 2,870 2,921 3,060 3,193

935 1,038 1,108 1,100 1,148 1,194 1,229 1,237 1,344 1,300

400 400 350 375 370 380 400 700 1,277 1,350

272 304 299 284 329 306 294 307 293 267

1,570 2,180 2,060 1,950 1,980 1,740 1,350 1,240 1,250 1,230

15,100 16,500 17,200 17,100 18,100 18,700 18,800 18,800 19,800 20,200

Preliminary.

234

Supply – World mine production of silver in 2005, the latest reporting year for the series, rose +2.0% yr/yr to a new record high of 20,200 metric tons, continuing to show some improvement after flat production figures in 2000-03. The world’s largest silver producers are Peru with 16% of world production in 2005, Mexico (14%), China (12%), Australia (10%), Chili, (7%), and the US (6%). US production of refined silver in 2006 (through November, annualized) fell by -9.5% to 5,115 metric tons, but remained above the 10-year low of 4,442 metric tons seen in 2004.

Australia

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

January 1980. Silver futures prices then fell sharply in June 2006 on a downward correction and a washout of speculators. However, silver futures prices then rallied during the remainder of 2006 on strong demand, finally closing the year at $12.935 per ounce, +14.6% on the year. Demand for silver remained strong in 2006 for jewelry, for industrial purposes (particularly in China where GDP growth was over 10% again), and for investment demand where silver Exchange Traded Funds snapped up physical silver to back their funds. Silver mining has increased but not by enough to satisfy demand tomkeep silver prices from rising.

2

Estimate.

3

Shipments.

Source: U.S. Geological Survey (USGS)

SILVER

-----

Cents Per Troy Ounce Bullion, London (1833 - 1909) Handy & Harman, New York (Jan. 1910 - May 1990) Composite (June 1990 to date)

Average Price of Silver in New York (Handy & Harman) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

483.70 584.58 511.61 523.47 470.19 450.17 485.62 637.13 665.45 918.48

F eb.

Mar.

Apr.

May

June

In Cents Per Troy Ounce (.999 Fine) D e c.

Average

508.76 519.88 476.41 475.80 474.60 435.96 451.36 472.69 501.15 507.30 571.53 672.61 617.18 628.86 558.65 526.05 546.82 516.45 502.67 500.18 498.39 476.85 554.55 519.85 509.21 529.83 507.73 522.81 529.36 527.86 541.67 519.20 521.95 529.65 510.15 510.37 504.30 505.20 501.82 492.76 494.50 488.14 471.93 466.40 457.34 439.93 439.25 443.59 436.79 425.45 420.72 441.09 441.87 412.35 437.98 444.79 457.00 460.50 473.55 492.13 494.57 456.16 458.93 442.28 453.87 465.78 468.11 454.74 453.40 475.29 455.62 486.48 502.90 520.62 503.91 520.64 565.33 647.71 729.48 708.57 589.19 588.38 637.55 670.98 641.93 717.55 751.43 712.43 709.18 728.50 715.74 705.29 733.64 704.40 702.72 719.33 769.90 786.35 865.88 952.13 1,037.52 1,263.71 1,337.84 1,077.41 1,121.24 1,225.39 1,159.93 1,161.55 1,298.45 1,329.83

July

Aug.

Sept.

Oct.

Nov.

489.07 552.68 524.75 499.89 438.88 462.39 491.06 669.36 733.87 1,156.96

Source: American Metal Market (AMM)

Average Price of Silver in London (Spot Fix) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Pence Per Troy Ounce (.999 Fine)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

287.63 359.62 312.69 316.08 315.87 315.08 297.21 347.36 354.28 519.94

311.95 416.55 340.46 327.90 312.57 310.55 289.23 339.49 375.57 544.76

323.99 375.76 320.27 320.87 304.50 318.27 287.39 395.67 382.74 594.70

293.08 378.77 315.12 319.61 304.36 316.61 285.06 391.14 377.48 714.36

291.43 339.42 326.80 330.53 310.19 322.58 292.05 327.03 380.46 715.69

289.16 319.05 315.51 331.24 309.54 329.32 272.79 320.36 403.56 584.44

272.73 331.87 328.86 329.35 300.97 316.07 295.53 342.32 402.10 607.69

280.36 317.74 327.98 327.80 277.97 295.93 313.01 368.78 391.55 647.19

295.67 297.40 322.20 340.75 297.93 292.38 320.30 356.35 397.90 615.09

308.69 295.41 326.42 332.24 289.21 282.49 298.01 392.94 436.23 618.97

300.76 298.72 317.53 327.71 286.92 286.93 306.53 402.52 453.10 678.96

348.90 291.77 319.87 317.47 306.25 291.52 320.48 368.43 496.09 677.31

300.36 335.17 322.75 326.94 302.43 306.48 298.13 362.70 404.26 626.59

Source: American Metal Market (AMM)

235

SILVER

Average Open Interest of Silver Futures in New York (COMEX) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

91,385 95,717 77,946 76,187 69,408 67,442 98,561 109,860 97,744 131,767

94,539 108,284 97,593 81,398 72,798 65,355 94,472 113,764 98,644 129,928

90,531 91,730 82,435 75,765 74,337 67,405 84,485 117,848 101,200 132,140

97,434 83,045 82,824 76,213 71,589 76,158 87,445 113,172 103,562 137,121

87,510 79,451 78,745 75,001 67,328 82,525 85,232 90,493 104,680 110,400

90,145 91,563 78,943 76,466 67,429 100,837 80,001 87,201 124,317 110,631

96,777 78,353 78,151 75,199 75,019 94,731 91,544 89,062 124,521 98,733

89,250 82,530 86,601 91,083 75,830 82,349 108,118 97,844 121,133 110,635

79,344 74,848 77,490 73,441 65,533 80,511 110,423 85,245 117,121 102,159

100,464 74,451 86,577 78,222 66,530 89,094 92,216 108,762 135,335 105,167

96,695 76,440 80,564 83,142 74,228 85,434 101,303 121,221 146,409 114,132

93,761 78,716 70,275 73,644 66,903 78,174 103,007 107,136 136,502 105,741

Source: New York Mercantile Exchange (NYMEX), COMEX Division

Volume of Trading of Silver Futures in New York (COMEX) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

401,995 352,688 315,165 258,053 175,026 265,773 291,120 385,058 285,449 495,649

530,514 550,800 550,271 425,910 302,035 271,293 409,737 544,939 513,617 624,491

360,871 368,127 355,559 231,336 155,658 163,898 216,660 408,447 370,338 562,330

493,999 360,130 424,822 318,752 252,486 325,889 315,240 671,204 485,832 807,269

280,536 310,130 274,002 216,938 204,552 243,475 251,096 278,703 392,156 513,822

472,306 393,971 373,662 407,455 281,846 389,798 352,729 425,501 621,647 508,746

340,245 278,774 288,480 175,235 112,956 281,214 407,931 316,264 334,903 255,777

425,471 367,257 422,653 370,739 267,711 296,579 442,762 427,973 600,961 452,551

335,400 283,475 328,907 146,007 160,329 164,537 335,508 281,737 455,033 268,393

430,397 280,066 318,256 149,252 210,266 209,249 373,493 364,158 424,972 244,152

488,024 319,216 344,289 303,673 266,077 292,861 464,244 541,366 652,917 424,771

333,762 229,982 161,434 113,667 180,256 230,998 250,835 360,775 398,526 275,112

4,893,520 4,094,616 4,157,500 3,117,017 2,569,198 3,135,564 4,111,355 5,006,125 5,536,351 5,433,063

Source: New York Mercantile Exchange (NYMEX), COMEX division

236

In Contracts

Jan.

SILVER Mine Production of Recoverable Silver in the United States Year

Arizona California

2000 2001 2002 2003 2004 20051 1

W W W W W W

Preliminary.

New

South

Colorado

Idaho

Missouri

Montana

Nevada

Mexico

Dakota

Washington

States

Total

3 3 W W W W

W W W W W W

W W W W W W

W W W W W W

734 544 424 322 302 276

W W W W W W

W W W W W W

2 W W W W W

1,240 1,180 927 916 943 949

1,980 1,740 1,350 1,240 1,250 1,230

Sterling Ware

Total Net Industrial Consumption

Coinage

Total Consumption

4.2 4.4 4.8 5.1 5.7 5.8 5.6 4.6 NA NA

130.1 136.2 146.7 160.5 172.3 178.5 181.9 157.6 162.9 162.8

8.1 7.5 5.0 5.3 5.6 10.0 13.4 12.3 14.2 12.5

138.2 143.7 151.7 165.8 177.9 188.5 195.3 169.9 177.1 175.3

8 8 3 1 1 W

W = Withheld proprietary data; included in Other States.

Brazing Alloy & Solders

Catalysts

Batteries

7.5 7.7 8.2 8.9 9.3 9.1 8.7 8.3 8.4 7.9

4.2 4.9 5.5 5.7 5.9 5.9 6.3 6.1 NA NA

3.6 4.1 4.5 4.8 4.9 5.0 5.2 5.3 NA NA

1994 1995 1996 1997 1998 1999 2000 2001 2002 20031 1

Preliminary.

2

I ncluded in Jewelry.

Mirrors

Electrical ContactsConductors

Photographic Materials

1.5 1.7 2.1 2.4 2.6 2.6 2.6 2.5 NA NA

19.5 20.9 22.3 26.5 28.4 29.2 50.6 34.1 37.6 39.5

71.0 72.9 78.3 84.6 91.0 96.0 73.9 65.8 66.2 61.6

In Millions of Troy Ounces Silverplate

Jewerly

3.1 3.5 3.9 4.1 4.5 4.4 4.5 4.0

3.7 4.1 4.4 4.9 5.5 5.7 6.1 4.9

2

2

2

2

Source: The Silver I nstitute

Commodity Exchange, Inc. (COMEX) Warehouse of Stocks of Silver Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Other

Source: U.S. Geological Survey (USGS)

Consumption of Silver in the United States, by End Use

Year

In Metric Tons

In Thousands of Troy Ounces

Jan. 1

F eb. 1

Mar. 1

Apr. 1

May 1

June 1

July 1

Aug. 1

Sept. 1

Oct. 1

Nov. 1

D e c. 1

204,051 110,437 75,807 75,945 93,983 104,547 107,394 124,271 103,590 119,974

195,450 103,778 75,108 73,948 93,195 102,395 107,610 124,181 102,390 124,793

193,381 89,458 78,135 93,782 98,659 100,983 109,153 123,195 101,494 127,898

191,676 86,926 79,605 104,259 96,694 102,540 108,521 122,087 103,627 125,763

189,498 89,715 78,819 102,589 95,745 104,526 108,168 122,687 103,995 123,627

201,682 89,628 77,512 99,285 96,090 107,766 105,092 118,442 104,257 108,443

184,691 85,911 73,514 102,713 98,700 105,938 107,222 118,369 104,719 102,268

169,079 79,136 77,592 102,291 100,494 105,563 105,406 116,253 109,467 102,086

164,296 78,681 79,606 97,879 102,770 108,090 104,862 109,311 115,588 103,634

138,775 73,142 79,391 99,552 101,538 107,495 106,283 107,789 116,687 105,451

133,470 74,260 79,155 95,749 103,982 107,440 118,238 104,624 116,257 105,313

128,252 76,818 78,416 95,717 105,235 107,090 124,498 102,831 117,608 107,770

Source: New York Mercantile Exchange (NYMEX), COMEX Division

Production2 of Refined Silver in the United States, from All Sources

In Metric Tons

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

343 338 424 436 405 544 483 407 402 506

262 486 420 1,177 343 387 426 418 505 434

296 426 441 551 405 465 320 460 515 500

331 372 356 399 360 532 412 337 568 444

250 377 368 431 360 509 357 361 450 382

326 374 394 390 331 398 431 177 558 553

292 394 404 361 395 398 430 175 556 490

344 324 316 402 380 419 373 351 440 432

331 463 354 400 338 473 361 433 356 350

281 443 371 469 403 437 809 255 376 388

340 469 364 386 442 394 363 390 485 209

382 447 396 401 383 485 471 678 439

3,778 4,860 4,608 5,780 4,545 5,441 5,235 4,442 5,650 5,115

1

Preliminary.

2

I ncludes U.S. mine production of recoverable silver plus imports of refined silver.

Source: U.S. Geological Survey (USGS)

237

SILVER U.S. Exports of Refined Silver to Selected Countries Year

Canada

France

489 1,861 669 2,180 1,906 1,598 466 524 7,009 3,729

2

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1 1

Preliminary.

2

2

2,205 2 22 ------3 1 ----

Germany

Hong Kong

Ja p a n

2 2 347 1 2 ---1 ---3 25

646 797 45 ------11 4 3 24 3

4,662 6,044 585 585 3,504 1,202 466 17 585 1

I ncluded in other countries, if any.

Singapore

South Korea

Switzerland

United Arab Emirates

United Kingdom

3,601

383 547 ---31 ---------16 1 18

2,413 5,369 604 624 727 354 727 630 2,321 2,829

15,850 16,750 3,569 4,244 -------------------

35,366 62,693 62,693 7,716 3,311 20,029 14,532 3,086 3 1,145

2

210 37 1 2 10 2 166 95

Other Countries

Total

Canada

Chile

Mexico

Peru

Uruguay

256 7 24 11 46 243 149 82 71 14

4,662 4,437 5,851 334 ------1,813 ----------

---90 427 2 -------------------

4,918 4,533 6,301 347 46 243 1,961 82 71 14

35,365 29,385 34,722 43,403 38,902 44,046 48,868 41,795 37,616 41,474

1,874 608 813 1,048 225 2,054 2,331 1,987 2,042 2,514

30,285 28,774 41,152 33,115 44,689 41,152 67,837 62,050 59,156 65,908

12,153 8,873 9,388 5,433 2,787 5,498 6,430 18,261 17,297 20,319

2

2

I ncluded in other countries, if any.

World Silver Consumption

1995 1996 1997 1998 1999 2000 2001 2002 2003 20042 2

40 57 38 5 1 10,472 12,937 3,083 9,912 1,302

93,346 99,022 80,375 19,804 12,217 30,960 28,196 6,816 12,346 9,709

----------------------------

Other Countries

Total

3,122 518 3,945 2,521 35,899 1,771 6,350 12,223 4,774 4,173

82,799 68,158 90,020 85,519 122,502 94,521 131,815 136,316 120,884 134,387

Source: American Bureau of Metal Statistics, I nc. (ABMS)

In Millions of Troy Ounces

--------------------------------------------- Industrial Uses ------------------------------------------------- -------------------------------- Coinage -------------------------------GerUnited United World GerUnited World Canada France many India Italy Japan Mexico Kingdom States Total Austria Canada France many Mexico States Total

2.0 2.0 2.2 2.3 2.1 2.0 2.0 2.1 2.2 2.1

Preliminary.

238

World Total

In Thousands of Troy Ounces

Mexico

Preliminary.

Year

624 402 688 180 109 105 ------108 563

Canada

1996 1997 1998 1999 2000 2001 2002 2003 2004 20051 1

Other Uruguay Countries

Source: American Bureau of Metal Statistics, I nc. (ABMS)

U.S. Imports of Silver From Selected Countries Year

In Thousands of Troy Ounces

30.0 26.9 28.3 28.4 26.6 28.8 28.7 27.1 25.6 12.0

43.6 41.0 42.3 38.4 35.1 31.8 32.4 29.4 29.4 30.7

101.3 122.2 122.9 114.7 121.5 131.0 154.0 122.5 122.5 79.2

49.5 51.7 56.1 55.9 61.8 65.1 58.2 56.0 55.0 54.8

Source: The Silver I nstitute

112.7 112.1 119.9 112.8 122.5 135.0 119.3 118.7 115.9 125.1

16.9 20.3 23.3 21.7 21.3 16.6 15.9 17.0 18.7 18.6

31.6 33.8 34.9 38.6 39.3 42.7 45.9 43.1 44.1 52.2

148.7 155.0 166.3 162.9 175.5 179.1 157.3 161.6 160.8 164.8

752.7 785.8 828.2 801.5 840.6 871.8 836.5 807.0 817.5 807.0

.5 .5 .4 .3 .3 .3 .3 .4 .4 .5

.7 .7 .6 1.1 1.4 1.0 .9 1.0 .3 1.3

1.2 .3 .3 .3 .3 .4 .4 .5 .5 .5

2.4 4.6 3.7 10.0 7.0 8.8 8.1 6.0 10.3 10.3

.6 .5 .4 .2 .4 .6 1.1 1.1 1.1 .9

9.0 7.1 6.5 7.0 10.7 13.4 12.3 15.3 14.5 15.5

24.7 23.3 28.5 27.8 29.2 32.1 30.5 31.6 35.8 41.1

Grand Total

777.4 809.1 856.7 829.3 869.8 904.0 867.0 838.6 853.4 836.6

Soybean Meal Soybean meal is produced through processing and separating soybeans into oil and meal components. By weight, soybean meal accounts for about 35% of the weight of raw soybeans (at 13% moisture). If the soybeans are of particularly good quality, then the processor can get more meal weight by including more hulls in the meal while still meeting the 48% protein minimum. Soybean meal can be further processed into soy flour and isolated soy protein, but the bulk of soybean meal is used as animal feed for poultry, hogs and cattle. Soybean meal accounts for about two-thirds of the world’s high-protein animal feed, followed by cottonseed and rapeseed meal, which together account for less than 20%. Soybean meal consumption has been moving to record highs in recent years. The soybean meal marketing year begins in October and ends in September. Soybean meal futures and options are traded on the Chicago Board of Trade (CBOT). The CBOT soybean meal futures contract calls for the delivery of 100 tons of soybean meal produced by conditioning ground soybeans and reducing the oil content of the conditioned product and having a minimum of 48.0% protein, minimum of 0.5% fat, maximum of 3.5% fiber, and maximum of 12.0% moisture. Soybean crush – The term soybean “crush” refers to both the physical processing of soybeans and also to the dollar-value premium received for processing soybeans into their component products of meal and oil. The conventional model says that processing 60 pounds (one bushel) of soybeans produces 11 pounds of soybean oil, 44 pounds of 48% protein soybean meal, 3 pounds of hulls, and 1 pound of waste. The Gross Processing Margin (GPM) or crush equals (0.22 times Soybean Meal Prices in dollars per ton) + (11 times Soybean Oil prices in cents/pound) – Soybean prices in $/bushel. A higher crush value will occur when the price of the meal and oil products are strong relative to soybeans, e.g., because of supply disruptions or because of an increase in demand for the products. When the crush value is high, companies will have a strong incentive to buy raw soybeans and boost the output of the products. That supply increase should eventually bring the crush value back into line with the long-term equilibrium.

Board of Trade in 2006 continued near the lower price range seen in late 2005. Prices at the beginning of 2006 were about $175 per ton, moved lower during the first quarter, rallied until June, but then moved lower to a low of $155.80 per ton in September. From there the price moved to a high of $202.80 in November, only to fall again in December to close the year at $191.00 per ton, up about 9% for the year. Regarding cash prices, the average price of soybean meal (48% solvent) in Decatur, Illinois in the first four months of the 2006-07 marketing year (i.e., October 2006 to February 2007) averaged $184.84 per short ton, up by +6.1%yr/yr. Supply – World soybean meal production in 2006-07 rose +5.6% yr/yr to 152.974 million metric tons, which was a new record high. The world’s largest soybean meal producers are the US with 25% of world production in 200607, China with 19%, Brazil with 14%, and the European Union with 7%. US production of soybean meal in 2006-07 rose +2.8% yr/yr to a record high of 42.421 million short tons. US soybean meal stocks in 2006-07 (Oct 1) rose +45.2% yr/yr to a 5-year high of 314,000 short tons. Demand – World consumption of soybean meal in 200607 rose +4.2% to 151.362 million metric tons, which was a new record high. The US accounted for 20% of that consumption and the European Union accounted for 22%. US consumption of soybean meal in 2006-07 rose +2.2% yr/ yr to 30.754 million metric tons, which was a new record high. Trade – World exports of soybean meal in 2006-07 rose +3.3% to 53.078 million metric tons, which was a new record high. Brazil accounted for 22% of world exports in 2004-05 and the US accounted for 15%. World imports of soybean meal in 2006-07 rose +2.8% yr/yr to 51.661 million metric tons, which was a new record high. US exports of soybean meal in 2006-07 rose +7.3% yr/yr to a record high of 8.700 million short tons. US imports of soybean meal in 2006-07 rose 14.5% yr/yr to 165,000 short tons but still below the record high of 285,000 short tons seen in 2003-04.

Prices – Soybean meal futures prices at the Chicago

World Supply and Distribution of Soybean Meal

In Thousands of Metric Tons

Year ------------------------ Production ------------------------ ----------- Exports ------------ ----- Imports -----Beginning United United Oct. 1 Brazil China EU States Total Brazil States Total EU Total

--------- Consumption --------- --- Ending Stocks --United United EU States Total Brazil States Total

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

24,562 27,258 28,991 30,375 33,006 33,026 32,480 32,226 32,378 32,615

1

15,729 16,651 16,478 17,725 19,407 21,449 22,360 22,658 21,659 21,629

Preliminary.

2

6,717 10,023 11,975 15,050 16,300 21,000 20,190 24,026 27,296 29,700

Forecast.

12,126 12,354 11,213 13,073 13,885 12,825 10,945 11,014 10,470 10,760

34,633 98,034 34,285 106,866 34,102 106,824 35,730 116,126 36,552 125,088 34,649 130,328 32,953 128,542 36,936 138,761 37,414 144,927 38,484 152,974

9,587 9,813 9,950 10,673 11,862 13,657 14,792 14,256 12,895 11,500

8,722 6,979 6,912 7,335 7,271 5,728 4,690 6,659 7,316 7,893

33,260 13,640 35,379 16,425 35,272 17,806 36,553 17,502 41,060 19,691 42,719 20,382 45,604 21,898 46,623 21,724 51,402 22,609 53,078 22,580

34,021 35,668 35,013 36,074 40,488 42,552 45,082 45,767 50,276 51,661

25,955 27,294 27,269 28,359 29,541 29,096 28,530 30,446 30,097 30,754

98,312 105,805 108,662 116,141 123,711 130,446 128,472 136,962 145,327 151,362

1,298 1,540 1,080 1,253 1,560 1,647 1,801 1,577 936 1,240

198 300 266 348 218 200 191 156 285 272

6,182 7,532 5,435 4,941 5,746 5,461 5,009 5,952 4,426 4,621

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

239

SOYBEAN MEAL

Volume of Trading of Soybean Meal Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Jan.

F eb.

Mar.

Apr.

479,001 458,519 420,240 455,335 530,193 610,275 639,628 648,690 658,702 506,851

481,841 454,310 509,348 537,527 431,822 398,294 551,401 767,052 857,564 604,974

509,515 449,806 476,104 556,010 470,608 424,684 527,723 740,696 713,368 575,259

576,564 592,614 477,102 467,698 485,106 618,880 676,739 819,600 661,831 785,627

I n thousands of contracts.

May

In Contracts

June

July

Aug.

581,886 569,760 499,468 749,765 390,527 646,806 566,607 606,190 584,352 625,089 567,221 664,687 599,614 749,844 795,793 821,580 571,341 1,024,952 716,846 976,097

579,748 675,104 710,110 488,172 709,973 806,395 772,104 873,226 632,797 801,549

452,188 536,650 597,026 469,017 630,909 673,705 692,778 638,941 693,398 819,118

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Oct.

D e c.

Total1

512,471 559,067 447,078 513,328 472,063 557,688 674,315 653,172 715,779 785,680

6,424.9 6,553.8 6,326.9 6,318.0 6,743.8 7,174.5 8,158.4 8,569.2 8,324.6 9,350.0

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

86,204 114,243 123,041 115,285 111,880 146,674 154,821 183,462 154,984 127,922

97,618 122,979 130,473 124,822 108,047 137,425 168,036 186,137 165,403 132,833

107,763 131,390 121,435 120,157 107,253 134,880 157,670 185,647 146,326 147,837

111,413 137,251 112,155 123,957 116,888 130,138 163,532 175,069 133,578 172,905

113,848 136,212 104,176 123,691 119,644 132,376 163,096 162,284 129,372 181,823

110,780 136,216 108,134 112,425 135,046 143,956 154,985 149,584 149,882 182,940

114,372 126,108 116,464 105,230 134,982 142,728 152,121 135,675 122,088 196,236

108,923 139,239 121,202 94,469 129,536 132,996 146,582 134,987 109,976 230,082

111,447 140,904 120,462 105,240 123,644 137,799 153,505 133,045 121,833 236,351

118,409 141,426 112,426 103,263 121,845 131,249 169,709 137,447 135,970 206,002

125,201 134,095 117,523 120,164 145,996 137,836 170,707 152,846 140,102 216,854

116,760 122,788 104,246 127,529 147,576 140,902 176,191 147,307 140,959 206,762

Source: Chicago Board of Trade (CBT)

240

Sept.

Source: Chicago Board of Trade (CBT)

Average Open Interest of Soybean Meal Futures in Chicago Year

Nov.

531,299 589,542 561,133 504,088 553,224 521,231 568,859 511,503 572,194 484,617 483,174 690,313 491,398 652,931 659,328 581,155 613,701 657,822 677,194 896,429 700,676 547,282 559,711 703,500 602,947 497,895 694,042 807,717 906,098 1,064,227

SOYBEAN MEAL Supply and Distribution of Soybean Meal in the United States

In Thousands of Short Tons -------------------- $ Per Metric Ton ----------------$ Per Ton RotterBrazil FOB Decatur Decatur dam 45-46% 48% Protein 44% Protein CIF Protein Solvent Solvent

--------------------- Supply --------------------Year Beginning Oct. 1

F or Stocks Oct. 1

Production

Total Supply

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073

210 218 330 293 383 240 220 211 172 314

38,176 37,797 37,591 39,385 40,292 38,194 36,324 40,715 41,242 42,421

38,442 38,114 37,970 39,729 40,818 38,600 36,830 41,073 41,555 42,900

1

Preliminary.

2

Estimate.

3

Forecast.

------------------ Distribution -----------------Domestic

Exports

Total

28,894 30,662 30,346 31,643 33,070 32,361 31,449 33,559 33,176 33,900

9,330 7,122 7,331 7,703 7,508 6,019 5,170 7,343 8,064 8,700

38,224 37,784 37,677 39,346 40,578 38,380 36,619 40,902 41,241 42,600

185.28 138.55 167.70 173.60 167.73 181.57 256.05 182.90 174.17 170-185

Algeria

Australia

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

250.8 263.2 213.2 202.0 178.8 219.2 184.7 176.2 63.0 18.4

136.7 135.7 167.1 167.7 157.5 243.7 384.3 209.4 74.9 54.5

1

Preliminary.

201 150 182 187 174 163 211 172 176

Dominican Canada Republic

662.9 791.8 796.7 827.2 1,050.6 1,133.6 1,091.4 1,212.9 1,208.8 1,411.0

261.5 221.8 309.9 357.4 364.9 358.8 317.5 156.9 264.7 423.8

In Thousands of Metric Tons

Italy

Ja p a n

Mexico

Netherlands

295.8 227.7 60.9 19.0 132.8 34.4 0.4 1.1 0.5 1.4

288.1 267.1 209.6 219.7 279.1 116.0 331.0 220.9 523.7 481.4

220.1 198.6 425.4 264.5 419.8 506.5 762.4 944.1 1,512.5 1,892.2

508.5 298.2 231.5 94.6 241.1 107.4 84.3 127.6 46.5 76.4

Philippines

Russia

Spain

Venezuela

Total

483.2 758.7 825.5 851.8 689.0 756.2 238.5 299.0 442.3 520.5

8.3 ---289.4 90.1 102.2 112.8 60.7 18.2 16.8 36.6

345.0 296.9 77.7 96.5 132.4 79.7 5.6 48.4 26.1 4.8

337.1 447.1 359.6 248.1 137.8 60.3 190.5 193.5 112.5 27.9

7,309 8,230 6,839 6,462 7,426 6,672 5,951 5,526 6,905 7,967

Source: The Oil World

Production of Soybean Cake & Meal2 in the United States

In Thousands of Short Tons

Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

3,344.0 3,365.1 3,573.4 3,573.9 3,534.4 3,499.3 3,462.1 3,685.2 3,700.9 3,823.5

3,390.6 3,368.4 3,400.4 3,432.8 3,538.7 3,424.7 3,465.9 3,584.2 3,562.3 3,671.9

3,624.2 3,422.4 3,413.5 3,399.4 3,655.3 3,526.8 3,483.7 3,567.9 3,518.0 3,704.7

3,592.1 3,214.4 3,332.8 3,521.6 3,703.1 3,358.4 3,479.3 3,553.6 3,589.5

3,279.2 3,027.7 2,998.2 3,083.0 3,313.2 3,048.4 3,144.9 3,293.3 3,215.3

3,484.0 3,302.7 3,123.6 3,412.5 3,589.7 3,360.1 3,092.4 3,547.6 3,504.0

3,172.5 3,044.2 2,906.1 3,152.3 3,315.7 2,994.7 2,682.4 3,328.0 3,212.6

2,956.7 3,024.4 2,882.5 3,181.0 3,344.2 3,072.4 2,792.4 3,396.8 3,474.6

Preliminary.

2

At oil mills; including millfeed and lecithin.

June

July

Aug.

Sept.

Total

2,795.2 2,941.5 2,844.0 3,011.9 2,845.4 3,118.8 3,091.6 3,256.6 3,194.1 3,085.4 2,873.4 3,064.4 2,616.2 2,752.2 3,160.9 3,320.4 3,250.9 3,507.8

2,665.6 3,003.5 2,906.8 3,203.6 3,106.7 2,966.6 2,480.2 3,122.1 3,351.7

2,930.7 3,167.8 3,089.7 3,076.8 2,911.3 3,023.5 2,872.6 3,157.0 3,354.5

37,176 37,797 37,591 39,385 40,292 38,213 36,324 40,717 41,242 44,800

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

Yield in lbs.

47.41 47.25 47.76 48.06 44.27 43.90

Sources: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Stocks (at Oil Mills)2 of Soybean Cake & Meal in the U.S., on First of Month Year

197 150 180 188 174 197 273 231 222

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

U.S. Exports of Soybean Cake & Meal by Country of Destination Year

204 153 185 191 180 200 282 202 192

In Thousands of Short Tons

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

206.6 218.1 330.2 292.9 383.3 240.0 219.9 210.7 171.8 313.8

218.2 271.9 467.6 317.4 305.5 285.2 317.8 357.7 316.1 388.4

412.2 352.3 460.2 343.8 302.9 371.7 432.4 286.8 304.9 373.6

262.0 313.9 436.5 423.7 393.7 337.0 280.7 271.3 338.0

269.3 380.5 489.8 333.9 289.7 299.1 328.9 340.9 326.6

280.7 436.4 482.5 325.8 272.0 259.5 415.8 310.4 301.6

238.0 341.0 350.2 309.1 336.5 335.7 375.0 248.0 286.5

210.4 316.0 441.2 313.3 253.8 263.5 338.6 307.5 415.4

290.2 447.7 325.0 286.9 212.7 311.8 465.5 349.0 303.5

193.1 284.2 260.2 341.3 343.3 271.6 314.9 244.8 266.2

205.3 394.8 305.8 338.1 202.4 228.4 344.6 362.3 372.6

187.2 279.4 225.9 273.9 256.5 266.9 196.3 238.3 225.8

2

I ncluding millfeed and lecithin.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

241

SOYBEAN MEAL

-----

USD Per Ton Chicago (Oct. 1929 - Oct. 1936) 41% Protein, Chicago (Nov. 1936 - June 1950) 44% Protein, Chicago (July 1950 - Sept. 1965) 44% Protein, Decatur (Oct. 1965 - Oct. 1992) 48% Protein, Decatur (Nov. 1992 - date)

Average Price of Soybean Meal (44% Solvent) in Decatur Illinois Year

1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02

In Dollars Per Short Ton -- Bulk

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Average

168.6 180.6 156.4 183.4 238.0 216.0 129.4 147.2 166.0 157.7

170.9 195.7 150.9 194.1 242.7 231.6 139.3 148.1 173.7 157.2

176.4 192.5 145.4 213.6 240.9 214.9 139.6 145.4 187.9 146.6

175.6 185.9 145.1 220.5 240.7 193.1 131.0 155.0 175.6 Disc.

167.5 184.4 149.4 216.7 253.6 182.1 124.4 163.6 158.3 Disc.

172.4 182.0 145.7 215.7 270.4 165.3 127.2 166.6 149.1 Disc.

175.6 176.4 151.0 237.9 277.7 152.8 128.6 168.1 149.7 Disc.

181.7 191.1 148.1 232.3 296.0 150.3 127.0 180.1 155.6 Disc.

181.3 183.0 149.1 227.9 275.9 157.8 131.7 170.2 163.1 Disc.

217.6 168.1 160.1 242.3 261.5 173.3 125.7 156.8 183.9 Disc.

206.9 165.6 157.5 251.1 261.6 135.7 135.9 151.4 170.6 Disc.

186.5 162.5 171.8 265.5 265.7 126.9 144.1 166.9 163.5 Disc.

181.8 180.7 152.5 225.1 260.4 175.0 132.0 160.0 166.4 153.8

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price of Soybean Meal (48% Solvent) in Decatur Illinois Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Average

229.30 135.70 153.57 171.52 165.45 168.20 225.20 155.37 166.22 177.71

245.30 144.45 154.70 179.95 166.10 163.20 242.00 153.90 170.32 190.67

222.50 146.40 154.00 195.65 154.18 163.60 231.54 161.60 193.17 180.63

202.85 138.80 163.41 183.17 158.01 167.40 252.15 167.34 183.64 190.36

192.75 132.30 170.85 166.08 153.11 176.80 257.39 167.95 176.73

174.20 133.00 175.50 156.32 160.49 175.40 301.14 187.96 175.07

162.50 134.50 177.53 158.48 161.57 182.10 311.83 193.19 174.64

160.00 133.20 189.34 165.14 164.28 195.40 300.69 198.68 175.77

168.55 139.10 177.45 172.60 170.33 191.90 285.81 219.28 176.83

183.40 132.70 163.38 184.43 187.45 187.30 284.05 215.75 168.97

146.25 141.70 157.48 178.46 186.25 189.70 205.34 198.43 159.76

135.80 150.65 174.60 171.67 185.45 217.95 175.51 175.40 168.87

185.28 138.54 167.65 173.62 167.72 181.58 256.05 182.90 174.17 184.84

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

242

In Dollars Per Short Ton -- Bulk

Oct.

Soybean Oil Soybean oil is the natural oil extracted from whole soybeans. Typically, about 19% of a soybean’s weight can be extracted as crude soybean oil. The oil content of US soybeans correlates directly with the temperatures and amount of sunshine during the soybean pod-filling stages. Edible products produced with soybean oil include cooking and salad oils, shortening, and margarine. Soybean oil is the most widely used cooking oil in the US. It accounts for 80% of margarine production and for more than 75% of total US consumer vegetable fat and oil consumption. Soy oil is cholesterol-free and high in polyunsaturated fat. Soy oil is also used to produce inedible products such as paints, varnish, resins, and plastics. Of the edible vegetable oils, soy oil is the world’s largest at about 32%, followed by palm oil and rapeseed oil. Soybean oil futures and options are traded on the Chicago Board of Trade (CBOT). Prices – Soybean oil futures prices at the Chicago Board of Trade in 2006 were at 21.80 cents per pound in January. Prices moved higher into mid-year and posted a high of 27.37 cents per pound in July. After a drop to about 24.00 cents per pound in September, prices rallied to end the year at 28.40 cents per pound, a gain of about 30%. Regarding cash prices, for the first four months of 2006-07, the average monthly price of crude domestic soybean oil (in tank cars) in Decatur (F.O.B.) rose +15.4% yr/yr to 27.02 cents per pound.

World Supply and Demand of Soybean Oil

Supply – World production of soybean oil in 2006-07 rose +4.4% yr/yr to a new record high of 35.823 million metric tons, which was more than five times the level of 6.199 million metric tons seen in 1970-71. The US accounts for 25% of world soybean oil production, while Brazil accounts for 15%, and the European Union accounts for 7%. US production of soybean oil in 2006-07 fell –1.1% yr/yr to 20.165 billion pounds, down slightly from the 2005-06 record high of 20.393 billion pounds. Demand – World consumption of soybean oil in 200607 rose +6.6% yr/yr to a record high of 35.938 million metric tons. The US accounted for 24% of world consumption, while Brazil accounted for 9%, the European Union for 9%, and India for 9%. US consumption of soybean oil in 2006-07 rose +6.1% yr/yr to 19.050 billion pounds, which was a new record high. Trade – World exports of soybean oil in 2004-05 rose +8.5% yr/yr to 9.753 million metric tons, which was a record high. US exports of soybean oil in 2006-07 rose +30.1% yr/ yr to 1.500 billion pounds, but that was still well below the record of 3.079 billion pounds seen in 1997-98.

In Thousands of Metric Tons

Year Beginning Oct. 1

---------------- Production ---------------- ----------- Exports ------------ ----- Imports ----- --------------------- Consumption --------------------- ----- Stocks3 ----United United United United Brazil EU-25 States Total Brazil States Total India Total Brazil EU-25 India States Total States Total

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

3,728 3,960 3,943 4,333 4,700 5,205 5,588 5,550 5,325 5,300

1

Preliminary.

2

2,746 2,753 2,504 2,961 3,165 2,922 2,500 2,505 2,380 2,450

Forecast.

8,229 8,202 8,085 8,355 8,572 8,360 7,748 8,781 9,250 9,147 3

22,510 24,470 24,491 26,753 28,872 30,542 30,049 32,448 34,321 35,823

End of season.

1,184 1,441 1,137 1,533 1,775 2,394 2,718 2,414 2,466 2,025

1,397 1,076 624 636 1,143 1,027 425 600 523 681

6,549 7,576 6,317 7,173 8,131 8,714 8,786 9,259 9,721 9,950

236 833 790 1,400 1,479 1,197 906 2,026 1,684 1,850

6,225 7,236 6,082 7,005 7,751 8,306 8,301 8,954 9,033 9,820

2,724 2,783 2,899 2,952 2,949 2,920 2,954 3,089 3,200 3,275

1,706 1,694 1,639 2,123 2,263 2,281 2,086 2,148 2,840 3,139

1,095 1,805 1,582 2,024 2,300 1,900 1,885 2,628 2,882 3,050

6,922 7,101 7,283 7,401 7,635 7,748 7,650 7,910 8,144 8,641

22,162 24,404 23,959 26,404 28,324 30,191 29,984 31,739 33,701 35,938

627 689 904 1,255 1,070 676 488 771 1,370 1,208

2,721 2,447 2,744 2,925 3,093 3,036 2,616 3,020 2,952 2,707

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Supply and Distribution of Soybean Oil in the United States

In Millions of Pounds

------------------------------------------------------- Domestic Disappearance -------------------------------------------------------Year Beginning Oct. 1

Production

Imports

Stocks Oct. 1

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

18,143 18,078 17,825 18,420 18,898 18,430 17,080 19,360 20,393 20,165

60 83 83 73 46 46 306 26 35 55

1,520 1,382 1,520 1,995 2,767 2,359 1,489 1,076 1,699 3,019

1

Preliminary .

2

Forecast.

Total Exports Domestic

3,079 2,372 1,376 1,401 2,519 2,261 936 1,324 1,153 1,500

15,262 15,651 16,057 16,210 16,833 17,085 16,864 17,439 17,955 19,050

------------------------------- Food ------------------------------- ---------------------- Non-Food ---------------------Total Cooking D i sa p Other Total Paint & Resins & Total ShortMar- & Salad Oils Edible F ood Varnish Plastics Non-Food pearance ening garine

4,688 4,842 7,153 7,908 8,234 8,566 8,304 7,938 7,779

1,623 1,589 1,481 1,465 1,298 1,212 1,138 1,227 850

6,188 6,191 7,075 7,361 7,373 7,886 7,933 7,790 8,700

78 120 132 125 125 119 NA NA NA

12,576 12,743 15,841 16,859 17,030 17,783 17,375 16,955 17,329

49 37 65 60 60 64 71 81 117 66

128 117 96 86 85 88 100 81 85 82

490 576 586 535 519 520 623 747 1,866 2,735

18,341 18,023 17,433 17,611 19,352 19,346 17,800 18,763 19,108 20,550

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

243

SOYBEAN OIL Stocks of Crude Soybean Oil in the United States, at End of Month Crop Year

2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

In Millions of Pounds

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

2,553.4 2,097.1 1,236.8 1,019.5 1,641.0 2,680.0

2,606.0 2,114.3 1,329.7 1,013.1 1,706.5 2,719.5

2,658.1 2,197.2 1,390.1 1,111.1 2,029.6 2,680.7

2,815.7 2,186.9 1,737.3 1,348.2 2,247.4

2,686.6 2,062.5 1,797.5 1,425.3 2,392.2

2,741.9 2,028.7 1,675.7 1,588.7 2,433.1

2,661.2 1,916.0 1,452.3 1,560.0 2,454.7

2,757.5 1,843.0 1,410.3 1,658.1 2,576.8

2,529.3 1,706.4 1,296.4 1,622.4 2,605.3

2,350.9 1,595.1 1,198.0 1,715.6 2,762.9

2,338.2 1,458.4 1,001.8 1,525.2 2,740.2

2,176.7 1,282.4 887.7 1,505.9 2,703.5

Preliminary.

Source: Bureau of the Census, U.S. Department of Commerce

Stocks of Refined Soybean Oil in the United States, at End of Month Crop Year

2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

171.4 197.1 175.0 235.8 254.1 334.7

181.4 212.0 200.8 178.4 178.9 355.6

210.0 202.3 189.9 200.3 199.4 384.8

222.9 209.8 208.3 212.6 251.3

209.8 209.5 190.5 222.0 281.2

210.8 215.9 180.2 222.7 285.0

195.6 204.1 191.9 243.4 300.8

185.7 210.8 241.2 236.6 308.2

206.5 222.1 217.7 216.2 313.9

178.7 199.1 214.0 273.8 343.2

183.5 196.0 178.8 200.7 320.9

183.2 208.3 187.8 193.6 315.3

Source: Bureau of the Census, U.S. Department of Commerce

U.S. Exports of Soybean Oil1, by Country of Destination Year Beginning Oct. 1

In Millions of Pounds

In Metric Tons

Canada

Ecuador

Ethiopia

Haiti

India

Mexico

Morocco

Pakistan

Panama

Peru

Turkey

Venezuela

Total

1997-98 26,711 1998-99 11,316 1999-00 22,715 2000-01 54,909 2001-02 87,047 2002-03 124,667 2003-04 96,450 2004-05 68,162 2005-062 76,309

10,897 4,858 0 9,849 0 0 10 0 2

4,175 2,933 13,627 5,224 2,225 11,997 3,665 1,529 3,270

14,191 44,957 25,214 5,793 9,452 1,997 1,298 4,375 3,975

38,610 71,685 23,413 54,062 88,529 42,727 14,561 29,385 23,031

102,950 99,112 118,079 72,456 161,760 188,993 97,099 162,913 108,515

30,493 43,346 14,091 0 39,439 26,517 15,518 6,579 21,951

0 0 0 62,999 59,999 38,215 17 15,506 12,000

13,591 1,369 299 4,558 12,616 2,241 2,834 7,247 1,546

49,426 62,085 66,686 60,606 37,677 20,349 25,097 15,459 19,588

2,452 8,497 15,680 0 85,199 26,500 0 21 4,032

654 1,464 414 577 635 311 169 6,063 38

1,396,755 1,075,699 623,651 635,493 1,142,755 1,026,638 424,554 600,399 523,120

1

Crude & Refined oil combined as such.

2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Production of Crude Soybean Oil in the United States

In Millions of Pounds

Year

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Total

1998-99 1,598.4 1999-00 1,687.1 2000-01 1,672.7 2001-02 1,680.1 2002-03 1,692.6 2003-04 1,630.8 2004-05 1,759.6 2005-06 1,828.6 2006-071 1,833.0

1,598.0 1,596.6 1,590.8 1,629.0 1,631.5 1,610.6 1,688.0 1,756.7 1,725.0

1,610.6 1,599.2 1,579.0 1,696.4 1,696.0 1,604.6 1,682.3 1,717.3 1,755.3

1,527.5 1,579.8 1,642.3 1,706.7 1,612.8 1,618.3 1,680.2 1,765.2

1,438.6 1,417.2 1,435.7 1,543.7 1,473.6 1,462.4 1,564.1 1,594.8

1,586.9 1,481.8 1,602.4 1,661.9 1,633.3 1,461.4 1,686.4 1,746.5

1,452.7 1,367.9 1,485.2 1,550.6 1,447.5 1,260.3 1,579.6 1,586.3

1,450.3 1,396.0 1,478.7 1,574.0 1,491.7 1,314.6 1,620.1 1,709.3

1,383.1 1,359.6 1,448.8 1,506.1 1,391.0 1,236.0 1,497.3 1,608.7

1,451.2 1,485.5 1,525.6 1,461.2 1,482.4 1,304.0 1,586.7 1,737.6

1,452.4 1,388.0 1,506.1 1,474.8 1,440.4 1,185.9 1,484.4 1,657.7

1,528.4 1,466.0 1,452.5 1,413.8 1,445.2 1,391.7 1,531.1 1,684.1

18,078 17,825 18,420 18,898 18,438 17,081 19,360 20,393 21,253

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Production of Refined Soybean Oil in the United States Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Total

1,200.6 1,201.1 1,260.3 1,383.2 1,451.2 1,393.0 1,377.6 1,389.3 1,477.9

1,108.8 1,195.2 1,159.7 1,363.5 1,367.2 1,350.9 1,331.1 1,307.4 1,309.3

1,042.2 1,150.4 1,093.4 1,266.9 1,262.2 1,226.6 1,243.2 1,245.2 1,316.4

1,016.7 1,056.9 1,107.5 1,231.8 1,224.5 1,205.6 1,243.4 1,273.9

976.7 1,045.1 1,166.8 1,183.9 1,181.0 1,196.0 1,188.1 1,132.9

1,138.2 1,173.7 1,211.3 1,330.0 1,308.2 1,330.6 1,321.6 1,409.3

1,073.2 1,109.6 1,170.0 1,270.5 1,238.6 1,210.3 1,324.5 1,326.6

1,087.7 1,141.4 1,234.1 1,297.9 1,378.8 1,267.4 1,287.4 1,361.5

1,060.7 1,063.8 1,204.6 1,287.7 1,316.1 1,195.9 1,253.6 1,352.9

1,058.6 1,080.2 1,222.8 1,272.8 1,293.8 1,246.8 1,295.9 1,329.1

1,122.6 1,176.0 1,317.4 1,308.4 1,290.5 1,268.8 1,324.1 1,399.7

1,116.2 1,177.7 1,201.2 1,362.4 1,334.8 1,306.3 1,324.7 1,400.0

13,002 13,571 14,349 15,559 15,647 15,198 15,515 15,928 16,414

Preliminary.

244

In Millions of Pounds

Oct.

Source: Bureau of the Census, U.S. Department of Commerce

SOYBEAN OIL

-------

Coconut Oil: Cents Per Pound Crude, New Orleans (Sept. 1918 - date) Corn Oil: Cents Per Pound F.O.B. Decatur (July 1924 - June 1985) Crude, Wet, Milling, Chicago (July 1985 - date)

Consumption of Soybean Oil in End Products in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,086.0 1,045.8 1,031.5 1,096.6 1,065.9 1,461.5 1,418.1 1,388.1 1,365.4 1,505.2

979.7 1,020.2 979.0 1,050.5 1,151.7 1,395.3 1,347.4 1,417.6 1,609.2 1,368.8

1,104.9 1,129.7 1,156.1 1,217.9 1,308.8 1,568.0 1,490.0 1,555.2 1,609.2 1,661.4

1,060.4 1,066.5 1,087.7 1,158.9 1,202.4 1,505.1 1,494.9 1,468.0 1,587.2 1,561.1

1,034.1 1,101.6 1,091.9 1,183.6 1,224.2 1,549.7 1,552.6 1,506.7 1,589.5 1,634.9

995.2 1,070.1 1,079.5 1,102.9 1,261.6 1,492.4 1,493.1 1,421.1 1,496.2 1,653.2

991.4 1,062.2 1,082.9 1,121.1 1,307.6 1,490.5 1,509.5 1,429.2 1,523.3 1,575.5

1,126.1 1,123.4 1,185.0 1,226.4 1,557.5 1,545.5 1,483.5 1,473.6 1,570.4 1,746.2

1,067.8 1,122.0 1,185.7 1,163.6 1,411.0 1,543.7 1,577.7 1,483.2 1,527.2 1,727.9

1,128.5 1,231.5 1,183.0 1,306.1 1,687.3 1,710.2 1,660.7 1,558.3 1,589.6 1,775.6

1,100.0 1,150.2 1,199.3 1,139.7 1,624.0 1,587.2 1,544.2 1,533.7 1,546.9 1,638.6

1,087.8 1,057.0 1,135.6 1,079.6 1,485.8 1,458.8 1,451.4 1,368.9 1,416.2 1,575.6

12,762 13,180 13,397 13,847 16,288 18,308 18,023 17,604 18,430 19,424

Preliminary.

Source: Bureau of the Census, U.S. Department of Commerce

U.S. Exports of Soybean Oil (Crude and Refined) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Pounds

In Millions of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

190.7 449.4 246.1 103.0 130.4 249.9 277.5 71.2 77.0 71.3

239.2 387.6 231.1 146.1 184.5 446.7 319.1 62.8 217.2 67.2

301.1 268.6 130.8 161.3 142.4 233.3 273.9 73.5 74.6 178.1

84.9 191.1 230.8 91.5 105.8 233.3 211.6 38.8 74.8 96.6

28.9 148.1 91.3 48.3 51.2 87.3 109.5 44.0 71.9 53.4

44.9 204.7 135.0 109.8 109.9 345.4 966.5 39.3 68.5 82.3

144.1 161.8 111.7 105.8 89.1 180.8 234.5 53.9 52.4 89.3

212.9 316.0 91.2 57.0 96.3 95.3 116.0 68.8 137.3 65.3

152.1 108.9 196.2 69.0 70.6 109.8 105.9 86.8 65.9 111.6

217.2 189.6 209.1 43.9 233.9 113.5 152.5 59.9 76.3 165.5

424.0 343.5 114.9 115.2 138.6 194.9 111.3 184.5 154.1 119.7

199.7 376.7 157.6 261.6 164.8 210.2 133.2 239.5 107.8 275.9

2,240 3,146 1,946 1,313 1,518 2,501 3,011 1,023 1,178 1,376

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

245

SOYBEAN OIL

-----

Cents Per Pound Crude, New York (Jan. 1911 - Sept. 1929) Crude, Decatur (Oct. 1929 - date)

Stocks of Soybean Oil (Crude & Refined) at Factories and Warehouses in the U.S. Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Oct. 1

Nov. 1

D e c. 1

Jan. 1

F eb. 1

Mar. 1

Apr. 1

May 1

June 1

July 1

Aug. 1

Sept. 1

1,520.2 1,382.4 1,519.6 1,995.3 2,877.2 2,358.6 1,490.6 1,075.6 1,699.0 3,018.9

1,525.6 1,416.8 1,616.4 2,060.8 2,724.9 2,280.1 1,411.8 1,255.3 1,883.5 3,014.7

1,525.5 1,406.5 1,663.6 2,167.5 2,787.4 2,326.1 1,530.4 1,191.5 1,851.8 3,075.1

1,679.6 1,312.9 1,791.1 2,298.0 2,868.1 2,398.0 1,579.9 1,311.4 2,190.5

1,787.9 1,505.6 2,013.7 2,379.7 3,038.5 2,395.7 1,945.6 1,560.9 2,498.7

1,711.2 1,607.6 2,099.8 2,474.0 2,896.4 2,271.9 1,988.0 1,647.3 2,673.4

1,762.6 1,716.2 2,092.7 2,504.0 2,952.7 2,244.6 1,855.9 1,811.4 2,718.1

1,857.6 1,640.5 2,099.2 2,505.8 2,856.8 2,120.2 1,644.1 1,803.3 2,755.4

1,857.0 1,767.3 1,991.9 2,656.1 2,943.2 2,053.9 1,651.6 1,894.7 2,885.0

1,712.6 1,647.4 2,028.3 2,776.7 2,735.9 1,928.5 1,514.0 1,838.6 2,919.2

1,779.1 1,671.2 2,120.4 2,895.5 2,529.7 1,794.2 1,412.0 1,989.4 3,106.1

1,453.2 1,630.8 2,018.1 2,869.9 2,521.7 1,654.4 1,180.6 1,725.9 3,061.2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price of Crude Domestic Soybean Oil (in Tank Cars) F.O.B. Decatur Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

246

In Millions of Pounds

In Cents Per Pound

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Average

24.31 25.20 16.08 13.50 14.38 20.75 27.40 23.23 24.26 24.80

25.73 25.20 15.63 13.37 15.23 23.00 27.76 22.95 22.52 27.64

25.08 24.00 15.30 13.12 15.10 22.60 29.54 21.79 21.00 27.63

25.09 22.90 15.63 12.53 14.82 21.50 30.34 20.46 21.63 28.00

26.51 20.00 15.09 12.38 14.15 21.20 33.05 20.70 22.21

27.09 19.50 16.21 13.90 14.75 21.56 34.66 23.60 23.21

28.10 18.80 17.52 13.53 15.31 22.40 34.19 23.09 22.98

28.28 17.85 16.75 13.53 15.98 23.17 32.68 23.38 24.76

25.83 16.50 15.65 14.21 17.69 22.90 30.07 24.70 24.20

24.88 15.30 14.70 16.49 19.12 21.80 28.05 25.46 25.86

23.99 16.50 14.34 17.08 20.61 20.40 25.98 23.59 24.80

25.13 16.80 14.24 15.46 20.32 23.20 25.87 23.19 23.54

25.84 19.88 15.60 14.09 16.46 22.04 29.97 23.01 23.41 27.02

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

SOYBEAN OIL

Volume of Trading of Soybean Oil Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Jan.

F eb.

Mar.

Apr.

473,290 443,562 367,303 424,232 327,570 474,824 522,939 521,293 475,115 531,908

381,921 556,982 555,097 451,677 458,445 497,396 540,645 722,580 799,873 611,192

503,998 497,887 520,622 483,212 416,718 468,878 473,694 736,173 579,599 597,607

445,848 673,091 463,236 438,526 443,454 496,990 618,483 760,153 636,304 866,397

I n thousands of contracts.

May

In Contracts

June

July

Aug.

Sept.

389,741 439,626 624,518 648,098 350,850 489,184 451,162 533,376 403,110 541,194 526,918 588,386 520,043 740,549 631,157 642,917 565,511 852,259 688,613 1,024,453

442,846 629,642 516,205 422,418 751,299 701,455 761,460 657,542 548,334 801,198

375,122 491,155 552,198 456,195 612,349 648,853 594,687 549,538 637,067 816,745

417,970 558,032 523,376 436,841 447,390 529,442 636,469 565,439 594,781 728,998

Oct.

D e c.

Total1

511,369 540,379 433,491 386,801 502,341 628,026 618,502 599,294 707,384 878,811

5,285.0 6,498.3 5,663.9 5,369.9 6,034.3 6,816.5 7,417.3 7,593.3 7,676.1 9,488.5

Source: Chicago Board of Trade (CBT)

Average Open Interest of Soybean Oil Futures in Chicago

In Contracts

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Nov.

413,722 489,541 383,844 450,073 395,243 497,090 378,419 507,044 550,995 579,460 549,942 705,373 733,405 656,464 552,890 654,338 607,054 672,849 939,319 1,003,283

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

89,112 105,798 115,407 131,948 134,677 149,103 143,607 198,361 159,229 171,317

89,348 121,657 131,875 135,196 133,497 158,157 140,272 212,204 174,091 183,717

102,388 142,100 136,967 143,699 123,770 149,913 131,323 186,745 161,971 192,643

101,191 160,004 133,404 155,114 128,360 136,198 142,123 159,478 145,808 204,132

101,544 159,248 131,993 134,093 142,877 128,707 147,584 141,772 135,515 244,580

104,433 139,934 147,749 140,582 151,713 129,480 143,218 136,887 155,962 241,962

105,346 117,487 157,999 134,392 162,395 135,762 147,610 135,649 147,542 276,251

95,282 112,177 147,280 135,506 166,318 143,144 157,066 142,574 132,351 269,208

94,521 115,879 146,239 136,590 159,467 146,759 141,596 132,936 139,489 259,464

107,471 115,260 155,768 135,584 164,521 139,626 161,556 147,046 165,634 256,153

119,877 110,386 163,439 142,712 167,803 169,978 183,747 154,316 175,229 279,091

106,406 104,738 144,798 134,873 154,589 155,871 191,176 151,800 186,760 273,375

Source: Chicago Board of Trade (CBT)

247

Soybeans Soybean is the common name for the annual leguminous plant and its seed. The soybean is a member of the oilseed family and is not considered a grain. The soybean seeds are contained in pods and are nearly spherical in shape. The seeds are usually light yellow in color. The seeds contain 20% oil and 40% protein. Soybeans were an ancient food crop in China, Japan, and Korea and were only introduced to the US in the early 1800s. Today, soybeans are the second largest crop produced in the US behind corn. Soybean production in the US is concentrated in the Midwest and the lower Mississippi Valley. Soybean crops in the US are planted in May or June and are harvested in autumn. Soybean plants usually reach maturity 100-150 days after planting depending on growing conditions. Soybeans are used to produce a wide variety of food products. The key value of soybeans lies in the relatively high protein content, which makes it an excellent source of protein without many of the negative factors of animal meat. Popular soy-based food products include whole soybeans (roasted for snacks or used in sauces, stews and soups), soy oil for cooking and baking, soy flour, protein concentrates, isolated soy protein (which contains up to 92% protein), soy milk and baby formula (as an alternative to dairy products), soy yogurt, soy cheese, soy nut butter, soy sprouts, tofu and tofu products (soybean curd), soy sauce (which is produced by a fermentation process), and meat alternatives (hamburgers, breakfast sausage, etc). The primary market for soybean futures is at the Chicago Board of Trade. The CBOT’s soybean contract calls for the delivery of 5,000 bushels of No. 2 yellow soybeans (at contract par), No. 1 yellow soybeans (at 6 cents per bushel above the contract price), or No. 3 yellow soybeans (at a 6 cents under the contract price). Soybean futures are also traded at exchanges in Brazil, Argentina, China, and Tokyo. Prices – Soybean futures prices traded sideways to lower in the high-$5 per bushel area in the first 9 months of 2006 due to favorable growing conditions in the US and a record 2006-07 soybean crop of 3.188 billion bushels. Soybean prices fell to a 1-1/2 year low in August 2006 as the record size of the crop became clear. The USDA projected a record US carry-over for soybeans in 2006-07 of 575 million bushels. However, soybean prices then rallied sharply starting in September due to the rally in corn prices. Soybeans finally ended 2006 at $6.835 per bushel, up +13.5% yr/yr. The 80% rally in corn prices was sparked by strong demand from ethanol producers and a sharp drawdown in 2006-07 corn inventories. Soybean prices followed corn higher starting in September, rallying from the $5.50 area to as high as $7.91 by February 2007. The soybean market recognized that US farmers would be slashing their soybean planting in spring 2007 in order to plant more corn and take advantage of the surge in corn prices. As of March 2007, the industry consensus was that US farmers would have to plant 10-12 million more acres of corn in spring

248

2007 in order to satisfy strong corn demand. Most of those acres would be taken away from soybean planting, meaning that the US soybean crop in 2007-08 is likely to fall 10-15% because of fewer planted acres. Soybean prices also boosted in early 2007 due to heavy rains in key parts of the Brazilian soybean growing areas, which ruined some crops and increased soybean rust problems. Supply – World soybean production during the 200607 marketing year (Sep-Aug) rose by +5.3% yr/yr to 229.398 million metric tons, which was a new record high. World soybean production has more than doubled from the 81 million metric ton level seen in 1980. The world’s largest soybean producers were the US with 38% of world production in 2006-07, Brazil (25%), Argentina (19%), China (7%), and India (3%). China’s soybean production has roughly doubled since 1980. Brazil’s production has risen by almost 4 times since 1980. US soybean production in 2006-07 rose by +5.3% yr/yr to 3.204 billion bushels which is a new record high. U.S. farmers harvested 74.602 million acres of soybeans in 200607, which is also a new record high. The average yield of 42.7 bushels per acre in 2006-07, however, was down -0.7% from the 2005-06 record high of 43.0.US ending stocks for the 2006-07 marketing year (September 1), rose sharply by +75.7% to 449 million bushels from 256 million bushels in 2005-06 and thus recovered further from the 3-decade low of 112 million bushels seen in 2003-04. Demand – Total US distribution in 2006-07 rose +6.1% to 3.047 billion bushels. The distribution tables for US soybeans for the 2006-07 marketing year show that 58% of US soybean usage went for crushing into soybean oil and meal, 36% for exports, and 6% for seed and residual. The quantity of soybeans that went for crushing rose +2.4% yr/ yr in 2006-07 to 1.780 billion bushels. The world soybean crush rose +5.3% yr/yr in 2006-07 to 194.125 million metric tons, which was a new record high and was more than double the level seen in 1980. Trade – World exports of soybeans in 2006-07 rose +8.5% yr/yr to 69.508 million metric tons, which was a new record high. The world’s largest soybean exporters are the US with 43% of world exports in 2006-07, Brazil with 38% of world exports, and Argentina with 11% of world exports. US soybean exports in 2006-07 rose +16.1% yr/yr to 29.937 million metric tons, which was a new record high. Brazil’s soybean exports have more than quadrupled in the past decade and in 2006-07 were virtually unchanged from the record high of 25.911 million metric tons posted in 2005-06. The world’s largest importers of soybeans in 2006-07 were China with 46% of world imports, the European Union with 21%, Japan with 6%, and Mexico with 6%. China’s imports in 2006-07 rose +11.2% yr/yr to a record high of 31.500 million metric tons from negligible levels prior to 1994.

SOYBEANS World Production of Soybeans Crop Year4

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073

In Thousands of Metric Tons

Argentina

Bolivia

Brazil

Canada

China

India

Indonesia

Mexico

Paraguay

Thailand

United States

Russia

World Total

19,500 20,000 21,200 27,800 30,000 35,500 33,000 39,000 40,500 44,000

1,120 970 1,200 1,150 1,245 1,650 1,850 2,027 2,060 2,150

32,500 31,300 34,700 39,500 43,500 52,000 51,000 53,000 55,000 57,000

2,738 2,737 2,776 2,703 1,635 2,336 2,263 3,042 3,161 3,500

14,728 15,152 14,290 15,400 15,410 16,510 15,394 17,400 16,350 16,200

5,350 6,000 5,200 5,250 5,400 4,000 6,800 5,850 6,300 7,300

1,306 1,300 1,300 1,020 870 780 820 825 832 845

189 143 123 103 66 89 125 132 145 160

2,988 2,980 2,911 3,502 3,547 4,500 3,911 4,050 4,000 4,700

338 335 330 312 270 250 220 240 230 230

73,176 74,598 72,224 75,055 78,672 75,010 66,778 85,013 83,368 86,770

280 297 334 342 350 423 393 555 689 900

157,992 159,828 160,409 175,771 184,832 196,774 186,512 215,724 217,894 229,398

Preliminary. 2 Estimate. 3 Forecast. 4 Spilt year includes Northern Hemisphere crops harvested in the late months of the first year shown combined with Southern Hemisphere crops harvested in the early months of the following year. Sources: Oil World; Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA) 1

World Crushings and Ending Stocks of Soybeans Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

12,886 17,507 17,074 17,300 20,859 23,526 25,021 27,313 31,886 35,000

Preliminary.

2

19,946 21,174 21,084 22,742 24,693 27,168 29,323 29,252 28,050 27,900

Estimate.

3

8,450 12,607 15,070 18,900 20,250 26,540 25,439 30,362 34,500 37,500 Forecast.

15,278 15,344 13,994 16,598 17,636 16,325 13,909 13,995 13,310 13,670

4,770 5,400 4,400 4,525 4,629 3,420 5,534 5,030 5,435 6,335

Year

1

3,720 3,700 3,750 3,775 3,885 4,217 3,536 3,149 2,820 2,925

3,600 3,950 4,100 4,450 4,610 4,335 3,889 3,729 3,783 3,900

43,464 43,262 42,927 44,625 46,259 43,948 41,632 46,160 47,320 48,444

123,256 134,675 135,144 146,543 158,024 165,510 163,713 175,683 184,292 194,125

7,894 8,086 9,418 9,448 12,593 16,636 15,507 16,750 15,270 16,101

5,438 9,484 7,897 6,743 5,663 4,853 3,059 6,960 12,229 16,200

27,287 29,341 30,901 34,244 36,161 43,665 38,804 48,453 52,327 57,499

In Thousands of Metric Tons

------------------------------------------------ Imports ------------------------------------------------ ------------------------------------------ Exports -----------------------------------------Rep. of World ArgenUnited World China EU-25 Ja p a n Korea Mexico Taiwan Total tina Brazil Canada Paraguay States Total

2,940 3,850 10,100 13,245 10,385 21,417 16,933 25,802 28,317 31,500

Preliminary.

2

15,137 14,859 14,129 17,525 18,539 16,872 14,638 14,544 13,934 14,138

Estimate.

3

4,873 4,807 4,907 4,767 5,023 5,087 4,688 4,295 3,957 4,100 Forecast.

1,349 1,400 1,606 1,389 1,434 1,516 1,368 1,240 1,190 1,275

3,502 3,766 4,039 4,381 4,510 4,230 3,797 3,640 3,667 3,775

2,387 2,124 2,408 2,330 2,578 2,351 2,217 2,256 2,498 2,550

38,171 39,340 46,194 53,157 54,515 63,109 54,059 63,706 63,996 69,126

------------------------------------------------ Supply ----------------------------------------------------Crop Year -------------------- Stocks, Sept. 1 -------------------Mills, Beginning ProTotal Farms Elevators3 Sept. 1 Total duction Supply

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 Preliminary.

43.6 84.3 145.0 112.5 83.5 62.7 58.0 29.4 99.7 176.3 2

Estimate.

88.2 115.5 203.5 177.7 164.2 145.3 120.3 83.0 156.0 273.0 3

3,171 3,403 4,127 7,414 6,004 8,714 6,741 9,568 7,249 7,250

8,760 8,931 11,101 15,469 14,504 19,629 20,417 20,137 25,911 25,900

769 876 949 747 502 726 897 1,093 1,326 1,550

2,293 2,299 2,025 2,509 2,285 2,806 2,776 2,888 2,400 3,300

23,760 21,898 26,537 27,103 28,948 28,423 24,128 29,860 25,778 29,937

39,627 38,268 45,625 53,871 52,941 61,074 55,988 64,635 64,068 69,508

Sources: Oil World; Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Supply and Distribution of Soybeans in the United States

1

2,043 1,874 2,098 2,128 2,187 2,135 2,046 2,013 2,180 2,270

Sources: Oil World; Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Imports and Exports of Soybeans

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073

In Thousands of Metric Tons

--------------------------------------------------------------------- Crushings --------------------------------------------------------------------------- ---------- Ending Stocks ---------ArgenUnited World United World tina Brazil China EU-25 India Ja p a n Mexico Taiwan States Total Brazil States Total

131.8 199.8 348.5 290.2 247.7 208.0 178.3 112.4 255.7 449.3

Also warehouses.

2,688.8 2,741.0 2,653.8 2,757.8 2,890.7 2,756.1 2,453.7 3,123.7 3,063.2 3,188.2

2,825.6 2,945.0 3,006.0 3,052.0 3,141.0 2,969.0 2,638.0 3,242.0 3,322.0 3,642.0

In Millions of Bushels ----------------------------------- Distribution ----------------------------------Total S eed, DistriF eed & bution Residual Crushings Exports

1,597.0 1,590.0 1,578.0 1,640.0 1,700.0 1,615.0 1,530.0 1,696.0 1,739.0 1,780.0

874.0 805.0 973.0 996.0 1,064.0 1,044.0 887.0 1,097.0 947.0 1,100.0

155.0 202.0 165.0 168.0 169.0 131.0 109.0 193.0 187.0 167.0

2,626.0 2,597.0 2,716.0 2,804.0 2,933.0 2,791.0 2,525.0 2,986.0 2,873.0 3,047.0

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

249

SOYBEANS Salient Statistics & Official Crop Production Reports of Soybeans in the U.S.

Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

Acreage HarPlanted vested ---- 1,000 Acres ----

70,005 72,025 73,730 74,266 74,075 73,963 73,404 75,208 72,032 75,522

Preliminary.

2

69,110 70,441 72,446 72,408 72,975 72,497 72,476 73,958 71,251 74,602

Forecast.

Yield P er Acre (Bu.)

Farm Price ($ / Bu.)

Farm Value (Million Dollars)

38.9 38.9 36.6 38.1 39.6 38.0 33.9 42.2 43.0 42.7

6.47 4.93 4.63 4.54 4.38 5.64 7.95 5.90 5.63 6.04

17,396 13,513 12,287 12,548 12,606 15,253 18,014 17,895 17,269 19,694

Yield of Oil

In Millions of Bushels

Crop Production Reports Yield of -------------------------------- In Thousands of Bushels ---------------------------------Meal Aug. 1 Sept. 1 Oct. 1 Nov. 1 Dec. 1 Final

11.25 11.30 11.34 11.24 11.14 11.39 11.20 11.33

47.41 47.25 47.76 48.06 44.27 43.90 44.32 44.26

2,744,451 2,824,744 2,869,519 2,988,669 2,867,474 2,628,387 2,862,039 2,876,627 2,791,133 2,927,634

2,745,891 2,908,604 2,778,392 2,899,571 2,833,511 2,655,819 2,642,644 2,835,989 2,856,449 3,092,970

2,721,843 2,768,919 2,696,272 2,822,821 2,907,042 2,653,798 2,468,390 3,106,861 2,967,075 3,188,576

2,736,115 2,762,609 2,672,972 2,777,036 2,922,914 2,689,691 2,451,759 3,150,441 3,043,116 3,203,908

-------------------------------

2,688,750 2,741,014 2,653,758 2,757,810 2,890,682 2,756,147 2,453,665 3,123,686 3,063,237 3,188,247

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Stocks of Soybeans in the United States

In Thousands of Bushels

------------------------ On Farms ------------------------ -------------------------- Off Farms1 -------------------------- ------------------------- Total Stocks -------------------------Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

Mar. 1

514,000 637,000 815,000 730,000 780,000 687,000 636,500 355,900 795,000 872,000

D e c. 1

Mar. 1

Jun. 1

Sept. 1

D e c. 1

Mar. 1

Jun. 1

Sept. 1

D e c. 1

216,000 43,600 1,048,000 318,000 84,300 1,187,000 458,000 145,000 1,150,000 370,000 112,500 1,217,000 365,000 83,500 1,240,000 301,200 62,700 1,170,000 272,500 58,000 820,000 110,000 29,400 1,300,000 356,100 99,700 1,345,000 495,500 176,300 1,461,000

Jun. 1

Sept. 1

541,754 565,922 642,338 665,986 623,908 648,987 565,528 549,947 586,364 797,206

283,890 275,654 390,573 404,425 343,180 383,721 329,862 300,604 343,174 495,199

88,233 115,499 203,482 177,662 164,247 145,320 120,329 83,014 156,038 273,026

951,417 999,440 1,032,666 1,022,791 1,035,713 943,641 868,653 1,004,640 1,157,098 1,236,498

1,055,754 1,202,922 1,457,338 1,395,986 1,403,908 1,335,987 1,201,028 905,847 1,381,364 1,669,206

499,890 593,654 848,573 774,425 708,180 684,921 602,362 410,604 699,274 990,699

131,833 199,799 348,482 290,162 247,747 208,020 178,329 112,414 255,738 449,326

1,999,417 2,186,440 2,182,666 2,239,791 2,275,713 2,113,641 1,688,653 2,304,640 2,502,098 2,697,498

1 I ncludes stocks at mills, elevators, warehouses, terminals and processors. U.S. Department of Agriculture (NASS-USDA)

NA = Not avaliable.

Source: National Agricultural Statistics Service,

Commercial Stocks of Soybeans in the United States, on First of Month

In Millions of Bushels

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

32.6 35.3 39.1 34.1 34.5 29.6 25.9 35.5 26.5 36.8

28.8 31.2 31.5 28.3 28.8 27.0 13.2 26.2 21.5 30.2

22.9 22.9 29.0 30.0 25.2 22.2 13.9 26.0 19.5 26.1

26.0 18.4 28.7 23.9 22.5 21.0 12.8 19.4 16.0 25.7

29.2 14.5 25.0 23.8 16.3 18.4 9.7 15.7 14.8 17.6

24.7 14.2 18.9 20.6 15.0 15.4 9.4 13.5 12.1 20.5

14.3 10.2 16.1 17.0 12.9 14.4 11.7 8.0 11.5 14.6

12.8 9.7 17.3 12.3 13.4 10.2 7.6 5.9 8.8 14.5

6.3 8.7 14.1 8.6 11.9 4.6 4.5 4.4 5.4 14.5

4.5 18.6 19.5 15.5 9.6 8.4 7.0 10.8 17.0 19.0

50.2 43.5 46.9 38.2 34.7 26.9 33.0 31.1 36.7 40.1

49.4 40.6 42.3 37.9 38.2 28.4 36.7 32.9 36.1 43.7

Source: Livestock Division, U.S. Department of Agriculture (LD-USDA)

Stocks of Soybeans at Mills in the United States, on First of Month

In Millions of Bushels

Year

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051

52.8 40.7 28.3 32.8 41.7 52.1 69.0 46.4 35.3 37.0

54.2 23.4 37.0 66.5 70.8 56.8 41.3 36.3 31.9 74.8

125.6 101.1 126.4 175.0 162.9 179.4 152.8 114.5 129.9 114.1

129.1 117.4 124.3 154.3 144.7 166.8 137.1 113.5 121.0 113.1

120.0 106.0 110.3 131.0 144.2 137.8 121.4 106.0 121.7 100.3

123.3 112.6 98.7 109.6 140.3 143.3 129.6 109.2 125.6 85.6

121.9 122.2 93.4 102.5 137.8 127.0 128.2 102.9 124.5 88.1

110.6 104.9 72.0 93.7 129.6 120.6 112.9 91.5 134.3 88.8

104.2 89.2 56.9 80.5 98.7 94.9 104.2 91.6 114.8 70.9

92.5 78.2 41.0 56.9 78.7 86.1 88.2 76.0 91.2 59.2

70.4 64.0 42.5 55.5 78.4 79.3 67.9 64.9 76.0 66.1

57.4 43.6 44.1 48.1 52.1 69.0 65.4 55.6 61.4 51.7

1

Preliminary.

250

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

SOYBEANS Production of Soybeans for Beans in the United States, by State Crop Year

Arkansa s

Illinois

Indiana

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

109.8 85.0 92.4 80.3 91.2 96.5 111.3 122.9 102.0 110.2

427.9 464.2 443.1 459.8 477.9 453.7 379.6 495.0 439.4 502.5

230.6 231.0 216.5 252.1 273.9 239.5 204.1 284.3 263.6 289.7

1

Preliminary.

In Millions of Bushels

Iowa

Kentucky

Michi gan

Minnesota

Missi ssi p p i

Missouri

Nebraska

Ohio

Tenne sse e

Total

478.4 496.8 478.4 464.6 480.5 499.2 342.9 497.4 525.0 502.5

42.1 36.0 24.4 45.2 48.8 42.6 53.9 57.2 53.3 61.2

71.6 73.7 77.6 73.1 63.9 78.5 54.7 75.2 76.6 85.1

255.5 285.6 289.8 293.2 266.4 308.9 238.4 232.7 306.0 311.8

64.2 48.0 44.7 34.8 37.0 43.8 55.8 61.5 58.0 42.6

174.6 170.0 147.1 175.0 186.2 170.0 146.0 223.2 181.7 206.0

143.8 165.0 180.6 173.9 223.0 176.3 182.3 218.5 235.3 255.0

191.0 193.2 162.0 186.5 187.8 151.0 164.8 207.7 201.6 212.5

40.8 35.1 22.8 28.8 35.4 34.7 47.0 48.4 41.8 42.9

2,688.8 2,741.0 2,653.8 2,757.8 2,890.7 2,756.1 2,453.7 3,123.7 3,063.2 3,188.2

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

United States Exports of Soybeans

In Millions of Bushels

Year

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Total

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

42.6 27.9 69.4 51.4 31.7 30.9 34.0 47.2 32.3 64.8

174.3 135.6 122.8 141.4 158.9 136.7 165.3 177.7 143.1 178.0

150.4 106.3 104.5 123.0 158.0 152.8 186.4 181.0 140.1 131.0

121.2 90.4 109.1 106.6 133.2 114.7 143.2 155.0 83.1

91.1 84.3 104.0 103.3 157.2 159.3 109.3 121.9 111.8

94.8 66.8 103.1 126.5 132.0 151.5 82.6 123.2 111.3

56.9 72.4 109.7 135.2 63.8 92.1 69.9 96.4 95.6

36.7 52.5 50.6 52.8 46.0 66.4 28.7 65.2 43.4

27.3 37.8 45.6 39.8 45.6 35.9 19.1 49.6 46.5

24.7 36.4 46.0 39.5 43.2 31.9 20.2 35.2 39.0

27.9 36.7 50.3 33.1 56.0 37.9 14.8 20.0 47.6

26.6 57.5 58.4 43.4 38.0 34.3 10.8 30.3 51.0

874.3 804.7 973.4 995.9 1,063.7 1,044.4 884.2 1,102.7 944.8 1,495.2

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Spread Betw een Value of Products and Soybean Price in the United States

In Cents Per Bushel

Year

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Average

68 84 177 53 48 81 102 77 117 132

82 92 96 53 61 76 108 73 88 95

58 105 108 38 64 77 106 52 94 70

64 92 87 40 58 89 83 60 81 66

53 74 57 33 75 85 86 53 84 75

48 74 51 30 61 59 65 52 81 76

53 62 35 35 70 65 65 61 96 67

67 54 33 37 70 72 65 53 96 78

44 82 33 34 80 67 57 62 85 69

50 67 29 36 81 81 63 59 97 75

52 94 53 47 69 96 64 72 150 73

47 123 43 45 62 92 89 74 127 82

57 83 67 40 66 78 79 62 99 79

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Soybean Crushed (Factory Consumption) in the United States Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

In Millions of Bushels

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Total

110.8 123.9 133.8 128.9 128.2 122.3 127.6 121.0 133.2 142.4

142.2 142.4 150.2 149.1 150.2 149.5 146.2 155.3 157.7 161.7

142.8 143.0 142.8 143.1 149.1 145.7 145.6 151.1 151.5 155.1

153.1 144.6 143.0 142.3 153.4 150.2 145.8 150.0 148.4 156.2

151.8 136.4 139.2 146.7 155.1 142.7 146.0 148.6 152.4

138.3 127.6 125.4 128.9 139.0 129.2 131.4 137.6 136.3

147.0 140.0 130.4 141.8 149.8 142.8 129.6 148.5 149.5

134.0 128.4 121.5 131.1 139.2 127.0 112.5 139.4 135.5

123.9 128.0 121.0 132.7 140.6 129.8 117.5 142.8 146.2

117.5 121.2 117.9 128.0 134.6 121.4 109.4 132.0 137.4

123.8 127.3 130.2 133.6 129.8 129.3 115.3 139.5 148.5

111.9 126.9 122.2 133.5 130.6 125.1 103.0 130.3 142.1

1,597 1,590 1,578 1,640 1,700 1,615 1,530 1,696 1,739 1,846

One Bushel = 60 Pounds.

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

251

SOYBEANS

Volume of Trading of Soybean Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,119.8 875.7 871.1 1,071.9 935.0 1,078.8 1,267.3 1,509.7 1,398.6 1,503.4

1,254.2 971.2 1,025.3 1,099.3 947.4 899.9 1,222.9 1,879.6 2,085.8 1,889.1

1,405.9 935.9 1,440.1 1,191.6 843.1 1,065.7 997.1 1,957.2 1,959.9 1,501.2

1,585.5 1,116.2 963.5 1,079.1 916.3 1,238.6 1,588.9 2,036.2 1,656.5 1,916.6

1,391.1 973.6 823.6 1,321.6 909.5 1,048.3 1,368.2 1,593.2 1,454.6 1,682.6

1,355.6 1,378.8 1,149.5 1,302.0 1,155.6 1,311.8 1,723.4 1,601.7 2,577.3 2,443.2

1,217.4 1,286.3 1,502.5 883.4 1,508.1 1,762.2 1,385.7 1,551.3 1,675.4 1,798.2

835.0 884.5 1,669.8 801.4 1,122.0 1,346.4 1,193.5 1,107.6 1,487.2 1,638.5

852.3 864.4 903.0 860.9 648.7 1,002.9 1,308.5 1,052.8 1,069.1 1,420.2

1,505.8 1,264.6 1,158.6 1,188.8 1,356.1 1,486.1 2,416.3 1,635.3 1,765.0 2,884.7

1,010.7 867.0 839.4 932.5 964.7 1,070.9 1,535.4 1,395.3 1,241.5 2,017.4

1,006.6 1,012.9 872.3 895.3 844.1 1,163.5 1,538.5 1,526.1 1,845.1 1,952.6

14,540 12,431 12,482 12,628 12,150 14,475 17,546 18,846 20,216 22,648

Source: Chicago Board of Trade

Average Open Interest of Soybean Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

157,728 135,340 152,757 149,468 160,730 156,898 201,536 258,708 244,197 315,640

176,242 142,778 166,003 172,494 164,017 169,242 217,680 267,482 266,745 359,379

189,352 147,900 162,690 174,465 148,190 169,882 226,421 263,737 295,324 354,211

188,617 152,732 166,565 195,189 156,781 164,388 251,314 262,919 268,081 374,507

186,792 143,994 164,777 193,500 137,227 156,548 230,325 222,310 252,582 375,124

159,720 149,563 163,663 167,678 153,190 188,692 222,185 199,108 313,724 371,155

141,658 133,532 157,433 140,894 181,194 220,758 190,206 172,194 278,738 336,000

133,732 140,236 134,105 126,952 165,630 201,494 190,533 171,791 256,853 348,321

150,606 158,627 146,087 149,074 167,677 201,808 232,030 190,006 249,030 361,643

172,098 163,759 174,583 183,734 195,366 210,033 265,088 242,654 285,070 384,069

148,760 143,814 164,306 168,023 175,522 208,099 241,320 228,700 275,308 394,259

150,201 146,463 153,693 177,324 173,116 213,868 252,874 241,972 290,370 414,374

Source: Chicago Board of Trade (CBT)

252

In Contracts

Jan.

SOYBEANS

-----

Cents Per Bushel U.S. Farm Price (Jan. 1913 - Sept. 1947) No. 2 Yellow, Chicago (Oct. 1947 - Dec. 1956) No. 1 Yellow, Chicago (Jan. 1957 - Mar. 1982) No. 1 Yellow, Central Illinois (Apr. 1982 - date)

Average Cash Price of No. 1 Yellow Soybeans at Illinois Processor Year

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 1

Preliminary.

In Cents Per Bushel

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Average

632 820 703 533 485 484 469 579 639 562

656 711 684 536 470 468 430 541 729 519

686 704 727 572 464 483 441 575 763 534

717 708 699 558 460 506 438 566 772 545

737 737 679 532 473 477 437 570 823 539

730 769 680 490 500 457 440 590 872 544

726 833 662 475 513 451 464 580 975 628

791 854 649 480 529 441 471 611 992 622

808 878 649 468 542 457 492 640 958 644

778 837 640 462 510 474 519 635 890 701

795 769 642 425 474 517 575 601 809 703

816 741 556 465 463 510 567 589 641 639

739 780 664 500 490 477 479 590 822 598

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price Received by Farmers for Soybeans in the United States

In Dollars Per Bushel

Year

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

6.72 5.25 4.57 4.59 4.53 5.39 6.06 5.83 5.77 5.24

6.50 5.18 4.48 4.45 4.09 5.20 6.60 5.56 5.67 5.52

6.85 5.40 4.45 4.55 4.16 5.46 7.05 5.36 5.62 6.07

6.71 5.37 4.43 4.78 4.20 5.46 7.17 5.45 5.78 6.18

6.69 5.32 4.62 4.68 4.22 5.51 7.35 5.57 5.87 6.38

6.57 4.80 4.79 4.46 4.22 5.55 8.28 5.42 5.67 6.83

6.40 4.61 4.91 4.39 4.38 5.59 9.28 5.95 5.57

6.26 4.63 5.00 4.22 4.47 5.82 9.62 6.03 5.52

6.26 4.51 5.19 4.33 4.64 6.07 9.56 6.21 5.68

6.16 4.44 4.93 4.46 4.88 6.09 9.08 6.58 5.61

6.14 4.20 4.53 4.79 5.35 5.82 8.46 6.65 5.61

5.43 4.39 4.45 4.85 5.53 5.68 6.83 6.15 5.23

6.47 4.93 4.63 4.54 4.38 5.64 7.95 5.90 5.63 6.04

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

253

Stock Index Futures, U.S. A stock index simply represents a basket of underlying stocks. Indices can be either price-weighted or capitalization-weighted. In a price-weighted index, such as the Dow Jones Industrials Average, the price of each of the stocks are simply added up and then divided by a divisor, meaning that stocks with higher prices have a higher weighting in the index value. In a capitalization-weighted index, such as the Standard and Poor’s 500 index, the weighting of each stock corresponds to the size of the company as determined by its capitalization (i.e., the total dollar value of its stock). Stock indices cover a variety of different sectors. For example, the Dow Jones Industrials Average contains 30 blue-chip stocks that represent the industrial sector. The S&P 500 index includes 500 of the largest blue-chip US companies. The NYSE index includes all the stocks that trade at the New York Stock Exchange. The Nasdaq 100 includes the largest 100 companies that trade on the Nasdaq Exchange. The most popular US stock index futures contract is the S&P 500 at the Chicago Mercantile Exchange (CME). Prices – The S&P 500 index in 2006 extended the bull market that began in October 2002 and rallied to a new 6year high, closing +13.6% on the year. The stock market rally continued into early 2007 when the S&P 500 posted another new 6-year high of 1461.57, which represented an overall rally of +90.2% from the bear market low of 768.63 posted in October 2002. The S&P 500 index corrected downward by 6% in March 2007 but was still only moderately below the 6-year high posted in February 2007. The US stock market in 2006 extended its rally as US earnings growth remained very strong. Annual earnings growth in 2006 for the S&P 500 companies was very strong at +16.5% yr/yr, extending the string of double-digit earnings

growth to four consecutive years (2006 +16.5%, 2005 +13.7%, 2004 +20.2%, 2003 +18.4%), according to Thomson Financial. The double-digit earnings growth seen in 200306 was an extraordinary performance for earnings growth and was far in excess of the 25-year average for S&P 500 earnings growth of +8.6%. The strong earnings performance allowed US stock market valuations to remain relatively attractive despite the rally in stock prices. The S&P 500 forward price/earnings ratio (based on forward-looking earnings) remained near 16 during 2006, which was below the 3-year average of 16.6 and the 10-year average of 19.8. The US stock market was driven higher in 2006, not only by strong earnings performance, but also by a very active mergers and acquisitions market. Private equity funds, as well as public companies, were active buyers of companies in the public market, thus supporting valuation levels and reducing the supply of stock available to public investors. The US stock market took in stride the rally in crude oil prices to a record high of $78.40 in July 2006, and then benefited as crude oil prices fell back in the latter half of 2006. The stock market also saw underlying support from the US interest rate picture as the Federal Reserve in mid2006 halted its rate hike regime with the federal funds rate at 5.25%. US long-term interest rates then fell substantially in the latter half of 2006, thus keeping US interest rates at historically low levels. The stock market in March 2007 stumbled, however, and showed a downward correction of about 6% on spillover effects from a global stock market correction and on the deceleration in US earnings to the +6% growth area after four consecutive years of double-digit growth.

Dow Jones Industrial Average (30 Stocks) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

6,707.0 7,808.4 9,345.9 11,281.3 10,682.7 9,923.8 8,474.4 10,540.1 10,539.5 10,872.5

6,917.5 8,323.6 9,323.0 10,541.9 10,774.6 9,891.1 7,916.2 10,601.5 10,723.8 10,971.2

6,901.1 8,709.5 9,753.6 10,483.4 10,081.3 10,501.0 7,977.7 10,323.7 10,682.1 11,144.5

6,657.5 9,037.4 10,443.5 10,944.4 10,234.5 10,165.2 8,332.1 10,419.9 10,283.2 11,234.7

7,242.4 9,080.1 10,853.9 10,580.3 11,005.0 10,080.5 8,623.4 10,083.8 10,377.2 11,333.9

7,599.6 8,873.0 10,704.0 10,582.9 10,767.2 9,492.4 9,098.1 10,364.9 10,486.6 10,998.0

7,990.7 9,097.1 11,052.2 10,663.0 10,444.5 8,616.5 9,154.5 10,152.1 10,545.4 11,032.5

7,948.4 8,478.5 10,935.5 11,014.5 10,314.7 8,685.5 9,284.8 10,032.8 10,554.3 11,257.4

7,866.6 7,909.8 10,714.0 10,967.9 9,042.6 8,160.2 9,492.5 10,204.6 10,532.5 11,533.6

7,875.8 8,164.3 10,396.9 10,441.0 9,220.8 8,048.1 9,683.6 10,001.6 10,324.3 11,963.1

7,677.4 9,005.8 10,809.8 10,666.1 9,721.8 8,625.7 9,762.2 10,411.8 10,695.3 12,185.2

7,909.8 9,018.7 11,246.4 10,652.4 9,979.9 8,526.7 10,124.7 10,673.4 10,827.8 12,377.6

7,441.1 8,625.5 10,464.9 10,734.9 10,189.1 9,226.4 8,993.7 10,317.5 10,547.7 11,408.7

Source: New York Stock Exchange (NYSE)

Dow Jones Transportation Average (20 Stocks) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

254

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

2,295.0 3,275.8 3,172.0 2,812.2 3,029.9 2,735.3 2,297.3 3,021.0 3,587.0 4,224.5

2,341.4 3,456.8 3,188.3 2,483.4 3,010.2 2,719.1 2,102.5 2,889.4 3,614.5 4,362.5

2,427.8 3,521.5 3,296.4 2,534.5 2,792.5 2,942.9 2,094.6 2,838.3 3,779.4 4,519.5

2,464.0 3,586.5 3,477.7 2,823.9 2,776.6 2,776.0 2,278.7 2,941.1 3,527.8 4,679.6

2,635.1 3,401.9 3,628.2 2,813.2 2,908.2 2,734.8 2,429.9 2,877.1 3,548.8 4,761.4

2,711.4 3,373.2 3,396.1 2,717.2 2,770.4 2,702.2 2,459.6 3,069.0 3,542.1 4,663.1

2,858.0 3,459.3 3,423.7 2,822.3 2,887.3 2,432.1 2,554.5 3,099.8 3,663.1 4,636.1

2,925.8 3,021.1 3,207.0 2,835.6 2,852.1 2,318.5 2,617.3 3,065.8 3,726.1 4,291.1

3,086.0 2,763.0 3,006.2 2,641.5 2,344.8 2,216.0 2,744.7 3,205.1 3,637.0 4,363.3

3,239.9 2,647.8 2,928.7 2,491.0 2,217.3 2,216.6 2,841.3 3,372.6 3,673.1 4,654.7

3,155.7 2,953.4 2,988.7 2,792.3 2,404.6 2,321.6 2,920.0 3,589.4 4,051.7 4,761.6

3,233.5 3,027.6 2,902.1 2,822.9 2,603.0 2,331.7 2,969.3 3,750.0 4,152.1 4,660.0

2,781.1 3,207.3 3,217.9 2,715.8 2,716.4 2,537.2 2,525.8 3,143.2 3,708.6 4,548.1

Source: New York Stock Exchange (NYSE)

STOCK INDEX FUTURES, U.S.

Dow Jones Industrial Average (30 Stocks) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

6,707.0 7,808.4 9,345.9 11,281.3 10,682.7 9,923.8 8,474.4 10,540.1 10,539.5 10,872.5

6,917.5 8,323.6 9,323.0 10,541.9 10,774.6 9,891.1 7,916.2 10,601.5 10,723.8 10,971.2

6,901.1 8,709.5 9,753.6 10,483.4 10,081.3 10,501.0 7,977.7 10,323.7 10,682.1 11,144.5

6,657.5 9,037.4 10,443.5 10,944.4 10,234.5 10,165.2 8,332.1 10,419.9 10,283.2 11,234.7

7,242.4 9,080.1 10,853.9 10,580.3 11,005.0 10,080.5 8,623.4 10,083.8 10,377.2 11,333.9

7,599.6 8,873.0 10,704.0 10,582.9 10,767.2 9,492.4 9,098.1 10,364.9 10,486.6 10,998.0

7,990.7 9,097.1 11,052.2 10,663.0 10,444.5 8,616.5 9,154.5 10,152.1 10,545.4 11,032.5

7,948.4 8,478.5 10,935.5 11,014.5 10,314.7 8,685.5 9,284.8 10,032.8 10,554.3 11,257.4

7,866.6 7,909.8 10,714.0 10,967.9 9,042.6 8,160.2 9,492.5 10,204.6 10,532.5 11,533.6

7,875.8 8,164.3 10,396.9 10,441.0 9,220.8 8,048.1 9,683.6 10,001.6 10,324.3 11,963.1

7,677.4 9,005.8 10,809.8 10,666.1 9,721.8 8,625.7 9,762.2 10,411.8 10,695.3 12,185.2

7,909.8 9,018.7 11,246.4 10,652.4 9,979.9 8,526.7 10,124.7 10,673.4 10,827.8 12,377.6

7,441.1 8,625.5 10,464.9 10,734.9 10,189.1 9,226.4 8,993.7 10,317.5 10,547.7 11,408.7

Source: New York Stock Exchange (NYSE)

Standard & Poor's 500 Composite Price Index Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Average.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

766.1 963.4 1,248.7 1,425.6 1,335.6 1,140.2 895.8 1,132.5 1,181.4 1,278.7

798.4 1,023.7 1,246.6 1,388.9 1,305.8 1,100.7 837.6 1,143.4 1,199.6 1,276.7

792.2 1,076.8 1,281.7 1,442.2 1,185.9 1,153.8 846.6 1,124.0 1,194.9 1,293.7

763.9 1,112.2 1,334.8 1,461.4 1,189.8 1,112.0 890.0 1,133.1 1,164.4 1,302.2

833.1 1,108.4 1,332.1 1,418.5 1,270.4 1,079.3 936.0 1,102.8 1,178.3 1,290.0

876.3 1,108.4 1,322.6 1,462.0 1,238.8 1,014.1 988.0 1,132.8 1,202.3 1,253.1

925.3 1,156.6 1,381.0 1,473.0 1,204.5 903.6 992.5 1,105.9 1,222.2 1,260.2

927.7 1,074.6 1,327.5 1,485.5 1,178.5 912.6 989.5 1,088.9 1,224.3 1,287.2

937.0 1,020.7 1,318.2 1,468.0 1,047.6 867.8 1,019.4 1,117.7 1,225.9 1,317.8

951.2 1,032.5 1,300.0 1,390.1 1,076.6 854.6 1,038.7 1,118.1 1,192.0 1,363.3

938.9 1,144.5 1,391.0 1,375.0 1,129.7 909.9 1,049.9 1,168.9 1,237.3 1,388.6

962.4 1,190.0 1,428.7 1,330.9 1,144.9 899.2 1,080.6 1,199.2 1,262.1 1,416.4

872.7 1,084.3 1,326.1 1,426.8 1,192.3 995.6 963.7 1,130.6 1,207.1 1,310.7

Source: I ndex and Option Market (I OM), division of the Chicago Mercantile Exchange (CME)

255

STOCK INDEX FUTURES, U.S. Composite Index of Leading Indicators Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

(1992 = 100)

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

102.8 104.8 104.5 110.7 108.9 111.0 111.0 114.7 135.8 139.1

103.3 105.2 104.7 110.3 109.0 111.0 110.6 114.8 136.3 138.4

103.4 105.4 104.8 110.5 108.7 111.0 110.4 115.7 135.4 138.9

103.3 105.4 104.7 110.5 108.6 110.8 110.5 115.8 135.5 138.6

103.6 105.4 105.0 110.5 109.3 111.4 111.6 116.3 135.6 137.9

103.6 105.2 105.3 110.4 109.5 111.2 112.0 134.5 137.1 138.2

103.9 105.6 105.6 109.8 109.8 111.0 112.8 135.0 136.9 137.8

104.0 105.6 105.5 109.9 109.7 110.9 113.2 135.1 137.0 137.4

104.3 105.6 105.4 109.9 109.1 110.4 113.3 135.2 135.8 138.0

104.4 105.7 105.5 109.5 109.2 110.4 113.9 135.2 136.9 138.1

104.7 106.2 105.7 109.2 110.1 111.0 114.2 136.0 138.2 138.2

104.6 106.4 110.3 108.8 110.5 111.1 114.3 136.1 138.5

103.8 105.5 105.6 110.0 109.4 110.9 112.3 127.0 136.6 138.2

Preliminary.

Source: The Conference Board (TCB) Copyrighted.

Consumer Confidence, The Conference Board Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

118.7 128.3 128.9 144.7 115.7 97.8 78.8 97.7 105.1 106.8

118.9 137.4 133.1 140.8 109.3 95.0 64.8 88.5 104.4 102.7

118.5 133.8 134.0 137.1 116.9 110.7 61.4 88.5 103.0 107.5

118.5 137.2 135.5 137.7 109.9 108.5 81.0 93.0 97.5 109.8

127.9 136.3 137.7 144.7 116.1 110.3 83.6 93.1 103.1 104.7

129.9 138.2 139.0 139.2 118.9 106.3 83.5 102.8 106.2 105.4

126.3 137.2 136.2 143.0 116.3 97.4 77.0 105.7 103.6 107.0

127.6 133.1 136.0 140.8 114.0 94.5 81.7 98.7 105.5 100.2

130.2 126.4 134.2 142.5 97.0 93.7 77.0 96.7 87.5 105.9

123.4 119.3 130.5 135.8 85.3 79.6 81.7 92.9 85.2 105.1

128.1 126.4 137.0 132.6 84.9 84.9 92.5 92.6 98.3 105.3

136.2 126.7 141.7 128.6 94.6 80.7 94.8 102.7 103.8

125.4 131.7 135.3 139.0 106.6 96.6 79.8 96.1 100.3 105.5

Preliminary.

Source: The Conference Board (TCB) Copyrighted.

Capacity Utiliz ation Rates (Total Industry) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

In Percent

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

83.3 84.2 82.0 82.5 79.2 74.3 75.5 77.2 79.6 81.1

83.9 83.7 82.0 82.5 78.4 74.1 75.6 77.8 80.0 81.1

84.1 83.3 81.8 82.5 77.9 74.7 75.4 77.6 79.9 81.4

83.6 83.1 81.7 82.7 77.6 74.9 74.9 78.1 79.9 81.9

83.6 83.1 82.0 82.7 76.9 75.2 74.9 78.8 80.2 81.7

83.5 82.2 81.7 82.5 76.3 75.8 75.1 78.4 80.6 82.3

83.5 81.5 81.9 82.0 75.9 75.6 75.4 78.8 80.5 82.4

84.0 82.8 82.0 81.4 75.4 75.6 75.5 79.0 80.7 82.4

84.3 82.3 81.3 81.5 75.0 75.6 76.0 78.7 79.2 82.0

84.3 82.5 82.1 80.9 74.5 75.3 76.1 79.2 80.0 81.7

84.6 82.1 82.2 80.7 74.0 75.5 76.8 79.3 80.7 81.5

84.4 81.9 82.6 80.1 73.9 75.2 76.9 79.7 81.3 81.8

83.9 82.7 81.9 81.8 76.3 75.2 75.7 78.6 80.2 81.8

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

Manufacturers New Orders, Durable Goods Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

(1985 = 100)

Jan.

In Billions of Constant Dollars

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

171.73 184.33 211.18 225.14 197.36 190.08 194.21 201.03 215.03 201.93

174.80 183.87 203.31 221.12 205.41 194.99 192.26 208.36 214.09 208.63

170.02 184.17 209.39 230.44 209.56 191.78 194.57 219.67 210.62 220.58

173.13 187.35 204.68 217.17 198.11 192.65 190.00 212.63 213.77 209.61

177.05 181.58 206.78 232.76 201.86 193.48 189.13 209.43 216.61 209.37

176.93 182.22 207.27 254.20 196.99 184.76 194.23 211.13 219.48 215.00

175.82 186.22 216.02 220.74 196.53 200.59 197.39 214.32 206.67 208.03

181.08 190.39 218.02 227.27 194.41 198.62 197.18 212.78 216.05 345.12

181.15 193.18 214.83 232.41 174.92 189.66 201.29 214.36 212.28 346.15

181.33 189.33 212.77 217.30 199.09 192.67 208.82 211.53 212.43 207.48

189.71 190.21 215.34 221.14 187.14 190.66 203.42 215.33 217.31 210.37

181.44 197.11 229.47 220.90 188.34 190.01 206.56 218.24 219.01

177.03 194.42 209.76 220.55 195.44 192.80 197.41 194.74 206.56 234.75

Preliminary.

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

Corporate Profits After Tax -- Quarterly

In Billions of Dollars

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Average

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

1995 1996 1997 1998 1999 2000

446.4 504.0 599.1 562.9 593.2 551.8

467.4 518.4 619.4 547.6 592.9 560.5

494.2 526.2 641.5 554.2 582.1 551.5

504.1 544.3 629.6 548.6 602.5 547.2

478.0 523.2 622.4 553.3 592.7 552.8

2001 2002 2003 2004 2005 20061

556.2 654.5 727.6 889.4 919.0 1,112.1

565.2 675.8 783.3 887.3 950.1 1,115.7

516.9 698.5 822.2 858.2 887.5 1,162.7

614.4 746.0 865.6 926.4 968.9

1

Preliminary.

256

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

Average

563.2 693.7 799.7 890.3 931.4 1,130.2

STOCK INDEX FUTURES, U.S. Change in Manufacturing and Trade Inventories Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Billions of Dollars

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

107.0 27.8 10.4 69.5 1.7 -0.9 -118.4 16.6 130.5 104.8

103.4 86.1 36.8 59.5 -40.5 -31.5 -60.3 108.5 84.6 13.5

76.3 85.7 66.7 17.5 -73.0 -47.8 -18.3 107.0 60.3 -120.2

56.2 38.5 31.2 38.8 -36.6 -20.1 0.1 101.2 40.0 104.9

25.2 5.5 44.4 82.8 -38.9 33.6 111.8 88.6 218.4 173.9

76.8 11.4 61.6 129.5 -105.1 27.8 89.5 153.5 -5.7 138.9

20.9 -91.6 67.2 8.7 -68.2 78.5 24.1 139.9 -66.0 104.8

19.1 47.9 42.5 87.4 -34.2 3.5 -39.4 373.6 57.9 104.0

91.5 67.6 58.0 10.1 -75.3 -106.8 78.7 -12.2 272.9 49.1

55.2 36.3 50.4 77.7 -200.6 18.5 54.4 54.3 81.3 26.8

43.1 51.0 121.1 26.4 -139.2 33.0 57.5 166.0 78.8 59.1

28.2

47.1 34.0 50.6 63.7 -65.2 17.6 17.6 110.5 54.5 69.1

Preliminary.

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

Productivity: Index of Output per Hour, All Persons, Nonfarm Business -- Quarterly Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Average

1995 1996 1997 1998 1999 2000

101.7 103.9 105.1 108.5 111.6 113.9

101.9 104.9 106.3 108.8 111.7 115.9

102.0 105.2 107.2 110.1 112.5 115.6

102.9 105.4 107.7 110.6 114.5 116.7

102.1 104.9 106.6 109.5 112.6 115.5

1

Preliminary.

70.9 5.8 -78.7 -86.0 45.7 29.5 305.6

(1992 = 100)

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Average

2001 2002 2003 2004 2005 20061

116.7 122.7 125.2 130.6 133.6 136.3

118.3 122.9 126.9 132.1 134.1 136.7

118.8 124.2 130.1 132.2 135.4 136.6

120.6 124.1 129.9 132.3 135.2 137.1

118.6 123.5 128.0 131.8 134.6 136.7

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

Civilian Unemployment Rate Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

5.4 4.6 4.3 4.0 4.2 5.6 5.7 5.6 5.2 4.7

5.3 4.6 4.4 4.1 4.2 5.5 5.8 5.6 5.4 4.8

5.2 4.7 4.2 4.1 4.3 5.7 5.8 5.7 5.1 4.7

4.9 4.3 4.3 3.9 4.5 6.0 6.0 5.6 5.1 4.7

4.8 4.4 4.2 4.1 4.4 5.8 6.1 5.6 5.1 4.6

5.0 4.5 4.3 4.0 4.5 5.9 6.4 5.6 5.0 4.6

4.9 4.5 4.3 4.0 4.5 5.9 6.2 5.5 5.0 4.8

4.9 4.5 4.2 4.1 4.9 5.7 6.1 5.4 4.9 4.7

4.9 4.5 4.2 3.9 4.9 5.6 6.1 5.4 5.1 4.6

4.8 4.5 4.1 3.9 5.4 5.7 6.0 5.5 4.9 4.4

4.6 4.4 4.1 4.0 5.7 6.0 5.9 5.4 5.0 4.5

4.7 4.3 4.1 4.0 5.8 6.0 5.7 5.4 4.9 4.5

5.0 4.5 4.2 4.0 4.8 5.8 6.0 5.5 5.1 4.6

1

Preliminary.

Source: Bureau of Economic Analysis, U.S. Department of Commerce (BEA)

257

STOCK INDEX FUTURES, U.S.

258

STOCK INDEX FUTURES, U.S. Volume of Trading of S&P 500 Stock Index Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

3,371 2,270 1,994 1,911 1,552 1,459 1,443 945 764 711

2,857 1,878 2,145 1,917 1,631 1,677 1,343 839 874 773

4,163 3,018 3,018 2,956 2,781 2,251 2,900 2,487 2,330 2,199

3,608 2,237 1,960 1,651 1,624 1,473 1,257 880 916 607

3,203 2,253 2,007 1,685 1,653 1,585 1,416 938 892 1,122

3,955 3,524 2,768 2,226 2,154 2,721 2,782 2,136 2,090 2,322

2,617 2,139 1,756 1,079 1,320 2,206 1,223 837 618 726

2,848 3,019 2,200 1,358 1,598 1,615 1,079 965 979 891

3,556 3,802 3,017 2,149 2,571 2,943 2,412 2,076 2,090 1,883

3,136 2,598 2,150 1,681 1,798 1,931 1,118 866 902 686

1,994 1,831 1,675 1,636 1,692 1,374 921 1,105 880 936

2,982 2,835 2,322 2,212 2,124 2,465 2,281 2,101 2,041 1,989

38,290 31,404 27,013 22,461 22,498 23,700 20,175 16,176 15,377 14,845

Source: I ndex and Option Market (I OM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of S&P 500 Stock Index Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

393,086 394,410 399,093 369,295 488,284 495,352 596,064 612,911 678,739 655,483

396,528 408,851 406,516 374,365 495,621 519,023 619,738 614,843 686,413 668,113

417,542 417,721 410,164 400,089 517,666 542,358 658,749 624,209 719,141 682,218

377,100 365,746 381,402 379,651 498,594 513,048 622,917 595,593 681,149 653,044

392,034 371,732 391,035 383,677 490,148 542,839 643,030 587,717 697,818 664,790

417,006 412,739 400,503 409,448 505,063 592,888 691,003 604,154 700,618 670,449

372,274 370,410 372,455 380,118 485,839 594,727 611,564 586,760 656,266 625,142

392,812 385,820 385,809 391,867 501,281 621,558 611,578 597,581 653,430 634,579

423,449 434,838 408,176 416,600 556,737 644,806 631,509 632,050 669,849 634,817

391,922 405,395 394,316 413,912 529,730 607,848 582,111 636,566 642,704 609,410

402,044 421,928 408,751 447,245 550,201 631,224 589,392 686,531 657,097 640,481

417,717 435,907 416,425 498,049 551,175 647,022 633,997 714,420 681,868 679,221

Source: I ndex and Option Market (I OM), division of the Chicago Mercantile Exchange (CME)

Volume of Trading of S&P 400 Midcap Stock Index Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

13,698 13,622 18,752 16,918 21,527 22,322 18,827 13,647 6,486 5,668

14,968 12,896 20,938 15,298 19,884 22,814 18,392 10,361 5,736 3,739

33,860 42,781 43,395 45,942 58,286 43,819 44,454 46,214 36,685 34,668

16,993 15,623 27,664 23,892 18,061 23,019 15,841 13,921 5,130 3,671

15,463 17,023 16,574 19,863 19,258 22,484 15,194 13,078 7,235 4,619

33,287 38,656 42,709 42,514 50,331 51,775 40,603 45,940 39,025 31,924

12,162 15,345 17,790 12,140 22,029 30,607 15,153 12,602 4,603 2,656

14,923 19,967 18,188 12,515 23,805 23,075 12,082 13,582 7,699 3,311

39,164 44,913 39,723 42,658 50,706 52,375 43,112 36,701 42,503 23,289

18,063 23,591 18,341 21,701 23,741 25,593 15,253 7,923 5,736 3,718

10,776 16,713 19,974 25,334 19,591 21,262 13,109 9,824 4,988 6,409

43,242 48,870 42,073 59,265 51,641 48,105 50,797 36,971 39,232 29,596

266,599 310,000 326,121 338,040 378,860 387,250 302,817 260,764 205,058 153,268

Source: I ndex and Option Market (I OM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of S&P 400 Midcap Stock Index Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

11,215 12,688 16,191 12,810 15,246 13,691 13,793 15,911 13,078 12,168

11,825 13,319 16,309 13,119 15,461 14,109 13,498 15,988 13,313 11,940

11,258 14,363 14,573 13,965 17,235 14,954 14,530 16,554 14,861 12,409

9,721 14,130 12,154 12,495 16,953 14,340 13,120 15,870 11,812 10,999

10,807 13,352 12,705 13,355 15,623 16,402 13,353 15,819 11,832 10,892

10,877 13,940 14,422 14,040 16,606 16,611 13,986 17,148 13,811 10,447

11,292 12,964 14,263 12,957 16,334 15,121 13,123 13,939 12,380 9,307

12,346 13,589 13,496 13,162 16,132 16,213 13,029 13,600 12,420 9,687

13,505 14,893 13,182 15,026 16,718 17,006 13,726 14,213 14,477 9,194

11,595 16,645 12,699 16,143 15,109 14,695 14,014 13,339 12,890 8,442

11,874 16,768 13,933 16,510 15,307 15,394 15,465 14,046 12,955 9,884

13,329 17,569 14,902 17,479 15,337 16,432 17,446 14,755 13,822 9,794

Source: I ndex and Option Market (I OM), division of the Chicago Mercantile Exchange (CME)

259

STOCK INDEX FUTURES, U.S. Volume of Trading of NASDAQ 100 Index Futures in Chicago Year

2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

349,813 422,811 380,076 360,307 271,404 254,437 186,649

366,408 416,445 367,561 301,454 268,590 198,956 162,841

575,942 650,488 436,495 487,916 591,556 375,435 295,163

503,064 498,026 378,294 301,395 321,242 217,304 113,885

460,085 487,334 443,579 330,640 297,320 170,882 169,399

432,062 542,305 529,496 519,597 427,805 281,483 305,557

296,944 369,731 454,630 350,514 286,693 125,500 132,661

310,549 369,845 334,242 251,058 245,050 159,789 149,906

445,334 474,133 466,898 488,363 433,251 289,113 256,605

490,863 516,469 367,750 322,898 286,048 200,952 136,433

400,412 391,042 315,925 259,960 226,853 155,141 140,407

464,454 434,690 428,341 447,119 356,171 253,066 220,364

5,095,930 5,573,319 4,903,287 4,421,221 4,011,983 2,682,058 2,269,870

Source: I ndex and Option Market (I OM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of NASDAQ 100 Index Futures in Chicago Year

2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

27,242 46,582 49,992 71,219 73,805 72,299 61,254

34,555 49,495 52,883 79,905 74,892 81,327 62,994

37,795 59,916 52,617 87,252 89,874 78,387 69,322

36,512 56,328 51,157 71,636 81,220 56,668 60,603

37,578 49,337 65,219 77,717 80,905 57,116 65,224

35,314 54,394 73,151 88,914 83,282 56,836 65,908

29,974 50,854 60,625 80,002 69,818 49,357 54,289

32,922 55,234 67,760 83,940 71,711 53,270 57,585

34,754 61,665 84,317 91,685 84,355 61,369 54,235

35,559 51,977 72,229 75,191 74,161 60,918 53,832

44,022 61,196 77,451 85,651 83,675 59,754 68,347

48,757 67,769 76,660 86,480 87,172 63,712 61,397

Source: I ndex and Option Market (I OM), division of the Chicago Mercantile Exchange (CME)

Volume of Trading of Dow Jones Industrials Index Futures in Chicago Year

2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

322,046 275,814 409,009 452,579 224,713 149,353 119,593

340,377 310,088 472,893 426,198 207,423 107,824 111,738

472,179 594,326 538,804 559,372 362,668 226,113 220,880

321,026 411,767 467,571 428,972 203,745 157,010 106,325

284,005 377,620 456,210 410,967 208,229 124,999 152,340

270,374 389,919 616,754 473,432 246,564 192,165 272,494

215,234 320,335 811,518 368,277 183,469 96,885 108,053

211,612 410,927 539,507 286,508 149,931 121,793 97,964

277,620 573,479 639,154 367,845 230,829 188,541 237,988

319,636 520,885 699,005 218,394 169,627 133,636 121,736

267,051 375,793 427,235 157,726 152,412 108,737 111,993

268,010 329,898 407,665 266,032 237,528 180,349 258,743

3,569,170 4,890,851 6,485,325 4,416,302 2,577,138 1,787,405 1,919,847

Source: Chicago Board of Trade (CBT)

Average Open Interest of Dow Jones Industrials Index Futures in Chicago Year

2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

13,713 21,830 23,862 27,032 34,656 47,754 39,641

16,331 23,423 35,588 30,429 44,306 48,665 39,943

20,443 28,340 37,582 34,371 50,172 48,423 43,595

18,157 32,497 28,714 31,160 44,494 40,068 43,351

19,253 33,767 32,810 34,936 45,304 41,367 45,756

17,394 29,357 34,482 36,352 46,641 36,909 53,833

14,367 26,792 32,412 36,773 42,790 29,042 56,451

15,748 33,015 32,272 43,974 42,042 30,921 58,799

14,840 35,451 34,665 41,747 45,940 37,232 60,497

15,087 31,997 31,923 34,066 41,250 36,378 61,996

19,113 30,598 34,045 37,835 43,662 37,588 63,061

20,966 27,018 31,892 39,727 53,469 43,819 69,927

Source: Chicago Board of Trade (CBT)

Volume of Trading of E-mini NASDAQ 100 Index Futures in Chicago Year

2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

304 1,845 3,719 5,200 6,157 7,174 6,628

382 1,942 3,649 4,620 5,640 6,149 5,803

604 2,603 3,652 5,749 8,011 7,336 7,479

628 2,873 4,227 5,132 6,387 7,256 5,459

745 2,908 4,625 5,075 6,749 5,735 7,386

762 2,969 4,713 6,323 5,646 6,233 8,258

756 2,529 5,789 6,369 7,139 4,895 6,741

883 2,568 4,225 4,816 6,123 5,171 6,315

1,508 2,387 4,337 7,095 6,476 5,624 7,074

1,589 3,935 6,252 6,601 7,322 6,583 6,769

1,446 3,151 4,812 5,254 5,844 5,288 6,333

1,512 2,595 4,490 5,655 5,675 5,008 5,696

11,118 32,304 54,491 67,889 77,169 72,453 79,940

Source: I ndex and Option Market (I OM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of E-mini NASDAQ 100 Index Futures in Chicago Year

2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

8,582 45,370 78,070 169,160 205,078 339,077 351,240

9,250 65,061 94,150 227,905 251,011 419,715 361,807

11,117 79,962 98,159 258,023 251,486 382,805 345,533

15,625 78,094 100,849 196,739 257,573 310,664 309,746

23,465 90,822 153,348 240,759 304,034 331,447 381,178

26,095 95,236 176,394 257,390 261,067 290,759 427,387

23,863 90,803 130,337 262,564 213,080 270,134 386,930

31,506 131,259 171,043 316,032 256,749 325,508 421,179

30,956 132,349 162,133 287,936 299,794 307,007 437,975

33,123 75,686 110,952 214,659 279,170 365,277 457,275

58,709 115,350 154,104 279,379 374,750 382,667 498,584

54,420 124,023 155,987 244,333 384,492 371,388 433,456

Source: Chicago Board of Trade (CBT)

260

In Contracts

Jan.

STOCK INDEX FUTURES, U.S. Volume of Trading of E-mini S&P 500 Index Futures in Chicago Year

2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,306 2,226 4,933 13,584 13,087 15,447 18,716

1,388 2,231 5,337 12,631 11,355 12,561 16,095

1,489 3,191 5,609 15,820 18,033 18,478 21,357

1,462 3,067 7,165 13,520 14,993 20,182 18,174

1,676 2,931 7,564 12,846 15,889 16,591 24,750

1,550 2,905 9,772 15,040 12,428 17,371 30,359

1,403 2,925 14,277 14,854 14,361 14,400 21,629

1,439 3,478 11,200 10,860 12,921 17,759 19,107

1,683 3,601 11,765 15,354 12,755 18,786 21,986

2,109 5,255 17,175 14,558 14,636 22,929 22,377

1,843 4,021 11,054 11,002 13,705 16,088 23,616

1,673 3,289 9,892 11,108 13,039 16,503 19,760

19,021 39,119 115,742 161,177 167,203 207,096 257,927

Source: I ndex and Option Market (I OM), division of the Chicago Mercantile Exchange (CME)

Average Open Interest of E-mini S&P 500 Index Futures in Chicago Year

2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

Mar.

Apr.

May

June

July

In Contracts Aug.

Sept.

Oct.

Nov.

D e c.

17,180 25,282 29,645 28,738 38,257 39,918 33,696 45,619 42,442 49,468 66,143 63,052 55,514 68,516 79,934 91,866 110,788 91,638 97,093 126,197 152,253 134,662 224,754 178,681 86,278 120,099 139,965 156,392 225,593 246,288 291,654 349,037 319,341 312,885 418,964 385,220 265,170 356,616 490,037 567,591 741,790 718,511 399,502 492,470 513,398 460,938 467,668 525,310 510,518 576,446 643,118 545,385 579,876 645,794 603,841 697,956 693,529 708,359 979,884 969,343 827,306 901,656 1,013,623 943,262 1,014,855 986,841 932,564 1,060,846 1,110,079 1,042,151 1,166,371 1,211,347 1,149,157 1,194,630 1,334,134 1,211,254 1,402,451 1,525,312 1,371,240 1,512,306 1,582,373 1,549,539 1,754,351 1,810,914

Source: I ndex and Option Market (I OM), division of the Chicago Mercantile Exchange (CME)

Volume of Trading of NYSE Composite Stock Index Futures1 in New York Year

2000 2001 2002 2003 2004 2005 2006 1

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

15,324 5,490 20,273 3,917 3,427 610 35

16,603 4,307 21,056 5,622 1,127 2,469 26

21,235 19,300 26,949 9,210 2,532 5,022 746

14,394 6,594 27,801 7,718 159 3,272 10

10,637 4,091 24,166 2,794 56 50 50

11,210 10,353 22,325 4,366 1,705 900 751

4,307 23,855 21,873 628 76 44 15

5,574 32,182 14,561 553 412 22 6

5,085 23,399 13,193 1,940 1,766 802 740

6,145 22,276 10,821 408 46 73 0

5,170 19,231 5,897 726 915 31 4

9,974 34,661 7,564 3,282 2,457 752 830

125,658 205,739 216,479 41,164 14,678 14,047 3,213

Data thru Feb 2003 are Old I ndex ($500), Mar 2003 thru Sep 2003 are Old ($500) and New I ndex ($50).

Source: New York Futures Exchange (NYFE)

Average Open Interest of NYSE Composite Stock Index Futures1 in New York Year

2000 2001 2002 2003 2004 2005 2006 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

3,653 2,387 4,341 1,255 1,180 1,108 302

3,715 2,648 4,215 1,496 1,230 668 299

3,747 3,510 5,147 1,898 999 711 300

3,285 3,694 4,141 1,670 733 659 299

2,533 2,929 3,605 1,391 758 340 301

2,597 2,408 3,178 1,294 734 344 315

2,452 5,271 5,157 936 696 300 314

2,793 5,802 5,772 1,009 717 296 311

2,463 5,451 3,649 1,106 703 313 298

1,690 6,448 1,567 533 656 298 280

1,943 6,884 2,209 604 837 300 282

2,406 6,617 2,065 752 739 309 280

Data thru Feb 2003 are Old I ndex ($500), Mar 2003 thru Sep 2003 are Old ($500) and New I ndex ($50).

Volume of Trading of Mini-Value Line Stock Index Futures in Kansas City Year

2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

Source: New York Futures Exchange (NYFE)

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,397 1,248 1,513 376 130 84 1,155

1,097 1,470 1,237 181 134 68 1,686

1,468 2,441 1,598 721 159 45 3,716

1,054 1,650 1,283 264 175 6 1,895

1,280 902 1,794 90 63 247 76

811 1,325 1,511 88 215 584 15

698 1,183 1,878 46 77 437 0

642 1,071 1,113 153 33 320 0

1,003 1,982 974 80 126 408 0

1,328 1,591 1,472 94 76 532 0

1,526 1,104 1,467 94 67 2,109 0

1,460 1,387 1,530 204 174 2,266 0

13,764 17,354 17,370 2,391 1,429 7,106 8,543

Source: Kansas City Board of Trade (KCBT)

Average Open Interest of Mini-Value Line Stock Index Futures in Kansas City

In Contracts

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

2000 2001 2002 2003 2004 2005 2006

273 233 299 376 47 32 175

284 333 348 328 64 33 231

246 377 367 169 49 18 139

135 233 372 89 48 10 100

155 275 359 45 47 17 81

148 285 229 33 56 49 38

155 283 142 26 61 71 3

216 268 161 33 56 59 3

179 222 100 48 40 68 3

182 125 127 36 15 104 0

181 249 300 40 22 166 0

185 368 417 46 32 185 0

Source: Kansas City Board of Trade (KCBT)

261

Stock Index Futures, Worldwide World stocks – World stock markets in 2006 put in a fourth consecutive year of strong gains following the 200002 bear market. Many world stock market indexes in 2006 rallied to new record highs. The MSCI World Index, a benchmark for large companies based in 23 developed countries, rallied by +20.7% in 2006, staging the fourth consecutive year of double-digit percentage gains (2003 +33.8%, 2004 +15.2%, 2005 +10.0%, 2006 +20.7%). The MSCI World Index showed a fairly steady rally all during 2006. The main bullish factor was strong earnings growth driven by continued strong global economic growth. World GDP growth was very strong at +5.1% in 2006, according to the IMF, maintaining the growth levels of +4.9% seen in 2005 and +5.3% in 2004. The US economy slowed to the low-2% area in the latter half of 2006, but faster GDP growth in Japan and Europe offset slower US growth. The Chinese economy continued to be a key driver of global economic growth, putting in another year of growth near 10%. That helped drive the Chinese stock market sharply higher by +130%. India was also a major contributor to the global economy with 8% growth and India’s stock market rallied by +47%. Crude oil prices were a negative factor for the global stock markets in the first half of 2006 as crude oil prices surged to a record high of $78.40 in July 2006. However, even high crude oil prices were not enough to derail the global economic expansion and crude oil prices then fell back in the latter half of 2006. G7 central banks generally raised short-term interest rates in 2006 to address rising inflation pressures and to lift interest rates back to more normalized levels. However, global long-term interest rates remained generally low in 2006 as bond investors were satisfied with central bank efforts to keep inflation under control. Small-Capitalization Stocks – World small-cap stocks showed a double-digit rally in 2006 but trailed largecap stocks for the first time in four years. The MSCI World Small-Cap Index, which tracks companies with market caps between $200 million and $1.5 billion, rallied +15.8% in 2006, putting in its fourth consecutive double-digit annual gain (2003 +55.5%, 2004 +22.6%, 2005 +14.2%, 2006 +15.8%). However, MSCI World Small-Cap Index in 2006 lagged the large-cap MSCI World Index gain of +20.7% points by 4.9 percentage points. That broke the string of 3 years of out-performance by small-cap stocks. World Industry Groups – The Morgan Stanley Industry Sectors in 2006 performed as follows in terms of ranking: Utilities +31.5%, Telecom +27.8%, Materials +26.2%, Financials +20.9%, Consumer Discretionary +19.35, Consumer Staples +18.0%, Industrials +16.8%, Energy +15.8%, Health Care +9.0%, and Info Technology +8.6%. The Energy sector lagged in 2006 and fell to the number 8 position after taking the number 1 position in stock market performance in 2004 and 2005. Oil stocks were hurt by the decline in crude oil prices in the latter half of 2006. Emerging markets – Emerging stock markets did very well again in 2006 as the bull market encouraged investors to reach for riskier and potentially more rewarding stocks. The stronger world economy put the emerging countries on

262

a more solid footing, particularly emerging countries that export oil or commodities, or that produce cheap-labor products that are becoming more attractive in the global marketplace as trade barriers fall. The MSCI Emerging Markets Free Index, which tracks companies based in 26 emerging countries, rallied +29.2%, beating the MSCI World Index gain of +20.7% by 8.5 percentage points. G7 – All of the G7 stock markets saw double-digit gains except for Japan. Of the G7 countries, the ranked stock market gains are as follows: German DAX index +22.0%, France CAC40 +17.5%, Italy MIB +16.0%, Canada Toronto Composite +14.5%, US S&P 500 +13.6%, UK FTSE 100 +10.7%, and the Japan Nikkei 225 +6.9%. North America – In North America, Mexico’s stock market beat both the US and Canadian stock markets for the third straight year. The Mexican Bolsa index closed 2006 up +48.6%, beating the S&P 500 gain in the US of +13.6% and the Toronto Exchange Composite index gain of +14.5%. Latin America – Latin America stock markets generally closed sharply higher again in 2006: Peru’s Lima General Index +168.3%, Venezuela’s Stock Market Index +156.1%, Costa Rica’s Stock Market Index +77.1%, Chile’s Stock Market Select Index +37.1%, Argentina’s Merval Index +35.5%, Brazil’s Bovespa Index +32.9%, Ecuador’s Guayaqui Bolsa Index +29.7%, Columbia’s General Index +17.3%, and Jamaica’s Stock Exchange Index –3.7%. Europe – European stocks in 2006 put in another strong year with double-digit percentage gains. The Dow Jones Stoxx 50 index closed +10.7% in 2006, after gains of +20.7% in 2005, +4.3% in 2004 and +10.5% in 2003. European stocks were again helped by the European Central Bank’s accommodative monetary policy and the improving Eurozone economy. The five big European powers all saw double-digit gains: Spain +31.8%, Germany +22.0%, France +17.5%, Italy +16.0%, UK +10.7%. Asia – Asia saw strong stock market gains in 2006 for the fourth consecutive year, as Asia continued to be boosted by torrid economic demand from China. The Morgan Stanley Far East Index showed a gain of +8.9% in 2006, adding to the gains of +24.2% seen in 2005, +16.7% in 2004, and +36.3% in 2003. Japan’s Nikkei index closed only moderately higher by +6.9% in 2006, following 2005’s sharp gain of +40.2%. South Korea’s stock market rose only +4.0% following 2005’s stellar gain of +54.0% gain. China’s Shanghai Composite Index soared by +130.4% as the Chinese stock market entered into a bubble zone. The ranked closes for the Asian stock markets are as follows: China’s Shanghai Composite index +130.4%, Indonesia’s Jakarta Composite Index +56.3%, India’s Mumbai Sensex 30 index +46.7%, Philippines’ Composite index +42.3%, Hong Kong Hang Seng +34.2, Singapore’s Straights Times index +27.2%, Malaysia’s Kuala Lumpur Composite index +21.8%, New Zealand’s Exchange 50 index +20.3%, Australia’s All-Ordinaries index +19.9%, Taiwan’s TAIEX index of +19.5%, Pakistan’s 100 Index +5.1%, and Thailand’s Stock Exchange index –4.7%.

STOCK INDEX FUTURES, WORLDWIDE Comparison of International Stock Price Indexes Year

Jan.

United States 2000 419.2 2001 410.6 2002 339.7 2003 257.2 2004 340.0 2005 355.1 2006 1 384.8 Canada 2000 247.9 2001 272.5 2002 223.6 2003 192.0 2004 249.1 2005 269.0 2006 1 349.2 France 2000 311.4 2001 330.0 2002 245.5 2003 161.6 2004 200.2 2005 215.3 272.2 2006 1 Germany 2000 404.2 2001 401.8 2002 302.0 2003 162.5 2004 240.0 2005 251.6 2006 1 335.5 I taly 2000 276.8 2001 303.3 2002 223.6 2003 162.6 2004 201.3 2005 234.9 2006 1 271.8 Japan 2000 67.8 2001 48.0 2002 34.7 2003 28.9 2004 37.4 2005 39.5 2006 1 57.8 United Kingdom 2000 274.9 2001 279.9 2002 230.6 2003 159.1 2004 202.0 2005 225.5 2006 1 270.5 1

Preliminary.

(1990 = 100)

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

410.7 372.7 332.7 252.8 344.2 361.8 385.0

450.5 348.8 344.9 255.0 338.5 354.9 389.2

436.6 375.6 323.7 275.6 332.8 347.7 394.0

427.0 377.5 320.8 289.6 336.9 358.2 381.8

437.2 368.0 297.5 292.9 342.9 358.1 381.8

430.1 364.1 274.0 297.7 331.2 371.0 383.8

456.2 340.7 275.4 303.0 331.9 366.8 391.9

431.8 312.9 245.1 299.4 335.0 369.4 401.5

429.7 318.6 266.2 315.8 339.7 362.8 414.2

395.3 342.5 281.4 318.1 352.8 375.6 421.0

396.9 345.1 264.5 334.2 364.3 375.2

426.8 356.4 297.2 290.9 340.9 363.1 393.5

266.8 236.1 223.2 191.6 256.9 282.6 341.7

276.6 222.4 229.5 185.4 251.0 281.0 354.0

273.2 232.3 224.0 192.5 241.0 273.9 356.7

270.4 238.6 223.8 200.5 246.0 280.8 343.3

298.0 226.1 208.9 204.1 249.8 289.5 339.4

304.2 224.8 193.1 212.2 247.2 304.7 345.8

328.8 216.3 193.3 219.5 244.9 311.9 352.9

303.3 199.9 180.7 216.9 253.4 321.9 343.8

281.8 201.3 182.7 227.2 259.3 303.5 360.8

257.8 217.1 192.1 229.7 264.0 316.4 372.8

261.1 224.7 193.3 240.3 270.3 329.5

280.8 226.0 205.7 209.3 252.7 297.1 350.9

340.6 295.3 245.6 151.5 205.0 221.6 275.1

345.9 285.0 257.9 144.1 199.5 223.8 287.3

353.2 310.3 245.5 162.5 202.2 215.2 285.5

353.6 300.1 235.2 164.6 201.9 226.7 271.3

354.7 287.5 214.5 169.7 205.4 232.7 273.2

360.0 279.8 187.9 176.6 200.7 244.9 275.6

364.5 258.0 185.2 182.2 197.8 242.1 284.2

344.8 224.4 152.8 172.5 200.3 253.1 288.9

352.0 238.9 173.3 185.6 204.0 244.1 294.3

326.2 246.3 183.0 188.4 206.5 251.3 293.1

326.1 254.5 168.6 195.8 210.2 259.4

344.4 275.8 207.9 171.3 202.8 235.9 281.9

452.0 367.1 297.9 150.6 237.6 257.2 342.7

449.3 344.7 319.1 143.3 228.0 257.1 353.0

438.4 370.4 298.1 173.9 235.6 247.4 355.3

420.4 362.0 284.9 176.4 231.9 263.7 336.6

407.9 358.2 259.1 190.4 239.6 271.2 336.0

425.1 346.5 218.8 206.2 230.3 288.9 335.9

426.7 306.8 219.5 206.0 223.8 285.6 346.4

401.9 254.7 163.7 192.6 230.2 298.2 355.0

418.5 269.6 186.4 216.2 234.1 291.4 370.6

376.8 295.0 196.3 221.5 243.9 307.1 373.0

380.4 305.1 171.0 234.4 251.6 319.8

416.8 331.8 243.1 189.5 235.6 278.3 349.1

330.7 276.4 220.8 166.3 203.3 237.8 282.9

308.7 267.4 233.9 157.2 199.4 241.0 286.3

303.1 278.1 227.6 173.3 204.9 230.5 285.5

307.1 266.1 214.5 180.5 200.5 237.0 269.9

309.0 254.1 196.7 181.1 206.5 241.1 271.5

308.5 249.1 182.7 181.6 202.1 251.9 274.1

320.5 237.9 183.2 184.4 199.1 249.5 283.7

307.2 197.7 157.1 181.5 206.4 261.7 287.2

318.8 208.7 170.0 189.0 212.2 242.9 296.4

316.3 220.9 185.9 196.3 218.6 252.5 304.2

298.3 223.1 170.0 195.6 229.6 261.4

308.8 248.6 197.2 179.1 207.0 245.2 283.0

69.2 44.7 36.7 29.0 38.3 40.7 56.2

70.6 45.1 38.2 27.7 40.6 40.5 59.2

62.4 48.3 39.9 27.2 40.8 38.2 58.6

56.7 46.0 40.8 29.2 39.0 39.1 53.7

60.4 45.0 36.8 31.5 41.1 40.2 53.8

54.6 41.1 34.3 33.2 39.3 41.3 53.6

58.5 37.2 33.4 35.9 38.4 43.1 56.0

54.6 33.9 32.6 35.5 37.5 47.1 55.9

50.4 36.0 30.0 35.5 37.4 47.2 56.9

50.8 37.1 32.0 35.0 37.8 51.6 56.5

47.8 36.6 29.8 37.0 39.9 55.9

58.7 41.6 34.9 32.1 39.0 43.7 56.2

276.2 264.9 227.9 162.5 207.2 230.5 273.1

287.3 250.5 236.2 160.3 202.9 227.0 281.6

277.3 265.0 232.1 174.7 206.7 221.4 284.0

278.7 259.7 228.7 181.9 203.4 229.4 269.4

279.9 252.0 209.1 182.1 205.9 236.5 274.1

282.9 246.1 189.4 189.0 202.5 244.3 277.5

296.3 239.3 189.0 190.7 204.5 245.6 277.8

279.8 216.2 166.4 187.3 209.8 253.6 281.8

284.4 222.9 179.1 196.3 212.2 246.1 290.1

272.1 232.2 185.0 198.3 216.6 253.2 288.2

275.6 233.1 174.9 203.9 222.7 263.0

280.5 246.8 204.0 182.2 208.0 239.7 278.9

Not Seasonally Adjusted.

Source: Economic and Statistics Administration, U.S. Department of Commerce (ESA)

263

STOCK INDEX FUTURES, WORLDWIDE

264

STOCK INDEX FUTURES, WORLDWIDE

265

Sugar The white crystalline substance called “sugar” is the organic chemical compound sucrose, one of several related compounds all known as sugars. These include glucose, dextrose, fructose, and lactose. All sugars are members of the larger group of compounds called carbohydrates and are characterized by a sweet taste. Sucrose is considered a double sugar because it is composed of one molecule of glucose and one molecule of fructose. While sucrose is common in many plants, it occurs in the highest concentration in sugarcane (Saccharum officinarum) and sugar beets (Beta vulgaris). Sugarcane is about 7 to 18 percent sugar by weight while sugar beets are 8 to 22 percent. Sugarcane is a member of the grass family and is a perennial. Sugarcane is cultivated in tropical and subtropical regions around the world roughly between the Tropics of Cancer and Capricorn. It grows best in hot, wet climates where there is heavy rainfall followed by a dry season. The largest cane producers are Florida, Louisiana, Texas, and Hawaii. On a commercial basis, sugarcane is not grown from seeds but from cuttings or pieces of the stalk. Sugar beets, which are produced in temperate or colder climates, are annuals grown from seeds. Sugar beets do best with moderate temperatures and evenly distributed rainfall. The beets are planted in the spring and harvested in the fall. The sugar is contained in the root of the beet, but the sugars from beets and cane are identical. Sugar beet production takes place mostly in Europe, the US, China, and Japan. The largest sugar beet producing states are Minnesota, Idaho, North Dakota, and Michigan. Sugar beets are refined to yield white sugar and very little raw sugar is produced. Sugar beets and sugarcane are produced in over 100 countries around the world. Of all the sugar produced, about 25 percent is processed from sugar beets and the remaining 75% is from sugar cane. The trend has been that production of sugar from cane is increasing relative to that produced from beets. The significance of this in that sugarcane is a perennial plant while the sugar beet is an annual, and due to the longer production cycle, sugarcane production and the sugar processed from that cane, may not be quite as responsive to changes in price. Sugar futures are traded on the Bolsa de Mercadorias & Futuros (BM&F), Kansai Commodities Exchange (KANEX), the Tokyo Grain Exchange (TGE), the London International Financial Futures and Options Exchange (LIFFE), and the CSCE Division of the New York Board of Trade (NYBOT). Options are traded on the BM&F, the TGE, the LIFFE and the NYBOT. Raw sugar is traded on the CSCE Division of the New York Board of Trade while white sugar is traded on the London International Financial Futures Exchange (LIFFE). The most actively traded contract is the No. 11 (World) sugar contract at the CSCE. The No. 11 contract calls for the delivery of 112,000 pounds (50 long tons) of raw cane centrifugal sugar from any of 28 foreign countries of origin and the United States. The CSCE also trades the No. 14 sugar contract (Domestic), which calls for the delivery of

266

raw centrifugal cane sugar in the United States. Futures on white sugar are traded on the London International Financial Futures Exchange and call for the delivery of 50 metric tons of white beet sugar, cane crystal sugar, or refined sugar of any origin from the crop current at the time of delivery. Prices – World sugar prices on the CSCE No.11 sugar nearest-futures chart in early 2006 extended the rally that started in 2004 and posted a 24-year high of 19.73 cents per pound in February 2006. Sugar prices more than tripled over the course of the 2004-06 rally from the 5.27 cents in February 2004 to 19.73 cents two years later in February 2006. However, sugar prices then plunged by 51% from the February 2006 high to a 1-year low of 9.70 cents by September 2006, finally consolidating through the remainder of the year to close 2006 at 11.75 cents, -20% yr/ yr. Sugar prices in early 2006 extended the rally due to heavy bullish commodity speculation, strong demand, and restricted sugar supplies after three straight years of sugar deficits in 2003-04, 2004-05, and 2005-06. However, sugar prices then plunged starting in February 2006 after production started rising and speculators were washed out of their huge long positions. High sugar prices did their job in causing producers to rev up production and produce a small surplus for 2006-07. Brazil, which is already the world’s largest sugar producer, has plenty of land available to boost sugar production further if prices are high enough. Supply – World production of centrifugal (raw) sugar in the 2006-07 marketing year (Oct 1 to Sep 30) rose +7.2% to 155.166 million metric tons. That is a new record high. The world’s largest sugar producers are Brazil with 20% of world production in 2006-07, India with 216%, and the European Union with 11%. US centrifugal sugar production in 2006-07 rose +5.0% to 7.727 million metric tons. World ending stocks in 2005-06 rose +14.7% to 33.193 million metric tons, up following declines in the past three years. The stocks/consumption ratio rose to 22.7% in 200607,relieving the tightest situation since 1994-95. US production in 2006-07 of cane sugar rose +21.9% to 3.603 million short tons, and beet sugar production rose +14.6% yr/yr to 5.092 million short tons. Demand – World domestic consumption of centrifugal (raw) sugar in 2006-07 rose by +2.3% yr/yr to 146.037 million metric tons. US domestic disappearance (consumption) of sugar in 2006-07 rose by +1.3% yr/yr to 10.615 million short tons. The latest available figures show US per capita sugar consumption at 63.4 pounds per year in 2005-06, which is only about two-thirds of the levels seen in the early 1970s. Exports – World exports of centrifugal sugar in 200607 fell –5.9% yr/yr to 45.698 million metric tons, which was down from the record high of 50,691 million metric tons posted in 2005-06. The world’s largest sugar exporter is Brazil, where exports in 2006-07 rose +14.4% to 19.550 million metric tons and accounted for 41% of world exports. The next largest exporters are Thailand with 9% of world exports, Australia with 8%, and India with 4%. US sugar imports in 2006-07 fell –36.0% yr/yr to 2.203 million short tons, down from last year’s 22-year high of 3,443. US sugar exports in 2006-07 fell –1.5% yr/yr to 200,000 short tons.

SUGAR World Production, Supply & Stocks/Consumption Ratio of Sugar Marketing Year

Beginning Stocks

Production

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073

29,683 28,480 33,545 37,281 39,998 36,820 40,506 38,452 33,728 28,945

125,505 130,894 136,264 130,867 134,432 148,516 142,362 140,726 144,709 155,166

1

Preliminary.

2

Forecast.

Imports

Total Supply

34,450 37,244 36,753 40,414 39,707 41,557 41,997 45,002 44,022 42,817

189,638 196,618 206,562 208,562 214,137 226,893 224,865 224,180 222,459 226,928

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

Preliminary.

Australia

Brazil

China

Cuba

EU-25

5,567 4,997 5,448 4,162 4,662 5,461 5,178 5,388 5,297 4,950

15,700 18,300 20,100 17,100 20,400 23,810 26,400 28,175 26,850 30,850

8,631 8,969 7,525 6,849 8,305 11,380 10,734 9,826 9,446 11,150

3,200 3,760 4,060 3,500 3,700 2,250 2,550 1,300 1,200 1,500

19,305 17,818 19,498 18,519 16,153 18,675 17,132 21,648 21,847 16,836

2

Estimate.

Exports

Domestic Consumption

Ending Stocks

Stocks/ Consumption Percentage

37,683 37,658 41,700 38,441 42,358 47,440 46,813 47,663 50,691 47,698

123,475 125,415 127,581 130,123 134,959 138,947 139,600 142,789 142,823 146,037

28,480 33,545 37,281 39,998 36,820 40,506 38,452 33,728 28,945 33,193

23.1 26.7 29.2 30.7 27.3 29.2 27.5 23.6 20.3 22.7

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Production of Sugar (Centrifugal Sugar-Raw Value) Year

In 1000's of Metric Tons (Raw Value)

In Thousands of Metric Tons

India

Indonesia

Mexico

Pakistan

Thailand

United States

14,592 17,436 20,219 20,480 20,475 22,140 15,150 14,170 21,070 25,100

2,190 1,492 1,690 1,800 1,725 1,755 1,730 2,050 2,100 2,500

5,486 4,982 4,979 5,220 5,169 5,229 5,330 6,149 5,604 5,650

3,805 3,791 2,595 2,648 3,453 3,944 4,047 3,115 2,615 3,720

4,245 5,386 5,721 5,107 6,397 7,286 7,010 5,187 4,835 6,250

7,276 7,597 8,203 7,956 7,167 7,644 7,847 7,146 6,713 7,727

Ukraine

World Total

2,032 125,505 2,000 130,894 1,720 136,264 1,687 130,867 1,790 134,432 1,550 148,516 1,580 142,362 1,900 140,726 1,850 144,709 1,900 155,166

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Stocks of Centrifugal Sugar at Beginning of Marketing Year In Thousands of Metric Tons (Raw Value) Year

Australia

Brazil

China

Cuba

EU-25

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073

253 183 518 634 507 662 543 343 312 281

560 1,010 710 860 210 270 1,030 585 -285 215

2,515 2,548 1,851 1,004 869 2,021 2,323 1,757 1,118 1,658

568 488 438 302 312 212 307 217 162 312

2,871 2,870 3,493 3,420 2,717 3,581 4,699 5,339 3,697 4,458

1

Preliminary.

2

Estimate.

Iran

Mexico

Philippines

Russia

United States

World Total

365 405 207 207 167 267 292 197 102 155

991 941 1,063 1,548 1,172 1,194 1,237 2,045 1,515 1,495

183 454 330 322 239 277 405 239 253 265

1,105 2,650 3,000 3,100 2,130 1,050 440 580 470 400

1,523 1,487 2,013 1,978 1,386 1,515 1,721 1,208 1,598 1,696

28,480 33,545 37,281 39,998 36,820 40,506 38,452 33,728 28,945 33,193

India Indonesia

5,850 7,374 10,710 11,985 11,670 12,430 9,070 5,165 4,735 6,785

520 908 1,330 1,415 1,385 1,340 1,170 1,120 1,170 1,370

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Centrifugal Sugar (Raw Value) Imported into Selected Countries Year

Algeria

Canada

China

EU-25

Iran

Ja p a n

Rep. of Korea

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073

925 940 900 975 1,015 1,094 1,040 1,130 1,275 1,270

1,056 1,129 1,207 1,211 1,235 1,329 1,323 1,245 1,451 1,335

420 543 687 1,083 1,375 842 1,235 1,360 1,300 1,100

1,829 1,867 1,786 1,839 2,025 2,150 1,900 2,549 2,280 2,850

921 1,702 1,949 1,591 1,600 1,600 1,500 1,450 1,800 1,800

970 1,085 960 1,000 1,010 955 610 595 675 650

1,592 1,542 1,650 1,486 1,407 1,483 1,364 1,328 1,350 1,350

1

Preliminary.

2

Estimate.

In Thousands of Metric Tons

Malaysia

Morocco

Nigeria

Russia

United States

World Total

1,424 1,403 1,514 1,574 1,590 1,590 1,682 1,652 1,669 1,680

1,065 1,188 1,256 1,325 1,385 1,406 1,484 1,459 1,414 1,515

660 700 825 714 775 1,000 1,150 1,150 1,200 1,400

4,210 5,400 5,170 5,650 4,850 4,000 3,670 4,300 2,900 3,400

1,962 1,655 1,484 1,443 1,393 1,569 1,591 1,905 3,123 2,001

34,450 37,244 36,753 40,414 39,707 41,557 41,997 45,002 44,022 42,817

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

267

SUGAR

-----

---

Cents Per Pound "Fair Refining", Duty Paid, New York (1846 - 1888) Raw (96%), Duty Paid, New York (1889 - 1900) Spot Raw (cif) New York (Jan. 1901 - Jan. 1961) No. 8 World Raw, New York (Feb. 1961 - Dec. 1970) No. 11 World Raw, New York (Jan. 1971 - date) Refined Beet, Midwest (Jan. 1975 - date)

Centrifugal Sugar (Raw Value) Exported From Selected Countries Australia

Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

4,554 4,076 4,123 3,056 3,594 4,114 4,157 4,447 4,187 3,840

Preliminary.

2

Brazil Colombia

7,200 8,750 11,300 7,700 11,600 14,000 15,240 18,020 17,090 19,550

Estimate.

1,020 960 959 965 1,085 1,306 1,200 1,231 890 860

Dominican Cuba Republic

2,426 3,120 3,400 2,980 3,070 1,800 1,827 825 805 800

270 191 185 185 185 185 185 185 253 200

EU-25

India

Guatemala

6,361 5,329 6,138 6,607 4,793 5,600 4,900 6,028 8,665 1,501

1,361 1,086 1,140 1,190 1,310 1,335 1,335 1,497 1,242 1,423

21 10 25 1,360 1,130 1,410 250 40 1,150 2,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

South Africa

Swaziland

Thailand

Total

560 649 426 555 628 542 587 577 550 557

1,160 1,355 1,410 1,580 1,235 1,296 1,070 1,010 1,230 1,210

267 283 284 287 208 278 285 298 320 358

2,839 3,352 4,147 3,394 4,157 5,280 4,860 3,115 2,800 4,300

37,683 37,658 41,700 38,441 42,358 47,440 46,813 47,663 50,691 47,698

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

29.00 25.50 27.20 23.38 23.13 26.75 27.80 23.70 23.50 34.50

29.00 25.50 27.13 22.25 22.75 26.00 26.50 23.50 23.50 36.50

28.13 25.50 27.00 21.50 22.00 25.95 27.13 23.50 23.25 37.10

28.00 25.50 27.00 21.00 20.50 24.63 27.63 23.50 23.80 36.38

28.00 26.00 27.00 19.75 21.38 24.50 28.00 23.50 24.75 35.00

27.50 26.00 27.00 19.00 21.90 24.00 28.00 23.50 25.88 35.00

27.00 26.00 27.00 19.00 22.50 24.00 27.63 23.50 26.00 35.00

26.65 26.00 27.00 19.00 22.50 25.40 25.50 23.50 26.75 34.50

26.38 26.50 27.00 20.70 24.63 26.25 24.00 23.50 40.10 31.20

24.90 26.90 26.00 21.25 25.75 26.75 24.70 23.50 40.00 28.75

25.00 27.00 26.00 21.00 26.20 27.40 23.94 23.38 40.00 27.19

25.50 27.00 25.20 21.80 26.50 27.88 23.63 23.20 36.90 26.10

27.09 26.12 26.71 20.80 23.31 25.79 26.21 23.48 29.54 33.10

These are f.o.b. basis prices in bulk, not delivered prices.

268

Mauritius

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Average Wholesale Price of Refined Beet Sugar1--Midw est Market Year

In Thousands of Metric Tons

2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS)

SUGAR Average Price of World Raw Sugar1 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

11.13 11.71 8.40 5.64 10.63 7.96 8.56 6.42 10.33 17.27

11.06 11.06 7.05 5.51 10.26 6.81 9.14 7.01 10.51 18.93

11.17 10.66 6.11 5.54 9.64 7.27 8.50 8.23 10.57 18.01

11.50 10.27 5.44 6.48 9.27 7.12 7.92 8.21 10.19 18.21

11.54 10.17 5.83 7.33 9.96 7.33 7.41 8.08 10.23 17.83

12.02 9.33 6.67 8.72 9.80 7.07 6.85 8.41 10.45 16.19

12.13 9.70 6.11 10.18 9.48 8.02 7.18 9.19 10.89 16.61

12.54 9.50 6.39 11.14 8.77 7.86 7.30 8.99 11.09 13.58

12.65 8.21 6.98 10.35 8.60 8.54 6.70 9.10 11.59 12.42

12.86 8.24 6.90 10.96 7.15 8.84 6.74 9.84 12.40 12.09

13.19 8.73 6.54 10.02 7.80 8.87 6.83 9.65 12.86 12.38

12.90 8.59 6.00 10.23 8.02 8.81 6.95 10.19 15.09 12.47

12.06 9.68 6.54 8.51 9.12 7.88 7.51 8.61 11.35 15.50

1 Contract No. 11, f.o.b. stowed Caribbean port, including Brazil, bulk spot price. U.S. Department of Agriculture (ERS-USDA)

2

Preliminary.

Source: Economic Research Service,

Average Price of Raw Sugar in New York (C.I.F., Duty/Free Paid, Contract #12/#14) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

21.88 21.85 22.41 17.70 20.81 21.03 21.62 20.54 20.57 23.61

22.07 21.79 22.38 17.24 21.18 20.69 21.91 20.57 20.36 24.05

21.81 21.74 22.55 18.46 21.40 19.92 22.14 20.86 20.54 23.10

21.79 22.14 22.57 19.43 21.51 19.73 21.87 20.88 21.21 23.56

21.70 22.31 22.65 19.12 21.19 19.52 21.80 20.69 21.96 23.48

21.62 22.42 22.61 19.31 21.04 19.93 21.62 20.03 21.89 23.32

22.04 22.66 22.61 17.64 20.64 20.86 21.32 20.14 21.94 22.44

22.21 22.19 21.24 18.12 21.10 20.91 21.26 20.10 20.49 21.38

22.30 21.92 20.10 18.97 20.87 21.65 21.34 20.47 21.10 21.27

22.27 21.67 19.50 21.15 20.90 21.94 20.92 20.31 21.71 20.22

21.90 21.83 17.45 21.39 21.19 22.22 20.91 20.40 21.83 19.66

21.93 22.19 17.87 20.56 21.43 22.03 20.37 20.55 21.74 19.59

21.96 22.06 21.16 19.09 21.11 20.87 21.42 20.46 21.28 22.14

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Supply and Utiliz ation of Sugar (Cane and Beet) in the United States

In 1,000's of Short Tons (Raw Value)

----------------------------------------- Utiliz ation -------------------------------------------------------------------------------------- Supply ------------------------------------------------------ Offshore Receipts -------------- Production ----------Cane

B eet

Total

Foreign

Territories

Total

Beginning Stocks

Total Supply

3,945 4,076 4,089 3,985 3,964 3,957 3,265 2,955 3,603

4,421 4,974 4,680 3,915 4,462 4,692 4,611 4,444 5,092

8,366 9,050 8,769 7,900 8,426 8,649 7,876 7,399 8,695

1,823 1,636 1,590 1,535 1,730 1,750 2,100 3,443 2,203

0 0 0 0 0 0 0 0 0

1,823 1,636 1,590 1,535 1,730 1,750 2,100 3,443 2,203

1,679 1,639 2,216 2,180 1,528 1,670 1,897 1,332 1,698

11,868 12,325 12,575 11,615 11,684 12,070 11,873 12,174 12,596

Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

Preliminary.

2

Estimate.

3

Forecast.

4

I ncludes feed use.

- Domestic Disappearance Net P er Changes Refining In PolyTotal hydric Capita in Invisible Loss AdUse Exports Total Pounds Stocks justment Alcohol4

10,238 10,090 10,396 10,087 10,014 10,172 10,542 10,476 10,615

230 124 141 137 142 288 259 203 200

-67 -126 113 -24 161 23 94 -67 0

0 0 0 0 0 0 0 0 0

24 32 33 33 24 41 48 51 40

9,873 9,993 10,000 9,785 9,504 9,678 10,019 10,184 10,250

64.9 66.3 65.5 64.5 63.3 61.0 61.7 63.4 NA

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Sugar Cane for Sugar & Seed and Production of Cane Sugar and Molasses in the United States

Year

1998 1999 2000 2001 2002 2003 2004 2005 1 20062 1

Acreage Harvested 1,000 Acres

947.1 993.3 1,023.3 1,027.8 1,023.2 992.3 938.2 921.9 908.8

Preliminary.

2

Yield of ------------ Production -----------Sugar Cane Per for for Yield Per Harvested Sugar S eed Total Acre Acre Net Tons ------------ 1,000 Tons ------------ Short Tons

36.6 35.5 35.0 33.7 34.7 34.1 30.9 28.9 32.7

Estimate.

32,743 33,577 34,291 32,775 33,903 31,942 27,243 24,728 28,123 3

1,964 1,722 1,823 1,812 1,650 1,916 1,770 1,878 1,633

34,707 35,299 36,114 34,587 35,553 33,858 29,013 26,606 29,756

Excludes edible molasses.

----------------------------

Farm Price $ P er Ton

27.3 25.6 26.1 29.0 28.4 29.5 28.3 28.4

------ Farm Value ------ ----- Sugar Production ------of Cane ---- Raw Value ---Used for of Cane Refined --- Molasses Made --Sugar Used for Total Per Ton B a si s Edible Total3 & S eed Sugar 1,000 of Cane 1,000 ----- 1,000 Dollars ----Tons in Lbs. Tons ---- 1,000 Gallons ----

893,049 944,562 859,175 901,900 895,917 941,791 951,813 1,003,046 961,896 1,007,142 943,646 998,269 771,734 821,118 701,920 754,529

----------------------------

----------------------------

----------------------------

----------------------------

----------------------------

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

269

SUGAR U.S. Sugar Beets, Beet Sugar, Pulp & Molasses Produced from Beets and Raw Sugar Spot Prices ------- Acreage --------

Year of Harvest

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062

Yield Per Harvested Planted Harvested Acre ----- 1,000 Acres ----Ton

1,459 1,498 1,561 1,564 1,371 1,427 1,365 1,346 1,300 1,367

1,428 1,451 1,527 1,373 1,243 1,361 1,348 1,307 1,243 1,304

1 Preliminary. 2 Estimate. 1.07. 5 F.O.B. Europe.

20.9 22.4 21.9 23.7 20.7 20.4 22.7 23.0 22.2 25.9

Production 1,000 Tons

Sugar Yield Per Acre Sh. Tons

Price3 Dollars

29,886 32,499 33,420 32,541 25,764 27,707 30,583 30,021 27,537 33,765

3.00 -------------------------

38.80 36.40 37.20 34.20 39.80 39.60 41.40 36.90 43.50

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062

Quota Allocation

1,791.3 1,289.7 ----------------------

1,160,029 1,181,494 1,242,895 1,113,030 1,025,306 1,097,329 1,270,026 1,109,272 1,193,151

----------------------------

1,733.3 1,254.2 ----------------------

Bakery & Cereal Products Beverages

1,993 2,161 2,301 2,312 2,264 2,273 2,069 2,108 2,180 2,353

5,553 5,349 5,419 5,508 5,172 5,407 5,232 4,989 5,136

3,997 4,313 4,536 4,433 4,680 4,291 4,219 4,668 4,710

27 24 41 36 58 109 60 64 197

---------------------------4

9,578 9,686 9,996 9,977 9,911 9,808 9,511 9,722 10,043

Refined.

196 158 165 179 168 158 189 214 242 239

Hotels, Restaurant Ice Cream & Dairy Confec& Institionery2 tutions Products

9,755 9,854 10,167 10,091 10,075 9,994 9,713 9,901 10,212

1,335 1,350 1,336 1,361 1,328 1,316 1,221 1,130 1,125 1,153

80 78 79 72 71 59 53 52 76 110

196 212 255 208 262 288 298 326 368 328

0 0 0 0 767 634 246 0 28 0

21.96 22.06 21.16 19.09 21.11 20.87 21.42 20.46 21.28 22.14

323 322 332 356 274 351 299 286 245 217

10.70 10.58 11.71 11.32 11.90 13.05 13.24 13.20 13.58 17.03

Wholesale Grocers4

Non-food Uses

Nonindustrial Uses

318 308 331 346 330 310 297 303 315 344

849 793 907 862 817 800 727 632 697 609

1,263 1,281 1,230 1,263 1,242 1,255 1,322 2,387 2,398 2,411

2,241 2,283 2,223 2,257 2,241 2,250 2,374 1,279 1,267 1,270

66 66 76 71 85 74 99 99 91 132

3,759 3,828 3,761 3,804 3,893 3,927 4,122 4,039 3,956 4,046

Jobbers, sugar dealers.

Year

Second Quarter

Third Quarter

Fourth Quarter

Total

1995 1996 1997 1998 1999 2000

2,105 2,191 2,143 2,233 2,208 2,318

2,311 2,355 2,401 2,428 2,553 2,484

2,542 2,519 2,591 2,565 2,655 2,611

2,379 2,430 2,443 2,458 2,580 2,564

8,801 8,964 9,100 9,213 9,996 9,977 2

Preliminary.

Industrial Total Uses Deliveries

5,202 5,272 5,556 5,630 5,491 5,414 5,132 5,034 5,254 5,419

8,962 9,100 9,317 9,434 9,383 9,341 9,253 9,073 9,210 9,466

Source: Economic Research Service,

Deliveries1 of All Sugar by Primary Distributors in the U.S., by Quarters First Quarter

3,195 3,377 3,421 3,855 4,337 4,525 3,432 4,088 4,029 3,357

In Thousands of Short Tons Retail Grocers3

4

1,156 1,308 1,335 1,737 1,533 1,781 1,289 1,659 1,635 1,382

Source: Economic Research Service,

All Other F ood Uses

445 436 438 499 499 484 530 548 603 590

Raw Value. 1 I ncludes for domestic consumption and for export. U.S. Department of Agriculture (ERS-USDA)

1,520 1,535 1,499 1,554 1,500 1,472 1,300 1,817 1,753 1,429

Canned, Bottled & Frozen F oods

1 Preliminary. 2 And related products. 3 Chain stores, supermarkets. U.S. Department of Agriculture (ERS-USDA)

270

12.06 9.68 6.54 8.51 9.12 7.88 7.51 8.61 11.35 15.50

In Thousands of Short Tons (Raw Value)

Sugar, Refined--Deliveries to End User in the United States

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

14.33 11.59 9.10 9.97 11.29 10.35 9.74 10.87 13.19 19.01

----------- Deliveries by Primary Distributors ----------Importers ------------------------------ Stocks , Jan. 1 -----------------------------of Direct Mainland Total Cane ConB eet Cane Mainland Domestic Cane B eet Sugar Sugar sumption Sugar Cane Con- Sugar ReSugar Refiners' Actual Total Mills3 Deliveries sumption Sugar Mills Total fineries4 Factories CCC Raw Imports Refineries Factories

1 Preliminary. 2 Estimate. 3 Sugar for direct consumption only. U.S. Department of Agriculture (ERS-USDA)

Year

----------------------------

-------- Raw Sugar Prices -------- Wholesale World5 ----- CSCE ----- List Price #11 N.Y. Duty Refined HFCS World P ai d #5 (42%) ------- In Cents Per Pound ------ Midwest

3 I ncludes support payments, but excludes Government sugar beet payments. 4 Refined sugar multiplied by factor of Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Sugar Deliveries and Stocks in the United States

Year

- Sugar Production EquivRefined Farm alent Raw Value4 B a si s Value $1,000 -- 1,000 Short Tons --

In Thousands of Short Tons

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

2001 2002 2003 2004 2005 20062

2,370 2,227 2,183 2,286 2,335 2,436

2,486 2,439 2,360 2,368 2,471 2,487

2,580 2,645 2,464 2,520 2,666 2,690

2,474 2,497 2,504 2,547 2,571

Source: Economic Research Service,

Total

9,911 9,808 9,511 9,722 10,037 10,150

SUGAR

Volume of Trading of World Sugar No. 11 Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Jan.

F eb.

Mar.

436.9 601.4 683.9 422.5 410.5 568.8 566.0 513.6 981.5 1,444.2

493.2 688.0 543.5 609.8 545.5 629.5 797.6 1,018.7 1,279.3 1,601.2

268.3 431.8 452.5 501.1 380.6 417.3 443.8 1,181.1 957.1 1,092.2

Apr.

In Thousands of Contracts

May

June

July

Aug.

Sept.

Oct.

618.2 308.6 551.6 364.2 688.2 361.9 617.6 523.9 567.9 427.0 693.6 412.2 729.5 489.2 993.7 617.3 1,258.6 657.6 1,467.4 1,147.7

575.3 687.0 762.3 717.7 515.6 610.3 719.8 1,100.6 1,366.8 1,459.1

400.2 294.4 346.5 376.8 356.5 529.5 535.9 614.6 779.2 825.0

427.1 370.2 408.3 420.6 419.1 381.0 545.9 679.5 1,198.3 1,278.6

580.6 527.3 657.6 622.4 447.3 756.0 760.2 1,248.7 1,803.5 1,746.7

440.2 304.0 344.4 507.6 348.9 402.8 475.3 626.5 915.8 1,095.7

D e c.

Total

323.3 413.2 358.1 346.2 405.5 256.8 371.8 242.0 414.0 317.4 432.1 340.6 403.1 674.4 539.5 632.7 816.6 992.8 918.7 1,024.0

Nov.

5,285.0 5,524.1 5,911.3 5,933.9 5,150.3 6,173.8 7,140.7 9,766.6 13,007.1 15,100.6

Source: New York Board of Trade (NYBOT)

Average Open Interest of World Sugar No. 11 Futures in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

155,156 206,100 165,717 191,464 157,478 184,096 244,036 246,347 375,713 526,575

147,198 212,072 176,465 199,031 158,192 205,138 265,758 269,863 391,006 501,074

143,623 183,472 168,624 193,554 158,448 194,541 220,971 268,250 357,056 462,871

166,143 182,770 188,324 187,810 167,555 187,415 192,497 275,423 352,521 474,241

150,480 171,555 196,864 201,756 131,640 157,738 170,867 267,362 355,922 490,201

175,139 186,978 177,266 200,973 126,426 158,276 184,257 282,842 366,568 453,021

165,884 149,536 142,416 172,361 112,483 149,202 180,898 300,961 404,141 457,301

197,331 152,754 151,621 171,808 128,181 170,667 196,857 309,436 473,757 479,420

187,477 155,076 189,606 160,809 139,915 202,144 195,200 292,917 468,737 493,931

158,065 138,762 161,760 154,101 146,058 207,456 185,917 322,079 464,829 447,817

200,486 139,896 167,549 148,035 163,358 207,598 200,605 304,462 478,097 503,364

201,922 148,983 175,125 145,760 170,710 217,904 207,995 332,803 523,820 563,844

Source: New York Board of Trade (NYBOT)

271

Sulfur China (12%), and Russia (11%). US production of sulfur fell by –6.3% yr/yr in 2005 to 9.460 million metric tons, but is still above the 3-decade low of 9.270 million metric tons seen in 2002.

Sulfur (symbol S) is an odorless, tasteless, light yellow, nonmetallic element. As early as 2000 BC, Egyptians used sulfur compounds to bleach fabric. The Chinese used sulfur as an essential component when they developed gunpowder in the 13th century.

Demand – US consumption of sulfur in all forms fell by –3.9% in 2005 to 12.300 million metric tons, but is still above the 17-year low of 10.900 million metric tons seen in 2001. US consumption of elemental sulfur fell –3.5% in 2005 to 10.900 million metric tons. US consumption of sulfuric acid rose +4.2% yr/yr in 2005 to 9.680 million metric tons.

Sulfur is widely found in both its free and combined states. Free sulfur is found mixed with gypsum and pumice stone in volcanic regions. Sulfur dioxide is an air pollutant released from the combustion of fossil fuels. The most important use of sulfur is the production of sulfur compounds. Sulfur is used in skin ointments, matches, dyes, gunpowder, and phosphoric acid.

Trade – US exports of recovered sulfur in 2005 fell – 27.9% yr/yr to 684,000 metric tons, and is now only slightly above the 11-year low of 675,000 metric tons seen in 2001. US imports of recovered sulfur in 2005 fell by –1.1% yr/yr to 2.820 million metric tons, down a little more from the 2003 record high of 2.870 million metric tons.

Supply – World production of sulfur (all forms) in 2005 was unchanged yr/yr at 66.000 million metric tons, which is the record high. The world’s largest producers of sulfur are the US with 14.3% of world production, Canada (13.6%),

World Production of Sulfur (All Forms)

In Thousands of Metric Tons

Year

Canada

China

France

Germany

Iraq

Ja p a n

Mexico

Poland

Russia

Saudi Arabia

Spain

United States

World Total

9,694 9,815 9,452 9,444 8,925 9,028 9,510 8,973

6,170 5,770 5,560 5,510 5,980 6,500 7,150 7,710

1,110 1,100 1,150 1,100 1,020 1,010 961 945

1,180 2,358 2,401 3,421 3,592 3,376 2,506 2,520

450 ----------------------

3,428 3,462 3,456 3,743 3,191 3,232 3,158 3,260

1,387 1,334 1,325 1,450 1,465 1,591 1,825 1,717

1,675 1,524 1,831 1,352 1,220 1,240 1,230 1,220

4,651 5,265 5,790 6,130 6,500 6,720 6,920 6,950

2,050 1,940 2,101 2,350 2,360 2,180 2,230 2,300

993 955 708 668 685 706 634 616

11,700 11,500 10,500 9,470 9,270 9,600 10,100 9,460

57,400 58,500 59,300 61,400 62,600 64,200 66,000 66,000

1998 1999 2000 2001 2002 2003 20041 20052 1

Preliminary.

2

Estimate.

Source: U.S. Geological Survey (USGS)

Salient Statistics of Sulfur in the United States

In Thousands of Metric Tons (Sulfur Content)

--------------------------------------- Production of ------------------------------------------------------------ Elemental Sulfur ----------------Native ----- Recovered ----Year

1998 1999 2000 2001 2002 2003 20041 20052 1 6

- Sulfur3 - Petroleum Frasch & C o ke

1,800 1,780 900 ----------------

6,060 6,210 6,360 6,480 6,750 6,970 7,390 6,940

Natural Gas

Total

2,160 2,010 2,020 2,000 1,760 1,950 1,990 1,810

8,220 8,220 8,380 8,490 8,500 8,920 9,380 8,750

Other BySulfuric product Sulfuric Acid Compounds A ci d

1,610 1,320 1,030 982 772 683 739 711

-------------------------

Production (All Forms)

Imports Sulfuric A ci d 4

11,700 11,500 10,500 9,470 9,270 9,600 10,100 9,460

2,040 1,370 1,420 1,410 1,060 908 2,400 2,680

Exports Producer Sulfuric Stocks A ci d 4 D e c. 3 1 5

155 155 191 210 147 205 204 338

283 451 208 232 181 206 185 160

Apparent Con- Sales Value of Shipments sumption --------- F.O.B. Mine/Plant --------Frasch Recovered Average (All Forms) --------- $ Per Metric Ton ---------

14,200 13,800 12,700 10,900 11,400 11,900 12,800 12,300

4 Preliminary. 2 Estimate. 3 Or sulfur ore; Withheld included in natural gas. Basis 100% H2SO4, sulfur equivalent. Data 1996 to date includes Frasch. W = Withheld proprietary data. Source: U.S. Geological Survey (USGS)

Sulfur Consumption & Foreign Trade of the United States

W W ------------------5

W W -------------------

29.14 37.81 24.73 10.01 11.84 28.70 32.62 30.92

Frasch & recovered.

In Thousands of Metric Tons (Sulfur Content)

---------- Consumption ---------- ---------- Sulfuric Acid Sold or Used, by End Use ----------- ----------------------------- Foreign Trade -----------------------------Total Pulpmills Inorganic Synthetic Petro- ------------- Exports ------------- ------------- Imports ------------Total PhoReNative Chem- Rubber sphatic leum Sulfur covered Elemental Sulfuric & Paper ReValue ReValue icals3 & Plastic Fertilizers Refining4 Frasch covered Acid Product Form Sulfur Frasch 1,000 $ Frasch covered 1,000 $ 2

Year

1998 1999 2000 2001 2002 2003 2004 2005 1 1 4

W W W W W W W W

11,900 11,700 11,100 9,520 10,400 10,900 11,300 10,900

11,900 10,600 11,700 10,400 11,100 9,620 9,520 9,530 10,400 8,380 10,900 10,100 11,300 9,290 10,900 9,680

134 138 136 194 122 225 272 267

174 174 152 158 27 71 154 312

69 68 68 68 66 82 70 64

7,590 7,770 7,110 6,840 6,660 6,660 6,870 7,000

632 508 497 591 90 140 248 188

-------------------------

889 685 762 675 687 840 949 684

35,400 35,800 53,700 48,800 40,000 54,400 63,300 55,200

-------------------------

2,270 2,580 2,330 1,730 2,560 2,870 2,850 2,820

58,400 51,600 39,400 22,100 26,800 70,600 76,800 70,500

Preliminary. 2 Sulfur equivalent. 3 I ncluding inorganic pigments, paints & allied products, and other inorganic chemicals & products. I ncluding other petroleum and coal products. W = Withheld proprietary data. NA = Not available. Source: U.S. Geological Survey (USGS)

272

Sunflowerseed, Meal and Oil Sunflowers are native to South and North America, but are now grown almost worldwide. Sunflower-seed oil accounts for approximately 14% of the world production of seed oils. Sunflower varieties that are commercially grown contain from 39% to 49% oil in the seed. Sunflower crops produce about 50 bushels of seed per acre on average, which yields approximately 50 gallons of oil. Sunflower-seed oil accounts for around 80% of the value of the sunflower crop. Refined sunflower-seed oil is edible and used primarily as a salad and cooking oil and in margarine. Crude sunflower-seed oil is used industrially for making soaps, candles, varnishes, and detergents. Sunflower-seed oil contains 93% of the energy of US No. 2 diesel fuel and is being explored as a potential alternate fuel source in diesel engines. Sunflower meal is used in livestock feed and when fed to poultry, increases the yield of eggs. Sunflower seeds are also used for birdfeed and as a snack for humans. Prices – The average monthly price received by US farmers for sunflower seeds in the first six months of the 2006-07 marketing year (i.e., September through February 2007) was $13.05 per hundred pounds. The price was up 8.6% but was still below the record high of $14.21 seen in the 2004-05 marketing year.

World Production of Sunflow erseed

Supply – World sunflower-seed production in the 200506 marketing year (latest data available) rose +12.5% yr/yr to a record high of 29.660 million metric tons. The world’s largest sunflower-seed producers are the former USSR with 39% of world production, Argentina with 13%, China with 6%, and France and India both with 5%. The US produced 1.700 million metric tons, up 82.8% from 2004-05, and that accounted for 5.7% of world production in 2005-06. US production of sunflower seeds in 2006-07 fell by – 46.7% yr/yr to 972,000 metric tons, which was far below the record production level of 3.309 million metric tons posted in 1979-80. US farmers harvested 1.864 million acres of sunflowers in 2006-07, down from the 6-year high of 2.610 million acres posted in 2005-06. Demand – Total US disappearance of sunflower seeds in 2006-07 fell –20.8% yr/yr to 1.264 million metric tons, of which 50% went to crushing for oil and meal, 38% went to non-oil and seed use, and 12% went to exports. Trade – World sunflower-seed exports in 2005-06 rose +12.9% yr/yr to 1.754 million metric tons. The world’s largest exporters are the former USSR which accounted for 35% of world exports in 2005-06 and the US which accounted for 11% of world exports.

In Thousands of Metric Tons

Crop Year

Argentina

Bulgaria

China

France

Hungary

India

Romania

South Africa

Spain

Turkey

United States

ExUSSR

World Total

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062

5,450 5,630 7,180 5,760 2,970 3,730 3,350 2,990 3,750 3,820

527 438 524 606 425 405 645 789 1,030 850

1,333 1,176 1,465 1,765 1,954 1,478 1,946 1,820 1,750 1,850

1,996 1,995 1,713 1,868 1,833 1,584 1,497 1,530 1,462 1,518

905 540 718 793 484 632 777 992 1,186 1,102

1,250 890 944 694 646 726 1,060 1,160 1,450 1,500

1,096 869 1,073 1,301 721 824 1,003 1,506 1,240 1,220

560 585 1,109 531 638 929 643 648 620 557

1,178 1,373 1,097 579 848 871 757 763 785 361

670 672 850 820 630 530 830 560 640 800

1,614 1,668 2,392 1,969 1,608 1,551 1,112 1,209 930 1,700

5,316 5,442 5,762 7,396 7,824 5,467 7,851 10,210 8,773 11,526

24,410 23,452 27,405 26,718 23,099 21,230 23,872 26,960 26,376 29,660

1

Preliminary.

2

Forecast.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

World Imports and Exports of Sunflow erseed Crop Year

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 1

In Thousands of Metric Tons

------------------------------------------Imports ------------------------------------------ -------------------------------------------------Exports ------------------------------------------------NetherWorld ArgenExUnited World France Germany lands Spain Turkey Total tina France Hungary USSR States Uraguay Total

Preliminary.

338 208 395 128 174 45 74 305 41 31 2

406 278 364 124 193 73 79 89 82 70

Forecast.

496 439 477 576 413 189 210 215 78 100

296 312 576 443 368 200 232 244 254 395

532 554 766 486 322 164 287 630 518 330

3,343 3,049 4,015 2,772 2,460 1,312 1,844 2,763 1,586 1,751

65 504 940 265 94 342 232 45 99 55

78 64 29 27 11 24 3 25 21 7

212 104 152 23 6 16 20 15 71 30

2,422 1,744 1,977 1,295 1,865 186 577 1,374 167 604

117 265 291 168 153 176 122 136 116 190

91 60 106 28 21 130 223 127 134 52

3,310 3,049 4,080 2,620 2,462 1,309 1,940 2,730 1,554 1,754

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

273

SUNFLOWERSEED, MEAL AND OIL Sunflow erseed Statistics in the United States Crop Year Beginning Sept. 1

Harvested Acres 1,000

Harvested Yield Per Cwt.

Farm Price $ P er Metric Ton

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

3,441 2,647 2,555 2,167 2,197 1,711 2,610 1,864

12.62 13.39 13.38 11.31 12.13 11.98 15.40 11.34

166 151 212 266 267 302 267 309

1

Preliminary.

2

Forecast.

In Thousands of Metric Tons

--------------------- Disappearance --------------------Value Non-oil of Pro- ---------------------------- Supply --------------------------duction Stocks, ProUse & Million $ Sept. 1 duction Imports Total Crush Exports S eed Total

326.9 244.2 326.0 294.6 316.2 272.7 487.7 301.9

231 231 156 109 199 163 90 356

1,969 1,608 1,551 1,112 1,209 930 1,823 972

2,356 2,143 1,463 1,308 1,368 1,204 1,507 1,528

Preliminary.

2

591 614 645 471 487 565 416 429

Forecast.

612 527 503 444 454 459 459 406

628 520 400 299 404 510 473 456

1,469 2,220 2,383 2,083 2,929 3,401 3,294 4,301

Crop Year Beginning Oct. 1

Preliminary.

9,303 9,544 8,660 7,408 8,662 9,602 9,399 10,540

2,426 2,111 1,441 1,268 1,342 1,184 1,509 1,519

759 749 797 604 599 734 504 538

711 613 585 516 527 534 533 472

2

2

Minneapolis, Crude $ Per Metric Ton

------------------------- Disappearance ------------------------Imports

Total

Exports

Domestic

Total

55 71 62 10 12 18 10 25

474 396 305 138 270 120 247 272

2 4 16 28 12 34 26 11

531 471 383 176 294 172 283 308

286 247 205 51 107 57 95 70

174 162 168 113 169 105 163 211

460 409 373 164 276 162 258 281

368 350 513 730 737 860

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Stocks, Oct. 1

Production

Imports

5 5 5 5 5 5 5 5

549 458 358 172 308 136 278 308

------26 63 20 ---5 ----

Forecast.

11,011 10,970 9,962 8,541 9,789 10,982 10,776 11,816

In Thousands of Metric Tons

In Thousands of Metric Tons

Total

Exports

Domestic

Total

554 463 389 240 333 141 288 313

21 8 26 3 12 3 6 5

528 450 358 232 316 133 277 303

554 463 389 240 333 141 288 313

28% Protein $ P er Metric Ton

83 100 96 116 122 105

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price Received by Farmers for Sunflow er2 in the United States

Preliminary.

1,479 2,205 2,320 2,104 2,853 3,392 3,435 4,257

------------------------- Disappearance -------------------------

Preliminary.

2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

624 555 464 364 173 305 138 331

Production

Forecast.

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

Year

701 583 449 336 454 572 531 512

------------------------------------------ Supply ------------------------------------------

Crop Year Beginning Oct. 1

274

2,010 1,749 1,674 1,120 1,335 1,047 1,596 1,264

In Thousands of Metric Tons

Stocks, Oct. 1

Sunflow er Meal Statistics in the United States

1

666 625 679 635 538 630 852 482

----------------------------------------- Supply ------------------------------------------

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

1

205 201 235 166 170 141 178 156

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Sunflow er Oil Statistics in the United States

1

1,139 923 760 319 627 276 566 626

----------------------------------- Sunflow erseed Oil ------------------------------ ---------------------------------------- Sunflow erseed Meal ---------------------------------------ArgenExWorld ArgenUnited ExWorld tina France Spain Turkey USSR Total tina France Spain Turkey States USSR Total

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 1

2,241 1,905 1,783 1,319 1,498 1,137 1,952 1,394

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

World Production of Sunflow erseed Oil and Meal Year

41 66 76 98 90 44 39 66

In Dollars Per Hundred Pounds

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Average

8.64 13.10 10.40 12.90 13.20 11.70

8.19 12.00 11.40 12.40 12.80 12.10

9.10 12.00 11.50 12.80 12.20 12.50

9.71 12.30 11.70 13.40 12.20 13.60

9.52 12.10 12.10 13.70 11.40 13.80

10.00 12.50 12.80 15.00 11.20 14.60

10.20 12.50 13.10 15.00 11.40

10.50 12.30 13.50 15.10 11.90

10.50 12.20 13.70 15.40 11.80

11.80 12.00 13.50 15.20 11.70

13.80 11.60 13.30 15.20 11.90

12.90 10.90 13.60 14.40 12.50

10.41 12.13 12.55 14.21 12.02 13.05

2

KS, MN, ND and SD average.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Tall Oil Tall oil is a product of the paper and pulping industry. Crude tall oil is the major byproduct of the kraft or sulfate processing of pinewood. Crude tall oil starts as tall oil soap which is separated from recovered black liquor in the kraft pulping process. The tall oil soap is acidified to yield crude tall oil. The resulting tall oil is then fractionated to produce fatty acids, rosin, and pitch. Crude tall oil contains 40-50 percent fatty acids such as oleic and linoleic acids; 5-10 percent sterols, alcohols, and other neutral components. The

demand is for the tall oil rosin and fatty acids which are used to produce adhesives, coatings, and ink resins. The products find use in lubricants, soaps, linoleum, flotation and waterproofing agents, paints, varnishes, and drying oils. Since tall oil and its production are derived from the paper and pulping industry, the amount of tall oil produced is related in part to the pulp industry and in part to the U.S. economy.

Consumption of Tall Oil in Inedible Products in the United States Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

86.7 99.4 91.7 97.7 93.4 136.1 126.8 134.9 120.4

114.4 115.1 88.1 96.4 132.9 119.9 109.4 115.4 112.1

113.2 111.0 106.4 104.4 115.0 136.9 136.1 124.5 135.8

120.0 114.0 97.5 101.6 121.3 126.3 123.7 97.3 120.2

108.0 99.9 90.9 105.1 109.3 121.7 135.7 144.4 153.2

101.8 109.2 98.8 100.7 121.6 121.9 160.5 128.3 131.0

117.2 119.1 91.8 99.9 128.5 119.3 166.9 125.0 140.6

114.8 113.0 106.6 98.3 130.2 111.6 140.8 127.5 144.3

120.3 103.9 94.9 102.4 121.5 131.4 125.3 115.6 134.3

111.6 108.4 93.7 81.4 141.9 124.1 124.6 137.0 129.6

119.0 106.4 89.4 87.7 115.5 104.9 129.4 120.3 134.8

121.0 102.2 96.2 74.4 118.6 120.1 110.7 118.2 133.1

1,348 1,302 1,146 1,150 1,450 1,474 1,590 1,488 1,590

Preliminary.

Source: Bureau of the Census, U.S. Department of Commerce

Production of Crude Tall Oil in the United States Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

In Millions of Pounds

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Total

118.4 93.8 92.3 99.1 102.5 102.1 88.1 95.5 104.8

113.4 101.6 91.6 100.7 87.3 87.9 93.7 92.1 103.7

119.3 107.8 81.4 86.5 101.8 109.0 99.6 100.3 109.5

118.0 101.3 94.9 101.8 108.7 113.7 110.0 103.9

115.2 104.6 83.7 93.7 89.8 96.1 97.9 103.4

134.6 115.2 103.7 105.5 111.5 112.1 109.4 108.1

121.0 95.4 99.7 104.2 108.3 102.8 107.3 110.4

103.8 91.8 99.9 96.0 99.6 106.8 109.8 117.6

100.7 99.5 95.1 88.5 91.8 99.2 101.5 101.4

103.2 94.5 94.1 94.7 109.2 94.4 101.0 104.6

103.5 97.0 105.4 103.6 100.8 108.9 101.0 109.7

113.6 86.5 93.0 91.4 97.1 104.1 98.9 99.7

1,364.8 1,202.6 1,134.8 1,165.6 1,208.6 1,236.9 1,218.1 1,246.8 1,271.9

Source: Bureau of the Census, U.S. Department of Commerce

Stocks of Crude Tall Oil in the United States, on First of Month Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 Preliminary.

In Millions of Pounds

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

268.7 146.8 110.5 132.7 160.2 210.7 174.1 107.5 73.9

219.8 130.9 102.4 125.6 154.1 207.3 140.3 97.3 61.7

200.3 135.3 105.4 142.1 155.7 203.0 124.4 83.4 72.1

197.5 121.5 117.0 127.9 160.5 210.2 95.0 81.5 75.6

164.8 131.8 118.9 135.8 176.0 209.6 109.9 102.8

156.9 153.5 118.2 155.2 167.4 216.3 108.8 118.7

163.3 136.6 134.4 165.6 156.3 205.3 134.0 82.6

177.5 138.5 139.6 177.4 173.4 207.1 132.1 88.3

183.0 154.6 171.7 190.7 163.7 194.1 130.5 94.7

180.7 130.5 132.0 175.4 180.3 190.5 126.3 93.9

183.6 136.7 160.5 161.8 199.3 196.1 122.0 82.0

152.7 117.1 145.4 155.1 209.5 162.2 121.8 92.7

Source: Bureau of the Census, U.S. Department of Commerce

Stocks of Refined Tall Oil in the United States, on First of Month

1

In Millions of Pounds

Jan.

In Millions of Pounds

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

15.1 7.5 9.6 22.4 13.3 13.1 14.8 18.7 7.7

14.9 7.0 9.0 17.2 16.5 20.1 16.6 28.1 7.5

17.0 8.5 9.9 17.1 18.7 19.6 16.9 26.9 5.3

12.5 9.1 10.2 19.9 20.1 19.9 17.0 32.9 5.4

14.8 9.8 10.7 20.7 20.1 19.2 15.2 28.5

9.9 11.0 12.5 20.9 18.6 13.7 20.4 W

7.2 9.8 11.8 21.5 20.4 14.3 16.0 6.1

7.6 13.7 13.9 22.7 19.7 12.7 18.2 5.3

7.2 10.4 12.6 20.9 15.8 16.3 16.9 6.6

7.3 7.8 19.5 18.6 14.5 14.2 17.2 4.5

6.3 11.9 13.4 18.4 13.5 16.6 14.5 5.9

7.0 8.2 21.6 16.0 13.9 17.7 17.5 6.9

Source: Bureau of the Census, U.S. Department of Commerce

275

Tallow and Greases Tallow and grease are derived from processing (rendering) the fat of cattle. Tallow is used to produce both edible and inedible products. Edible tallow products include margarine, cooking oil, and baking products. Inedible tallow products include soap, candles, and lubricants. Production of tallow and greases is directly related to the number of cattle produced. Those countries that are the leading cattle producers are also the largest producers of tallow. The American Fats and Oils Association provides specifications for a variety of different types of tallow and grease, including edible tallow, lard (edible), top white tallow, all beef packer tallow, extra fancy tallow, fancy tallow, bleachable fancy tallow, prime tallow, choice white grease, and yellow grease. The specifications include such characteristics as the melting point, color, density, moisture content, insoluble impurities, and others. Prices – The monthly average price of tallow (inedible, No. 1 Packers-Prime, delivered Chicago) in 2006 fell –3.3% yr/yr to 16.89 cents per pound. That was further below the record high of 21.60 cents posted in 1979. The wholesale price of edible tallow in 2006 fell –1.9% yr/yr to 18.63 cents per pound from 18.99 cents in 2005, and remained well below the record high of 30.25 cents per pound posted in 1981. Supply – World production of tallow and greases (edible and inedible) in 2005, the latest available reporting year,

fell by –0.6% yr/yr to 8.200 million metric tons, down from the record high of 8.251 million metric tons posted in 2004. The world’s largest producer of tallow and greases by far is the US with 44% of world production, followed by Brazil with 7%, Australia with 6%, and Canada with 4%. U.S. production of edible tallow in 2005 fell –4.2% yr/yr to 1.741 billion pounds, down from the 2002 record high of 1.974. US production of inedible tallow and greases in 2006 rose by +4.1% yr/yr to 6.460 billion pounds, which was well below the record high of 7.156 billion pounds posted in 2002. Demand – US consumption of inedible tallow and greases in 2006 rose +5.4% yr/yr to 2.589 billion pounds, of which virtually all went to animal feed. US consumption of edible tallow in 2005 fell –12.5% yr/yr to 1.449 billion pounds, down from the 2004 record high of 1.656. US per capita consumption of edible tallow fell –15.0% to 3.4 pounds per person per year, down from the 2000 and 2004 record high of 4.0. Trade – US exports of inedible tallow and grease in 2006 rose 25.2% yr/yr to 346.0 million pounds, and accounted for 4.7% of total US supply. US exports of edible tallow in 2004 rose +13.7% yr/yr to 290 million pounds, and accounted for 16.4% of US supply.

World Production of Tallow and Greases (Edible and Inedible) Year

Argentina

Australia

Brazil

Canada

142 159 146 160 161 144 147 154 178 184

438 461 462 471 503 507 469 456 486 493

314 368 379 394 430 446 468 487 508 533

228 244 256 285 293 296 305 289 343 351

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

Preliminary.

2

Forecast.

In Thousands of Metric Tons

France

Germany

Rep. of Korea

Netherlands

New Zealand

Russia

United Kingdom

United States

World Total

165 165 160 160 151 140 154 164 166 162

139 136 135 140 132 126 124 121 124 121

14 17 19 18 17 15 14 15 14 15

161 191 203 178 171 151 143 141 133 125

162 187 154 167 170 173 162 174 192 168

232 215 202 186 178 172 179 182 179 173

163 166 173 158 148 115 123 120 123 125

3,581 3,510 3,679 3,979 3,948 3,503 3,826 3,707 3,714 3,604

7,417 7,591 7,806 8,171 8,202 7,694 8,076 8,036 8,251 8,200

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Salient Statistics of Tallow and Greases (Inedible) in the United States

Year

1997 1998 1999 2000 2001 2002 2003 2004 20051 20062

------------------------- Supply ------------------------ProStocks, duction Jan. 1 Total

6,249 6,644 7,079 7,035 6,870 7,156 6,246 6,173 6,204 6,460

266 339 437 405 347 327 240 282 281 309

6,515 6,983 7,516 7,440 7,217 7,482 6,486 6,455 6,485 6,769

In Millions of Pounds

--------------------- Consumption ---------------------Exports

S oap

F eed

Total

775 1,041 877 791 616 384 307 336 276 346

245 228 229 146 107 W W W W W

2,401 2,533 2,847 2,727 2,834 2,886 2,434 2,536 2,456 2,589

2,646 2,761 3,076 2,849 2,843 2,886 2,434 2,536 2,456 2,589

Wholesale --------- Prices, Cents/Lb. -------Inedible, Edible, No. 1 (Loose) Chicago Chicago

23.5 19.1 15.1 11.7 13.7 14.8 20.3 19.8 19.0 18.6

1 Preliminary. 2 Estimate. Sources: Economic Research Service, U.S. Department of Agriculture (ERS-USDA); Bureau of the Census, U.S. Department of Commerce

276

20.8 17.5 13.0 10.0 12.0 13.5 18.3 18.0 17.5 16.9

TALLOW AND GREASES

-----

Cents Per Pound Inedible Prime, Chicago (Jan. 1910 - Dec. 1948) Bleachable, Chicago (Jan. 1949 - date)

Supply and Disappearance of Edible Tallow in the United States

Year

-------------------------- Supply -------------------------Stocks Jan. 1 Production Total

1996 1997 1998 1999 2000 2001 2002 2003 2 0 0 41 20052

43 33 47 39 33 37 40 25 24 22

1,520 1,416 1,537 1,729 1,825 1,792 1,974 1,966 1,818 1,741

In Millions of Pounds, Rendered Basis

--------------------------------------------------------- Disappearance -----------------------------------------------------------P er Baking Diret Capita or Frying Domestic Exports Total Use (Lbs.) Fats

1,568 1,455 1,586 1,775 1,866 1,859 2,023 1,996 1,842 1,764

1,317 1,223 1,301 1,425 1,581 1,455 1,487 1,552 1,656 1,449

218 185 246 317 248 364 511 420 255 290

1,535 1,408 1,547 1,742 1,829 1,819 1,998 1,972 1,820 1,739

602 585 868 998 1,125 869 974 1,108 1,163 1,030

320 312 259 262 283 W W W W W

2.2 2.1 3.1 3.6 4.0 3.0 3.4 3.8 4.0 3.4

1 Preliminary. 2 Forecast. Sources: Economic Research Service, U.S. Department of Agriculture (ERS-USDA); Bureau of the Census, U.S. Department of Commerce

Wholesale Price of Tallow, Inedible, No. 1 Packers (Prime), Delivered, Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

23.40 18.20 16.30 11.89 12.17 10.00 17.13 23.23 16.20 17.52

22.88 16.88 12.53 10.14 9.46 10.54 15.65 16.72 16.03 17.05

19.35 17.58 11.18 10.67 9.62 12.64 16.60 17.80 18.73 14.98

17.39 17.70 11.38 10.21 10.26 11.06 16.54 21.05 20.95 13.47

18.09 20.35 10.40 11.60 10.19 11.59 16.48 18.01 19.38 14.77

19.64 19.63 11.49 10.74 12.35 15.47 17.30 18.08 18.23 15.27

19.65 17.31 11.50 9.19 15.44 14.80 16.08 19.55 15.11 17.05

20.10 17.57 11.69 9.48 16.83 14.00 15.85 16.92 15.31 17.35

20.88 16.69 14.38 10.07 13.75 14.23 18.70 17.20 17.54 15.59

22.13 16.98 16.37 10.05 11.24 13.98 22.78 14.33 17.40 17.71

22.88 16.90 14.95 9.35 10.60 15.91 23.37 15.61 17.96 20.42

22.60 16.70 13.88 11.23 12.34 18.08 23.08 16.97 16.67 21.46

20.75 17.71 13.00 10.39 12.02 13.53 18.30 17.96 17.46 16.89

Preliminary.

Sources: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

277

Tea Tea is the common name for a family of mostly woody flowering plants. The tea family contains about 600 species placed in 28 genera and they are distributed throughout the tropical and subtropical areas, with most species occurring in eastern Asia and South America. The tea plant is native to Southeast Asia. There are more than 3,000 varieties of tea, each with its own distinct character, and each is generally named for the area in which it is grown. Tea may have been consumed in China as long ago as 2700 BC and certainly since 1000 BC. In 2737 BC, the Chinese Emperor Shen Nung, according to Chinese mythology, was a scholar and herbalist. While his servant boiled drinking water, a leaf from the wild tea tree he was sitting under dropped into the water and Shen Nung decided to try the brew. Today, half the world’s population drinks tea. Tea is the world’s most popular beverage next to water. Tea is a healthful drink and contains antioxidants, fluoride, niacin, folic acid, and as much vitamin C as a lemon. The average 5 oz. cup of brewed tea contains approximately 40 to 60 milligrams of caffeine (compared to 80 to 115 mg in brewed coffee). Decaffeinated tea has been available since the 1980s. Herbal tea contains no true tea leaves but is actually brewed from a collection of herbs and spices. Tea grows mainly between the tropic of Cancer and the tropic of Capricorn, requiring 40 to 50 inches of rain per year and a temperature ideally between 50 to 86 degrees Fahrenheit. In order to rejuvenate the bush and keep it at a convenient height for the pickers to access, the bushes must be pruned every four to five years. A tea bush can

World Tea Production, in Major Producing Countries Year

1998 1999 2000 2001 2002 2003 20041

Argentina

Bangladesh

China

57.0 56.0 53.0 63.0 63.0 64.0 64.0

51.0 56.0 46.0 52.0 52.0 60.0 56.0

688.0 697.0 704.0 722.0 760.0 800.0 855.0

produce tea for 50 to 70 years, but after 50 years, the yield is reduced. The two key factors in determining different varieties of tea are the production process (sorting, withering, rolling, fermentation, and drying methods) and the growing conditions (geographical region, growing altitude, and soil type). Black tea, often referred to as fully fermented tea, is produced by allowing picked tea leaves to wither and ferment for up to 24 hours. After fermenting, the leaves are fired, which stops oxidation. Green tea, or unfermented tea, is produced by immediately and completely drying the leaves and omitting the oxidization process, thus allowing the tea to remain green in color. Supply – World production of tea in 2004, the latest full reporting year for the series, rose +4.2% to 3.342 million metric tons, which was a record high. The world’s largest producers of tea in 2004 were India (with 26.0% of world production), China (26%), Sri Lanka (9), Kenya (9%), Turkey (6%), and Indonesia (5%). Trade – US tea imports in 2006 rose +6.3% to 195,872 metric tons, which was a new record high. World tea imports in 2003, the latest data available, fell –8.6% to 1.320 million metric tons. The world’s largest tea importers in 2003 were Russia (with 13% of total world imports), the United Kingdom (12%), Pakistan (8%), and the US (7%). The world’s largest exporters in 2003 were Kenya (with 21% of world exports), China (19%), India (13%), Sri Lanka (12%), Indonesia (6%), Vietnam (4%), and Argentina (4%).

In Thousands of Metric Tons

India

Indonesia

Iran

Ja p a n

Kenya

Malawi

Sri Lanka

Turkey

ExUSSR2

World Total

870.0 870.0 835.0 848.0 826.0 885.0 851.0

166.0 161.0 162.0 163.0 163.0 159.0 165.0

60.0 80.0 50.0 51.0 51.0 52.0 52.0

83.0 88.0 85.0 85.0 85.0 92.0 101.0

294.0 249.0 236.0 217.0 287.0 290.0 295.0

40.0 48.0 45.0 37.0 38.0 45.0 50.0

280.0 284.0 306.0 295.0 310.0 303.0 308.0

178.0 178.0 139.0 143.0 150.0 131.0 202.0

52.0 65.0 27.0 25.0 23.0 26.0 26.0

3,040 3,078 2,947 2,980 3,100 3,207 3,342

Preliminary. 2 Mostly Georgia and Azerbaijan. Sources: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA); Food and Agriculture Organization of the United Nations (FAO-UN)

1

World Tea Exports from Producing Countries Argentina

Bangladesh

Brazil

China

56,806 58,987 52,144 50,000 58,110 57,643 59,062

21,740 25,049 21,494 11,000 6,400 3,964 7,348

3,404 3,208 2,914 3,714 4,082 3,979 4,209

205,381 219,325 202,681 230,696 252,204 254,875 262,663

Year

1997 1998 1999 2000 2001 2002 1 20032 1

Preliminary.

2

Estimate.

Year

1

Malawi

P. New Guinea

Sri Lanka

191,472 66,843 201,798 67,219 177,507 97,847 200,868 105,581 177,603 99,797 181,617 100,185 174,246 88,176

199,224 263,685 245,716 217,282 207,244 88,311 293,751

39,824 40,518 30,000 69,600 32,200 36,631 37,945

6,500 6,600 8,200 8,500 8,800 5,200 6,600

267,726 270,938 268,330 287,005 293,524 290,500 161,773

Vietnam Zimbabwe

32,901 33,000 37,300 55,600 67,900 77,000 59,800

13,057 11,076 15,722 16,916 6,162 18,855 13,355

World Total

1,315,534 1,415,223 1,372,179 1,489,215 1,446,657 1,375,260 1,383,544

In Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

14,596 14,785 15,051 15,089 16,728 15,645

11,917 14,237 13,519 14,716 13,977 14,556

15,237 16,029 15,651 18,355 17,877 17,307

16,772 17,326 17,810 19,279 20,502 18,997

15,802 18,747 18,863 18,813 16,696 22,024

16,426 15,158 15,089 18,782 18,445 20,080

16,041 15,189 15,290 16,511 15,714 15,693

14,415 11,977 13,778 14,116 14,146 16,377

11,917 9,777 11,240 14,530 12,775 14,560

14,072 14,384 16,417 13,851 14,376 11,869

14,548 12,148 11,439 14,876 11,276 15,392

11,150 12,073 13,054 14,698 11,750 13,372

172,893 171,829 177,201 193,615 184,261 195,872

Preliminary.

278

Kenya

India

Source: Food and Agriculture Organization of the United Nations (FAO-UN)

Imports of Tea in the United States 2001 2002 2003 2004 2005 2006 1

In Metric Tons Indonesia

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Tin Tin (symbol Sn) is a silvery-white, lustrous gray metallic element. Tin is soft, pliable and has a highly crystalline structure. When a tin bar is bent or broken, a crackling sound called a “tin cry” is produced due to the breaking of the tin crystals. People have been using tin for at least 5,500 years. Tin has been found in the tombs of ancient Egyptians. In ancient times, tin and lead were considered different forms of the same metal. Tin was exported to Europe in large quantities from Cornwall, England, during the Roman period, from approximately 2100 BC to 1500 BC. Cornwall was one of the world’s leading sources of tin for much of its known history and into the late 1800s . The principal ore of tin is the mineral cassiterite, which is found in Malaya, Bolivia, Indonesia, Thailand, and Nigeria. About 80% of the world’s tin deposits occur in unconsolidated placer deposits in riverbeds and valleys, or on the sea floor, with only about 20% occurring as primary hard-rock lodes. Tin deposits are generally small and are almost always found closely allied to the granite from which it originates. Tin is also recovered as a by-product of mining tungsten, tantalum, and lead. After extraction, tin ore is ground and washed to remove impurities, roasted to oxidize the sulfides of iron and copper, washed a second time, and then reduced by carbon in a reverberatory furnace. Electrolysis may also be used to purify tin. Pure tin, rarely used by itself, was used as currency in the form of tin blocks and was considered legal tender for taxes in Phuket, Thailand, until 1932. Tin is used in the manufacture of coatings for steel containers used to preserve food and beverages. Tin is also used in solder alloys, electroplating, ceramics, and in plastic. The world’s major tin research and development laboratory, ITRI Ltd, is funded by companies that produce and consume tin. The focus of the research efforts have been on possible new uses for tin that would take advantage of tin’s relative non-toxicity to replace other metals in various products. Some of the replacements could be lead-free solders, antimony-free flame-retardant chemicals, and lead-free shotgun pellets. No tin is currently mined in the U.S. Tin futures and options trade on the London Metal Exchange (LME). Tin has traded on the LME since 1877

and the standard tin contract began in 1912. The futures contract calls for the delivery of 5 metric tons of tin ingots of at least 99.85% purity. The contract trades in terms of US dollars per metric ton. Prices – The average monthly price of tin (straights) in New York in 2006 rose by +18.5% yr/yr to a 21-year high of $5.68 per pound. The 2006 price of $5.68 is double the 3-decade low of $2.83 per pound seen as recently as 2002. The average monthly price of ex-dock tin in New York in 2006 rose by +16.4% yr/yr to $4.17 per pound, and that is more than double the 3-decade low of $1.99 per pound posted in 2002. Supply – World mine production of tin in 2005 (latest data available) rose by +6.9% yr/yr to a record high of 280,000 metric tons. The world’s largest mine producers of tin are China with 41% of world production in 2005, Indonesia with 29%, and Peru with 15%. World smelter production of tin fell –7.9% in 2005 to 280,000 metric tons, which was mildly below the record high of 304,000 metric tons produced in 2004. The world’s largest producers of smelted tin are China with 41% of world production in 2005, Indonesia with 27%, and Bolivia with 6%. The US does not mine tin, and therefore supply consists only of scrap and imports. US tin recovery in 2005 fell –0.4% to 7,670 metric tons, which was a new record low. Demand – US consumption of tin (pig) in 2006 (through November) fell –9.4% to an annualized 42,278 metric tons, which is a 12-year low. The breakdown of US consumption of tin by finished products in 2005 shows that the largest consuming industry of tin is solder (with 34% of consumption), followed by chemicals (23%), tin plate (20%), and bronze and brass (8%). Trade – The US relied on imports for 79% of its tin consumption in 2006. US imports of unwrought tin metal in 2004 rose +28.3% to 47,600 metric tons, up from the 2003 7-year low of 37,100 metric tons. The largest sources of US imports in 2004 were China (5,310 metric tons), Bolivia (with 5,060 metric tons of imports), Indonesia (4,660 metric tons), and Brazil (4,330 metric tons). US exports of tin in 2004 fell –1.1% yr/yr to 3,650 metric tons.

World Mine Production of Tin

In Metric Tons (Contained Tin)

Year

Australia

Bolivia

China

Indonesia

Malaysia

Nigeria

Peru

Portugal

Russia

Thailand

United Kingdom

World Total

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052

8,828 10,169 10,204 10,011 9,146 9,602 6,268 3,819 800

14,802 12,898 11,308 12,417 12,464 12,298 15,242 16,755 16,800 17,000

19,617 69,600 19,065 67,500 14,238 70,100 13,202 80,100 13,773 99,400 14,200 95,000 14,200 62,000 12,217 102,000 12,200 110,000 12,300 115,000

52,304 55,175 53,959 47,754 51,629 61,862 88,142 71,694 65,772 80,000

5,174 5,065 5,754 7,339 6,307 4,972 4,215 3,359 3,000 2,000

139 150 200 3,300 2,760 2,870 2,800 3,700 3,000

27,004 27,952 49,574 59,191 70,901 69,696 38,815 40,202 41,613 42,000

4,637 2,667 3,100 2,200 1,200 1,200 1,000 200 500 500

8,000 7,500 4,500 2,500 2,500 2,000 1,300 2,000 2,500 3,000

1,300 746 1,656 2,712 1,930 1,950 1,130 817 567 650

2,103 2,396 376 ----------------------

220,000 217,000 231,000 246,000 277,000 281,000 241,000 263,000 262,000 280,000

1

Preliminary.

2

Estimate.

Brazil

Source: U.S. Geological Survey (USGS)

279

TIN World Smelter Production of Primary Tin Year

Australia

Bolivia

Brazil

China

460 605 655 600 775 1,171 611 597 478 800

16,733 16,853 11,102 11,166 9,353 11,292 10,976 10,976 11,000 17,000

18,361 17,525 14,900 12,787 13,825 13,800 11,675 10,761 11,000 12,300

71,500 67,700 79,300 90,800 112,000 105,000 82,000 98,000 115,000 115,000

39,000 52,658 53,401 49,105 46,432 53,470 67,455 65,000 65,000 80,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1 1

In Metric Tons

Indonesia

Preliminary.

Ja p a n

Malaysia

Mexico

Russia

South Africa

Spain

Thailand

524 507 500 568 593 668 659 662 707

38,051 34,822 27,201 28,913 26,228 30,417 30,887 18,250 30,000

1,234 1,188 1,078 1,262 1,204 1,789 1,756 1,769 1,775

9,000 6,700 3,000 4,500 4,800 4,569 4,615 5,500 5,500

----------------------------

150 150 100 50 ----------------

10,981 11,986 15,353 17,306 17,076 22,387 17,548 15,763 15,500

World Total

211,000 241,000 247,000 267,000 288,000 300,000 280,000 280,000 304,000 280,000

Source: U.S. Geological Survey (USGS)

United States Foreign Trade of Tin

In Metric Tons

----------------------------------------------------------------------------- Imports for Consumption -----------------------------------------------------------------------------

Year

Exports (Metal)

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1 1

2,790 3,670 4,660 5,020 6,770 6,640 4,350 2,940 3,690 3,650

Preliminary.

2

------- Concentrates2 (Ore) ------- -------------------------------------------------------- Unw rought Tin Metal -------------------------------------------------------Total Total IndoSingaUnited All Ore Bolivia Peru All Metal Bolivia Brazil China nesia Malaysia pore Thailand Kingdom

--------57 -----------------------------

Tin content.

-----------------------------------------

-----------------------------------------

33,200 30,200 40,600 44,000 47,500 44,900 37,500 42,200 37,100 47,600

6,630 6,290 6,680 5,160 3,850 6,330 6,040 6,150 5,720 5,060

8,070 9,460 8,610 4,710 4,700 5,860 5,510 4,840 3,000 4,330

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

--------600 540 20 ----------------500

97 243 20 790 60 514 118 2 143 97

In Metric Tons

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

4,953 4,410 4,660 4,362 4,252 3,965 3,814 3,851 4,097 3,877

4,025 4,493 4,667 4,466 4,185 3,866 3,808 3,632 3,990 3,694

4,023 4,445 4,790 4,430 4,095 3,868 3,851 3,887 4,027 3,508

4,067 4,508 4,790 4,377 4,141 3,819 3,891 3,837 3,874 3,439

3,999 4,388 4,760 4,466 4,148 4,087 3,701 3,874 3,825 3,447

4,079 4,483 4,700 4,470 4,128 3,887 3,814 4,001 3,918 3,580

3,936 4,273 4,254 4,398 4,055 3,887 3,841 3,844 3,806 3,475

3,912 4,300 4,396 4,476 4,163 3,842 3,850 3,871 3,900 3,420

4,050 4,404 4,340 4,397 4,153 3,835 3,803 3,850 3,824 3,456

4,098 4,402 4,316 4,460 4,197 3,966 3,816 3,870 3,833 3,442

3,964 4,348 4,275 4,244 4,129 3,822 3,764 3,947 3,849 3,417

4,250 4,268 4,227 4,157 3,974 3,811 3,887 3,772 3,699

44,350 52,720 55,100 47,040 49,620 46,655 45,840 46,236 46,642 42,278

Year

Source: U.S. Geological Survey (USGS)

In Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

4,670 6,100 5,620 8,300 8,140 7,700 7,280 6,520 6,140 5,400

5,100 5,570 8,120 8,330 8,330 7,320 6,980 6,010 5,260 5,380

5,610 5,390 7,770 7,960 8,360 7,020 6,690 6,130 5,570 5,330

5,600 5,840 7,760 7,580 8,460 6,990 6,640 6,280 5,420 5,350

5,070 6,170 7,760 7,810 8,270 6,870 6,390 5,850 5,770 5,400

5,270 5,940 7,510 7,930 8,640 6,600 6,400 6,000 5,400 5,380

5,180 5,830 7,750 8,090 8,760 6,540 6,380 5,900 5,670 5,420

5,650 5,580 7,560 8,240 8,760 6,590 6,420 6,290 5,830 5,400

5,590 6,660 7,870 7,820 8,920 6,670 6,250 6,110 5,540 5,740

5,420 6,270 7,790 8,210 9,030 7,130 6,180 6,030 5,350 5,650

5,290 5,880 8,390 7,200 7,630 6,880 6,190 5,900 5,330 5,650

5,590 5,710 8,800 7,970 7,470 6,950 6,340 6,410 5,410 5,640

Preliminary.

280

40 120 120 822 60 20 145 -------------

F eb.

Tin Stocks (Pig-Industrial) in the United States, on First of Month

1

3,810 965 1,640 1,870 944 214 674 122 490 6,600

Jan.

Preliminary.

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061

7,230 7,550 7,610 7,880 7,930 5,320 3,880 3,340 3,070 4,660

Source: U.S. Geological Survey (USGS)

Consumption (Total) of Tin (Pig) in the United States Year

5,610 2,760 4,710 9,870 13,900 10,200 6,360 7,600 4,340 5,310

Source: U.S. Geological Survey (USGS)

TIN

-----

Cents Per Pound Composite, New York (Jan. 1910 - date)

Average Price of Ex-Dock Tin in New York1 Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

281.91 249.39 244.46 283.63 249.32 189.23 212.68 305.34 376.37 338.27

281.34 252.65 251.04 271.70 246.91 183.23 217.98 313.55 393.05 373.87

281.51 262.36 255.13 263.42 243.14 187.65 219.58 357.66 408.41 378.76

274.36 271.65 256.97 259.59 238.33 195.36 217.90 418.57 395.40 420.35

274.23 279.50 269.42 259.70 238.53 201.95 225.40 449.29 394.68 420.53

267.31 284.27 253.64 260.16 231.14 208.01 223.69 438.72 367.81 376.76

261.03 268.87 251.09 257.77 210.17 211.51 225.81 439.24 347.78 400.64

259.85 270.98 251.32 255.92 188.42 188.36 229.58 437.68 347.96 404.26

262.56 260.79 256.38 262.54 179.53 193.79 233.59 438.91 331.01 428.83

266.77 259.17 260.70 254.56 181.38 206.67 248.22 436.80 313.73 461.66

268.33 261.82 278.24 253.64 194.77 205.94 252.93 439.24 300.96 475.57

262.61 251.75 274.51 252.19 195.90 206.63 285.40 414.16 323.43 524.69

270.15 264.43 258.73 261.24 216.46 199.15 232.73 407.43 358.38 417.02

Source: American Metal Market (AMM)

Average Price of Tin (Straights) in New York Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

396.18 356.97 348.77 400.90 356.37 271.59 304.44 422.33 500.93 464.54

395.50 359.76 356.50 384.13 352.87 263.91 312.32 433.50 519.61 509.45

395.64 370.96 361.11 372.50 348.19 270.54 314.52 485.99 539.30 519.31

386.52 381.99 363.01 368.42 341.59 280.98 312.26 557.29 522.71 574.53

386.58 392.16 372.62 370.13 340.61 288.74 321.92 575.39 522.18 575.57

377.83 397.36 359.05 370.81 329.68 296.02 319.67 570.99 492.64 517.52

369.97 377.72 359.96 366.49 302.57 299.39 322.10 565.68 467.71 548.29

369.01 380.02 357.35 364.65 276.55 269.30 327.16 568.14 466.67 552.06

372.45 368.89 366.06 375.25 263.17 277.60 332.21 572.72 444.80 583.57

377.39 366.87 370.68 363.54 264.88 293.79 350.90 573.79 426.36 623.07

378.00 370.49 392.04 362.94 281.23 292.40 356.46 577.07 411.23 644.19

371.35 357.69 288.77 360.68 279.46 292.95 396.46 550.97 440.30 705.62

381.37 373.41 357.99 371.70 311.43 283.10 330.87 537.82 479.54 568.14

Source: U.S. Geological Survey (USGS)

281

TIN Tin Plate Production & Tin Recovered in the United States

In Metric Tons

------ Tin Content of Tinplate Produced ------------- Tinplate (All Forms) -------- --------------------------------- Tin Recovered from Scrap by Form of Recovery --------------------------------Tin Per Anti- Chemical Tonne Tin Tin Bronze Type Commonial of Plate Content Grand ---- Gross Weight ---- (Tonne) (Kilograms) Metal & Brass Solder Metal Babbitt pounds Misc.2 Lead Total

Tinplate Waste Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

181,100 157,000 W W 119,000 97,800 45,900 W W W

1,551,000 2,010,000 1,700,000 1,750,000 1,320,000 2,000,000 2,450,000 2,500,000 2,550,000 2,270,000

9,617 9,300 8,900 9,080 8,800 7,800 7,750 7,750 7,700 7,670

6.2 4.6 5.2 5.2 6.7 3.9 3.2 3.1 3.0 3.4

W W NA NA NA NA NA NA NA NA

11,400 12,200 NA NA NA NA NA NA NA NA

W W NA NA NA NA NA NA NA NA

37 W NA NA NA NA NA NA NA NA

Preliminary. 2 I ncludes foil, terne metal, cable lead, and items indicated by symbol W. Source: U.S. Geological Survey (USGS)

Consumption of Primary and Secondary Tin in the United States

Year

Industry Stocks Jan. 12

84 83 85 85 85 86 88 79 91 88

8,480 9,300 9,180 9,280 9,290 8,910 8,830 8,500 8,220 7,310

1995 1996 1997 1998 1999 2000 2001 2002 2003 2 0 0 41 1

Preliminary.

2

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1

Primary

Secondary

Scrap

Total

Available Supply

Stocks Dec. 31 (Total Available Less Total Processed)

39,400 39,200 39,000 39,900 40,500 41,400 34,500 34,200 32,400 37,200

5,020 2,750 2,360 2,490 2,790 2,990 2,180 1,610 1,380 1,840

6,240 6,140 6,010 6,240 6,360 6,050 4,770 4,230 3,440 4,350

50,600 48,100 47,300 48,600 49,700 50,400 41,400 40,100 37,300 43,400

59,100 57,300 56,500 57,900 58,900 59,300 50,200 48,600 45,500 50,700

13,000 12,500 11,900 12,000 11,900 12,200 8,220 8,550 7,770 11,300

---------------------------- Net Receipts -----------------------------

I ncludes tin in transit in the U.S.

282

W W NA NA NA NA NA NA NA NA

11,600 12,300 NA NA NA NA NA NA NA NA

Total Processed

Consumed in Manufacturing Products

46,100 44,900 44,600 45,800 47,000 47,100 42,000 40,000 37,700 39,500

46,000 44,700 44,400 45,700 46,900 47,000 41,900 39,800 37,400 39,000

Source: U.S. Geological Survey (USGS)

Tinplate2

Solder

Babbitt

Bronze & Brass

Tinning

Chemicals3

9,670 9,340 9,350 8,900 9,150 8,800 7,800 7,750 7,790 7,700

17,700 15,600 15,900 16,900 18,700 18,800 17,000 13,800 10,600 13,300

871 851 909 1,020 1,610 1,660 770 1,310 2,570 724

2,830 2,760 3,160 3,610 3,410 3,360 3,430 3,040 2,600 3,070

1,110 2,050 1,210 1,100 905 1,200 1,070 679 833 798

7,060 7,520 8,170 8,180 8,220 8,040 7,590 8,400 8,720 9,120

In Metric Tons (Contained Tin)

Tin Bar Tin Powder & Anodes

W 573 W W W W W W W W

1,200 1,150 684 704 721 714 570 617 852 680

Preliminary. 2 I ncludes small quantity of secondary pig tin and tin acquired in chemicals. Source: U.S. Geological Survey (USGS)

1

W W NA NA NA NA NA NA NA NA

In Metric Tons

Consumption of Tin in the United States, by Finished Products Year

171 149 NA NA NA NA NA NA NA NA

W = Withheld Proprietary data.

1

Net Import Reliance as a % of Apparent Consumption

34 W NA NA NA NA NA NA NA NA

3

------------ Total ------------

White Metal

Other

Total

Primary

Secondary

965 1,340 754 778 943 1,260 1,390 1,320 1,220 937

4,550 3,230 3,980 4,260 3,220 3,210 2,230 2,920 2,180 2,630

46,000 44,700 44,400 45,700 46,900 47,000 41,900 39,800 37,400 39,000

35,200 36,500 36,200 37,100 38,000 38,100 34,200 34,000 32,900 33,300

10,800 8,180 8,250 8,620 8,890 8,940 7,630 5,830 4,510 5,670

I ncluding tin oxide.

W = Withheld proprietary data.

Titanium Titanium (symbol Ti) is a silver-white, metallic element used primarily to make light, strong alloys. It ranks ninth in abundance among the elements in the crust of the earth but is never found in the pure state. It occurs as an oxide in various minerals. It was first discovered in 1791 by Rev. William Gregor and was first isolated as a basic element in 1910. Titanium was named after the mythological Greek god Titan for its strength. Titanium is extremely brittle when cold, but is malleable and ductile at a low red heat, and thus easily fabricated. Due to its strength, low weight, and resistance to corrosion, titanium is used in metallic alloys and as a substitute for aluminum. It is used extensively in the aerospace industry, in desalinization plants, construction, medical implants, paints, pigments, and lacquers. Prices – The price of the mineral ilmenite, a primary source of titanium, traded in the range of $75-85 per metric ton in 2005 versus $72-90 in 2004.The price of titanium metal sponge traded in the range of $3.46-12.22 per pound in 2005 versus $3.55-6.44 in 2004. The price of titanium dioxide pigments (Anatase) traded in the range of $.95-$1.00 cents per pound in 2005 versus 90-95 cents per pound in 2004.

concentrates in 2005 rose +3.5% to 5.840 million metric tons, to post a new record high. The world’s largest producers of titanium ilmenite concentrates are Australia with 36% of world production in 2005, China with 15%, Norway with 15%, the Ukraine with 12%, and India with 9%. World production of titanium rutile concentrates in 2005 rose +4.2% yr/yr to 369,000 metric tons, which was well below the record high of 545,000 metric tons seen in 1994. The world’s largest producers are Australia with 48% of world production in 2005, followed by South Africa with 30% and the Ukraine with 16%. Demand – US consumption of titanium dioxide pigment in 2005 fell by –3.4% yr/yr to 1.130 million metric tons, down from 2004’s record high of 1.170 million metric tons. US consumption of ilmenite in 2005 fell –12.8% to 1.290 million metric tons, from 2004’s 8-year high of 1.480 million metric tons. US consumption of rutile in 2005 fell – 4.7% yr/yr to a 7-year low of 424,000 metric tons. Trade – US imports of titanium dioxide pigment in 2005 rose +29.2% to a new record high of 341,000 metric tons. US imports of ilmenite in 2005 rose +17.3% yr/yr to 822,000 metric tons. US imports of rutile in 2005 rose +1.7% yr/yr to 366,000 metric tons.

Supply – World production of titanium ilmenite

Average Prices of Titanium in the United States

Year

Average Price of Grade A Rutile Rutile Slag, 85% Ilmenite Titanium Dioxide Titanium Titanium Bagged F.O.B. Large Lots TiO2 F.O.B. F.O.B. Pigments, F.O.B. Metal Sponge, F.O.B. Australian Bulk, F.O.B. Richards Bay, Australian Sponge --------------- U.S. Plants ----------------Shipping Point Ports South Africa U.S. East Coast Ports --------------------------------- Dollars Per Metric Ton --------------------------------- -------------------------------------- Dollars Per Pound --------------------------------------

1996 1997 1998 1999 2000 2001 2002 2003 2 0 0 41 20052 1

82-92 68-81 72-77 90-103 83-105 90-110 85-100 80-100 72-90 75-85

Preliminary.

2

353 391 386 406 425 419 445 401 -------

Estimate.

525-600 500-550 470-530 435-510 470-500 450-500 430-470 415-445 430-480 460-480

NA = Not available.

700-800 650-710 570-620 500-530 480-570 475-565 400-540 430-540 550-650 550-650

-------------------------------

4.25-4.50 4.25-4.50 4.25-4.50 3.70-4.80 3.95 3.58 3.64 2.72-3.95 3.55-6.44 3.46-12.22

1.06-1.08 1.01-1.03 .96-.98 .92-.94 .92-.94 .92-.94 .85-.95 .85-.95 .90-.95 .95-1.00

1.08-1.10 1.04-1.06 .97-.99 .99-1.02 .99-1.02 1.00-1.09 .85-.95 .85-.90 .90-.95 .95-1.00

Source: U.S. Geological Survey (USGS)

Salient Statistics of Titanium in the United States

In Metric Tons

Year

----- Titanium Dioxide Pigment -------- Exports of Titanium Products ---Ingots, Apparent ---------- Ilmenite ---------- ---- Titanium Slag ---- ---------- Rutile4 ---------- Ores & ProConConConCon- ConcenDioxide & Billets, duction Imports3 Etc. trates sumption sumption Imports3 sumption Imports3 sumption Scrap Pigments Imports3

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052

1,230,000 1,340,000 1,330,000 1,350,000 1,400,000 1,330,000 1,410,000 1,420,000 1,540,000 1,310,000

1

Preliminary.

2

167,000 194,000 200,000 225,000 218,000 209,000 231,000 240,000 264,000 341,000

Estimate.

3

1,070,000 939,000 1,400,000 1,130,000 952,000 1,520,000 1,140,000 1,010,000 1,300,000 1,160,000 1,070,000 1,280,000 1,150,000 918,000 1,250,000 1,100,000 1,060,000 1,180,000 1,110,000 840,000 1,300,000 1,070,000 804,000 1,300,000 1,170,000 701,000 1,480,000 1,130,000 822,000 1,290,000

For consumption.

4

421,000 430,000 626,000 678,000 533,000 594,000 445,000 409,000 457,000 667,000

Natural and synthetic.

-------------------------------

324,000 336,000 387,000 344,000 438,000 325,000 390,000 427,000 360,000 366,000

398,000 489,000 421,000 494,000 537,000 483,000 487,000 489,000 445,000 424,000

W = Withheld proprietary data.

15,500 3,410 23,800 5,500 59,700 7,010 9,380 8,130 18,900 5,060 7,800 7,500 3,810 6,000 10,300 5,320 8,690 9,760 20,900 20,600

292,000 362,000 356,000 344,000 423,000 349,000 485,000 518,000 576,000 486,000

3,130 3,860 3,780 3,390 2,980 3,260 3,460 3,960 4,990 6,350

Source: U.S. Geological Survey (USGS)

283

TITANIUM World Production of Titanium Illmenite Concentrates Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

In Thousands of Metric Tons

Australia2

Brazil

China

Egypt

India

Malaysia

Norway

2,061 2,265 2,433 2,008 2,173 2,047 1,956 2,063 1,966 2,089

98 97 103 96 123 165 177 170 133 135

165 170 175 180 250 300 750 800 840 900

124 125 125 130 125 125 125 125 125 125

330 332 378 378 380 430 460 500 520 550

245 168 125 128 125 130 106 95 61 70

747 750 590 600 750 750 750 840 860 860

Ukraine

United States

Vietnam

World Total

500 500 507 537 436 485 512 421 370 700

W W W W 400 500 400 500 500 500

50 50 80 91 174 180 180 180 200 180

4,380 4,470 4,560 4,150 4,940 5,110 5,420 5,690 5,640 5,840

-- Titaniferous Slag3 -South Canada Africa

825 850 950 950 910 1,010 900 873 863 860

1,000 1,100 1,100 1,168 1,090 1,025 973 1,010 1,020 1,020

Preliminary. 2 I ncludes leucoxene. 3 Approximately 10% of total production is ilmenite. Beginning in 1988, 25% of Norway's ilmenite production was used to produce slag containing 75% TiO2. W = Withheld proprietary data. Source: U.S. Geological Survey (USGS)

1

World Production of Titanium Rutile Concentrates Australia

Brazil

India

Sierre Leone

180,000 233,000 238,000 179,000 208,000 206,000 218,000 173,000 162,000 177,000

2,018 1,742 1,800 4,300 3,162 1,791 1,878 2,337 3,000 3,000

15,000 14,000 16,000 16,000 17,000 19,000 18,000 18,000 19,000 19,000

-------------------------------

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2 0 0 51 1

Preliminary.

NA = Not available.

In Metric Tons South Africa

Sri Lanka

Thailand

Ukraine

World Total

115,000 123,000 130,000 100,000 100,000 90,000 138,000 108,000 110,000 110,000

3,532 2,970 1,930 ----------------------

-------------------------------

50,000 50,000 50,000 49,000 58,600 60,000 70,000 60,000 60,000 60,000

366,000 425,000 438,000 348,000 387,000 377,000 446,000 361,000 354,000 369,000

Source: U.S. Geological Survey (USGS)

World Production of Titanium Sponge Metal & U.S. Consumption of Titanium Concentrates -- U.S. Consumption of Titanium Concentrates, by Products (In Metric Tons) ----------------- Rutile (TiO2 Content) ----------------

Production of Titanium (In Metric Tons) ---------------------------------- Sponge Metal2 ---------------------------------Year

China

Ja p a n

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1

2,000 2,000 -------------------------

21,100 24,100 -------------------------

United Russia Kingdom

18,000 20,000 -------------------------

Total

Pigments

Misc.

W W -------------------------

51,000 58,000 -------------------------

1,010,000 1,410,000 1,290,000 1,270,000 1,240,000 1,160,000 1,280,000 1,280,000 1,460,000 1,260,000

3

-------------------------------

Preliminary. 2 Unconsolidated metal in various forms. Source: U.S. Geological Survey (USGS)

1

3

I ncluded in Pigments.

Average Price of Titanium1 in United States Year

2001 2002 2003 2004 2005 2006 1

Pigments

Misc.

Total

1,010,000 1,410,000 1,300,000 1,280,000 1,250,000 1,180,000 1,300,000 1,300,000 1,480,000 1,290,000

W W W ----------------------

341,000 406,000 384,000 469,000 513,000 455,000 464,000 466,000 418,000 394,000

24,200 27,600 37,300 25,800 24,100 28,500 22,900 22,500 26,700 30,000

365,000 434,000 421,000 494,000 537,000 483,000 487,000 489,000 445,000 424,000

3

14,000 13,400 13,900 15,400 16,000 16,700 19,300 34,000

NA = Not available.

W = Withheld proprietary data.

In Dollars Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

5.25 7.25 4.90 4.90 10.60 24.75

5.79 6.78 4.90 4.90 11.25 24.75

6.95 6.13 4.90 5.60 11.25 25.53

6.95 6.13 4.90 5.75 15.44 26.10

6.95 6.13 4.90 7.61 17.25 27.50

7.11 6.13 4.90 7.75 20.25 27.58

7.25 5.58 4.90 7.89 20.25 27.75

7.64 5.38 4.90 8.50 20.33 27.75

7.75 5.38 4.90 8.64 22.00 27.75

7.75 5.38 4.90 9.25 22.00 27.75

7.73 5.28 4.90 9.25 22.00 27.75

7.25 4.90 4.90 9.92 22.13 27.75

7.03 5.87 4.90 7.50 17.90 26.89

I ngot, 6A1 - 4V

284

Total

Welding Rod Coatings

------- Ilmenite (TiO2 Content) -------

United States

Source: American Metal Market (AMM)

Tobacco Tobacco is a member of the nightshade family. It is commercially grown for its leaves and stems, which are rolled into cigars, shredded for use in cigarettes and pipes, processed for chewing, or ground into snuff. Christopher Columbus introduced tobacco cultivation and use to Spain after observing natives from the Americas smoking loosely rolled tobacco-stuffed tobacco leaves. Tobacco is cured, or dried, after harvesting and then aged to improve its flavor. The four common methods of curing are: air cured, fire cured, sun cured, and flue cured. Flue curing is the fastest method of curing and requires only about a week compared with up to 10 weeks for other methods. Cured tobacco is tied into small bundles of about 20 leaves and aged one to three years. Virginia tobacco is by far the most popular type used in pipe tobacco since it is the mildest of all blending tobaccos. Approximately 60% of the US tobacco crop is Virginia-type tobacco. Burley tobacco is the next most popular tobacco. It is air-cured, burns slowly and provides a relatively cool smoke. Other tobacco varieties include Perique, Kentucky, Oriental, and Latakia. Prices – US tobacco farm prices in 2006 rose +1.8% to 167.2 cents per pound from 164.2 cents per pound in 2005. That is, however, far below the record high of 196.7 cents per pound posted in 2003. Supply – World production of tobacco in 2004 (latest data available) rose by +6.7% yr/yr to 6.651 million metric tons, rebounding upward from the 18-year low of 6.232 million metric tons seen in 2003. The world’s largest producers of tobacco are China with 36% of world production, followed at a distance by Brazil (with 13% of world production), India (10%), and the US (6%). US production in 2004 rose by +5.4% yr/yr to 397,347 metric tons, where it was down by more than half from the 2-decade high of 810,154 metric tons posted in 1997. Tobacco in the US is primarily grown in the MidAtlantic States, which account for the vast majority of US production. Specifically, the largest tobacco producing states in the US are North Carolina (with 46% of US production in 2004), Kentucky (26%), Tennessee (7%), South Carolina (7%), Virginia (6%), and Georgia (4%). Flue-cured tobacco (type 11-14) is the most popular tobacco type grown in the US and US production in 2006 rose sharply by +17.2% yr/yr to 446.510 million pounds. The

World Production of Leaf Tobacco Year

1995 1996 1997 1998 1999 2000 2001 2002 2003 1 20042 1

Brazil Canada

398,000 439,000 576,600 447,000 595,000 589,000 542,400 674,000 636,700 890,500

Preliminary.

2

79,287 65,320 71,110 69,300 64,864 48,271 53,112 49,015 42,683 39,870

Estimate.

second most popular type is burley tobacco (type 31), which saw US production in 2006 rise +6.7% to 217.085 million pounds. Total US production of tobacco in 2006 rose +12.7% yr/ yr to 727 million pounds, which is less than half of the 2decade high of 1.787 billion pounds posted in 1997. US farmers have sharply reduced the planting acreage for tobacco. In 2006, harvested tobacco acreage rose by +14.1% yr/yr to 338.950 acres which is up from the 2005 record low of 297,080 but still far below the 24-year high of 836,230 posted just 9 years ago in 1997. Yields have been fairly constant and have averaged about 2,100 pounds per acre for the past 10 years. The farm value of the US tobacco crop in 2006 rose by +14.7% yr/yr to $1.215 billion. US marketings of flue-cured tobacco (Types 11-14) in the 2006-07 marketing year rose by +18.5% yr/yr to 453.8 million pounds. US marketings of burley tobacco (Type 31) in the 2006-07 marketing year rose by +6.9% yr/yr to 217.4 million pounds. US production of cigarettes in 2006 rose by +1.5% to 496.4 billion cigarettes, which was down sharply from the record high of 754.5 million posted in 1996. US production of cigars rose by +8.2% yr/yr to 3.977 billion in 2006. US production of chewing tobacco in 2006 fell by –3.1% to 38.0 million pounds, which was a record low. Demand – US per capita consumption of tobacco products in 2006 was unchanged at 3.69 pounds per person but there appears to be a shift from cigarettes to cigars. The 3.69 pounds per capita consumption of tobacco in 2006 is less than half the record high of 9.68 pounds per person that occurred at the beginning of the series in 1970. Per capita cigarette consumption in 2006 fell –1.5% yr/yr to 1,691 cigarettes per person, which was a record low. Per capita consumption of cigars in 2006 rose +1.9% yr/yr to a record high of 47.80 cigars per person. Per capita consumption of loose smoking tobacco in 2006 fell –6.3% yr/yr to 0.15 pounds. Trade – US tobacco exports in 2004 (latest data available) rose +3.5% yr/yr to 354.0 million pounds, rebounding further from the record low of 325.8 million pounds seen in 2002. Meanwhile, US tobacco imports in 2004 fell –10.9% yr/yr to 561.7 million pounds from the 11year high of 630.1 million pounds see in 2003. The US exported 11.3 billion cigarettes and 180 million cigars in 2006.

In Metric Tons

China

Greece

India

Indonesia

Italy

2,404,700 3,234,000 3,234,000 2,365,000 2,469,300 2,552,000 2,349,627 2,447,000 2,257,000 2,369,100

131,875 131,000 132,450 132,200 129,700 126,700 126,000 123,000 124,000 114,000

587,100 562,750 623,700 633,200 648,600 661,600 585,600 650,000 660,000 665,000

171,400 177,000 17,500 148,980 156,882 185,121 172,200 170,000 169,000 169,000

124,492 130,590 140,634 132,030 130,762 129,937 131,761 125,811 122,235 121,000

Pakistan

Turkey

United States

Zimbabwe

World Total

78,212 80,917 66,031 80,760 68,504 86,279 63,959 92,728 64,727 103,430 60,803 104,096 60,565 82,854 58,174 92,880 50,662 86,411 50,662 95,600

204,900 229,400 310,850 260,750 250,484 250,495 207,261 151,722 163,482 153,750

575,380 688,258 810,154 671,257 586,355 453,600 449,510 398,707 376,935 397,347

209,042 207,767 192,144 223,977 198,967 245,214 207,253 169,844 84,022 70,022

6,452,451 7,467,560 7,882,078 7,214,471 7,263,347 7,240,343 6,769,761 6,620,190 6,231,737 6,651,111

Ja p a n

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

285

TOBACCO Production and Consumption of Tobacco Products in the United States

Year

---- Chew ing Tobacco ----------------------------- Consumption5 of Per Capita6 -------------------------CigarCigarSmoking Chewing Total CigarL o o se Smoking ettes Cigars3 ettes Cigars3 Tobacco Tobacco Products ettes Cigars3 Plug Twist leaf Total Tobacco Snuff4 - Billions - - Millions - ---------------------- In Millions of Pounds ---------------------- ------ Number ------ -------------------------- In Pounds --------------------------

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062

722.8 679.7 611.5 594.1 562.8 532.0 499.4 493.5 489.0 496.4

2,324 2,751 2,938 2,825 3,741 3,819 4,017 4,407 3,674 3,977

3.5 3.1 2.8 2.5 2.4 2.0 1.7 1.7 1.4 1.3

1.0 1.0 0.9 0.8 0.8 0.7 0.7 0.7 0.6 0.5

53.7 49.2 47.2 46.0 43.9 40.2 37.9 37.0 37.2 36.1

58.1 53.3 50.9 49.4 47.0 43.0 40.3 39.3 39.2 38.0

11.4 11.7 14.7 13.6 12.8 15.5 17.8 16.1 17.4 16.5

64.3 65.5 67.0 69.5 70.9 72.7 73.8 79.3 86.7 81.8

2,422 2,275 2,101 2,049 2,051 1,982 1,890 1,814 1,716 1,691

37.3 37.1 38.5 38.0 41.2 41.8 44.5 47.9 46.9 47.8

4.10 3.60 3.50 3.40 3.50 3.40 3.20 3.10 2.90 2.90

.61 .61 .63 .62 .68 .68 .73 .79 .77 .78

.11 .12 .13 .13 .15 .16 .16 .15 .16 .15

.60 .53 .51 .48 .47 .43 .40 .37 .36 .37

4.85 4.32 4.23 4.10 4.30 4.16 3.97 3.87 3.69 3.69

Preliminary. 2 Estimate. 3 Large cigars and cigarillos. 4 I ncludes loose-leaf. 5 Consumption of tax-paid tobacco products. Unstemmed processing weight. 6 18 years and older. NA = Not available. Source: Economic Research Service, U.S. Department of Agriculture (ERS)

1

Production of Tobacco in the United States, by States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Florida

Georgia

Indiana

19,053 17,102 15,312 11,475 11,700 11,960 11,000 9,800 5,500 2,860

89,225 90,200 64,020 68,820 64,206 53,000 59,400 46,690 27,760 30,090

18,690 17,000 11,700 7,980 9,450 7,800 8,190 8,610 -------

Preliminary.

In Thousands of Pounds

Maryland

North Carolina

Ohio

497,928 12,000 443,628 9,100 408,492 9,100 283,065 8,265 254,653 3,300 222,991 1,800 225,042 1,595 235,003 1,870 174,260 ---186,700 ----

731,199 551,730 448,980 406,500 386,920 347,920 299,995 350,560 278,900 330,410

22,230 17,934 17,052 13,200 11,956 9,625 8,745 10,976 6,732 7,000

Kentucky

Pennsylvania

South Carolina

Tenne sse e

Virginia

Wisconsin

Total

17,020 126,360 114,292 117,576 15,720 92,250 111,100 95,898 11,170 78,000 122,601 88,855 10,170 81,260 95,958 56,613 6,166 78,400 86,893 63,415 6,815 59,475 71,331 64,407 7,880 63,000 65,632 38,818 8,100 63,450 65,381 67,285 10,700 39,900 51,670 40,351 16,240 48,300 49,135 46,645

5,690 4,230 2,818 2,255 3,619 3,817 4,255 3,541 -------

1,787,399 1,479,867 1,292,692 1,052,999 991,223 871,122 802,560 881,875 645,015 726,724

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

Salient Statistics of Tobacco in the United States Stocks of Tobacco5 ----- Tobacco ----- ---------------- U.S. Exports of ---------------- --------------- Various Types ---------------

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1 6

ProAcres (July - June) All Fire Cigar MaryCigar- Cigars & All Smoking Farm Farm Harvested Yield Per duction 2 3 Filler7 land ettes Cheroots Tobacco Tobacco4 Tobacco Cured6 Value Exports Imports Price Acre Million 1,000 Acres Pounds Pounds Cents/Lb. Million $ - Million Pounds - -------- Millions -------- ------------------------ In Millions of Pounds ------------------------

836.2 717.7 647.2 472.4 432.3 427.3 411.2 408.1 297.1 339.0

2,137 2,061 1,997 2,229 2,293 2,039 1,952 2,161 2,171 2,144

1,787 1,480 1,293 1,053 991 871 803 882 645 727

180.2 182.8 182.8 191.0 195.7 193.6 196.7 198.4 164.2 167.2

3,217 2,701 2,356 2,002 1,940 1,687 1,576 1,750 1,059 1,215

Preliminary. 2 Domestic. 3 For consumption. Kentucky-Tennessee types 22-23. 7 Types 41-46.

4

450.1 461.9 394.7 351.4 386.7 325.8 342.1 354.0

565.8 529.6 480.2 457.8 568.0 549.7 630.1 561.7

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

487 467 423 397 411 338 343 361

118.2 142.5 151.1 136.1 118.2 144.0 121.2 45.4

2,031 2,250 2,301 2,388 1,893 1,738 1,584 1,529 1,455 1,167

83.3 84.8 86.7 87.8 93.8 99.5 100.5 101.5

13.2 13.0 11.4 9.5 12.1 12.3 10.7 9.7 9.9 10.8

15.0 18.7 20.6 16.0 13.4 9.7 8.2 7.2 5.0 0.8

In Thousands of Pounds (Farm-Sale Weight)

11-14

21

22

23

31

32

35-36

37

41

41-61

51

54

55

61

1,047,438 812,797 656,752 598,915 579,091 514,385 456,690 521,535 380,850 446,510

1,968 2,340 2,672 2,548 2,202 1,471 839 1,345 -------

27,952 25,922 24,773 34,167 30,720 23,292 23,504 24,800 -------

12,342 11,573 10,630 14,920 12,377 10,145 10,165 11,006 -------

648,633 582,336 555,185 362,788 334,066 293,537 281,698 292,172 203,383 217,085

18,240 15,370 14,350 13,395 5,346 4,205 4,195 5,830 3,000 2,090

8,196 9,663 11,640 15,896 13,949 10,570 11,230 11,798 -------

119 122 155 165 154 116 84 124 -------

10,780 9,450 5,920 5,040 4,120 4,410 5,280 4,140 2,860 2,600

22,511 19,744 16,535 10,205 13,318 13,401 14,155 13,265 8,621 8,569

3,637 3,633 4,169 1,070 3,822 4,021 3,386 3,767 4,117 4,519

4,194 3,270 2,252 1,825 3,042 3,151 3,472 2,744 -------

1,496 960 566 430 577 666 783 797 -------

2,404 2,431 3,628 1,840 1,757 1,153 1,234 1,915 -------

Preliminary.

286

86 93 84 113 124 123 155 171 301 180

I n bulk. 5 Flue-cured and cigar wrapper, year beginning July 1; for all other types, October 1. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Tobacco Production in the United States, by Types Year

217,000 201,300 151,400 148,300 133,900 127,400 121,500 118,700 113,300 111,317

Source: Agricultural Statistics Board, U.S. Department of Agriculture (ASB-USDA)

TOBACCO U.S. Exports of Unmanufactured Tobacco Year

Australia

Denmark

France

Germany

Italy

Ja p a n

Netherlands

4.2 5.0 3.2 3.6 3.4 4.5 6.3 3.6 2.9 3.3

38.9 25.2 18.3 23.2 49.7 29.4 61.7 27.4 12.7 7.9

15.5 14.8 14.9 15.7 12.2 13.6 13.5 10.2 8.4 6.3

7.0 6.6 5.6 5.5 11.5 10.3 8.8 15.8 10.6 4.3

72.2 84.6 71.9 86.1 94.8 59.5 55.8 53.5 55.3 43.4

18.3 13.6 15.1 15.8 6.2 8.6 7.6 6.6 5.8 1.5

80.5 85.3 60.3 63.6 51.6 49.6 42.4 34.6 34.6 2.6

30.2 43.9 64.5 19.7 21.6 10.3 9.8 15.8 25.4 24.1

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Pounds (Declared Weight)

BelgiumLuxem.

Preliminary.

Sweden

5.2 2.6 3.9 3.5 3.6 1.2 1.6 .6 .7

Switzerland

Thailand

United Kingdom

Total

11.4 10.3 16.1 9.5 14.4 27.3 34.8 9.4 15.6 27.4

21.6 14.2 6.8 7.3 7.7 12.6 3.6 8.5 4.1 3.0

18.2 15.6 9.0 7.3 1.6 6.0 4.8 4.0 3.2 .6

487.4 466.3 417.5 402.4 409.7 338.0 343.3 361.0 339.0 260.3

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

U.S. Salient Statistics for Flue-Cured Tobacco (Types 11-14) in the United States

Crop Year

Acres Harvested 1,000

Yield Per Acre Pounds

Marketings

Stocks July 1

Total Supply

458.3 368.8 303.8 250.0 238.1 245.6 233.4 228.4 174.5 213.1

2,285 2,204 2,162 2,396 2,432 2,094 1,957 2,283 2,182 2,095

1,014 815 654 564 544 565 508 499 383 454

1,117 1,253 2,162 1,189 1,036 916 838 823 796 604

2,130 2,068 2,816 1,754 1,581 1,481 1,345 1,322 1,179 1,058

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

Preliminary.

2

Estimate.

NA = Not available.

336 341 262 238 276 220 216 189 258 270

541 492 437 479 389 423 307 338 317 248

877 834 699 717 665 643 522 526 575 518

Acres Harvested 1,000

Yield Per Acre Pounds

Marketings

Stocks Oct. 1

Total Supply

335.3 307.1 303.6 193.8 167.6 157.7 152.3 153.2 100.2 103.6

1,934 1,896 1,829 1,957 2,033 1,861 1,850 1,908 2,031 2,095

628 590 551 315 344 300 272 280 203 217

751 832 901 1,040 689 648 578 540 493 403

1,379 1,422 1,453 1,355 1,033 948 1,850 820 696 621

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

Preliminary.

2

Estimate.

3

Preliminary.

112,797 116,457 110,435 86,838 84,980 89,930 73,125 70,669 67,183 62,477

Before Christmas holidays.

2

Forecast.

786,473 832,381 776,640 611,054 606,145 660,924 532,713 519,732 490,547 418,225 NA = Not available.

162.1 162.8 163.2 164.0 166.0 165.6 166.3 169.0 NA NA

145.3 311.5 318.3 256.9 93.2 17.8 70.6 108.2 79.0 NA

.0 182.7 144.9 135.9 65.0 12.8 68.7 128.5 NA NA

168 169 139 142 140 149 174 228 208 190

379 349 273 524 245 221 136 100 84 56

NA = Not available.

548 520 413 666 385 370 310 328 293 246

188.5 190.3 182.9 196.3 197.3 197.4 197.7 199.4 156.4 NA

Price ----- Loan Stocks ----Support Gross Level UncomSales3 Cents/Lb. Nov. 30 mitted

337.9 431.6 356.6 169.7 258.5 217.7 197.3 202.3 NA NA

52,202 56,803 50,167 49,398 36,649 42,464 40,170 41,876 58,764 61,096

380,012 454,849 409,773 404,564 306,883 361,567 334,621 346,504 373,001 408,626

176.0 177.8 178.9 180.5 182.6 183.5 184.9 187.3 NA NA

105.6 183.8 226.6 420.7 119.3 124.2 91.7 115.1 78.7 NA

38.5 142.2 186.7 336.5 74.8 46.1 26.5 8.5 NA NA

Source: Economic Research Service, U.S. Department of Agriculture

In Metric Tons

----------------------------------------------------------------- Unmanufactured ---------------------------------------------------------------FlueValue Value Value Cured 1,000 USD Burley 1,000 USD Total 1,000 USD

1996 1997 1998 1999 2000 2001 2002 2003 2 0 0 41 20052 1

195.5 82.4 136.4 27.4 15.0 24.8 59.8 94.9 NA NA

In Millions of Pounds

Farm Total Domestic Price D i sa p D i sa p Exports pearance pearance Cents/Lb.

Exports of Tobacco from the United States (Quantity and Value) Year

172.0 175.5 173.7 179.3 185.7 182.5 185.1 184.5 147.4 NA

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Salient Statistics for Burley Tobacco (Type 31) in the United States Crop Year

In Millions of Pounds

Placed Price ----- Loan Stocks ----Under Support Gov't Farm Total Domestic Level UncomLoan Price D i sa p D i sa p Exports pearance pearance Cents/Lb. Million Lb. Cents/Lb. Nov. 30 mitted

222,316 221,510 211,930 191,975 179,892 186,302 153,427 155,722 163,693 152,197

1,390,311 1,553,314 1,458,877 1,311,643 1,204,085 1,268,839 1,049,709 1,038,073 1,044,440 983,213

Manufactured

Value 1,000 USD

83,383 85,734 NA NA NA NA NA NA NA NA

5,238,340 4,956,392 4,517,500 3,232,862 4,012,711 2,734,377 1,950,188 1,843,922 1,566,223 1,298,291

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

287

Tung Oil Tung oil is a yellow drying oil produced from the seed of the tung tree. The seeds or nuts of the tung tree are harvested and pressed to yield tung oil. Tung oil is used mostly as an industrial lubricant and drying agent, and is the most powerful drying agent known. It is also used in paints and varnishes, soaps, inks, and electrical insulators. Tung oil is poisonous, containing glycerol esters of unsaturated fats. The oil is also used as a substitute for linseed oil in paints, varnishes, and linoleum, and as a waterproofing agent.

Demand – US consumption of tung oil has fallen sharply over the past decade. In 2006 US consumption fell by –7.1% yr/yr to 1.766 million pounds. The 2006 consumption level was only 8% of 1996’s 16-year high of 21.645 million pounds. Trade – World imports of tung oil in 2005 fell –10.0% yr/yr to 22,511 metric tons. US imports of tung oil in 2005 fell sharply by –37.3% to 1,866 metric tons. The world’s largest importers of tung oil are South Korea with 17% of world imports, Taiwan with 13%, the Netherlands with 11%, Japan with 9%, and the US with 8%. The world’s largest exporter of tung oil by far is China with 16,563 metric tons of exports in 2005, accounting for 71% of total world exports.

Prices – The price of tung oil in 2005 rose by +15.1% yr/yr to 98.33 cents per pound, recovering further from the 16-year low of 43.77 cents per pound seen in 2002.

World Tung Oil Trade Year

1999 2000 2001 2002 2003 20041 20052 1

In Metric Tons

---------------------------------------------------------- Imports ---------------------------------------------------------- --------------------------------- Exports --------------------------------Hong NetherSouth United World ArgenHong ParaWorld Germany Kong Ja p a n lands Korea Taiwan States Total tina China Kong guay Total

1,002 885 582 325 303 100 43

Preliminary.

2

470 416 36 702 306 207 190

Estimate.

2,455 2,225 1,647 1,930 2,023 1,900 2,067

2,488 2,156 1,904 1,793 1,687 1,778 2,376

3,560 4,900 3,390 6,968 6,396 5,486 3,769

6,699 4,346 2,113 5,185 3,974 3,529 2,938

5,822 3,554 4,429 4,166 4,287 2,975 1,866

31,528 28,273 23,594 29,760 27,489 25,006 22,511

1,425 1,870 1,061 916 2,299 1,299 1,035

24,172 24,213 17,615 23,334 19,509 18,850 16,563

560 494 108 589 323 240 186

In Thousands of Pounds

Year

1

30,890 30,649 21,991 30,351 25,951 25,501 23,465

Source: The Oil World

Consumption of Tung Oil in Inedible Products in the United States 2000 2001 2002 2003 2004 2005 2006 1

2,303 2,799 1,974 4,390 2,479 3,626 4,306

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1,065 1,044 427 685 428 128 174

1,083 842 476 276 400 110 175

1,064 533 583 508 350 144 138

1,193 366 410 317 402 151 103

1,159 281 471 322 264 371 128

1,176 431 454 233 324 127 193

1,107 253 428 270 338 161 198

1,224 430 877 349 310 189 114

733 399 695 406 186 92 198

711 411 978 269 186 171 134

700 243 862 376 101 146 136

648 235 886 228 109 110 75

11,863 5,468 7,547 4,239 3,398 1,900 1,766

Preliminary.

Source: Bureau of the Census, U.S. Department of Commerce

Stocks of Tung Oil at Factories & Warehouses in the U.S., on First of Month

In Thousands of Pounds

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

2000 2001 2002 2003 2004 2005 20061

691 685 W 490 W 90 109

910 2,438 W W W 128 99

611 2,181 W 858 W 107 98

2,555 2,131 W 763 519 182 124

2,254 1,881 1,341 722 229 130 81

1,982 1,727 1,206 790 209 141 116

1,658 1,578 885 398 226 134 128

1,381 1,168 516 W 137 122 85

1,262 1,046 483 W 91 114 128

1,217 714 551 W 161 93 125

1,011 W 560 W 121 116 76

827 W 478 W 117 70 98

1

Preliminary.

W = Withheld proprietary data.

Source: Bureau of the Census, U.S. Department of Commerce

Average Price of Tung Oil (Imported, Drums) F.O.B. in New York Year

1999 2000 2001 2002 2003 2004 2005 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

100.00 59.00 60.50 60.50 45.00 85.00 92.50

100.00 59.00 62.00 44.50 45.00 85.00 95.00

100.00 59.00 62.00 44.50 52.80 85.00 97.50

100.00 59.00 62.00 42.00 84.75 85.00 97.50

100.00 59.00 62.00 40.00 85.00 85.00 97.50

74.00 59.00 62.00 40.00 85.00 85.00 97.50

74.00 59.00 62.00 40.00 85.00 85.00 97.50

74.00 59.00 62.00 40.00 85.00 85.00 102.50

74.00 59.00 62.00 40.00 85.00 85.00 105.00

74.00 59.00 62.00 43.75 85.00 85.00 105.00

74.00 59.00 60.50 45.00 85.00 85.00 97.50

74.00 59.00 60.50 45.00 85.00 90.00 95.00

84.83 59.00 61.63 43.77 75.63 85.42 98.33

Preliminary.

288

In Cents Per Pound

Jan.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Tungsten Tungsten (symbol W) is a grayish-white, lustrous, metallic element. The atomic symbol for tungsten is W because of its former name of Wolfram. Tungsten has the highest melting point of any metal at about 3410 degrees Celsius and boils at about 5660 degrees Celsius. In 1781, the Swedish chemist Carl Wilhelm Scheele discovered tungsten.

ports in 2006 rose sharply by +24.2% yr/yr to a record high of $265.68 per short ton. Supply – World concentrate production of tungsten in 2005 rose by +1.0% yr/yr to 70,100 metric tons. That was another new record high. The world’s largest producer of tungsten by far is China with 67,000 metric tons of production in 2005, which was 87% of total world production. Russia is the next largest producer with 6.3% with only a miniscule amount of 4,400 metric tons.

Tungsten is never found in nature but is instead found in the minerals wolframite, scheelite, huebnertite, and ferberite. Tungsten has excellent corrosion resistance qualities and is resistant to most mineral acids. Tungsten is used as filaments in incandescent lamps, electron and television tubes, alloys of steel, spark plugs, electrical contact points, cutting tools, and in the chemical and tanning industries.

Trade – The US in 2005 relied on imports for 70% of its tungsten consumption. US imports for consumption in 2004 fell by –10.0% yr/yr to 2,080 metric tons, which was a12-year low. US exports in 2005 were negligible at 52 metric tons.

Prices – The average monthly price of tungsten at US

World Concentrate Production of Tungsten

In Metric Tons (Contained Tungsten3)

Year

Austria

Bolivia

Brazil

Burma

Canada

China

Mongolia

North Korea

Portugal

Russia

Rwanda

Thailand

World Total

1998 1999 2000 2001 2002 2003 20041 20052

1,423 1,610 1,600 1,237 1,377 1,381 1,335 1,350

497 334 382 533 399 441 401 522

---13 18 22 24 30 262 250

178 87 74 48 83 93 106 100

------------2,295 3,636 ---700

30,000 31,100 37,000 38,500 55,100 55,500 60,000 61,000

35 27 52 63 35 40 77 78

500 500 500 500 600 600 600 600

831 434 743 698 693 715 746 815

3,000 3,500 3,500 3,500 5,300 5,450 5,500 4,400

109 41 108 142 153 78 120 120

35 30 30 53 31 208 180 150

37,000 37,700 44,000 45,300 66,100 68,200 69,400 70,100

Preliminary. 2 Estimate. 3 Conversion Factors: WO3 to W, multiply by 0.7931; 60% WO3 to W, multiply by 0.4758. Source: U.S. Geological Survey (USGS)

1

Salient Statistics of Tungsten in the United States

Year

Net Import -------------------- Consumption of Tungsten Products by End Uses -------------------Reliance Cutting Products as a % of --------------- Steel --------------Stainless Chemical & Wear Made from Apparent & Heat Alloy and Metal MiscelCon- Total ConSuper- Resistant Tool Assisting Steel3 Powder laneous Ceramic sumption sumption alloys Materials

1998 1999 2000 2001 2002 2003 20041 20052

78 81 68 59 70 69 73 70

Preliminary. Miscellaneous.

1

In Metric Tons (Contained Tungsten)

3,210 2,100 W W W W W W

532 486 408 389 313 312 259 280

4

W W W W W W W

Estimate. 3 Other than tool. Source: U.S. Geological Survey

2

219 189 W W W W W W 4

333 306 498 599 426 W W W

6,640 5,910 5,960 5,650 4,820 5,210 6,020 6,020

1,270 1,860 W W W W W W

I ncluded with stainless & heat assisting.

Average Price of Tungsten at U.S. Ports (Including Duty) Year

1999 2000 2001 2002 2003 2004 2005 2006

532 ----------------------

97 93 89 80 133 129 130 130

Stocks at End of Year --- Concentrates ---

Exports

Imports for Consumption

Consumers

Producers

10 26 70 220 94 20 43 52

4,750 2,870 2,370 2,680 4,090 4,690 2,310 2,080

603 376 W W W W W W

W W W W W W W W

W = Withheld proprietary data; included with

In Dollars Per Short Ton

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

49.50 53.75 83.50 ---60.25 63.00 97.08 255.00

49.50 53.75 86.00 70.00 61.55 63.00 109.32 265.66

49.50 53.75 90.00 70.00 63.00 66.83 134.13 282.50

49.50 53.29 93.00 70.00 63.00 89.77 178.21 275.00

48.57 50.50 96.15 70.00 63.00 92.50 272.26 266.36

48.75 50.50 96.50 68.13 63.00 92.50 277.61 265.00

49.16 51.88 93.88 57.88 63.00 88.95 275.25 265.00

50.88 53.50 92.88 59.88 63.00 86.09 237.28 265.00

51.50 69.00 91.00 60.25 63.00 87.00 232.50 266.13

54.44 74.00 89.89 60.25 63.00 89.86 244.05 267.50

54.75 76.00 83.84 60.25 63.00 92.00 255.00 262.00

54.75 78.92 79.57 60.25 63.00 93.83 255.00 253.00

52.00 64.67 87.72 64.26 62.65 83.78 213.97 265.68

U.S. Spot Quotations, 65% WO3, Basis C.I .F.

Source: U.S. Geological Survey (USGS)

289

Turkeys During the past three decades, the turkey industry has experienced tremendous growth in the US. Turkey production has more than tripled since 1970, with a current value of over $7 billion. Turkey was not a popular dish in Europe until a roast turkey was eaten on June 27, 1570, at the wedding feast of Charles XI of France and Elizabeth of Austria. The King was so impressed with the birds that the turkey subsequently became a popular dish at banquets held by French nobility. The most popular turkey product continues to be the whole bird, with heavy demand at Thanksgiving and Christmas. The primary breeders maintain and develop the quality stock, concentrating on growth and conformation in males and fecundity in females, as well as characteristics important to general health and welfare. Turkey producers include large companies that produce turkeys all year round, and relatively small companies and farmers who produce turkeys primarily for the seasonal Thanksgiving market. Prices – The average monthly price received by farmers for turkeys in the US in 2006 rose by +6.9% yr/yr to a record high of 48.1 cents per pound. The monthly average retail price of turkeys (whole frozen) in the US in 2006 rose +1.8% yr/yr to a record high of 110.8 cents per pound. Turkey prices have nearly tripled from the low 40-cent area seen in

the early 1970s. Supply – World production of turkeys in 2007 is forecasted to rise by +1.1% yr/yr to 4.882 million metric tons, mildly below the record high of 5.018 posted in 2002. World production of turkeys has grown by more than two and onehalf times since 1980 when production was a mere 2.090 million metric tons. The US is the largest producer of turkeys in the world by far with 2.565 million metric tons of production in 2006 which is 53% of world production. The value of US turkey production in the US in 2005 was $3.233 billion. Demand – World consumption of turkeys in 2007 is forecasted to rise by +0.1% to 4.716 million metric tons, which will be mildly below the record high of 4.788 million metric tons posted in 2002. Forecasted US turkey consumption of 2.281 million metric tons in 2007 will account for 48% of world consumption. US per capita consumption of turkeys in 2007 is forecasted to fall by –0.6% yr/yr to 16.8 pounds per person per year. US per capital consumption of turkeys has been in the range of 17-18 pounds since 1990, but has now dropped slightly below that level. The USDA is projecting that per capita consumption will continue to drop.

Production and Consumption of Turkey Meat, by Selected Countries Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 1 20072 1

In Thousands of Metric Tons (RTC)

------------------------------------------ Production ------------------------------------------ ------------------------------------------ Consumption -----------------------------------------European United World European United World Brazil Canada Union Mexico Russia States Total Brazil Canada Union Mexico Russia States Total

107 115 137 165 182 200 240 275 290 320

Preliminary.

2

139 139 152 149 147 148 145 155 160 164

Forecast.

1,700 2,100 2,019 2,098 2,102 2,025 2,038 1,917 1,810 1,790

11 12 12 13 13 14 13 14 14 15

9 8 7 7 9 12 15 17 19 21

2,366 2,372 2,419 2,490 2,557 2,529 2,441 2,464 2,529 2,565

4,571 4,839 4,844 4,934 5,018 4,936 4,901 4,851 4,831 4,882

87 89 93 96 92 88 104 114 137 160

139 136 137 135 142 136 141 143 144 147

1,526 1,890 1,818 1,931 1,910 1,912 1,931 1,832 1,770 1,755

127 136 146 157 153 171 156 199 204 215

156 169 170 171 174 126 92 124 115 122

2,214 2,224 2,223 2,269 2,316 2,301 2,272 2,247 2,282 2,281

4,519 4,807 4,753 4,827 4,835 4,786 4,750 4,711 4,710 4,716

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Salient Statistics of Turkeys in the United States

Poults Placed3 Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

Number Raised4

---- In Thousands ----

325,375 305,612 297,798 297,387 298,094 301,721 296,877 289,542 277,717 293,683

302,713 301,251 285,204 270,494 269,969 272,059 275,477 274,048 263,207 256,270

----- Livew eight ----Produced Price Mil. Lbs. Cents/Lb.

7,222.8 7,225.1 7,050.9 6,886.4 6,942.8 7,154.8 7,494.9 7,487.3 7,278.4 7,206.6

43.3 39.9 38.0 40.8 40.7 39.0 36.5 36.1 42.0 44.9

Value of Production Million $

3,124.5 2,884.4 2,683.5 2,806.6 2,828.5 2,796.8 2,732.5 2,699.7 3,054.3 3,232.6

Wholesale ------------------- Ready-to-Cook Basis -------------------- Ready-to-Cook -Production B e3-Region --- Consumption --- ---------- Costs ---------Pro- ginning Pro- Weighted P er F eed Total duction Stocks Exports Total duction Average Capita ----------- In Millions of Pounds ----------L i v e w e i g h t B a s is -Price5 Costs L b s.

5,401 5,412 5,215 5,231 5,334 5,489 5,638 5,576 5,372 5,502

271 328 415 304 254 241 241 333 354 288

438 606 446 378 445 487 439 484 443 510

4,907 4,720 4,880 4,905 4,903 5,004 5,108 5,074 5,003 5,034

18.2 17.3 17.7 17.6 17.4 17.5 17.7 17.4 17.1 16.7

31.60 28.20 22.96 19.00 19.98 20.55 20.85 22.59

45.30 41.90 36.66 32.70 33.68 34.25 34.55 36.29

72.90 68.70 62.12 57.17 58.40 59.11 59.48 61.66

66.80 63.80 62.15 67.81 68.06 63.63 61.09 60.41

Preliminary. 2 Estimate. 3 Poults placed for slaughter by hatcheries. 4 Turkeys place August 1-July 31. 5 Regions include central, eastern and western. Central region receives twice the weight of the other regions in calculating the average. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA) 1

290

TURKEYS Turkey-Feed Price Ratio in the United States

In Pounds2

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

5.4 5.4 6.5 7.6 7.3 7.2 5.7 5.1 6.9 7.0

5.1 5.2 7.1 7.2 7.5 7.2 5.7 4.6 6.9 6.9

5.0 5.4 7.5 7.6 7.7 6.8 5.9 4.5 6.6 6.9

5.1 5.7 7.8 7.9 8.0 6.8 5.9 4.5 6.7 7.4

5.3 5.8 8.2 7.8 8.1 7.3 5.7 4.8 6.9 7.2

5.6 6.1 8.7 8.5 8.3 7.3 5.8 5.2 7.0 7.7

6.0 6.5 9.7 9.5 7.9 6.9 5.9 5.8 7.3 7.8

5.9 7.6 9.5 10.0 7.8 6.3 5.7 7.0 8.0 8.6

6.1 8.1 9.6 10.1 8.3 6.0 6.0 7.9 9.0 9.5

6.2 8.3 10.0 10.0 9.6 6.1 6.3 8.4 9.5 9.8

6.2 8.2 9.9 9.8 9.6 6.5 6.3 8.7 10.0 9.5

5.8 7.5 9.2 8.1 8.1 6.4 5.7 8.2 9.5 6.0

5.7 6.7 8.6 8.7 8.2 6.7 5.9 6.2 7.9 7.9

Preliminary. 2 Pounds of feed equal in value to one pound of turkey, liveweight. Agriculture (ERS-USDA)

1

Source: Economic Research Service, U.S. Department of

Average Price Received by Farmers for Turkeys in the United States (Livew eight) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

38.6 35.5 34.8 36.4 36.6 34.1 34.6 34.9 39.3 40.8

36.4 34.0 35.7 35.7 36.3 34.1 34.5 35.0 38.0 39.6

37.8 34.6 37.0 38.2 37.1 32.9 35.1 36.6 38.1 40.3

39.7 35.7 38.7 40.0 37.6 32.9 35.6 38.4 38.8 42.9

41.3 35.5 39.4 40.8 38.2 35.8 34.9 40.1 40.7 43.7

41.6 35.9 41.3 41.8 38.3 37.2 34.9 41.7 42.1 45.8

41.1 37.5 42.0 42.2 38.5 38.6 33.6 43.3 44.6 46.4

41.0 38.6 43.0 43.2 38.7 38.2 32.7 45.1 46.5 49.1

41.1 40.2 44.3 44.8 40.5 37.2 36.2 46.2 50.3 54.1

41.0 42.7 45.3 46.1 44.2 37.2 39.1 48.1 52.5 63.4

41.9 43.8 45.3 47.1 44.5 39.8 41.2 48.7 54.5 67.1

38.7 40.3 42.2 40.5 38.7 38.7 38.2 45.9 53.9 43.4

40.0 37.9 40.8 41.4 39.1 36.4 35.9 42.0 44.9 48.1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Wholesale Price of Turkeys1 (Hens, 8-16 Lbs.) in New York

In Cents Per Pound

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

59.71 55.65 57.67 61.58 61.50 60.86 61.04 62.13 67.63 68.29

57.84 54.04 58.84 61.84 61.18 60.03 61.13 61.61 65.34 65.84

59.30 55.49 61.69 65.35 62.38 59.00 61.24 62.62 64.68 67.67

62.93 55.49 63.02 67.38 63.45 59.52 61.43 64.52 65.86 69.75

66.64 58.68 65.55 69.18 65.65 63.52 60.36 66.41 67.69 71.27

68.60 58.14 68.89 70.36 66.00 65.68 60.12 68.95 69.50 72.95

68.59 58.68 71.62 71.55 66.10 66.52 58.18 71.21 72.56 74.95

68.20 63.17 73.57 73.61 66.38 66.56 57.74 73.32 75.98 78.70

67.89 65.65 76.28 76.53 68.81 67.15 61.52 74.69 80.90 84.40

67.33 71.52 79.30 78.74 72.86 67.75 66.08 76.89 82.40 95.83

70.07 72.95 78.99 79.58 73.48 69.79 69.33 78.29 85.75 99.51

62.18 69.00 72.39 70.31 67.71 66.96 66.85 76.05 82.60 74.20

64.94 61.54 68.98 70.50 66.29 64.45 62.09 69.72 73.41 76.95

Ready-to-cook.

2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Certified Federally Inspected Turkey Slaughter in the U.S. (RTC Weights) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Pounds

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

439.7 430.5 408.9 396.9 458.3 477.2 473.6 435.5 439.0 443.0

389.5 407.7 361.0 412.4 405.9 442.1 427.1 389.0 396.3 412.4

399.6 437.8 428.8 466.2 458.7 447.8 464.6 466.6 459.4 487.9

448.8 444.0 435.8 413.5 425.1 487.2 471.1 445.2 439.7 430.3

465.8 419.1 438.6 489.2 485.1 496.7 475.8 445.1 456.3 492.8

481.4 454.2 452.4 479.4 460.7 448.0 478.0 462.8 485.8 504.4

488.8 456.0 434.7 422.8 465.1 474.7 483.9 455.4 427.5 453.5

453.0 409.9 464.3 481.6 481.7 475.9 449.3 462.2 483.7 493.6

457.6 425.3 451.3 423.0 409.2 439.4 453.6 451.2 450.6 456.5

510.0 470.5 468.7 494.7 536.2 519.0 522.8 461.5 479.1 535.8

450.6 459.5 487.6 478.2 477.7 488.2 450.3 479.6 478.2 499.7

457.9 428.2 425.4 396.5 413.2 457.9 436.1 434.4 434.4 423.5

5,443 5,243 5,257 5,354 5,477 5,654 5,586 5,389 5,430 5,633

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

291

TURKEYS Per Capita Consumption of Turkeys in the United States Year

Second Quarter

Third Quarter

Fourth Quarter

Total

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

3.7 3.5 3.9 3.8 3.7 3.9

3.9 4.0 3.9 3.8 4.2 3.8

4.6 4.2 4.2 4.4 4.4 4.3

6.2 6.0 6.0 5.8 5.5 5.6

18.5 17.6 18.1 18.0 17.8 17.5

2002 2003 2004 2005 20061 20072

3.5 3.6 3.6 3.6 3.5 3.6

3.9 3.9 4.0 3.9 3.9 3.9

4.4 4.6 4.5 4.2 4.3 4.3

5.9 5.3 5.0 5.1 5.2 5.0

17.7 17.4 17.1 16.7 16.9 16.8

Estimate.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1996 1997 1998 1999 2000 2001 1

Preliminary.

In Pounds

First Quarter

2

Storage Stocks of Turkeys (Froz en) in the United States on First of Month Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

328.0 415.1 304.3 254.3 241.3 240.5 333.0 354.0 288.4 206.2

401.0 497.6 363.8 319.4 291.4 327.1 451.9 420.5 332.9 260.5

446.4 512.7 375.6 353.9 333.5 413.2 492.7 471.7 379.4 317.9

496.5 527.0 374.9 391.4 355.8 457.6 549.3 504.6 414.2 380.4

543.3 579.7 455.4 416.9 392.6 515.2 573.5 548.8 440.1 423.7

611.8 614.1 494.3 480.3 456.0 578.2 658.8 571.1 465.9 466.6

667.9 656.5 556.1 506.8 506.7 644.1 718.2 597.6 506.3 507.5

714.3 701.8 599.0 524.0 534.2 706.2 722.5 599.6 518.9 512.2

742.0 706.8 580.3 524.9 545.3 685.6 706.5 600.2 523.1 500.3

770.7 699.5 596.4 528.1 542.0 672.4 647.5 527.4 477.8 463.9

736.6 658.7 494.5 473.9 497.9 624.9 582.7 472.3 417.6 404.2

438.6 310.4 252.3 261.1 260.0 334.3 350.7 294.9 194.7 214.5

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Retail Price of Turkeys (Whole froz en) in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Millions of Pounds

Jan.

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

106.3 103.4 96.9 101.3 108.8 102.2 106.6 108.4 105.8 106.9

106.7 100.1 100.1 102.5 112.5 105.1 105.8 109.4 106.3 119.7

104.7 99.6 98.4 101.5 112.7 106.6 105.5 113.4 106.1 120.9

103.2 97.2 93.6 99.7 109.7 104.0 100.1 108.4 105.8 111.1

104.5 95.7 97.5 102.9 109.4 102.5 106.0 109.0 106.9 108.4

107.8 99.1 100.5 106.5 110.9 107.3 110.6 111.7 108.0 112.8

107.4 100.8 103.1 109.5 111.0 108.0 113.4 112.9 116.5 113.0

109.2 102.4 101.5 104.5 113.5 106.8 116.2 114.2 116.6 110.6

108.9 105.2 101.8 104.4 116.2 106.6 116.7 108.8 112.1 115.1

106.2 102.5 102.5 106.7 114.6 111.7 111.2 112.3 113.7 114.9

97.6 93.4 96.4 98.1 98.0 103.8 100.6 99.6 102.3 97.3

98.2 95.4 97.6 99.4 99.5 98.8 105.4 100.3 106.6 99.1

105.1 99.6 99.2 103.1 109.7 105.3 108.2 109.0 108.9 110.8

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Retail-to-Consumer Price Spread of Turkeys (Whole) in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

292

In Cents Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

38.3 38.8 29.9 32.1 39.5 34.2 38.4 39.4 31.3 29.4

40.7 37.2 32.7 33.9 43.3 37.9 37.6 40.4 33.4 44.5

37.5 35.2 28.6 29.1 42.5 40.7 36.8 42.5 33.3 44.8

32.0 31.2 21.3 25.9 39.1 38.3 31.2 35.0 31.5 32.8

29.6 29.4 22.5 27.6 37.7 32.9 38.1 33.5 30.9 28.6

32.0 30.7 22.6 29.5 38.7 35.9 42.9 33.9 29.4 30.8

32.0 29.6 23.2 30.9 38.6 35.9 47.1 33.3 25.6 29.6

34.5 29.0 29.1 23.7 40.5 34.9 50.0 32.5 22.4 22.9

34.3 29.3 18.5 21.1 41.0 35.4 47.2 25.7 24.1 21.5

31.9 21.3 17.6 21.7 35.6 40.2 37.8 26.9 22.9 9.3

20.0 10.3 12.0 13.4 18.7 29.8 25.1 14.0 8.7 -11.3

26.9 19.0 19.6 23.1 27.0 24.6 33.2 18.0 16.8 15.9

32.5 28.4 23.1 26.0 36.9 35.1 38.8 31.3 25.9 24.9

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Uranium Uranium (symbol U) is a chemically reactive, radioactive, steel-gray, metallic element and is the main fuel used in nuclear reactors. Uranium is the heaviest of all the natural elements. Traces of uranium have been found in archeological artifacts dating back to 79 AD. Uranium was discovered in pitchblende by German chemist Martin Heinrich Klaproth in 1789. Klaproth named it uranium after the recently discovered planet Uranus. French physicist Antoine Henri Becquerel discovered the radioactive properties of uranium in 1896 when he produced an image on a photographic plate covered with a lightabsorbing substance. Following Becquerel’s experiments, investigations of radioactivity led to the discovery of radium and to new concepts of atomic organization. The principal use for uranium is fuel in nuclear power plants. Demand for uranium concentrates is directly linked to the level of electricity generated by nuclear power plants. Uranium ores are widely distributed throughout the world and are primarily found in Canada, DRC (formerly Zaire), and the US. Uranium is obtained from primary mine production and secondary sources. Two Canadian companies are the primary producers of uranium from deposits in the Athabasca Basin of northern Saskatchewan. Specifically, the companies Cameco accounted for 19% of global mine production in 2000 and Cogema Resources accounted for 15% of world production. Secondary sources of uranium include excess inventories from utilities and other fuel cycle participants, used reactor fuel, and dismantled Russian nuclear weapons. Prices – The average price of delivered uranium in

2002 (the latest data available) rose by +2.1% yr/yr to $10.36 per pound from $10.15 in 2001. The 2001 price of $10.15 was a record low for the data series that goes back to 1981. The price of delivered uranium in 2002 of $10.36 was roughly one-third of the price of $30 per pound and above seen in the 1980s through 1986 when the price started falling. Supply – World production of uranium oxide (U308) concentrate in 2003 (the latest data available) rose +7.3% yr/yr to a 13-year high of 56,552 short tons from last 2002’s 52,709 short tons. The world’s largest uranium producers in 2003 were Canada with 17,050 short tons of production in 2003 (30% of world production), the US with 10,200 short tons of production (18% of world production), and Australia with 9,326 short tons of production (16% of world production). US production in 2003 was the highest since 1983. US uranium production in 2003 rose +64.4% yr/yr to a 20-year high of 10,200 short tons, up sharply from the record low of 1,315 short tons in 2001. US production had reached a peak of 21,850 short tons in 1980 and production had since fallen steadily to the record low in 2001, which was only 6% of the record level of production. Trade – US imports of uranium in 2003 (latest data available) rose +0.7% yr/yr to a record high of 53.044 million pounds. The US is being forced to import more uranium as domestic production steadily declines. US exports of uranium fell –14.3% yr/yr to 13.187 million pounds, which was still well above the 7-year low of 8.510 million pounds posted in 1999.

World Production of Uranium Oxide (U3O8) Concentrate Year

1994 1995 1996 1997 1998 1999 2000 2001 2002 1 20032 1

Australia

Canada

China

Czech Rep. & Slovakia

3,050 4,900 6,450 7,150 6,350 7,875 9,830 10,035 10,857 9,326

11,950 13,600 15,250 15,650 14,200 10,680 13,875 16,270 17,153 17,050

------------------655 650 W W

------------------795 595 0 W

Preliminary.

2

Estimate.

In Short Tons (Uranium Content)

France

Gabon

Germany

Namibia

Niger

South Africa

United States

ExUSSR

World Total

1,700 1,250 1,200 940 660 450 525 195 -------

750 800 750 600 950 380 ------W 0

------------------45 ---W 0

2,500 2,600 3,150 3,770 3,590 3,495 2,430 2,910 1,082 1,034

3,800 3,750 4,300 4,500 4,850 3,790 3,270 3,795 W 0

2,250 1,850 2,200 1,065 1,250 1,195 1,305 1,135 764 1,438

1,950 3,050 3,150 2,900 2,435 2,325 1,890 1,315 6,206 10,200

------------------655 1,050 W W

41,750 43,050 46,650 46,550 44,110 39,640 43,475 47,395 52,709 56,552

Source: American Bureau of Metal Statistics, I nc. (ABMS)

Commercial and U.S. Government Stocks of Uranium, End of Year

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

------------------ Utility -----------------Natural Enriched Uranium Uranium1

42.2 47.1 42.1 44.8 36.0 34.4 31.0 22.7 27.3 45.4

23.9 18.8 23.7 13.5 18.9 21.2 22.4 23.0 29.1 19.4

---------- Domestic Supplier ---------Natural Enriched Uranium Uranium1

13.0 10.3 35.0 29.5 12.6 9.2 15.0 2 2 2

1.0 30.1 35.7 39.4 43.8 39.0 32.9 39.9 38.0 29.0

In Millions of Pounds U3O8 Equivalent Total Commercial Stocks

80.0 106.2 136.5 127.1 111.3 103.8 102.1 85.2 94.3 93.8

DOE Ow ned --------------- & USEC Held --------------Natural Enriched Uranium Uranium1

83.2 53.2 24.5 53.1 53.1 53.1 51.8 W W W

25.3 ------------------W W W

I ncludes amount reported as UF6 at enrichment suppliers. 2 I ncluded in Enriched beginning 2003. DOE = Department of Energy USEC = U.S. Energy Commission Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

1

293

URANIUM Reported Average Price Settlements for Purchases by U.S. Utilities and Domestic Suppliers Year of Delivery

1995 1996 1997 1998 1999

10.58 13.40 13.33 12.53 12.72

10.19 13.66 11.20 9.33 9.52

17.86 16.13 14.52 13.50 14.75

12.05 14.91 12.11 10.31 11.16

In $/Pound

Contract Market Price & Contract Price Price1 Cost Floor Total & Market Year of Delivery ---------------------- Averages of Reported Prices ----------------------

Contract Market Price & Contract Price Price1 Cost Floor Total & Market ---------------------- Averages of Reported Prices ----------------------

10.79 13.72 13.13 12.37 12.57

2000 2001 2002 2003 2004

12.31 11.72 10.73 -------

9.11 8.04 9.79 -------

----------------

11.04 10.15 10.36 10.81 12.61

----------------

No floor. Note: Price excludes uranium delivered under litigation settlements. Price is given in year-of-delivery dollars. Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

1

Uranium Industry Statistics in the United States ----- Production -----

Year

Mine

Concentrate

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

4.7 4.7 4.8 4.5 3.1 2.6 2.4 2.2 2.5 3.0

6.300 5.600 4.700 4.600 4.000 2.600 2.300 2.000 2.300 2.700

1

Average Price Concent- ----------------- Employment -- Person Years -----------------Deliveries Delivered rate to U.S. Uranium ShipExplorProUtilities1 $/Lb. U3O8 ments ation Mining Milling cessing Total

6.000 5.800 4.900 5.500 3.200 2.200 3.800 1.600 2.300 2.700

From suppliers under domestic purchases.

27 30 30 7 1 0 W W 18 78

333 413 518 310 157 81 W W 108 147

155 175 160 201 106 42 104 W W 142

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

175 175 203 132 137 122 100 W W 145

1,118 1,097 1,120 848 627 423 426 321 420 638

47.3 42.0 42.7 47.9 51.8 55.4 52.7

14.12 12.88 12.14 11.63 11.04 10.15 10.36

Avg. Price Delivered Uranium Imports Imports $/Lb. U3O8

45.4 43.0 43.7 47.6 44.9 46.7 52.7 53.0

13.15 11.81 11.19 10.55 9.84 9.51 10.05 10.59

Exports

11.5 17.0 15.1 8.5 13.6 11.7 15.4 13.2

Source: Energy I nformation Administration, U.S. Department of Energy (EI A-DOE)

Month-End Uranium (U3O8) Transaction Values1 Year

In Millions of Pounds U3O8

In Dollars Per Pound

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

15.33 10.63 9.03 9.03 6.78 9.58 10.20 14.85 20.55 21.20

15.08 10.63 9.08 8.70 6.83 9.72 10.10 15.47 21.18 21.20

14.85 10.60 9.20 8.55 6.83 9.90 10.10 16.50 21.20 21.20

14.75 10.05 9.20 8.50 7.25 9.76 10.16 17.52 21.20 21.20

14.43 10.00 9.53 8.40 7.38 9.90 10.84 17.75 21.20 21.20

10.95 9.80 9.48 8.18 7.45 9.90 10.90 17.86 21.20 21.20

10.68 9.80 9.48 8.13 7.83 9.88 10.90 17.90 21.20 21.20

10.45 9.73 9.40 7.98 7.95 9.85 11.13 17.90 21.20 21.20

10.55 9.55 9.35 7.88 9.00 9.79 11.47 18.60 21.20 21.20

10.48 9.35 9.23 7.40 9.47 9.85 12.32 20.80 21.20 21.20

10.43 9.25 9.18 7.15 9.44 9.86 13.18 20.20 21.20 21.20

10.53 9.05 9.13 6.80 9.50 9.97 13.98 20.50 21.20 21.20

12.37 9.87 9.27 8.06 7.97 9.83 11.27 17.99 21.14 21.20

Transaction value is a weighed average price of recent natural uranium sales transactions, based on prices paid on transactions closed within the previous three-month period for which delivery is scheduled within one year of the transaction date; at least 10 transactions involving a sum total of at least 2 million pounds of U3O8 equivalent. Source: American Metal Market (AMM)

1

-----

294

USD Per Pound U.S. Spot Market (Jan. 1976 - date)

Vanadium Vanadium (symbol V) is a silvery-white, soft, ductile, metallic element. Discovered in 1801, but mistaken for chromium, vanadium was rediscovered in 1830 by Swedish chemist Nils Sefstrom, who named the element in honor of the Scandinavian goddess Vanadis. Never found in the pure state, vanadium is found in about 65 different minerals such as carnotite, roscoelite, vanadinite, and patronite, as well as in phosphate rock, certain iron ores, some crude oils, and meteorites. Vanadium is one of the hardest of all metals. It melts at about 1890 degrees Celsius and boils at about 3380 degrees Celsius. Vanadium has good structural strength and is used as an alloying agent with iron, steel, and titanium. It is used in aerospace applications, transmission gears, photography, as a reducing agent, and as a drying agent in various paints. Prices – The price of vanadium in 2005 rose very sharply by +231% to a record high of $17.50 per pound. Supply – Virtually all (99%) of vanadium is produced from ores, concentrates, and slag, with the remainder coming from petroleum residues, ash, and spent catalysts. World production from ore, concentrates and slag rose 13.2% to

World Production of Vanadium

58,200 metric tons. World production of all vanadium in 2005 rose 13.3% yr/yr to a record high of 58,800 metric tons. The world’s largest producer of vanadium from ores, concentrates and slag is South Africa with 25,000 metric tons of production in 2005, and that was 43% of world production. The two other major producers are China with 29% of world production and Russia with 26% of world production. Production in Russia and South Africa has been relatively stable in recent years, while China’s production grew sharply in the late 1990s. China’s production level of 17,000 metric tons in 2005 is a new record high and is more than triple the levels seen in the early 1990s. Japan is the only significant producer of vanadium from petroleum residues, ash, and spent catalysts with 560 metric tons of production in 2005. Trade – The US exports very little vanadium. US imports of vanadium were mainly in the form of ore, slag and residues with 3,370 metric tons of imports in 2005, down sharply by –63.4% yr/yr. Other key import categories of vanadium were ferro-vanadium (11,900 metric tons, +294% yr/yr), vanadium pent-oxide, anhydride (1,370 metric tons, +32 yr/yr), and oxides & hydroxides (186 metric tons, +55% yr/yr).

In Metric Tons (Contained Vanadium)

------------------------------------- From Ores, Concentrates and Slag -------------------------------------

Year

2000 2001 2002 2003 2 0 0 41 20052 1 6

Australia

China3

Kazakhstan

Russia

South Africa

1,520 2,660 3,060 160 150 100

12,000 12,000 13,200 13,200 16,000 17,000

1,000 1,000 1,000 1,000 1,000 1,000

7,500 7,500 8,000 5,800 10,900 15,100

18,021 18,184 20,500 27,172 23,302 25,000

40,000 41,300 45,800 47,300 51,400 58,200

245 245 245 560 560 560

-------------------

245 245 245 560 560 560

World Total

40,300 41,600 46,000 47,900 51,900 58,800

5 Preliminary. 2 Estimate. 3 I n vanadiferous slag product. 4 Excludes U.S. production. I n vanadium pentoxide product. I n vanadium pentoxide and ferrovanadium products. Source: U.S. Geological Survey(USGS)

Salient Statistics of Vanadium in the United States

Year

2000 2001 2002 2003 20041 20052 1

From Petroleum Residues

--------------- Ash, Spent Catalysts ----------United Total4 States6 Japan5 Total

In Metric Tons (Contained Vanadium)

Con- ----------- Vanadium Consumption by Uses in the U.S. ----------High Stainless sumer & Strength, & Heat Producer Re- SuperFull Low Stocks, Tool Cast Total Alloy sisting alloys Carbon Alloy Dec. 31 Steel Irons

303 251 221 250 305 275

Preliminary.

2

225 146 270 143 239 402

W W W W W W

Estimate.

944 797 900 938 1,160 974

W W 38 70 60 60

17 18 12 13 17 36

1,090 773 1,030 689 731 748 1,030 808 1,300 1,060 1,170 1,010

W = Withheld proprietary data.

3,510 3,210 3,080 3,240 4,050 3,910

------------ Exports ----------- ------------------ Imports -----------------Ores, Vanadium Vanadium Pent- Oxides FerroPent- Oxides Ferro- Slag, Average oxide, & Hydr- VanaReoxide, & Hydr- Vana$ P er Lb. dium V2O5 Anhydride oxides dium sidues Anhydride oxides

1.82 1.37 1.34 2.21 5.28 17.50

653 670 453 185 240 254

100 385 443 284 584 899

172 70 142 397 285 504

1,890 1,670 1,870 2,220 9,200 3,370

902 600 406 474 1,040 1,370

21 2,510 57 2,550 66 2,520 74 1,360 120 3,020 186 11,900

Source: U.S. Geological Survey (USGS)

Average Price of Vanadium Pentoxide in United States

In Dollars Per Pound

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

2001 2002 2003 2004 2005 2006

1.43 1.23 1.55 2.50 9.65 8.73

1.41 1.11 1.55 3.43 10.24 9.11

1.38 1.26 1.55 3.74 13.75 8.78

1.41 1.24 1.55 5.25 15.00 7.92

1.44 1.55 1.55 5.25 20.36 8.15

1.46 1.75 1.55 5.25 26.16 8.08

1.46 1.75 1.55 5.26 19.96 7.40

1.45 1.45 1.55 4.64 11.63 7.07

3.52 1.45 1.55 4.40 11.10 7.85

3.90 1.45 1.55 5.15 13.74 7.70

2.08 1.45 1.95 7.00 13.75 7.27

1.30 1.52 2.10 8.63 11.00 6.70

1.85 1.43 1.63 5.04 14.70 7.90

Source: American Metal Market (AMM)

295

Vegetables Vegetables are the edible products of herbaceous plants, which are plants with soft stems. Vegetables are grouped according to the edible part of each plant including leaves (e.g., lettuce), stalks (celery), roots (carrot), tubers (potato), bulbs (onion), fruits (tomato), seeds (pea), and flowers (broccoli). Each of these groups contributes to the human diet in its own way. Fleshy roots are high in energy value and good sources of the vitamin B group, seeds are relatively high in carbohydrates and proteins, while leaves, stalks, and fruits are excellent sources of minerals, vitamins, water, and roughage. Vegetables are an important food for the maintenance of health and prevention of disease. Higher intakes of vegetables have been shown to lower the risks of cancer and coronary heart disease. Vegetables are best consumed fresh in their raw state in order to derive the maximum benefits from their nutrients. While canned and frozen vegetables are often thought to be inferior to fresh vegetables, they are sometimes nutritionally superior to fresh produce because they are

usually processed immediately after harvest when nutrient content is at its peak. When cooking vegetables, aluminum utensils should not be used, because aluminum is a soft metal that is affected by food acids and alkalis. Scientific evidence shows that tiny particles of aluminum from foods cooked in aluminum utensils enter the stomach and can injure the sensitive lining of the stomach. Prices – The monthly average index of fresh vegetable prices received by growers in the US in 2006 rose by +4.5% to a record level of 160.5 from last year’s level of 143.5. Demand – The leading vegetable in terms of US per capita consumption in 2006 was the potato with 125.8 pounds of consumption. Runner-up vegetables were tomatoes (84.0 pounds), sweet lettuce (32.4 pounds), corn (26.4 pounds), and onions (21.8 pounds). Total US per capita vegetable consumption in 2006 was down –0.1% at 443.3 pounds. That is up about 25% higher than the 356.2 pounds consumed in 1980.

Index of Prices Received by Grow ers for Commercial Vegetables1 in the United States Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

2001 2002 2003 2004 2005 2006 1

121 158 112 128 95 132

147 192 113 143 122 125

138 272 123 115 167 150

137 120 129 132 184 149

144 115 138 112 133 123

120 109 152 110 126 132

125 115 119 105 111 140

145 121 138 132 115 147

134 119 144 134 128 161

103 105 143 159 129 128

109 110 180 163 142 119

171 104 159 120 210 150

133 137 138 129 139 138

Not seasonally adjusted. 1990-92=100. 1 I ncludes fresh and processing vegetables. Service, U.S. Department of Agriculture (NASS-USDA)

2

Preliminary.

Source: National Agricultural Statistics

Index of Prices Received by Grow ers for Fresh Vegetables (0113-02) in the United States Year

2001 2002 2003 2004 2005 20061

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

147.0 146.1 147.8 143.8 122.0 207.6

168.6 188.7 127.5 125.9 152.8 138.8

178.7 242.5 153.0 140.3 168.5 137.6

145.6 101.7 167.7 133.1 174.7 174.4

144.9 107.2 165.0 132.9 144.2 147.9

129.4 123.2 138.8 101.0 160.0 128.7

109.7 127.1 133.3 102.8 126.8 134.1

127.2 125.4 136.6 128.3 132.3 179.5

132.3 116.7 164.7 141.9 153.3 193.1

112.3 126.9 156.9 200.0 144.0 166.7

105.9 127.4 148.4 211.1 163.1 138.8

121.0 119.0 184.7 143.7 200.8 178.3

135.2 137.7 152.0 142.1 153.5 160.5

Not seasonally adjusted.

1990-92=100.

1

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS)

Producer Price Index of Canned1 Processed Vegetables (0244) in the United States Year

2001 2002 2003 2004 2005 20061

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

121.4 128.3 128.8 131.5 135.7 138.0

121.4 128.2 129.0 131.7 135.9 136.8

121.3 128.0 128.9 131.9 136.1 137.1

121.3 128.2 129.3 131.9 136.3 137.3

121.4 128.3 129.4 131.7 137.6 138.8

121.9 128.0 129.3 132.8 137.6 140.2

124.1 127.7 129.4 133.0 137.7 140.0

124.9 129.4 129.1 133.3 137.7 140.5

125.3 128.7 130.0 133.4 137.5 141.4

126.5 129.5 130.7 134.6 137.7 141.0

128.0 129.1 131.1 135.4 137.6 141.7

128.1 129.1 131.3 135.5 138.0 142.2

123.8 128.5 129.7 133.1 137.1 139.6

Not seasonally adjusted. 1 I ncludes canned vegetables and juices, including hominy and mushrooms. Statistics, U.S. Department of Labor (BLS)

2

Preliminary.

Producer Price Index of Froz en Processed Vegetables (0245) in the United States Year

2001 2002 2003 2004 2005 20061

Source: Bureau of Labor

1982 = 100

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

127.6 130.0 133.4 135.1 137.3 137.3

128.5 131.1 134.1 136.0 137.3 137.7

127.7 130.1 133.3 135.3 137.4 138.7

128.7 131.2 134.0 135.3 137.5 138.6

128.4 130.7 134.1 134.3 137.5 138.8

127.7 129.7 133.9 134.7 137.4 139.5

128.9 131.4 134.9 135.4 137.2 139.4

128.8 131.3 134.2 135.8 136.8 139.3

128.8 131.5 134.2 136.8 136.6 139.9

130.0 132.2 135.2 138.1 136.7 142.0

129.2 131.9 135.1 137.2 136.1 143.1

129.1 132.6 135.0 137.0 136.4 143.0

Not seasonally adjusted.

296

1982 = 100

Jan.

1

Preliminary.

Source: Bureau of Labor Statistics, U.S. Department of Labor (BLS)

128.6 131.1 134.3 135.9 137.0 139.8

VEGETABLES Per Capita Use of Selected Commercially Produced Fresh and Processing Vegetables in the U.S. In Pounds, farm weight basis Crop Asparagus, All Fresh Canning Freezing Snap beans, All Fresh Canning Freezing Broccoli, All 1 Fresh Freezing Cabbage, All Fresh Canning (kraut) Carrots, All 2 Fresh Canning Freezing Cauliflower, All 1 Fresh Freezing Celery Sweet Corn, All 3 Fresh Canning Freezing Cucumbers, All Fresh Pickling Melons Watermelon Cantaloupe Honeydew Lettuce, All Head lettuce Romaine & Leaf Onions, All Fresh Dehydrating Green Peas, All 4 Canning Freezing Peppers, All Bell Peppers, All Chile Peppers, All Tomatoes, All Fresh Canning Other, Fresh 5 Other, Canning 6 Other, Freezing 7 Subtotal, All 8 Fresh Canning Freezing Potatoes, All Fresh Processing Sweet Potatoes Mushrooms Dry Peas & Lentils 9 Dry Edible Beans

1996 0.9 0.6 0.2 0.1 7.2 1.5 3.8 1.9 7.0 4.5 2.5 9.3 8.3 1.0 16.9 12.4 1.7 2.8 2.2 1.7 0.5 7.0 29.1 8.3 10.4 10.4 10.0 5.9 4.1 28.9 16.6 10.3 2.0 27.4 21.6 5.8 19.1 18.3 0.8 3.4 1.5 1.9 11.7 7.1 4.6 90.8 17.4 73.4 8.8 2.2 3.1

1997 1.0 0.7 0.2 0.1 6.7 1.3 3.6 1.8 7.3 5.0 2.3 10.4 9.0 1.4 18.2 14.1 1.5 2.6 2.2 1.8 0.4 6.5 27.5 8.3 9.1 10.1 11.6 6.4 5.2 28.2 15.5 10.5 2.2 30.5 23.9 6.6 19.7 18.8 0.9 3.5 1.5 2.0 10.9 6.4 4.5 89.9 17.3 72.6 9.2 2.3 3.0

1998 1.0 0.7 0.2 0.1 7.4 1.6 3.8 2.0 7.1 5.0 2.1 9.8 8.4 1.4 13.7 9.5 1.4 2.8 2.2 1.5 0.8 6.5 28.4 9.3 9.2 9.8 10.5 6.5 4.0 27.3 14.3 10.6 2.3 28.9 22.3 6.6 19.5 18.4 1.1 3.3 1.4 1.9 11.1 6.4 4.7 92.5 18.5 74.0 10.0 2.1 2.9

1999 1.2 0.9 0.2 0.1 7.6 1.9 3.7 2.0 8.3 6.2 2.1 8.8 7.6 1.2 13.1 9.3 1.4 2.4 2.3 1.8 0.5 6.5 28.3 9.1 9.1 10.1 10.9 6.7 4.2 29.0 15.2 11.4 2.5 32.5 24.9 7.6 20.8 18.5 2.3 3.4 1.4 2.0 11.4 6.7 4.7 90.3 19.1 71.2 10.5 2.5 3.2

2000 1.3 1.0 0.2 0.1 7.9 2.0 4.0 1.8 8.1 5.9 2.3 10.3 8.9 1.4 13.0 9.2 1.1 2.7 2.3 1.7 0.6 6.3 27.1 9.0 9.0 9.0 11.2 6.4 4.9 27.2 13.8 11.1 2.3 31.8 23.5 8.4 20.4 18.9 1.6 3.7 1.5 2.1 12.1 7.0 5.2 89.1 19.0 70.1 17.7 2.6 3.2

2001 1.2 0.9 0.2 0.1 7.8 2.2 3.8 1.9 7.4 5.4 2.0 10.1 8.8 1.3 12.7 9.4 1.9 1.5 2.0 1.5 0.5 6.4 27.2 9.2 8.7 9.3 10.0 6.3 3.7 28.1 15.0 11.2 2.0 31.0 23.0 8.0 19.5 18.5 1.0 3.3 1.4 2.0 12.1 6.9 5.2 84.7 19.2 65.5 16.6 2.8 3.2

2002 1.2 1.0 0.2 0.1 7.2 2.1 3.4 1.8 7.5 5.4 2.1 9.5 8.3 1.2 11.5 8.4 1.2 1.9 1.7 1.4 0.3 6.3 26.1 9.0 7.8 9.3 11.9 6.5 5.4 27.3 14.0 11.1 2.2 32.1 22.5 9.6 20.4 19.3 1.1 2.8 1.1 1.7 12.6 6.8 5.8 89.6 20.3 69.3 17.2 2.4 4.3

2003 1.3 1.0 0.2 0.1 7.5 2.0 3.7 1.9 8.1 5.5 2.6 8.7 7.6 1.1 12.0 8.8 1.6 1.5 1.9 1.6 0.4 6.3 26.8 9.5 8.3 9.0 10.5 6.1 4.4 26.5 13.5 10.8 2.2 33.3 22.2 11.1 21.3 19.5 1.8 3.2 1.3 1.9 12.5 6.9 5.6 89.3 19.5 69.8 17.7 2.5 3.9

2004 1.4 1.1 0.2 0.1 7.6 1.9 3.7 1.9 8.5 5.9 2.7 9.4 8.3 1.1 11.9 8.8 1.8 1.3 1.9 1.6 0.4 6.2 26.5 9.2 8.2 9.1 11.3 6.5 4.9 25.2 13.0 10.0 2.2 32.6 21.3 11.4 23.1 21.6 1.5 2.9 1.2 1.7 13.1 7.0 6.1 90.6 20.1 70.5 18.7 2.9 3.9

2 0 0 5 10 1.5 1.2 0.2 0.1 7.6 1.8 4.0 1.8 8.4 5.6 2.7 9.3 8.1 1.2 11.5 8.7 1.5 1.4 1.9 1.5 0.4 6.1 26.7 8.9 9.0 8.7 10.3 6.5 3.8 25.9 13.8 10.1 2.0 32.1 20.3 11.7 22.2 21.2 1.0 2.7 1.0 1.7 12.6 6.6 6.0 94.2 20.6 73.6 19.4 3.0 4.0

200611 1.5 1.2 0.2 0.1 7.6 1.9 3.8 1.9 8.5 5.7 2.8 9.3 8.1 1.1 11.7 8.7 1.6 1.5 1.9 1.5 0.4 6.1 26.4 9.0 8.5 8.9 10.7 6.4 4.4 26.5 14.2 10.2 2.1 32.4 20.4 12.1 21.8 20.6 1.3 2.8 1.2 1.6 13.1 6.9 6.2 94.0 20.7 73.3 19.5 3.1 4.4

285.0 158.1 102.9 23.2

288.6 163.5 101.9 22.3

284.2 158.6 102.2 22.3

290.5 166.1 99.6 22.5

295.3 172.0 100.0 21.8

286.2 170.3 94.4 20.4

291.7 171.4 97.8 21.5

293.1 171.5 98.6 21.1

297.8 174.7 100.7 21.0

299.2 174.2 103.3 20.7

301.3 175.2 103.3 21.5

145.0 49.9 95.1 4.3 3.9 0.5 7.5

137.8 47.3 90.5 4.3 4.0 0.9 7.4

137.7 46.9 90.8 3.8 3.9 0.8 7.3

136.2 47.7 88.5 3.7 4.1 0.6 7.8

137.9 47.1 90.8 4.2 4.1 0.8 7.6

138.8 46.6 92.2 4.4 3.9 0.8 6.9

132.1 44.3 87.8 3.8 4.1 0.8 6.7

138.2 46.8 91.4 4.7 4.1 0.6 6.6

134.7 45.8 88.9 4.6 4.1 0.7 6.0

129.1 43.1 86.0 4.5 4.0 0.7 6.3

125.8 42.1 83.7 4.6 4.1 0.7 6.8

Total, All I tems 446.2 442.9 437.7 442.9 449.9 441.0 439.2 447.3 448.0 443.8 443.3 All production for processing broccoli and cauliflower is for freezing. 2 I ndustry allocation suggests that 27 percent of processing carrot production is for canning and 73 percent is for freezing. 3 On-cob basis. 4 I n-shell basis. 5 I ncludes artichokes, brussels sprouts, eggplant, endive/escarole, garlic, radishes, and spinach. 6 I ncludes beets, chile peppers (1980-94, all uses), and spinach. 7 I ncludes green lima beans, spinach, and miscellaneous freezing vegetables. 8 Fresh, canning, and freezing data do not add to the total because onions for dehydrating are included in the total. 9 Preliminary. 10 Forecast. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

297

VEGETABLES Average Price Received by Grow ers for Broccoli in the United States Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

S e a so n Average

27.70 22.60 22.70 55.30 25.20 33.60 22.60 32.50

20.10 20.10 32.30 44.40 40.90 28.50 33.30 23.80

23.20 27.40 24.70 33.80 28.10 21.60 42.60 27.60

20.20 23.20 26.90 24.00 27.10 24.00 39.80 32.40

18.60 44.30 25.50 20.80 29.70 27.20 22.40 29.00

23.10 30.00 27.00 28.40 24.60 28.70 39.70 51.10

18.70 31.50 23.60 27.00 27.00 24.20 22.40 26.20

27.40 25.20 27.10 29.60 29.80 29.70 30.50 56.90

29.30 27.70 22.90 40.60 49.10 57.00 27.70 39.40

23.00 34.10 24.20 24.00 38.90 43.90 22.40 24.60

21.60 56.00 22.20 37.10 48.00 44.20 20.90 27.60

39.20 34.10 20.00 35.00 40.00 45.40 34.10 53.10

24.10 31.20 26.50 31.40 32.70 33.20 28.50 28.50

Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Average Price Received by Grow ers for Carrots in the United States

1

In Dollars Per Cwt.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

S e a so n Average

16.10 22.60 22.70 55.30 25.20 24.50 20.30 21.40

19.60 20.10 32.30 44.40 40.90 24.90 21.00 21.50

21.50 27.40 24.70 33.80 28.10 24.60 21.00 21.50

26.50 23.20 26.90 24.00 27.10 24.20 21.10 21.50

25.40 44.30 25.50 20.80 29.70 24.90 21.20 20.80

22.80 30.00 27.00 28.40 24.60 22.50 21.30 21.40

17.20 31.50 23.60 27.00 27.00 20.20 21.80 21.50

13.30 25.20 27.10 29.60 29.80 18.00 21.40 23.00

10.10 27.70 22.90 40.60 49.10 16.70 20.00 19.30

10.50 34.10 24.20 24.00 38.90 16.40 21.40 19.60

11.30 56.00 22.20 37.10 48.00 17.20 23.10 20.20

11.50 34.10 20.00 35.00 40.00 18.00 22.00 19.10

16.80 31.20 26.50 31.40 32.70 20.20 20.90 28.50

Year

1999 2000 2001 2002 2003 2004 2005 2006 1

In Dollars Per Cwt.

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Average Price Received by Grow ers for Cauliflow er in the United States Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

S e a so n Average

29.40 22.60 22.70 55.30 25.20 27.30 27.70 33.10

31.10 20.10 32.30 44.40 40.90 42.20 38.20 26.40

42.80 27.40 24.70 33.80 28.10 24.20 50.60 35.80

46.40 23.20 26.90 24.00 27.10 23.50 36.70 44.40

23.40 44.30 25.50 20.80 29.70 28.80 29.70 27.10

25.50 30.00 27.00 28.40 24.60 46.20 38.10 27.90

19.60 31.50 23.60 27.00 27.00 27.60 25.60 24.00

25.40 25.20 27.10 29.60 29.80 26.30 31.50 28.40

21.70 27.70 22.90 40.60 49.10 31.10 28.50 47.10

22.30 34.10 24.20 24.00 38.90 32.20 19.70 20.90

35.10 56.00 22.20 37.10 48.00 43.80 25.50 34.40

55.50 34.10 20.00 35.00 40.00 54.40 43.90 41.60

29.70 31.20 26.50 31.40 32.70 30.80 30.30 28.50

Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

In Dollars Per Cwt.

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Average Price Received by Grow ers for Celery in the United States

In Dollars Per Cwt.

Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

S e a so n Average

9.51 22.60 22.70 55.30 25.20 20.80 12.90 9.64

8.47 20.10 32.30 44.40 40.90 24.40 22.90 10.80

8.35 27.40 24.70 33.80 28.10 13.90 28.40 14.90

10.20 23.20 26.90 24.00 27.10 15.60 20.80 16.60

12.80 44.30 25.50 20.80 29.70 15.00 15.50 12.70

18.30 30.00 27.00 28.40 24.60 13.80 9.62 17.80

14.00 31.50 23.60 27.00 27.00 12.00 10.00 20.90

10.30 25.20 27.10 29.60 29.80 10.00 10.80 23.40

10.60 27.70 22.90 40.60 49.10 11.90 12.80 27.60

9.14 34.10 24.20 24.00 38.90 15.10 12.20 27.20

12.80 56.00 22.20 37.10 48.00 18.10 13.10 22.00

17.20 34.10 20.00 35.00 40.00 13.40 10.70 20.20

12.00 31.20 26.50 31.40 32.70 14.80 14.30 28.50

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Average Price Received by Grow ers for Sw eet Corn in the United States Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

S e a so n Average

19.60 31.50 32.70 24.80 29.00 30.80 21.30 36.50

23.30 25.10 34.00 23.50 24.00 20.70 28.60 35.00

21.80 19.30 26.10 26.30 18.90 20.20 26.10 33.70

18.90 18.70 18.10 19.40 14.90 17.60 21.50 27.20

18.50 14.40 24.60 20.80 16.60 18.10 18.10 16.20

15.00 18.00 18.60 18.80 23.20 22.80 22.60 23.00

17.30 22.00 19.80 27.90 21.30 21.80 22.20 23.50

16.60 20.70 19.20 21.80 20.10 22.90 20.30 19.70

17.30 20.10 19.00 22.50 19.70 24.10 24.70 22.70

16.50 24.00 23.80 25.80 23.70 33.50 25.50 21.70

28.40 16.80 24.80 15.50 30.70 46.70 37.30 19.80

40.70 33.00 22.60 18.30 22.60 36.80 21.20 14.40

16.90 18.50 19.50 19.20 19.30 20.80 22.10 22.10

Year

1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

298

In Dollars Per Cwt.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

VEGETABLES Average Price Received by Grow ers for Head Lettuce in the United States Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

S e a so n Average

14.90 19.00 10.30 14.60 13.60 26.20 12.10 15.40 11.50 10.50

9.58 10.90 15.50 9.28 22.80 44.10 11.80 19.80 11.70 12.00

13.50 12.50 16.30 14.10 15.10 86.40 9.64 10.40 27.90 19.10

15.70 27.20 20.20 22.80 21.60 14.10 12.50 14.80 30.10 22.30

10.40 14.30 14.00 23.60 18.80 10.20 21.20 10.50 13.90 33.70

14.90 11.80 11.40 13.50 12.10 10.60 32.20 13.30 17.30 11.80

17.10 15.50 12.70 15.00 16.40 11.30 11.90 10.70 11.00 12.20

22.80 16.40 12.00 19.20 26.90 14.60 21.50 17.10 13.50 20.70

22.30 14.00 13.10 29.40 26.20 14.30 23.90 15.20 12.70 16.30

34.80 21.00 13.10 16.20 11.50 13.50 26.30 24.10 12.40 11.80

22.20 10.80 10.70 19.90 10.90 11.90 31.70 14.90 9.81 12.70

25.10 12.50 16.20 12.00 10.00 30.00 21.30 15.70 16.60 22.40

17.50 16.20 13.30 17.30 17.90 21.10 18.10 16.90 15.60 15.60

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Average Price Received by Grow ers for Tomatoes in the United States

1

In Dollars Per Cwt.

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

S e a so n Average

32.10 26.40 33.50 21.40 43.80 40.50 47.20 34.50 15.40 79.20

45.90 44.00 23.40 21.10 29.10 26.60 31.70 36.30 40.90 46.50

57.40 34.00 22.30 33.00 56.40 38.50 53.30 42.20 40.70 31.50

24.90 37.20 23.70 34.80 19.00 34.30 30.00 44.20 65.10 46.90

32.20 36.50 21.00 23.10 37.80 29.60 23.70 32.20 49.40 31.10

30.30 29.00 29.00 21.80 28.50 33.00 45.70 21.70 40.00 32.00

29.20 40.90 23.10 24.60 27.40 28.50 37.60 23.40 28.00 27.00

27.60 25.10 25.00 33.90 27.60 25.80 41.00 37.80 26.10 36.10

25.90 28.40 26.50 29.50 23.50 23.70 35.70 38.20 46.10 88.20

26.50 43.00 21.30 42.60 28.60 27.60 30.10 67.90 37.30 52.30

43.60 42.10 26.00 47.80 28.50 40.10 30.50 89.00 36.50 28.40

40.80 42.20 28.90 37.60 25.00 38.00 29.10 47.10 96.80 24.80

31.70 35.20 25.80 30.70 30.00 31.60 37.40 37.50 41.50 41.50

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

In Dollars Per Cwt.

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Froz en Vegetables: January 1 and July 1 Cold Storage Holdings in the U.S. Crop

Asparagus Limas, Fordhook Limas, Baby Green Beans, Reg. Cut Green Beans, Fr. Style Broccoli, Spears Broccoli, Chopped & Cut Brussels sprouts Carrots, Diced Carrots, Other Cauliflower Corn, Cut Corn, Cob Mixed vegetables Okra Onion Rings Onions, Other Blackeye Peas Green Peas Peas and Carrots Mixed Spinach Squash, Dummer/Zucchini Southern greens Other Vegetables

2002 July 1

2003 Jan. 1

10,954 7,323 30,017 48,312 7,398 56,679 66,486 10,645 47,110 91,705 25,589 137,242 85,566 45,248 35,964 8,619 32,143 5,896 198,452 6,746 106,198 36,878 26,478 24,187

6,988 13,068 45,544 167,669 19,726 49,326 67,727 20,220 99,188 143,368 35,635 402,164 262,338 41,396 46,616 9,636 29,844 6,323 171,161 6,597 56,193 44,617 22,986 313,421

July 1

2004 Jan. 1

10,977 4,646 20,570 55,559 7,272 53,689 81,782 11,053 36,340 90,741 16,083 176,505 108,477 42,360 35,847 7,772 28,757 5,340 162,836 7,897 104,522 33,549 20,243 265,556

7,368 5,984 46,383 126,175 23,166 30,185 47,135 18,961 98,398 154,404 28,146 494,490 288,957 43,537 37,596 6,915 31,717 3,292 180,850 6,581 46,492 43,614 18,749 329,499

In Thousands of Pounds

July 1

2005 Jan. 1

July 1

2006 Jan. 1

July 1

20071 Jan. 1

14,064 1,960 21,716 51,147 6,596 50,314 58,843 11,588 49,485 75,288 12,518 227,404 109,612 56,156 33,111 8,426 28,862 3,004 206,413 5,674 83,287 31,326 16,330 248,416

9,280 8,450 48,955 151,229 22,925 35,882 57,607 23,519 117,745 140,440 37,123 502,025 242,271 46,892 33,875 6,587 33,278 2,693 230,326 5,641 34,724 45,724 17,328 363,579

13,943 3,502 27,360 76,655 8,157 45,581 62,382 16,028 63,871 93,702 19,916 234,965 78,525 49,493 28,097 6,181 39,424 1,878 227,162 5,416 87,983 39,164 18,905 267,205

9,029 7,687 40,867 171,319 22,341 35,814 62,561 21,660 128,877 150,317 43,836 464,177 263,818 55,236 31,734 4,757 43,349 2,348 214,851 5,227 42,464 61,518 13,750 353,315

11,929 2,368 21,851 24,377 8,388 32,699 61,769 10,243 64,540 97,528 18,694 188,556 71,738 50,856 26,363 7,532 38,192 4,080 222,513 5,422 107,607 50,704 17,546 238,391

6,178 6,543 41,849 183,610 27,433 27,628 46,855 21,650 117,159 127,449 38,196 475,671 281,694 51,925 31,507 7,533 37,386 4,784 230,351 4,946 52,674 64,255 14,826 323,249

Total

1,369,523 2,081,751 1,388,373 2,118,594 1,411,540 2,218,098 1,515,495 2,250,852 1,413,886 2,225,351

Potatoes, French Fries Potatoes, Other Frozen Potatoes, Total

937,933 877,292 900,194 869,521 864,111 838,438 947,971 848,595 877,400 285,605 253,920 281,594 250,897 263,341 236,381 242,493 202,504 230,710 1,223,538 1,131,212 1,181,788 1,120,418 1,127,452 1,074,819 1,190,464 1,051,099 1,108,110

Grand total

2,593,061 3,212,963 2,570,161 3,239,012 2,538,992 3,292,917 2,705,959 3,301,951 2,521,996 3,180,171

1

Preliminary.

758,254 196,566 954,820

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

299

Wheat Wheat is a cereal grass, but before cultivation it was a wild grass. It has been grown in temperate regions and cultivated for food since prehistoric times. Wheat is believed to have originated in southwestern Asia. Archeological research indicates that wheat was grown as a crop in the Nile Valley about 5,000 BC. Wheat is not native to the US and was first grown here in 1602 near the Massachusetts coast. The common types of wheat grown in the US are spring and winter wheat. Wheat planted in the spring for summer or autumn harvest is mostly red wheat. Wheat planted in the fall or winter for spring harvest is mostly white wheat. Winter wheat accounts for nearly threefourths of total US production. Wheat is used mainly as a human food and supplies about 20% of the food calories for the world’s population. The primary use for wheat is flour, but it is also used for brewing and distilling, and for making oil, gluten, straw for livestock bedding, livestock feed, hay or silage, newsprint, and other products.

from the record high of 628.585 million metric tons seen in 2004-05. The world’s largest wheat producers are the European Union with 20% of world production in 2006-07, China (18%), India (12%), the US (8%), Russia (7%), and Canada (5%). China’s wheat production in 2006-07 rose +17.5% yr/yr to 103.5 million metric tons, but still well below its record high of 123.289 million metric tons in 1997-98. Australia’s wheat production fell –58.0% yr/yr to 10.500 million metric tons in 2006-07, which was well below its record high of 26.132 million metric tons in 2003-04. The world land area harvested with wheat in 2006-07 fell –2.9% yr/yr to 212.0 million hectares (1 hectare equals 10,000 square meters or 2.471 acres), but remaining above 209.9 million hectares in 2003-04, which was the smallest wheat harvest area since 1970-71. World wheat yield in 2006-07 was unchanged at 2.80 metric tons per hectare, remaining below the record high of 2.90 metric tons per hectare seen in 2004-05.

Wheat futures and options are traded on the Mercado a Termino de Buenos Aires (MAT), Sydney Futures Exchange (SFE), London International Financial Futures and Options Exchange (LIFFE), Marche a Terme International de France (MATIF), Budapest Commodity Exchange (BCE), the Chicago Board of Trade (CBOT), the Kansas City Board of Trade (KCBT), the Minneapolis Grain Exchange (MGE), the Mid America Commodity Exchange (MidAm) and the Winnipeg Commodity Exchange (WCE). The Chicago Board of Trade’s wheat futures contract calls for the delivery of soft red wheat (No. 1 and 2), hard red winter wheat (No. 1 and 2), dark northern spring wheat (No. 1 and 2), No.1 northern spring at 3 cents/bushel premium, or No. 2 northern spring at par.

US wheat production in 2006-07 fell –13.9% yr/yr to 1.812 billion bushels, which was well below the record US wheat crop of 2.785 billion bushels seen in 1981-82. The US winter wheat crop in 2006 fell –13.4% yr/yr to 1.298 billion bushels, which was well below the record winter wheat crop of 2.097 billion bushels seen in 1981. US production of durum wheat in 2006 fell –47.1% yr/yr to 53.475 million bushels. US production of other spring wheat fell –8.7% yr/yr to 460.480 million bushels. The largest US producing states of winter wheat are Kansas with 22% of US production in 2006, Montana with 6%, Washington with 9%, and Oklahoma with 6%. US farmers planted 57.344 million acres of wheat in 2006, which was up +0.2% yr/yr and was the second smallest wheat acreage since 1972. US wheat yield in 2006-07 was 38.7 bushels per acre, which was well below the record yield of 44.2 bushels per acre seen in 2003-04. Ending stocks for US wheat for 2006-07 are projected by the USDA at 472.2 million bushels, down – 17.3% yr/yr from 571.2 million bushels in 2005-06.

Prices – Wheat prices on the CBOT nearest futures chart rallied sharply in the first half of 2006 by a total of 90% from a low of $2.925 per bushel in December 2005 to a 10-year high of $5.57 per bushel in October 2006. Wheat prices then fell back through the remainder of 2006 on long liquidation pressure, finally closing 2006 at $5.01 per bushel, up +48% yr/yr. The rally in wheat prices in 2006 was due to very poor wheat crops in key world growing areas. The US wheat crop in 2006-07 was hurt by hot and dry weather in the southern Plains and fell –14.2% yr/yr to 1.806 billion bushels. That was the second smallest crop in the US in the past 25 years and caused the US wheat carry-over in 2006-07 to fall sharply by –17.3% to 472 million bushels, which was the tightest inventory level in 10 years. However, growing conditions were also poor in Europe where heat caused significant damage to the wheat crop. The situation was even worse in Australia where a severe drought slashed wheat production by about one-third. The end result was a sharp –18% decline in the global carry-over of wheat in 200607 to 120.8 metric tons. Supply – World wheat production in the 2006-07 marketing year fell –4.4% to 593.108 million metric tons

300

Demand – World wheat utilization in 2006-07 fell – 1.4% yr/yr to 615.2 million metric tons, down from the 200506 record high of 623.8. US consumption of wheat in 200607 rose +0.4% yr/yr to 1.151 billion bushels, which was well below the record high of 1.381 billion bushels seen in 199899. The consumption breakdown shows that 84% of US wheat consumption in 2006-07 went for food, 13% for feed and residuals, and 7% for seed. Trade – World trade in wheat in 2006-07 fell –1.6% yr/ yr to 111.9 million metric tons from the record of 113.7 million metric tons seen in 2005-06. US exports of wheat in 2006-07 fell –13.3% yr/yr to 875,000 million bushels from 1.009 billion bushels in 2005-06 and remained well below the record of 1.771 billion bushels of exports seen in 198182. US imports of wheat in 2006-07 rose sharply by +40.8% to 115.8 million bushels and showed a further recovery from the 16-year low of 63.0 million bushels seen in 2003-04.

WHEAT World Production of Wheat Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

In Thousands of Metric Tons

Argentina

Australia

Canada

China

EU-25

India

Iran

Pakistan

Kazakhstan

Russia

Turkey

United States

World Total

15,740 13,300 16,400 16,230 15,500 12,300 14,500 16,000 14,500 14,200

19,224 21,465 24,757 22,108 24,299 10,132 26,132 22,600 25,000 10,500

24,280 24,082 26,941 26,519 20,568 16,198 23,552 25,860 26,775 27,300

123,289 109,726 113,880 99,640 93,873 90,290 86,490 91,950 97,450 103,500

94,181 103,085 114,741 124,197 113,553 124,829 106,878 136,778 122,665 117,052

69,350 66,350 70,780 76,369 69,680 71,810 65,100 72,150 68,640 69,350

10,000 12,000 8,500 8,000 9,500 12,450 13,500 14,000 14,500 14,000

8,950 4,700 11,200 9,100 12,700 12,600 11,000 9,950 11,000 13,500

16,651 18,694 17,858 21,079 19,024 18,227 19,183 19,500 21,500 21,700

44,200 27,000 31,000 34,450 46,900 50,550 34,100 45,400 47,700 43,500

16,000 18,000 16,500 18,000 15,500 16,800 16,800 18,500 18,000 18,000

67,534 69,327 62,475 60,641 53,001 43,705 63,814 58,738 57,280 49,316

609,959 589,960 585,817 581,500 581,138 567,643 554,595 628,585 620,607 593,108

Preliminary.

2

Estimate.

3

Forecast.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

World Supply and Demand of Wheat Crop Year

Yield

Production

World Trade

Utilization Total

Ending Stocks

Stocks as a % of Utilization

228.4 225.1 215.4 217.6 214.7 214.6 209.9 218.9 218.3 212.0

2.70 2.60 2.70 2.70 2.70 2.60 2.60 2.90 2.80 2.80

610.0 590.0 585.8 581.5 581.1 567.6 554.6 628.8 619.7 588.6

104.5 102.0 112.7 104.1 110.8 110.1 104.5 113.1 113.7 111.9

577.3 579.0 585.0 583.9 585.0 603.8 588.5 610.1 623.8 615.2

197.1 208.1 208.9 206.5 202.7 166.6 132.7 151.4 147.4 120.7

34.1 35.9 35.7 35.4 34.6 27.6 22.5 24.8 23.6 19.6

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062 2006-073 1

Preliminary.

2

In Millions of Metric Tons/Hectares

Area Harvested

Estimate.

3

Forecast.

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

Salient Statistics of Wheat in the United States -------------- Acreage Harvested -------------Crop Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

Planting Winter Spring All Intentions ------------------------------ 1,000 Acres ------------------------------

70,412 65,821 62,664 62,549 59,597 60,318 62,141 59,674 57,229 57,344

41,340 40,126 35,436 35,002 31,295 29,742 36,753 34,462 33,794 31,117

21,500 18,876 18,337 18,061 17,338 16,166 16,310 15,537 16,325 16,769

62,840 59,002 53,773 53,063 48,633 45,824 53,063 49,999 50,119 46,810

Average - All Yield Per Acre in Bushels

39.5 43.2 42.7 42.0 40.2 35.0 44.2 43.2 42.0 38.7

------- Foreign Trade5 ------Domestic Value of Imports3 Exports2 Production $1,000 -- In Millions of Bushels --

8,286,741 6,780,623 5,593,989 5,782,107 5,440,217 5,637,416 7,929,039 7,283,324 7,171,441 7,721,028

1,040.4 1,045.7 1,086.5 1,062.0 962.3 850.2 1,158.3 1,065.9 1,009.3 875.0

Preliminary. 2 I ncludes flour milled from imported wheat. 3 Total wheat, flour & other products. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Supply and Distribution of Wheat in the United States Crop Year Beginning June 1

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072

4

Civilian only.

Per Capita4 ------- Consumption ------Flour Cereal ---------- In Pounds----------

94.9 103.0 94.5 89.8 107.6 77.4 63.0 70.6 81.7 115.0 5

147.0 143.0 144.0 146.0 141.0 137.0 137.0 134.0 -------

3.9 3.9 3.8 3.8 3.8 3.7 3.7 3.7 -------

Year beginning June.

In Millions of Bushels

-------------------------------------------- Supply -------------------------------------------- --------------------------------- Domestic Disappearance --------------------------------F eed & Total ----------- Stocks, June 1 ----------On Mills, ResDisappearTotal Total Farms Elevators3 idual5 ance Stocks Production Imports4 Supply F ood S eed Total Exports4

154.6 224.2 277.7 226.8 197.3 216.8 132.1 131.9 161.3 111.0

289.0 498.3 668.2 723.0 678.9 560.3 359.3 414.6 378.8 460.2

443.6 722.5 945.9 949.7 876.2 777.1 491.4 546.4 540.1 571.2

2,481.5 2,547.3 2,299.0 2,232.5 1,957.0 1,605.9 2,344.8 2,158.2 2,104.7 1,812.0

94.9 103.0 94.5 89.8 107.6 77.4 63.0 70.6 81.7 115.0

3,020.0 3,372.8 3,336.0 3,267.7 2,931.2 2,460.4 2,899.2 2,775.3 2,726.5 2,498.2

914.1 909.7 921.0 949.6 926.4 918.6 911.9 909.6 915.2 925.0

92.5 80.4 91.7 79.5 83.4 84.4 79.7 77.6 77.7 81.0

250.5 390.7 279.3 300.4 182.0 115.7 202.9 182.1 153.2 145.0

1,257.1 1,381.1 1,299.7 1,329.5 1,191.8 1,118.7 1,194.4 1,169.2 1,146.1 1,151.0

1,040.4 1,045.7 1,086.5 1,062.0 962.3 850.2 1,158.3 1,065.9 1,009.3 875.0

2,297.5 2,426.9 2,386.2 2,391.6 2,154.1 1,968.9 2,352.8 2,235.2 2,155.3 2,026.0

Preliminary. 2 Estimate. 3 Also warehouses and all off-farm storage not otherwise designated, including flour mills. 4 I mports & exports are for wheat, including flour & other products in terms of wheat. 5 Mostly feed use. Source: Economic Research Service, U.S. Department of Agriculture

1

301

WHEAT Stocks, Production and Exports of Wheat in the United States, by Class Year Beginning June 1

In Millions of Bushels

---------- Hard Spring ----------- ------------ Durum2 ------------- ---------- Hard Winter ----------- ------- Soft Red Winter -------- ------------- White -------------Stocks ProStocks ProStocks ProStocks ProStocks ProJune 1 duction Exports3 June 1 duction Exports3 June 1 duction Exports3 June 1 duction Exports3 June 1 duction Exports3

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

166 220 233 218 210 230 145 157 159 132

491 486 448 502 476 351 500 525 467 432

240 247 230 230 216 259 272 314 282 250

31 26 55 50 45 33 28 26 38 40

88 138 99 110 84 80 97 90 101 53

57 40 44 50 50 32 44 31 47 30

143 307 435 458 411 363 188 227 193 215

1,098 1,180 1,051 846 767 620 1,071 856 930 682

358 453 486 403 349 309 512 388 430 265

45 80 136 133 135 78 55 64 88 106

1 Preliminary. 2 I ncludes Red Durum. 3 I ncludes four made from U.S. wheat & shipments to territories. U.S. Department of Agriculture (ERS-USDA)

472 443 454 471 400 321 380 380 309 390

180 105 170 176 199 105 140 122 76 130

59 90 87 91 75 73 75 72 63 78

332 301 247 303 232 233 297 306 298 254

205 198 160 203 147 148 192 207 175 200

Source: Economic Research Service,

Seeded Acreage, Yield and Production of all Wheat in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

----------- Seeded Acreage -- 1,000 Acres ----------- ----- Yield Per Harvested Acre (Bushels) ----- ----------- Production (1,000,000 Bushels) ----------Other Other Other Winter Spring Durum All Winter Spring Durum All Winter Spring Durum All

47,985 46,449 43,331 43,393 41,078 41,766 45,384 43,350 40,433 40,575

Preliminary.

19,117 15,567 15,348 15,299 15,609 15,639 13,842 13,763 14,036 14,899

3,310 3,805 4,035 3,937 2,910 2,913 2,915 2,561 2,760 1,870

70,412 65,821 62,714 62,629 59,597 60,318 62,141 59,674 57,229 57,344

44.6 46.9 47.8 44.7 43.5 38.2 46.7 43.5 44.4 41.7

29.9 34.9 34.1 38.4 35.2 29.1 39.5 43.2 37.1 33.2

27.6 37.0 27.8 30.7 30.0 29.5 33.7 38.0 37.2 29.5

Year

Colorado

Idaho

Illinois

Kansas

Missouri

Montana

Nebraska

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

86,400 99,450 103,200 68,150 66,000 36,300 77,000 45,900 52,800 39,900

68,800 63,140 53,960 65,700 51,830 48,510 57,600 63,000 66,430 54,670

66,490 57,600 60,600 52,440 43,920 30,870 52,650 53,100 36,600 60,970

501,400 494,900 432,400 347,800 328,000 270,600 480,000 314,500 380,000 291,200

58,320 57,500 44,160 49,400 41,040 33,440 53,070 48,360 29,160 49,140

55,100 48,750 36,860 44,550 19,140 21,840 67,340 66,830 94,500 82,560

70,300 82,800 81,600 59,400 59,200 50,160 83,720 61,050 68,640 61,200

Preliminary.

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

Preliminary.

302

548.2 528.5 503.1 556.6 512.0 388.9 531.4 568.9 504.5 460.5

87.8 138.1 99.3 109.8 83.6 80.0 96.6 89.9 101.1 53.5

2,481.5 2,547.3 2,299.0 2,232.5 1,957.0 1,605.9 2,344.8 2,158.2 2,104.7 1,812.0

In Thousands of Bushels Ohio

Oklahoma

Oregon

Texas

Washington

Total

68,670 74,240 72,100 79,920 60,300 50,220 68,000 55,180 58,930 65,280

169,600 198,900 150,500 142,800 122,100 103,600 179,400 164,500 128,000 81,600

53,790 52,930 29,610 45,260 28,000 29,820 47,940 47,580 47,580 38,690

118,900 136,500 122,400 66,000 108,800 78,300 96,600 108,500 96,000 33,600

141,900 136,500 96,860 131,400 106,750 104,400 117,000 117,250 120,600 118,800

1,845,528 1,880,733 1,696,580 1,562,733 1,361,479 1,137,001 1,716,721 1,499,434 1,499,129 1,298,081

Source: Crop Reporting Board, U.S. Department of Agriculture (CRB-USDA)

Official Winter Wheat Crop Production Reports in the United States Crop Year

1,845.5 1,880.7 1,696.6 1,562.7 1,361.5 1,137.0 1,716.7 1,499.4 1,499.1 1,298.1

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Production of Winter Wheat in the United States, by State

1

39.5 43.2 42.7 42.0 40.2 35.0 44.2 43.2 42.0 38.7

In Thousands of Bushels

May 1

June 1

July 1

August 1

September 1

Current December

Final

1,561,470 1,706,784 1,614,799 1,648,805 1,341,381 1,300,726 1,563,314 1,550,395 1,590,862 1,322,831

1,603,580 1,743,294 1,611,559 1,621,966 1,321,126 1,237,671 1,626,376 1,530,742 1,545,971 1,263,766

1,780,554 1,898,719 1,673,222 1,588,376 1,366,192 1,178,320 1,715,912 1,469,735 1,525,302 1,280,005

1,855,474 1,914,359 1,688,582 1,594,321 1,385,048 1,158,710 1,712,150 1,489,408 1,520,848 1,283,134

-----------------------------------------

-----------------------------------------

1,845,528 1,880,733 1,696,580 1,561,723 1,361,479 1,137,001 1,716,721 1,499,434 1,499,129 1,298,081

Source: Crop Reporting Board, U.S. Department of Agriculture (CRB-USDA)

WHEAT Production of All Spring Wheat in the United States, by State Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

8,010 13,680 7,540 15,120 15,750 12,040 7,275 8,925 9,450 8,075 9,700 13,160 7,917 8,505 11,880 8,928 9,000 12,995 11,500 11,500 14,490 9,603 9,000 17,985 7,900 6,555 16,380 7,400 6,435 6,715

Preliminary.

57,860 513 87,783 94,400 624 138,119 72,000 1,512 99,322 78,300 468 109,805 54,600 576 83,556 48,750 147 79,960 58,410 621 96,637 52,800 450 89,893 68,250 260 101,105 31,500 90 53,475

Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 Preliminary.

45,030 75,200 118,900 210,000 39,270 78,720 108,000 211,200 50,560 78,000 108,000 168,000 42,750 95,550 77,500 233,600 33,320 79,200 65,550 234,600 29,900 61,200 75,900 165,200 27,060 104,400 60,500 252,800 38,710 88,550 88,350 243,950 32,400 70,930 81,600 224,400 34,310 77,550 63,800 212,350

6,600 4,560 5,049 8,280 4,650 4,680 5,600 8,400 5,980 5,750

63,000 59,200 59,850 60,040 64,350 24,000 56,280 71,910 67,600 42,600

23,220 20,925 27,280 33,480 25,830 25,370 22,345 26,250 18,700 21,250

548,155 528,469 503,108 556,632 512,008 388,917 531,402 568,918 504,456 460,480

Source: Crop Reporting Board, U.S. Department of Agriculture (CRB-USDA)

Grindings of Wheat by Mills in the United States

1

In Thousands of Bushels

-------------------------------- Durum Wheat -------------------------------- --------------------------------------------- Other Spring Wheat ---------------------------------------------MonNorth South Total MinneMonNorth South WashTotal Arizona California tana Dakota Dakota Durum Idaho sota tana Dakota Oregon Dakota ington Other

In Millions of Bushels (60 Pounds Each)

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

Total

76.4 -------------------------------------

75.8 224.7 234.0 244.7 230.2 230.3 231.8 224.8 229.3 228.8

78.4 -------------------------------------

82.7 -------------------------------------

75.3 238.6 242.2 247.7 238.7 224.4 224.2 222.1 223.4 224.7

74.8 -------------------------------------

-----------------------------------------

215.5 213.5 225.6 223.8 217.0 215.8 210.9 214.9 215.9

-----------------------------------------

-----------------------------------------

216.6 228.0 226.8 221.3 217.6 217.4 212.3 216.5 214.6

-----------------------------------------

895.5 904.9 928.7 937.5 903.6 888.0 879.1 878.3 883.2 907.1

Source: Bureau of the Census, U.S. Department of Commerce

Wheat Stocks in the United States

In Millions of Bushels

------------------------ On Farms ------------------------ ------------------------- Off Farms -------------------------

--------------------------- Total Stocks ---------------------------

Year

Mar. 1

June 1

Sept. 1

D e c. 1

Mar. 1

June 1

Sept. 1

D e c. 1

Mar. 1

June 1

Sept. 1

D e c. 1

1997 1998 1999 2000 2001 2002 2003 2004 2005 20061

320.8 399.9 471.2 424.7 384.8 338.5 236.3 257.9 304.7 256.0

154.6 224.2 277.7 226.8 197.3 216.8 132.1 131.9 161.3 111.0

794.4 885.7 888.1 808.4 696.9 580.2 687.3 790.6 721.4 572.0

604.0 680.2 647.4 623.4 517.9 384.8 491.9 531.0 513.0 403.3

501.1 766.6 979.2 991.8 953.6 871.3 670.3 762.7 679.7 716.2

289.0 498.3 668.2 723.0 678.9 560.3 359.3 414.6 378.8 460.2

1,282.0 1,499.6 1,557.0 1,544.3 1,459.0 1,170.8 1,351.7 1,147.8 1,201.9 1,178.5

1,015.2 1,215.5 1,236.3 1,182.7 1,105.6 935.1 1,028.4 899.3 916.4 911.4

821.8 1,166.6 1,450.4 1,416.5 1,338.4 1,209.8 906.6 1,020.6 984.4 972.2

443.6 722.5 945.9 949.7 876.2 777.1 491.4 546.4 540.1 571.2

2,076.3 2,385.3 2,445.0 2,352.7 2,155.8 1,751.0 2,039.0 1,938.4 1,923.3 1,750.5

1,619.2 1,895.7 1,883.7 1,806.1 1,623.5 1,319.9 1,520.3 1,430.3 1,429.4 1,314.6

1

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Wheat Supply and Distribution in Canada, Australia and Argentina

In Millions of Metric Tons

--------- Canada (Year Beginning Aug. 1) --------- --------- Australia (Year Beginning Oct. 1) --------- ------- Argentina (Year Beginning Dec. 1) -------------------- Supply ------------Crop Year

Stocks Aug. 1

New Crop

9.0 6.0 7.4 7.3 9.7 6.7 5.7 6.1 7.9 9.7

24.3 24.1 26.9 26.5 20.6 16.2 23.6 25.9 26.8 27.3

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-061 2006-072 1

Preliminary.

2

Forecast.

------------- Supply -------------

Total -- Disappearance -- Stocks Supply Domestic Exports3 Oct. 1

33.3 30.1 34.4 33.8 30.2 22.9 29.3 31.9 34.7 37.0 3

7.3 8.1 8.1 7.0 7.6 8.2 7.6 9.4 9.2 10.2

I ncluding flour.

20.1 14.7 19.2 17.3 16.3 9.4 15.8 14.9 16.1 20.5

2.4 2.3 2.8 4.6 5.5 8.0 3.1 5.4 7.1 9.3

New Crop

19.2 21.5 24.8 22.1 24.3 10.1 26.1 22.6 24.5 10.5

------------ Supply -------------

Total -- Disappearance -Supply Domestic Exports3

21.6 23.8 27.6 26.7 29.8 18.2 29.3 28.0 31.6 19.8

4.0 4.5 5.2 5.3 5.4 6.2 6.0 6.2 6.4 6.9

15.3 16.5 17.8 15.9 16.4 9.1 18.0 14.7 16.0 10.5

Stocks D e c. 1

New Crop

1.0 .8 .7 .6 .6 1.1 1.5 1.4 .6 .5

15.7 13.3 16.4 16.2 15.5 12.3 14.5 16.0 14.5 14.2

Total -- Disappearance -Supply Domestic Exports3

16.7 14.1 17.1 16.8 16.1 13.4 16.0 17.4 15.1 14.7

4.8 4.9 4.9 5.0 4.9 5.2 5.2 5.0 5.0 4.9

11.2 8.6 11.6 11.3 10.1 6.8 9.4 11.8 9.6 9.5

Source: Foreign Agricultural Service, U.S. Department of Agriculture (FAS-USDA)

303

WHEAT Quarterly Supply and Disappearance of Wheat in the United States Crop Year Beginning June 1

1996-7 June-Aug. Sept.-Nov. Dec.-Feb. Mar.-May 1997-8 June-Aug. Sept.-Nov. Dec.-Feb. Mar.-May 1998-9 June-Aug. Sept.-Nov. Dec.-Feb. Mar.-May 1999-00 June-Aug. Sept.-Nov. Dec.-Feb. Mar.-May 2000-1 June-Aug. Sept.-Nov. Dec.-Feb. Mar.-May 2001-2 June-Aug. Sept.-Nov. Dec.-Feb. Mar.-May 2002-03 June-Aug. Sept.-Nov. Dec.-Feb. Mar.-May 2003-04 June-Aug. Sept.-Nov. Dec.-Feb. Mar.-May 2004-05 June-Aug. Sept.-Nov. Dec.-Feb. Mar.-May 2005-06 1 June-Aug. Sept.-Nov. Dec.-Feb. Mar.-May 2006-072 June-Aug. Sept.-Nov. 1 5

In Millions of Bushels

---------------------------------- Disappearance ---------------------------------Total ----------- Ending Stocks ----------------------------------- Supply ------------------------- ------------------ Domestic Use ------------------Beginning D i sa p Total F eed & Gov't Privately Total Stocks Production Imports3 Supply F ood Seed Residual6 Owned4 Owned5 Stocks Total Exports3 pearance

376.0 376.0 1,724.2 1,218.8 821.8 443.6 443.6 2,076.3 1,619.2 1,166.6 722.5 722.5 2,385.3 1,895.7 1,450.4 945.9 945.9 2,445.0 1,885.6 1,415.3 949.7 949.7 2,352.7 1,806.1 1,338.4 876.2 876.2 2,155.8 1,623.5 1,209.8 777.1 777.1 1,749.0 1,319.9 906.6 491.4 491.4 2,039.0 1,520.3 1,020.6 546.4 546.4 1,938.4 1,430.3 984.4 2,105.0 540.1 1,923.0 1,429.0 972.0 571.0 571.0 1,743.0

2,277.4 2,277.4 ------------2,481.5 2,481.5 ------------2,547.3 2,547.3 ------------2,299.0 2,299.0 ------------2,228.2 2,228.2 ------------1,947.5 1,947.5 ------------1,605.9 1,605.9 ------------2,344.8 2,344.8 ------------2,158.2 2,158.2 ------------2,104.7 2,104.7 ------------1,812.0 1,812.0 ----

92.3 14.9 20.7 27.1 29.7 94.9 22.7 22.8 23.8 25.7 103.0 24.4 23.9 27.7 27.0 94.5 30.6 19.5 19.4 25.0 89.8 20.4 25.1 21.4 22.9 107.6 25.7 29.0 27.6 25.2 77.4 26.7 23.1 12.7 14.9 63.1 15.7 17.8 12.9 16.7 70.6 17.4 18.7 17.8 16.7 81.0 19.0 20.0 20.0 22.0 112.0 26.0 30.0

2,745.7 2,668.3 1,744.9 1,245.9 851.6 3,020.0 2,947.8 2,099.1 1,643.0 1,192.2 3,372.8 3,294.2 2,409.2 1,923.4 1,477.4 3,339.4 3,275.5 2,464.5 1,905.1 1,440.3 3,267.7 3,198.3 2,377.8 1,827.5 1,361.3 2,931.2 2,849.3 2,184.9 1,651.0 1,235.0 2,460.4 2,409.6 1,772.1 1,332.6 921.6 2,899.3 2,851.9 2,056.7 1,533.2 1,037.3 2,775.2 2,722.1 1,957.1 1,448.1 1,001.1 4,290.7 2,663.0 1,944.0 1,450.0 995.0 2,495.0 2,410.0 1,780.0

890.7 223.7 233.8 212.7 220.5 914.1 227.9 238.7 219.2 228.3 909.7 225.7 240.7 213.2 230.1 924.7 230.5 241.1 220.9 232.2 949.6 238.8 253.0 228.2 229.7 926.4 233.8 245.1 221.1 226.4 918.6 233.2 237.8 218.9 228.4 911.9 230.5 239.6 215.9 225.9 904.6 227.5 235.6 216.3 225.2 914.0 231.0 238.0 219.0 226.0 954.0 233.0 244.0

102.3 8.7 59.9 1.8 31.8 92.5 3.1 58.6 2.1 28.7 80.5 1.0 54.9 1.4 23.2 91.6 6.4 54.6 2.3 28.4 79.5 1.1 49.8 3.5 25.2 83.4 3.5 51.6 2.0 26.3 84.4 2.7 54.6 3.1 23.9 79.6 2.1 53.3 2.2 22.0 78.9 4.1 48.2 2.4 24.2 78.0 2.0 51.0 1.0 24.0 114.0 2.0 55.0

307.6 377.5 -76.0 30.3 -24.2 250.5 352.2 -113.4 .3 11.4 542.1 424.9 73.8 11.6 31.8 283.8 270.0 -8.0 30.7 -8.8 300.4 317.9 -24.5 11.4 -4.5 182.0 237.9 -23.1 -6.6 -26.2 115.7 184.5 -74.7 14.1 -8.2 202.9 315.3 -61.9 3.1 -53.6 188.9 265.2 -57.0 7.7 -27.0 154.0 263.0 -61.0 1.0 -49.0 332.0 211.0 -45.0

1,300.6 610.0 217.8 244.7 228.1 1,257.1 583.2 183.9 221.6 268.4 1,532.4 651.6 369.5 226.2 285.1 1,300.1 506.9 287.7 253.9 251.8 1,329.5 557.8 278.4 243.1 250.3 1,191.8 475.2 273.6 216.5 226.4 1,118.7 420.4 217.7 236.1 244.5 1,194.4 547.9 231.0 221.2 194.3 1,172.4 496.8 226.8 226.4 222.4 1,146.0 496.0 228.0 221.0 201.0 1,400.0 446.0 254.0

1,001.5 334.1 308.3 179.3 179.8 1,040.4 288.2 296.0 254.9 201.3 1,042.2 257.3 291.8 246.8 246.3 1,089.5 323.6 291.3 235.9 238.8 1,062.0 287.8 293.3 246.1 234.8 962.3 218.3 287.8 224.7 231.5 850.2 240.2 234.5 189.8 185.7 1,158.1 264.9 305.4 291.4 296.4 1,062.9 286.8 300.0 237.4 238.7 1,009.0 244.0 286.0 257.0 222.0 852.0 214.0 212.0

2,302.1 944.1 526.1 424.1 407.9 2,297.5 871.4 479.9 476.4 469.8 2,574.6 908.9 661.2 473.0 531.5 2,389.6 830.5 579.0 489.8 490.6 2,391.6 845.6 571.6 489.1 485.1 2,154.1 693.5 561.4 441.2 457.9 1,968.9 660.7 454.2 425.9 430.2 2,352.5 812.8 536.4 512.6 490.7 2,235.3 783.6 526.8 463.8 461.1 2,155.0 740.0 514.0 478.0 423.0 2,252.0 660.0 466.0

93.0 109.5 96.1 95.3 93.0 94.2 93.2 93.1 93.0 94.2 127.9 99.8 126.6 124.2 127.9 103.9 132.2 115.0 108.7 103.9 97.0 108.9 102.9 104.4 97.0 99.0 97.7 96.9 96.9 99.0 66.4 91.4 80.9 74.1 66.4 60.9 60.3 60.4 60.0 60.9 54.0 61.9 61.7 55.9 54.5

350.6 1,614.7 1,122.7 726.5 350.6 628.3 1,983.1 1,526.1 1,073.6 628.3 818.0 2,285.5 1,769.1 1,326.2 818.0 845.8 2,312.8 1,770.6 1,306.6 845.8 779.2 2,243.8 1,703.2 1,234.0 779.2 678.1 2,058.1 1,526.6 1,112.9 678.1 425.0 1,657.6 1,239.0 832.5 425.0 485.5 1,978.7 1,459.6 960.6 485.5 486.1 1,876.5 1,369.0 928.5 485.6

48.3 44.1

1,875.0 1,385.4

443.6 1,724.2 1,218.8 821.8 443.6 722.5 2,076.3 1,619.2 1,166.6 722.5 945.9 2,385.3 1,895.7 1,450.4 945.9 949.7 2,445.0 1,885.6 1,416.5 949.7 876.2 2,352.7 1,806.1 1,338.4 876.2 777.1 2,155.8 1,623.5 1,209.8 777.1 491.4 1,749.0 1,319.9 906.6 491.4 546.4 2,039.0 1,520.3 1,020.6 546.4 540.1 1,938.4 1,430.3 984.4 540.1 571.0 1,923.0 1,429.0 972.0 571.0 1,751.0 1,315.0

Preliminary. 2 Forecast. 3 I mports & exports include flour and other products expressed in wheat equivalent. 4 Uncommitted, Government only. I ncludes total loans. 6 I ncludes alcoholic beverages. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

304

WHEAT Wheat Government Loan Program Data in the United States

Loan Rates (Cents Per Bushel)

----------------- Farm Loan Prices ------------------

Crop Year Beginning June 1

National Average3

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051 2005-062

258 258 258 258 280 280 275 275

----------------- Stocks Ending May 31 ----------------Acquired ---- Outstanding ---Central & Total by C C C Placed FarmerSouthern Northern CCC Under Under % of Owned Total CCC Pacific Plains Plains Corn Belt Stocks Loan Production Program Stocks Loans Reserve "Free" (Spring Northwest (Hard Target (Soft Red (White) ----------------------------------------- In Millions of Bushels ----------------------------------------Winter) & Durum) Winter) Rate4

NA NA NA NA 386 386 392

253 253 253 NA NA NA NA NA

257 257 257 NA NA NA NA NA

258 258 258 NA NA NA NA NA

271 271 271 NA NA NA NA NA

363 154 181 197 120 186

14.2 6.7 8.1 9.9 7.5 7.9

0 0 0 0 2 2

946 950 876 777 491 546 540 571

128 104 97 99 66 61 54 43

140 62 42 78 51 45 NA NA

0 0 0 0 0 0 0 0

818 846 779 678 425 485 486 528

Preliminary. 2 Estimate. 3 The national average loan rate at the farm as a percentage of the parity-priced wheat at the beginning of the marketing year. 4 1996-97 through 2001-02 marketing years, target prices not applicable. NA = Not avaliable. Source: Agricultural Marketing Service, U.S. Department of Agriculture (AMS-USDA)

1

Exports of Wheat (Only)2 from the United States Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

July

Aug.

67,372 86,605 90,594 110,814 88,581 82,739 59,190 64,911 63,219 78,013 54,665 88,042 80,599 97,962 64,553 90,760 63,115 67,846

June

96,664 107,168 104,944 89,582 92,345 115,869 103,222 83,173 78,225

Preliminary.

2

Grains.

Sept.

In Thousands of Bushels

Oct.

Nov.

90,507 109,168 91,438 96,154 113,785 82,716 86,941 94,598 73,606 78,866 125,312 101,168 119,965 92,634 102,761 103,423 76,431 70,752

81,913 89,211 86,034 99,800 75,678 76,222 83,947 77,164 60,595

Jan.

F eb.

96,486 73,017 84,460 71,763 94,705 60,743 81,369 72,114 69,485 62,769 79,811 109,607 81,718 77,349 91,531 84,659

D e c.

63,794 64,198 85,797 63,446 48,618 94,480 73,131 71,175

Apr.

May

Total

65,522 86,066 68,836 73,815 71,502 83,157 78,070 84,211 65,990 55,764 96,685 102,588 76,612 81,885 74,420 69,050

Mar.

85,057 87,789 68,908 58,449 59,438 91,917 75,575 72,209

1,002,171 1,036,240 1,023,611 932,681 823,791 1,136,366 1,044,599 984,878 833,928

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

United States Wheat and Wheat Flour Imports and Exports

In Thousands of Bushels

------------------------------------ Imports ------------------------------------ ----------------------------------------------------- Exports -----------------------------------------------------Crop Year Beginning June 1

--------- Wheat --------Unfit for Flour & Human Suitable Grain Products2 Confor Milling sumption --- Wheat Equivalent ---

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-051

73,245 79,766 72,408 66,313 82,615 52,889 37,156 44,525

-------------------------

73,245 79,768 72,407 66,313 82,615 49,741 37,156 44,525

Foreign Donations P.L. 480 Sec. 416

A i d3

CCC Export Credit

Total Concessional

Export Exhancement Programs

Total U.S. Wheat Exports

Total ------------------------------------- In Thousands of Metric Tons -------------------------------------

21,556 23,219 22,104 23,511 24,935 27,633 25,871 26,452

94,801 102,987 94,512 89,824 107,551 77,374 63,026 70,597

1,453 556 674 1,294 1,093 1,475 1,211 1,867

0 4,682 2,635 1,638 875 213 20 12

NA NA NA NA NA NA NA NA

1,727 5,334 3,436 3,109 2,035 2,081 1,628 2,139

5,460 3,621 3,691 4,026 4,614 3,633 3,739 2,554

0 0 0 0 0 0 0 0

25,791 28,806 27,838 25,275 25,411 24,395 31,179 26,406

Preliminary. 2 I ncludes macaroni, semolina & similar products. 3 Shipment mostly under the Commodity I mport Program, financed with foreign aid funds. NA = Not available. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Comparative Average Cash Wheat Prices

Crop Year Beginning June 1

--- Minneapolis --No. 1 No. 1 Hard Red No. 1 Dark No. 2 No. 2 Ordinary Hard Received Soft Red Protein, Soft Red Northern Spring Amber Winter, by U.S. Winter, Kansas 14% Durum City St. Louis Farmers Chicago

1999-00 2.48 2000-01 2.62 2001-02 2.78 2002-03 3.56 2003-04 3.40 2004-05 3.40 2005-06 3.42 2006-071 4.20-4.30 1

In Dollars Per Bushel

Preliminary.

2

2.19 2.39 2.69 3.40 3.66 3.01 3.13 3.84

Calendar year.

2.87 3.30 3.25 4.22 4.03 3.99 4.45 5.34

2.39 2.39 2.80 3.50 3.76 3.37 3.20 3.93

3.65 3.62 3.61 4.47 4.39 4.66 4.98 5.33

NA = Not available.

4.22 4.59 4.99 4.25 5.31 NQ NQ NQ

-------- Export Prices2 (U.S. $ Per Metric Ton) -------No. 2 No. 1 Western Soft White White, Pacific Portland, Oregon Northwest

3.02 2.99 3.56 3.95 3.95 3.93 3.57 4.47

2.72 2.72 3.67 4.58 4.24 4.04 4.35 5.37

Canada Aust- Vancouver No. 2 U.S. Gulf No. 1 Argentina ralian Soft No. 2 CWRS White, Standard Hard F.O.B. 13 1/2% Wheat Toledo Winter B.A.

1.94 2.98 2.67 3.34 3.59 3.10 3.15 3.69

143 145 157 185 182 177 182

152 149 149 194 188 204 209

114 118 121 158 161 127 137

112 114 125 160 156 151 168 205

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Rotterdam C.I.F. U.S. No. 2 Hard Winter

NA 163 161 189 204 213 224

305

WHEAT

-----

Cents Per Bushel Cash, Chicago (1862 - 1900) No. 2 Red, Chicago (Jan. 1901 - Mar. 1982) No. 2 Soft, Red, St. Louis (Apr. 1982 - date)

Average Price of No. 2 Soft Red Winter (30 Days) Wheat in Chicago

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

3.38 2.72 2.20 2.41 2.40 2.81 3.11 3.46 3.09 3.26

3.30 2.51 1.94 2.14 2.56 3.19 3.23 3.26 3.22 3.43

3.52 2.39 2.09 2.08 2.57 3.42 3.63 2.92 3.04 3.20

3.49 2.32 2.12 2.13 2.57 3.92 3.46 2.97 2.93 3.39

3.51 2.56 1.98 2.36 2.68 3.89 3.42 2.82 2.99 4.40

3.44 2.58 1.96 2.42 2.75 3.85 3.87 2.79 2.83 4.35

3.31 2.49 2.12 2.47 2.83 3.53 3.92 2.88 2.98 4.49

3.27 2.46 2.34 2.57 2.96 3.32 3.90 2.93 3.11 4.19

3.26 2.28 2.38 2.49 2.74 3.44 3.84 2.95 3.34

3.25 2.63 2.34 2.56 2.76 3.14 3.85 3.28 3.29

2.91 2.31 2.30 2.52 2.75 3.08 3.92 2.92 3.21

2.87 2.24 2.45 2.51 2.73 3.25 3.73 2.96 3.54

3.29 2.46 2.19 2.39 2.69 3.40 3.66 3.01 3.13 3.84

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price1 Received by Farmers for Wheat in the United States

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-072

3.52 2.77 2.50 2.50 2.74 2.92 3.08 3.55 3.23 4.01

3.23 2.56 2.22 2.32 2.70 3.21 2.95 3.37 3.20 3.89

3.56 2.39 2.53 2.41 2.73 3.63 3.35 3.27 3.24 3.91

3.67 2.41 2.58 2.44 2.85 4.21 3.39 3.36 3.36 4.06

3.55 2.79 2.57 2.68 2.87 4.38 3.44 3.43 3.43 4.59

3.50 2.97 2.66 2.83 2.87 4.25 3.61 3.46 3.45 4.59

3.45 2.87 2.52 2.87 2.88 4.06 3.68 3.40 3.53 4.51

3.33 2.80 2.51 2.85 2.87 3.89 3.68 3.43 3.52 4.54

3.27 2.74 2.54 2.83 2.83 3.70 3.77 3.36 3.66 4.66

3.32 2.65 2.59 2.87 2.87 3.55 3.83 3.42 3.79

3.15 2.62 2.57 2.86 2.83 3.37 3.88 3.35 3.81

3.06 2.53 2.59 2.98 2.81 3.33 3.82 3.31 4.09

3.38 2.68 2.53 2.70 2.82 3.71 3.54 3.39 3.53 4.31

1

I ncludes an allowance for unredeemed loans and purchases.

306

2

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture

WHEAT Average Price of No. 1 Hard Red Winter (Ordinary Protein) Wheat in Kansas City

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

4.08 3.16 2.93 3.07 3.32 3.55 3.63 4.13 3.87 5.25

3.57 3.02 2.68 2.97 3.20 3.92 3.34 3.97 3.83 5.27

3.84 2.74 2.85 2.89 3.15 4.29 3.87 3.73 3.96 5.00

3.86 2.81 2.92 3.13 3.18 5.04 3.74 4.01 4.30 5.16

3.88 3.30 2.80 3.41 3.28 5.10 3.79 3.95 4.57 5.62

3.87 3.42 2.89 3.45 3.37 4.76 4.21 4.22 4.53 5.61

3.72 3.31 2.81 3.47 3.26 4.40 4.31 4.22 4.52 5.49

3.61 3.27 2.90 3.54 3.29 4.06 4.32 4.14 4.46 5.29

3.64 3.05 2.94 3.35 3.25 4.08 4.25 4.00 4.72

3.61 3.02 2.91 3.45 3.23 3.80 4.30 4.00 4.62

3.39 2.94 2.84 3.41 3.24 3.79 4.35 3.76 4.86

3.41 2.89 2.95 3.49 3.21 3.87 4.28 3.80 5.21

3.71 3.08 2.87 3.30 3.25 4.22 4.03 3.99 4.45 5.34

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Price of No. 1 Dark Northern Spring (14% Protein) Wheat in Minneapolis

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

4.44 4.01 3.73 3.78 3.81 3.64 4.12 4.56 5.03 5.59

4.36 3.89 3.68 3.50 3.72 4.03 4.00 4.31 4.71 5.65

4.49 3.58 3.58 3.29 3.54 4.37 4.15 4.12 4.83 4.94

4.36 3.53 3.55 3.17 3.52 5.24 4.03 4.68 4.80 4.86

4.35 4.03 3.70 3.69 3.71 5.20 4.31 4.87 5.11 5.36

4.42 4.15 3.78 3.77 3.69 4.99 4.59 5.14 5.11 5.55

4.27 3.97 3.64 3.52 3.59 4.47 4.43 4.93 5.28 5.44

4.12 3.92 3.37 3.79 3.55 4.34 4.44 5.01 4.87 5.27

4.15 3.78 3.59 3.68 3.51 4.52 4.64 4.13 4.90

4.26 3.79 3.65 3.63 3.51 4.36 4.63 4.79 4.83

4.29 3.65 3.69 3.73 3.55 4.22 4.69 4.69 4.94

4.24 3.61 3.80 3.88 3.59 4.20 4.69 4.69 5.31

4.31 3.83 3.65 3.62 3.61 4.47 4.39 4.66 4.98 5.33

1

Preliminary.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Farm Prices of Winter Wheat in the United States

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

2.32 2.43 2.68 2.90 2.94 3.46 3.15 3.99

2.12 2.23 2.67 3.19 2.89 3.31 3.15 3.82

2.35 2.31 2.71 3.63 3.28 3.19 3.16 3.77

2.46 2.37 2.81 4.15 3.31 3.26 3.28 4.03

2.47 2.63 2.82 4.32 3.37 3.34 3.34 4.63

2.42 2.70 2.82 4.18 3.56 3.39 3.27 4.68

2.27 2.76 2.78 3.87 3.62 3.34 3.45 4.51

2.32 2.77 2.81 3.66 3.66 3.28 3.45 4.53

2.37 2.74 2.75 3.52 3.67 3.27 3.59 4.62

2.37 2.85 2.81 3.30 3.76 3.32 3.82

2.32 2.77 2.75 3.19 3.79 3.27 3.76

2.44 2.94 2.73 3.19 3.72 3.23 4.06

2.35 2.63 2.76 3.59 3.46 3.31 3.46 4.29

1

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Average Farm Prices of Durum Wheat in the United States

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

2.93 2.71 3.37 3.41 3.99 4.35 3.67 3.81

2.89 2.90 2.74 3.44 3.85 4.09 3.72 3.83

2.76 2.33 2.38 3.54 3.78 3.86 3.35 4.09

2.29 2.32 3.02 4.18 3.95 3.89 3.38 4.07

2.30 2.42 2.91 4.43 3.89 3.87 3.39 4.55

2.64 2.97 3.04 4.52 3.95 3.79 3.28 4.63

2.96 3.03 3.41 4.26 3.95 3.67 3.37 4.74

2.90 2.94 3.44 4.23 3.96 3.64 3.29 4.70

2.88 2.60 3.49 4.28 4.08 3.72 3.34 4.97

2.63 2.40 3.33 4.14 4.14 3.70 3.39

2.89 2.52 3.33 3.93 4.19 3.63 3.40

3.02 2.53 3.41 3.99 4.21 3.67 3.94

2.76 2.64 3.16 4.03 4.00 3.82 3.46 4.38

1

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

Average Farm Prices of Other Spring Wheat in the United States

In Dollars Per Bushel

Year

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Average

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

3.01 2.90 3.03 2.98 3.45 3.83 3.51 4.18

2.93 2.74 2.78 3.31 3.31 3.55 3.45 4.41

2.86 2.59 2.84 3.66 3.42 3.38 3.43 4.11

2.86 2.59 2.87 4.30 3.42 3.48 3.51 4.11

2.79 2.80 2.96 4.45 3.53 3.50 3.61 4.48

2.94 2.97 2.91 4.26 3.68 3.57 3.71 4.48

2.87 2.98 2.96 4.15 3.72 3.48 3.68 4.48

2.82 2.96 2.88 4.03 3.67 3.61 3.70 4.52

2.82 2.99 2.86 3.82 3.84 3.49 3.83 4.67

2.85 2.99 2.90 3.72 3.90 3.51 3.85

2.89 3.05 2.91 3.48 3.94 3.39 3.94

2.92 3.13 2.91 3.55 4.01 3.37 4.18

2.88 2.89 2.90 3.81 3.66 3.51 3.70 4.38

1

Preliminary.

Source: National Agricultural Statistics Service, U.S. Department of Agriculture (NASS-USDA)

307

WHEAT

Volume of Trading of Wheat Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

In Thousands of Contracts

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

312.7 363.5 426.5 467.1 551.8 603.0 438.0 656.9 613.0 889.2

373.4 473.1 597.4 691.1 595.3 593.1 526.0 771.7 1,053.6 1,421.3

368.5 452.2 710.4 522.4 536.1 501.1 411.0 783.1 827.8 1,059.6

567.1 514.6 559.2 490.7 580.0 563.1 496.8 786.2 937.5 1,300.0

422.9 432.2 444.7 627.7 537.8 419.3 638.6 606.1 694.7 1,511.6

469.2 601.1 674.6 759.4 720.4 689.8 661.8 786.5 1,088.0 1,617.1

471.0 401.5 523.5 461.1 695.3 586.4 585.1 501.7 690.3 1,067.4

493.2 490.2 665.9 572.9 600.3 651.6 689.6 747.4 1,024.8 1,659.9

401.3 475.8 536.0 388.2 385.9 682.9 536.5 520.9 660.0 1,365.9

406.0 543.7 437.7 466.3 629.5 609.4 778.9 478.7 717.4 1,938.1

432.6 539.5 613.6 596.6 614.7 594.4 739.8 913.7 1,164.5 1,613.7

340.7 394.2 380.4 364.1 354.3 378.8 465.4 402.3 642.4 781.2

5,058.6 5,681.6 6,570.0 6,407.5 6,801.5 6,872.9 6,967.4 7,955.2 10,114.1 16,224.9

Source: Chicago Board of Trade (CBT)

Average Open Interest of Wheat Futures in Chicago Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

63,388 96,870 119,096 127,419 145,802 118,192 92,679 130,101 201,297 320,974

71,304 99,103 131,961 135,316 146,927 118,484 99,882 137,459 223,108 380,405

76,747 97,585 118,503 123,980 137,377 112,469 95,464 141,239 218,153 389,284

85,516 114,193 117,905 128,462 138,876 112,870 99,500 155,383 208,149 385,698

84,721 115,199 111,541 130,938 134,051 96,050 97,750 127,086 207,407 466,013

83,675 116,008 117,075 133,527 151,951 98,047 96,230 135,322 223,014 491,343

92,815 121,794 120,365 139,194 142,399 118,041 92,484 154,623 239,219 473,749

105,320 127,240 129,748 144,953 143,574 131,303 119,817 166,422 256,533 459,650

104,587 125,747 128,403 141,803 136,514 129,913 110,703 154,431 276,741 455,755

108,480 131,322 135,884 150,592 126,772 114,544 109,449 156,290 297,319 476,906

101,089 130,186 140,798 153,287 113,456 101,354 125,335 172,064 301,838 435,059

90,386 116,249 124,063 134,997 104,975 82,934 120,376 182,402 298,523 426,976

Source: Chicago Board of Trade (CBT)

308

In Contracts

Jan.

WHEAT Commercial Stocks of Domestic Wheat1 in the United States, on First of Month Year

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

In Millions of Bushels

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

80.1 209.8 248.6 285.5 271.0 193.9 133.3 118.3 127.5 154.3

186.3 265.0 294.9 310.3 296.6 207.7 171.9 147.6 138.6 172.5

235.2 314.9 335.8 335.3 318.7 237.2 212.0 174.3 159.9 190.3

268.1 325.6 354.0 335.5 321.9 241.0 226.3 173.5 163.5 170.9

258.1 307.3 334.6 306.2 291.9 237.7 220.7 161.6 158.5 166.8

231.4 291.3 301.5 286.6 251.8 218.8 198.1 137.8 147.8 159.5

196.8 272.9 277.4 263.7 224.5 195.1 145.0 129.8 137.9

178.1 265.7 273.7 251.7 224.6 179.7 126.3 122.5 130.9

170.6 256.8 267.8 243.2 217.2 158.3 113.1 113.4 128.8

158.0 251.5 266.3 243.7 195.6 133.1 94.0 103.8 122.9

146.4 236.7 247.6 224.5 177.3 107.2 89.6 92.2 116.7

145.7 218.3 240.3 221.0 176.0 93.8 85.4 88.8 126.2

Domestic wheat in storage in public and private elevators in 39 markets and wheat afloat in vessels or barges at lake and seaboard ports, the first Saturday of the month. Source: Livestock Division, U.S. Department of Agriculture (LD-USDA)

1

Stocks of Wheat Flour Held by Mills in the United States

In Thousands of Sacks -- 100 Pounds

Year

Jan. 1

April 1

July 1

Oct. 1

Year

Jan. 1

April 1

July 1

Oct. 1

1995 1996 1997 1998 1999 2000

7,060 6,869 6,671 6,343 7,544 5,099

6,496 6,927 6,040 6,245 5,920 5,217

6,312 6,400 5,820 6,210 5,697 5,062

6,582 6,350 6,330 7,345 4,265 5,244

2001 2002 2003 2004 2005 20061

5,241 5,377 4,265 4,764 5,085 5,211

5,506 5,164 4,707 4,666 4,268 5,563

5,178 4,632 4,622 4,700 4,637 5,237

5,393 4,184 4,554 4,868 4,781 5,272

1

Preliminary.

Source: Bureau of the Census, U.S. Department of Commerce

Average Producer Price Index of Wheat Flour (Spring2) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

119.4 106.8 104.8 99.9 104.7 109.6 119.4 123.5 128.5 130.2

119.3 108.1 102.7 99.9 105.1 109.6 121.6 125.1 130.4 134.2

116.6 111.5 105.0 100.2 106.2 110.6 120.2 123.9 130.8 132.8

121.8 110.1 100.5 99.4 105.7 106.5 120.3 124.0 127.6 139.4

120.8 109.9 102.2 100.1 106.9 108.2 122.6 127.6 129.6 142.2

117.4 106.4 102.7 101.7 108.2 108.8 121.6 126.4 130.8 144.2

112.1 105.5 100.7 100.2 107.9 112.6 119.2 125.2 130.3 148.5

113.5 101.8 103.5 100.4 106.8 115.5 122.2 121.0 129.7 141.6

115.1 100.9 101.4 101.2 107.4 120.9 120.4 128.5 130.6 144.2

112.6 106.6 99.8 105.2 110.0 123.0 117.2 127.2 131.4 151.9

111.5 107.8 101.4 103.6 109.5 119.3 121.1 130.2 133.6 151.8

111.1 104.8 96.8 104.4 108.8 116.6 122.4 128.5 131.8 148.3

115.9 106.7 101.8 101.4 107.3 113.4 120.7 125.9 130.4 142.4

Preliminary.

2

Standard patent.

Source: Bureau of Labor Statistics, U.S. Department of Commerce (BLS) (0212-0301)

World Wheat Flour Production (Monthly Average) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 1 20062 1

June 1983 = 100

Jan.

Preliminary.

In Thousands of Metric Tons

Australia

France

Germany

Hungary

India

Ja p a n

Kazakhstan

Rep. of Korea

Mexico

Poland

Russia

Turkey

United Kingdom

129.7 146.8 154.8 NA NA NA NA NA NA NA

NA NA NA NA NA NA NA NA NA NA

404.8 407.5 423.6 405.5 403.1 415.3 424.4 427.3 415.7 427.4

77.7 69.5 69.1 73.5 72.4 67.6 70.7 67.6 72.3 63.2

412.5 302.1 196.6 202.5 197.2 211.6 234.1 239.9 209.2 186.7

388.1 382.0 386.5 383.0 387.2 389.4 391.0 390.1 384.7 377.7

127.3 128.5 104.9 120.8 116.5 143.4 137.3 138.5 182.2 189.6

145.9 143.5 152.8 155.9 142.8 151.2 149.3 157.5 152.8 150.0

216.0 213.2 204.8 206.0 221.1 218.1 218.6 217.6 219.3 219.8

175.3 172.1 125.0 125.4 126.8 135.2 143.1 135.2 128.6 145.6

361.9 872.7 899.1 864.0 866.6 794.3 821.3 799.5 439.4 451.4

159.1 152.7 156.6 162.0 145.2 139.6 159.8 178.4 191.5 175.3

369.0 377.0 NA 374.0 374.0 368.0 364.0 369.0 354.5 NA

2

Estimate. NA = Not available.

Source: United Nations (UN)

309

WHEAT Production of Wheat Flour in the United States

In Millions of Sacks (100 Pounds Each)

Year

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

June

Total

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071

-------------------------------------

100.2 104.2 108.8 102.1 102.1 103.1 100.9 102.5 102.9

-------------------------------------

-------------------------------------

106.5 108.2 109.7 105.8 100.3 100.5 99.7 100.3 100.8

-------------------------------------

-------------------------------------

96.1 101.1 99.4 96.0 95.9 95.7 95.9 97.3

-------------------------------------

-------------------------------------

103.5 101.6 97.2 96.3 96.8 95.8 96.2 96.4

-------------------------------------

406.3 415.2 415.1 400.2 395.0 395.1 392.7 396.4 407.5

1

Preliminary.

Source: Bureau of the Census, U.S. Department of Commerce

United States Wheat Flour Exports (Grain Equivalent2) Year

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-071 1

In Thousands of Bushels

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Jan.

F eb.

Mar.

Apr.

May

Total

1,971 4,160 3,620 1,412 1,474 824 742 859 720

1,740 3,638 3,805 661 1,547 1,074 1,220 686 488

2,027 2,586 1,623 1,990 753 3,444 885 839 780

2,914 6,503 3,174 1,005 1,373 1,087 770 720 610

3,812 4,576 4,165 3,226 2,437 765 834 840 532

2,354 2,332 2,332 2,534 2,854 1,295 1,005 871 754

6,838 3,023 2,741 2,479 4,645 1,673 1,347 734

2,551 2,924 2,236 2,207 1,049 1,789 955 572

3,341 6,108 2,365 3,294 884 1,342 617 620

4,126 2,615 2,200 2,301 1,146 1,020 756 937

3,105 3,193 3,868 2,802 1,083 732 722 1,188

1,948 1,286 2,163 2,759 541 1,386 781 966

36,728 42,944 34,292 26,670 19,786 16,431 10,634 9,832 7,768

Preliminary.

2

I ncludes meal, groats and durum.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Supply and Distribution of Wheat Flour in the United States

Year

1998 1999 2000 2001 2002 2003 2004 2005 20061

Wheat Ground - 1,000 Bu. -

902,532 917,797 944,868 914,036 889,412 889,188 876,047 884,101 884,056

Domestic Flour & ---------- Exports ---------DisappearProduct Total Millfeed Flour Flour Products ance Imports Supply Production Production2 - 1,000 Tons - -------------------------------------------------- In 1,000 Cw t. --------------------------------------------------

7,301 7,040 7,374 7,273 6,893 7,029 6,764 6,826 6,823

403,880 411,968 421,270 404,521 394,700 396,215 393,925 394,973 397,360

9,830 9,295 9,666 10,130 11,287 11,241 10,718 11,247

413,625 416,354 430,936 414,651 405,987 407,456 404,643 404,376

12,574 21,297 16,005 10,507 9,226 5,768 5,152 3,614

1,353 1,633 1,693 1,695 2,683 3,953 4,662 4,727

Total Population July 1 - Millions -

Per Capita Disappearance - P ounds -

276.0 279.3 282.4 285.4 288.2 291.1 293.9 296.8

145.9 142.6 146.3 141.0 136.7 136.6 134.3 133.5

394,817 393,377 413,238 402,449 394,077 397,734 394,829 396,035

Preliminary. 2 Commercial production of wheat flour, whole wheat, industrial and durum flour and farina reported by Bureau of Census. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Wheat and Flour -- Price Relationships at Milling Centers in the United States

In Dollars

-------------------------------------- At Kansas City ---------------------------------------

--------------------------------------- At Minneapolis ---------------------------------------

------------------------ Wholesale Price of -----------------------Cost of Wheat By-Products ------- Total Products ------to Produce Bakery Flour Obtained Crop Year Over Cost (June-May) 100 lb. Flour1 100 lb. Flour2 100 lb. Flour3 Actual of Wheat

------------------------ Wholesale Price of -----------------------Cost of Wheat By-Products ------- Total Products ------to Produce Bakery Flour Obtained Over Cost 100 lb. Flour1 100 lb. Flour2 100 lb. Flour3 Actual of Wheat

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 June-Aug. Sept.-Nov. Dec.-Feb.

9.03 7.91 7.74 7.95 7.64 9.66 9.43 9.33 9.67 9.07 10.28

9.99 9.06 8.86 9.36 8.98 11.04 10.58 10.88 11.45 10.80 12.10

1.43 1.08 .98 1.06 1.14 1.16 1.36 .95 .83 .66 1.00

11.41 10.15 9.84 10.42 10.11 12.20 11.95 11.83 12.28 11.46 13.10

2.38 2.23 2.10 2.48 2.48 2.54 2.52 2.50 2.61 2.39 2.82

9.83 8.76 8.29 8.24 8.20 9.80 9.98 10.62 11.24 11.07 11.42

10.62 9.80 9.30 9.28 9.11 11.03 10.67 11.31 12.14 11.58 12.70

1.34 1.02 .95 .97 1.10 1.15 1.15 .94 .86 .88 .85

11.96 10.82 10.24 10.24 10.21 12.17 11.82 12.25 13.00 12.46 13.55

2.12 2.06 1.95 2.01 2.01 2.38 1.84 1.62 1.76 1.39 2.13

1 Based on 73% extraction rate, cost of 2.28 bushels: At Kansas City, No. 1 hard winter 13% protein; and at Minneapolis, No. 1 dark northern spring, 14% protein. 2 quoted as mid-month bakers' standard patent at Kansas City and spring standard patent at Minneapolis, bulk basis. 3 Assumed 5050 millfeed distribution between bran and shorts or middlings, bulk basis. Source: Agricultural Marketing Service, U.S. Department of Agriculture (AMS-USDA)

310

Wool Wool production in 2002, the latest reporting year for the data series, fell –1.4% yr/yr to a new record low of 1.292 million metric tons. The world’s largest producers of degreased wool in 2002 were Australia with 31% of world production, followed by New Zealand (15%), and China (12%).

Wool is light, warm, absorbs moisture, and is resistant to fire. Wool is also used for insulation in houses, for carpets and furnishing, and for bedding. Sheep are sheared once a year and produce about 4.3 kg of “greasy” wool per year. Greasy wool is wool that has not been washed or cleaned. Wool fineness is determined by fiber diameter, which is measured in microns (one millionth of a meter). Fine wool is softer, lightweight, and produces fine clothing. Merino sheep produce the finest wool.

US wool production of 10,000 metric tons in 2002 accounted for only 0.8% of world production. US production of wool goods rose +18.1% yr/yr in 2005 (6 months annualized) to 23.4 million yards, up from the record low of 19.8 million yards in 2004. However, that was only 11% of the 2-decade high in wool goods production seen in 1998. The US sheep herd in 2005 was virtually unchanged at the record low of 5.072 million sheep.

Wool futures and options are traded on the Sydney Futures Exchange (SFE), where there are futures and options contracts on greasy wool, and futures on fine wool and broad wool. All three futures contracts call for the delivery of merino combing wool. Wool yarn futures are traded on the Chubu Commodity Exchange (CCE), the Osaka Mercantile Exchange (OME) and the Tokyo Commodity Exchange (TOCOM).

Demand – US consumption of apparel wool has dropped sharply, along with production, and fell –13.5% yr/ yr to a record low of 13.333 million pounds in 2006. The breakdown of US mill consumption in 2003, the latest data available, showed that wool usage for carpets was 6.017 million pounds, which was a new record low. Wool usage for apparel production was 43.869 million pounds, up +21.8%, up from the 2002 record low of 36.015 million pounds.

Prices – Average monthly wool prices at US mills in 2006 fell –3.2% yr/yr to $1.80 per pound, down further from the 8-year high of $2.41 posted in 2003. Wool prices in 2006 were still about 65% higher than the 3-decade low of $1.09 posted in 2000. The value of US wool production in 2005 was $26.272 million, up 72% from the record low of $15.311 million in 2001.

Trade – US exports of domestic wool in 2004 fell –4.5% yr/yr to 14.023 million pounds. US imports in 2005 rose +0.3% to 6.220 million pounds.

Supply – World production of wool has been falling in the past decade due to the increased use of polyester fabrics.

World Production of Wool Year

1994 1995 1996 1997 1998 1999 2000 20011 20022 1

In Metric Tons--Degreased

Argentina

Australia

China

Kazakhstan

New Zealand

Pakistan

Romania

Russia

South Africa

United Kingdom

United States

Uruguay

Total

48,000 44,000 39,000 36,000 34,000 36,000 32,000 32,000 31,000

570,000 475,000 457,000 472,000 452,000 437,000 452,000 416,000 395,000

130,000 141,000 152,000 130,000 141,000 144,000 146,000 149,000 152,000

55,000 35,000 25,000 21,000 15,000 13,000 14,000 14,000 14,000

214,000 214,000 199,000 228,000 219,000 220,000 202,000 199,000 199,000

31,000 32,000 32,000 34,000 23,000 23,000 23,000 24,000 24,000

17,000 16,000 16,000 13,000 12,000 13,000 11,000 10,000 12,000

73,000 56,000 46,000 36,000 29,000 24,000 20,000 20,000 20,000

40,000 35,000 37,000 34,000 32,000 34,000 32,000 32,000 32,000

47,000 48,000 46,000 46,000 48,000 47,000 45,000 39,000 42,000

16,000 15,000 13,000 13,000 12,000 11,000 11,000 10,000 10,000

50,000 46,000 43,000 46,000 42,000 34,000 32,000 32,000 27,000

1,693,000 1,512,000 1,459,000 1,440,000 1,388,000 1,369,000 1,356,000 1,310,000 1,292,000

Preliminary.

2

Estimate.

Source: Food and Agriculture Organization of the United Nations (FAO-UN)

Production of Wool Goods2 in the United States Year

Second Quarter

Third Quarter

Fourth Quarter

Total

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

42.7 38.8 25.0 17.9 20.8

49.7 37.5 20.9 18.0 12.4

42.3 29.6 17.4 13.4 11.0

40.5 26.3 14.6 17.4 9.0

175.2 132.2 77.9 66.7 53.2

2002 2003 2004 2005 20061

7.4 6.5 5.5 4.9 4.1

8.6 6.4 5.9 6.9 3.9

6.2 5.2 4.2 4.2 2.8

5.5 4.9 4.2 4.3 W

27.7 23.0 19.8 20.3 14.5

1997 1998 1999 2000 2001 1

In Millions of Yards

First Quarter

Preliminary.

2

Woolen and worsted woven goods, except woven felts.

Source: Bureau of the Census, U.S. Department of Commerce

Consumption of Apparel Wool2 in the United States Year

Second Quarter

Third Quarter

Fourth Quarter

Total

Year

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

33.1 29.3 17.3 17.4 17.0

33.8 29.6 16.8 16.1 13.5

30.6 21.9 15.8 14.6 11.6

32.8 17.5 13.6 13.9 10.9

130.4 98.4 63.5 63.0 53.0

2002 2003 2004 2005 20061

11.0 W W 2.3 3.7

10.5 W W 5.2 3.8

6.5 W W 3.9 2.8

W W W 4.0 3.0

36.0 W W 15.4 13.3

1997 1998 1999 2000 2001 1

In Millions of Pounds--Clean Basis

First Quarter

Preliminary.

2

Woolen and worsted woven goods, except woven felts.

Source: Bureau of the Census, U.S. Department of Commerce

311

WOOL Salient Statistics of Wool in the United States

Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 1

Shorn Sheep Weight & Lambs Per Wool Production Shorn4 Fleece -1,000's- -In Lbs.- 1,000 Lbs.

7,032 6,428 6,150 6,100 5,700 5,476 5,074 5,073 5,072

7.70 7.70 7.60 7.60 7.60 7.50 7.50 7.40 7.30

Price P er Lb.

Value of Production 1,000 $

84.0 60.0 38.0 33.0 36.0 53.0 73.0 80.0 71.0

45,172 29,415 17,860 15,377 15,311 21,876 28,126 29,921 26,272

53,889 49,255 46,549 46,400 43,000 41,322 38,229 37,622 37,232

---------------- Raw Wool (Clean Content) ---------------Dutiable Imports for Total Duty Free Mill Wool Domestic Exports ConsumpImports -- Consumption -ProPro- Domestic tion3 48's Total New (Not Finer Payment Wool Support Rate duction duction & Finer Supply2 than 46's) Apparel Carpet --Cents Per Lb.-- -------------------------------------- In Thousands of Pounds --------------------------------------

---------------100 100 100 100

------20.0 40.0 ---18.0 20.0 21.0

53,578 49,255 46,549 46,446 43,016 41,322 38,299 37,622

28,630 4,732 30,321 1,700 24,800 3,694 24,500 6,629 22,712 6,154 21,818 8,461 20,222 14,678 19,864 14,023

51,484 100,003 45,760 94,814 21,251 63,955 23,874 62,785 15,843 52,128 10,526 38,042 4,986 26,279 6,201 28,500 6,220

24,295 23,121 20,723 20,003 19,727 14,159 15,749 16,455 12,180

130,386 98,373 63,535 62,041 52,969 36,015 43,869

13,576 16,331 13,950 15,205 13,310 6,891 6,017

Preliminary. 2 Production minus exports plus imports; stocks not taken into consideration. 3 Apparel wool includes all dutiable wool; carpet wool includes all duty-free wool. 4 I ncludes sheep shorn at commercial feeding yards. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

1

Shorn Wool Prices

Year

U.S. Farm ----------------------- Australian Offering Price, Clean2 -----------------------Grade Grade Grade Grade Price Shorn Grade Market 60/62's 58's-56's 64/70's 64's Wool Greasy 70's 433-34 Indicator3 Type 62 Type 64A Type 63 B a si s1 Type 61 -Cents/Lb.- ----------------------- In Dollars Per Pound ----------------------- -Cents/Kg.-

1997 1998 1999 2000 2001 2002 2003 2004 2005

84.0 60.0 38.0 33.0 36.0 53.0 73.0 80.0 71.0

3.56 2.60 2.53 2.80 2.42 2.87 3.23 3.21 2.99

2.57 1.84 1.48 1.50 1.66 2.68 3.14 2.75 2.57

2.90 1.92 1.66 1.69 1.69 2.70 3.16 2.89 2.65

2.06 1.64 1.36 1.37 1.60 2.63 3.02 2.49 2.42

1.95 1.60 1.33 1.30 1.54 2.55 2.81 2.33 2.23

----------- Graded Territory Shorn Wool, Clean Basis4 -----------64's Staple 60's Staple 58's Staple 56's Staple 54's Staple 2 3/4" & up 3" & up 3 1/4" & up 3 1/4" & up 3 1/2" & up ---------------------------- In Dollars Per Pound -----------------------------

615 663 524 764 841 1,051 821

2.38 1.62 1.10 1.08 1.21 1.90 2.41 2.35 1.86

1.78 1.31 .85 .75 .91 1.41 1.73 1.59 1.46

1.64 1.21 .74 .65 .77 1.40 1.79 1.74 1.39

1.43 1.06 .66 .57 .66 1.19 1.48 1.50 1.41

1.14 .94 .59 .53 .65 1.02 1.24 1.25 1.03

Annual weighted average. 2 F.O.B. Australian Wool Corporation South Carolina warehouse in bond. 3 I ndex of prices of all wool sold in Australia for the crop year July-June. 4 Wool principally produced in Texas and the Rocky Mountain States. Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA) 1

Average Wool Prices1 --Australian-- 64's, Type 62, Duty Paid--U.S. Mills

In Cents Per Pound

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

234 218 158 154 160 218 344 304 273 243

261 225 150 146 168 243 346 294 271 256

254 247 157 144 164 250 326 288 268 259

261 205 156 156 158 251 333 281 242 251

279 214 150 156 164 249 296 261 265 258

287 179 149 154 166 259 326 275 266 254

NA NA 152 155 167 255 316 277 270 260

270 144 148 151 172 254 308 263 259 260

262 144 139 149 169 268 306 255 252 258

250 140 139 146 159 312 292 255 244 260

245 156 143 140 166 322 285 270 233 308

240 147 137 148 183 328 290 271 236 315

258 184 148 150 166 267 314 275 257 265

1

Raw, clean basis.

NA = Not available.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

Average Wool Prices --Domestic1-- Graded Territory, 64's, Staple 2 3/4 & Up--U.S. Mills In Cents Per Pound Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

190 236 115 95 95 134 236 233 215 NQ

190 195 115 95 100 150 260 239 207 NQ

208 195 115 101 108 170 258 240 200 162

228 188 110 110 129 181 250 240 185 183

248 177 117 125 137 189 223 235 185 173

255 170 122 125 125 200 234 229 185 171

255 170 116 125 127 200 239 233 179 165

255 150 110 120 122 200 243 236 186 165

255 115 105 107 126 198 243 240 195 165

255 115 100 105 130 204 243 236 181 NQ

260 115 110 105 122 223 232 230 168 212

260 115 95 97 127 233 233 230 140 220

238 162 111 109 121 190 241 235 186 180

1

Raw, shorn, clean basis.

312

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

WOOL

-------

Cents Per Pound Fine Scoured Fleece, Ohio (1851 - 1902) Fine Combing, Scoured (64's), Boston (1903 - 1909) Fine Combing, Scoured (64’s), Boston (Jan. 1910 - date) Tops (Jan. 1924 - date)

Wool: Mill Consumption, by Grades in the U.S., Scoured Basis

In Millions of Pounds

-------------------------------------------------------------------------------- Apparel Class1 -------------------------------------------------------------------------------

Year

------------------------- Woolen System ------------------------ ------------------------- Worsted System ------------------------60's & Coarser 60's & Coarser Finer Than 60's Total Finer Than 60's Total

1996 1997 1998 1999 2000 2001 2002 2003 20043 20054

42,141 49,038 31,258 18,379 18,503 16,062 9,627 6,681 NA NA

27,575 21,303 15,079 10,772 13,432 9,849 8,482 5,309 NA NA

Domestic & duty-paid foreign. Agriculture (ERS-USDA)

1

2

69,716 70,341 46,337 29,151 31,935 25,911 18,109 11,990 NA NA

Duty-free foreign.

3

46,057 48,153 42,243 27,429 NA NA NA NA NA NA

Preliminary.

4

13,752 11,892 9,793 6,955 NA NA NA NA NA NA

Estimate.

59,809 60,045 52,036 34,384 30,106 27,058 17,906 31,879 NA NA

All Total

Carpet Wool2

129,525 130,386 98,373 63,535 62,041 52,969 36,015 43,869 NA NA

12,311 13,576 16,331 13,950 15,205 13,310 6,891 6,017 NA NA

Source: Economic Research Service, U.S. Department of

United States Imports2 of Unmanufactured Wool (Clean Yield)

In Millions of Pounds

Year

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1

5.1 8.8 6.2 4.9 4.9 1.9 2.5 1.3 2.3 1.9

5.8 5.4 3.6 3.8 4.3 1.8 2.8 1.5 1.1 1.0

5.8 5.4 3.9 3.8 4.3 2.6 2.3 2.1 2.0 1.8

6.6 7.2 7.9 4.6 1.5 2.4 2.2 1.8 1.5 1.5

5.8 5.9 3.5 5.1 2.9 2.3 2.1 1.4 1.5 1.3

4.2 5.5 3.0 2.7 2.8 1.5 1.8 2.8 2.0 1.6

4.9 5.7 3.7 3.2 4.0 1.6 1.2 1.6 1.5 0.9

4.2 4.4 3.1 3.7 1.9 1.2 1.1 1.9 1.4 1.5

4.8 3.3 2.6 4.3 2.0 1.9 0.8 2.7 1.0 1.2

8.5 7.3 3.8 3.2 2.8 2.4 1.6 2.4 1.7 1.5

7.3 4.9 2.8 3.5 1.3 2.1 1.1 1.9 1.5 1.6

8.6 4.3 2.5 2.4 1.3 3.1 1.2 1.2 1.0 1.6

71.5 68.0 46.3 45.0 34.1 24.6 20.8 22.7 18.4 17.3

1

Preliminary.

2

For consumption.

Source: Economic Research Service, U.S. Department of Agriculture (ERS-USDA)

313

Zinc Zinc (symbol Zn) is a bluish-while metallic element that is the 24th most abundant element in the earth’s crust. Zinc is never found in its pure state but rather in zinc oxide, zinc silicate, zinc carbonate, zinc sulfide, and in minerals such as zincite, hemimorphite, smithsonite, franklinite, and sphalerite. Zinc is utilized as a protective coating for other metals, such as iron and steel, in a process known as galvanizing. Zinc is used as an alloy with copper to make brass and also as an alloy with aluminum and magnesium. There are, however, a number of substitutes for zinc in chemicals, electronics, and pigments. For example, with aluminum, steel and plastics can substitute for galvanized sheets. Aluminum alloys can also replace brass. Zinc is used as the negative electrode in dry cell (flashlight) batteries and also in the zinc-mercuric-oxide battery cell, which is the round, flat battery typically used in watches, cameras, and other electronic devices. Zinc is also used in medicine as an antiseptic ointment.

metric tons seen in 1990. US zinc smelter production in 2005 of 309,000 metric tons was less than half of its production of 796,300 metric tons seen in 1970.

Zinc futures and options are traded on the London Metals Exchange (LME). The LME zinc futures contract calls for the delivery of 25 metric tons of at least 99.995% purity zinc ingots (slabs and plates). The contract trades in terms of US dollars per metric ton. Zinc first started trading on the LME in 1915.

The breakdown of consumption by industries for 2005 showed that 49% of slab zinc consumption was by galvanizers, 17% for brass products, and the rest for other miscellaneous industries. The consumption breakdown by grades showed that 65% was for special high grade, 14% prime western, 13% high grade, and 8% re-melt and other. Within that grade breakdown, prime Western consumption has fallen by nearly half in the past 3 years.

US mine production of recoverable zinc in 2006 fell – 1.5% yr/yr to an annualized (through November) level of 710,836 metric tons. US production in 2005 of slab zinc on a primary basis rose by +1.1% to 191,000 metric tons, while secondary production rose +0.9% yr/yr to 118,000 metric tons. Demand – US consumption of slab zinc in 2005 fell by –19.1% yr/yr to 939,000 metric tons, which was an 15-year low. US consumption of all classes of zinc fell by –16.4% yr/ yr in 2005 to 1.170 million metric tons, which was a 14-year low. US consumption of slab zinc by fabricators in 2006 (through November) fell by –1.3% yr/yr to an annualized 400,036 metric tons, which was a new record low.

Prices – Zinc prices in 2006 rose to a record high monthly average of 158.44 cents per pound, up sharply by +136.4% from 2005. Prices in January of 2007 were even higher at about 184 cents per pound.

Trade – The US in 2006 relied on imports for 63% of its consumption of zinc, up sharply from the 35% average seen in the 1990s. US imports for consumption of slab zinc fell by –17.7% yr/yr to 668,000 metric tons in 2005, while imports of zinc ore fell by –32.5% yr/yr to 156,000 metric tons. The dollar value of US zinc imports in 2005 rose by +4.8% yr/yr to a 5-year high of $1.198 billion. The breakdown of imports in 2005 shows that most zinc is imported for blocks, pigs and slabs (668,000 metric tons); followed by ores (156,000 metric tons); dust, powder and flakes (23,400 metric tons); dross, ashes and fume (15,800 metric tons); waste and scrap (9,580 metric tons); and sheets, plates and other (3,630 metric tons).

Supply – World smelter production of zinc in 2005 rose +2.9% to 10.700 million metric tons, which was a new record high. The world’s largest producer of zinc is China with 26% of world smelter production, followed by Canada with 8%, Japan with 6%, and Australia and Spain each with 5%. US smelter production accounted for only 2.9% of world production in 2005. Australia’s production rose rapidly in the 1999-2002 period but the 2005 level of 507,800 metric tons was below the record high of 571,500 metric tons seen in 2002. China’s production of 2.800 million metric tons in 2005 was more than five times its production level of 550,000

Salient Statistics of Zinc in the United States Slab Zinc ----- Production ----Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052

Primary

Secondary

226,000 226,000 234,000 241,000 228,000 203,000 182,000 187,000 189,000 191,000

140,000 141,000 134,000 131,000 143,000 108,000 113,000 116,000 117,000 118,000

Preliminary. 2 Estimate. make zinc dust and chemicals.

1

314

3

In Metric Tons

Imports for ----- Consumption ----Ore Mine (Zinc Slab Production Zinc Content) (Recovered)

586,000 827,000 605,000 876,000 722,000 879,000 808,000 1,060,000 805,000 915,000 799,000 813,000 701,000 874,000 738,000 758,000 715,000 812,000 720,000 668,000

15,100 49,600 46,300 74,600 52,800 84,000 122,000 164,000 231,000 156,000

----- Exports -----

Net Import HighReliance Grade, as a % of Price All Con3 C e n t s /Lb.Classes sumption

---------- Consumption ---------Slab Zinc

Ore (Zinc Content)

1,970 3,630 2,330 1,880 2,770 1,180 1,160 1,680 3,300 785

425,000 461,000 552,000 531,000 523,000 696,000 822,000 841,000 745,000 786,000

Slab Consumed Zinc as Ore

1,210,000 1,260,000 1,290,000 1,430,000 1,330,000 1,150,000 1,170,000 1,080,000 1,160,000 939,000

1,400 ----------------------------

1,450,000 1,500,000 1,590,000 1,700,000 1,630,000 1,420,000 1,420,000 1,340,000 1,400,000 1,170,000

33 35 35 30 60 60 60 57 56 52

51.11 64.56 51.43 53.48 55.61 43.96 38.64 40.63 52.47 67.11

Based on apparent consumption of slab zinc plus zinc content of ores and concentrates and secondary materials used to Source: U.S. Geological Survey (USGS)

ZINC World Smelter Production of Zinc3 Year

Australia

Belgium

Canada

China

France

Germany

Italy

Ja p a n

Kazakhstan

Mexico

Spain

United States

World Total

331.0 317.0 322.0 348.5 494.5 558.5 571.5 557.5 477.5 507.8

234.4 243.6 205.0 232.4 251.7 259.3 260.0 244.0 263.0 257.0

715.6 703.8 745.1 776.9 779.9 661.2 793.4 761.2 804.2 805.0

324.3 346.1 321.0 1,700.0 1,980.0 2,040.0 2,100.0 2,320.0 2,720.0 2,800.0

327.0 251.7 334.0 333.1 350.0 347.0 350.0 253.0 260.0 268.0

269.0 227.7 231.6 333.0 327.5 358.3 378.6 388.1 382.0 380.0

642.3 650.2 652.7 152.8 170.3 177.8 176.0 123.0 130.0 121.0

190.0 189.0 240.7 683.6 698.8 684.1 673.9 686.1 667.2 675.2

221.7 231.4 230.3 249.3 262.2 277.1 286.3 279.0 316.5 356.9

163.1 171.0 175.0 218.9 235.1 303.8 302.1 320.4 325.2 360.0

360.8 364.2 360.0 393.0 386.3 418.0 488.0 519.0 525.0 546.0

366.0 367.0 368.0 371.0 371.0 311.0 295.0 303.0 306.0 309.0

7,610 7,920 8,170 8,550 9,020 9,320 9,720 9,900 10,400 10,700

1996 1997 1998 1999 2000 2001 2002 2003 2004 1 20052 1

In Thousands of Metric Tons

Preliminary.

2

Estimate.

3

Secondary metal included.

Source: U.S. Geological Survey (USGS)

Consumption (Reported) of Slab Zinc in the United States, by Industries and Grades ----------------------------------------- By Industries -----------------------------------------GalBrass Zinc-Base Zinc Total vanizers Products Alloy3 Oxide Other

Year

1996 1997 1998 1999 2000 2001 2002 2003 20041 20052 1

788,000 672,000 647,000 614,000 640,000 543,000 496,000 506,000 510,000 486,000

Preliminary.

2

398,000 347,000 320,000 308,000 293,000 281,000 265,000 264,000 248,000 238,000

Estimated.

3

87,400 76,800 60,300 78,200 82,800 74,400 86,800 87,400 96,700 83,900

Die casters.

4

I ncluded in other.

United States Foreign Trade of Zinc

Year

1996 1997 1998 1999 2000 2001 2002 2003 20042 20053 1

142,000 107,000 122,000 105,000 123,000 91,200 103,000 113,000 W W

Zinc content.

2

827,000 876,000 879,000 966,000 915,000 813,000 874,000 758,000 812,000 668,000

16,900 19,200 16,900 22,600 9,380 7,240 1,640 1,790 2,500 3,630

Preliminary.

3

31,900 29,600 29,200 26,600 36,500 39,300 31,200 10,300 10,800 9,580

Estimate.

4 4 4 4 4 4 4 4 4

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

111,000 88,700 72,800 58,400 60,600 54,000 61,400 60,000 58,800 62,100

54,000 57,200 51,700 55,400 41,500 30,300 28,000 27,600 33,600 40,300

238,000 207,000 192,000 184,000 206,000 165,000 113,000 109,000 96,200 68,000

Source: U.S. Geological Survey (USGS)

14,500 ------20,000 15,500 12,000 15,500 14,100 16,100 15,800

---------------------------- Zinc Ore & Manufactures Exported ----------------------Blocks, Pigs, Wrought & -------------------------------- --- Anodes, etc. --- ---------- Alloys ---------Zinc Ore Dust Angles, Un- Sheets, Total Dust, & Con(Blue Bars, Waste Plates Value Un- wrought Powder Alloys & Strips Rods, etc. & Scrap Powder) centrates $1,000 wrought & Flakes

10,300 11,700 17,600 21,300 26,700 26,700 30,900 27,400 24,800 23,400

NA = Not available.

1,001,800 1,340,390 1,098,690 1,133,890 1,272,750 937,110 887,785 839,705 1,142,733 1,198,040

-------------------------------

-------------------------------

-------------------------------

-------------------------------

45,500 11,100 46,100 9,980 35,000 5,530 28,200 5,050 36,100 4,830 44,000 4,690 47,700 5,660 50,200 6,550 53,900 7,640 56,000 9,310

425,000 461,000 552,000 531,000 523,000 696,000 822,000 841,000 745,000 786,000

Source: U.S. Geological Survey (USGS)

Mine Production of Recoverable Zinc in the United States Year

385,000 319,000 331,000 317,000 332,000 294,000 294,000 310,000 321,000 316,000

In Metric Tons

-------------------------------- Imports for Consumption Dross, Blocks, Sheets, Waste Ashes, Pigs, Plates, Fume Other & Scrap Slabs Ores1

15,100 49,600 46,300 74,600 52,800 84,000 122,000 164,000 231,000 156,000

--------------------------------- By Grades ---------------------------------Remelt Special and High High Prime Other Grade Grade Western

161,000 141,000 145,000 124,000 NA NA NA NA NA NA

4

In Metric Tons

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

46.2 50.1 61.4 64.4 68.4 61.3 65.2 60.4 53.6 58.1

45.7 48.3 57.6 56.6 60.5 60.4 60.2 55.3 56.0 51.4

45.8 56.5 63.0 68.5 62.2 67.8 62.7 57.9 64.1 61.5

47.9 56.2 67.0 64.5 65.2 55.2 54.0 58.5 56.7 54.2

49.7 56.7 61.7 70.2 66.9 63.4 65.2 56.1 53.3 54.3

45.3 55.0 62.8 65.3 66.1 63.8 64.0 59.0 64.6 59.8

45.9 59.5 68.2 68.1 66.7 66.0 64.5 60.8 64.5 64.7

49.8 57.2 72.1 71.4 67.6 67.2 59.6 62.0 68.9 62.3

53.0 60.1 60.8 59.6 60.9 54.4 63.3 61.6 61.8 65.8

47.6 55.7 67.8 62.3 67.1 68.3 58.6 61.6 64.4 66.3

44.2 62.0 61.2 63.5 54.0 61.3 61.0 56.8 51.2 53.2

48.4 61.9 65.9 67.2 55.4 65.5 60.5 56.5 62.3

574.0 722.0 808.0 814.0 799.0 754.6 738.8 706.5 721.4 710.8

Source: U.S. Geological Survey (USGS)

315

ZINC

-----

Cents Per Pound Prime Western, East St. Louis (Jan. 1910 - Dec. 1970) Prime Western, Domestic (Jan. 1971 - date)

Consumption of Slab Zinc by Fabricators in the United States Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 1

Preliminary.

In Thousands of Metric Tons

Jan.

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Average

47.2 46.3 40.5 41.8 45.4 31.2 33.1 35.1 33.6 34.8

43.1 45.2 45.4 44.6 43.5 31.3 33.1 36.2 33.9 34.5

48.6 47.4 43.8 47.7 44.1 30.4 34.4 36.6 34.1 34.8

50.1 44.8 40.3 45.6 42.7 33.1 35.2 36.7 33.5 34.0

48.1 45.4 42.5 44.4 43.6 34.9 34.7 35.9 33.8 33.1

45.3 49.0 47.1 49.1 38.2 34.4 38.2 37.0 34.1 34.2

45.1 46.0 37.8 42.0 30.6 34.3 34.2 33.7 31.3 32.4

45.5 45.0 40.1 43.3 39.2 35.8 35.5 33.6 33.7 33.4

50.9 45.9 42.0 42.6 37.7 36.1 36.8 33.8 34.8 31.4

49.6 45.9 42.8 47.5 35.7 36.1 36.8 34.6 34.7 32.8

44.3 40.5 41.1 43.8 32.1 32.7 35.3 34.3 33.8 31.3

46.2 43.9 39.7 40.2 27.3 33.3 36.4 33.4 34.1

588.0 647.0 614.0 640.0 543.0 403.6 423.7 420.9 405.4 400.0

Source: U.S. Geological Survey (USGS)

Average Price of Zinc, Prime Western Slab (Delivered U.S. Basis) Year

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

F eb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

D e c.

Total

55.64 55.43 47.29 58.44 51.82 40.98 38.88 49.61 61.10 100.02

59.82 51.86 51.11 54.67 51.29 39.97 38.46 53.31 64.57 106.57

63.28 51.98 51.68 55.60 50.55 42.15 38.48 54.63 66.59 116.10

62.62 54.31 51.07 56.14 48.95 41.66 36.99 51.89 63.55 147.28

65.65 52.77 52.20 57.44 47.54 39.97 37.86 51.88 60.70 170.57

67.78 50.78 50.35 55.67 45.56 39.70 38.57 51.53 61.97 158.11

75.29 52.23 53.73 56.52 43.62 41.01 40.30 49.85 58.26 163.89

80.89 51.64 56.28 58.04 42.53 38.91 39.77 49.31 62.76 164.23

78.96 50.29 59.12 60.53 41.14 39.26 39.84 49.37 67.73 166.56

62.55 47.63 57.07 54.67 39.53 39.08 43.44 53.36 72.10 185.80

57.83 48.74 56.91 53.07 39.99 36.99 44.11 54.61 77.60 210.32

54.45 48.44 58.75 53.00 39.25 38.52 47.60 58.32 87.45 211.82

65.40 51.23 53.84 56.15 45.15 39.64 40.36 52.31 67.03 158.44

Source: American Metal Market (AMM)

316

In Cents Per Pound

Jan.

CRB Yearbook CD Table of Contents Chapter 1: Installation QuickSearch .................................................. Chapter 2: Searching and Browsing Selecting Text to Search .............................. Types of Searches ......................................... Search Operators .......................................... Conducting a Search .................................... Search Results .............................................. Reader Preferences ...................................... Table of Contents Browsing ......................... Chapter 3: Viewing Images Finding Images ............................................. Finding Embedded Images .......................... Zooming Hyper-linked Images ....................

317 317 317 318 318 319 319 319

Chapter 4: Printing Print Hints .................................................... Printing Text or Images ............................... Print Setup ................................................... Page Layout .................................................. Chapter 5: User Annotations Using Bookmarks ......................................... Using Notes ..................................................

321 321 322 322 322 322

320 320 320

CRB Yearbooks CD Copyright © Commodity Research Bureau All rights reserved. QuickSearch is a trademark of dataDisc, Inc. Segments of this manual reprinted with permission by dataDisc, Inc. Factual information contained in the CRB Yearbooks CD has been obtained from sources believed to be reliable but are not necessarily inclusive and are not guaranteed in any way and should not be construed as a representation by us.

Chapter 1: Installation Installing QuickSearch

Fielded Search - searches a specific field and ignores all text outside of that field. To specify a fielded search: 1) Click Selected field under Select where to search. 2) Select a field from the list of available fields.

To run QuickSearch, you will need: • A computer with a 120 Mhz or faster processor, running any current Windows or Macintosh operating system • At least 32 MB of total RAM installed on your computer; for best performance, we recommend at least 64 MB • A CD-ROM drive

Current Table of Contents section - restricts a research only to a Table of Contents (TOC) section.

To Install: 1) Place the disc in the CD-ROM drive. If installation does not start automatically proceed to step 2. 2) Click Start; Select Run 3) Type D:\Autoplay, where D is the letter representing your CD-ROM drive. Press the enter key and follow the instructions.

Note: Search results will represent the selected TOC Section and its sublevels.

Chapter 2: Searching and Browsing Selecting Text to Search Searches can be conducted across all the text in a QuickSearch document (full-text), restricted to a specific field (fielded search), or restricted to a selected table of contents section. Everywhere in text - searches the full text of the QuickSearch document (except for user-defined notes and bookmarks). Choose Everywhere in text in the Search dialog box to specify a full-text search.

1) Click the TOC section in the TOC window. 2) Click the Search button on the toolbar OR select Search/Search from the main menu. 3) Click Current Table of Contents section under Select where to search.

Types of Searches Search for Phrase Type an exact phrase you wish to find, e.g. “Business is the key.” Use quotation marks around the search text to distinguish a phrase search from a word search or choose Search for phrase in the Search/More>> dialog box. The QuickSearch default setting is a phrase search. Search for Words Two types of word searches may be conducted - single words or words in proximity as determined by Search Operators. To conduct a word search, choose Search for word(s) in the Search/More>> dialog box.

317

1) Single Word - Enter any single word, e.g. BUSINESS, to find all occurrences in the document. 2) Words in Proximity - Enter any series of words that you wish to find near each other (e.g. BUSINESS INCREASE). Before conducting a proximity search, define a search range/proximity in the Search/ More>> dialog box. The default setting is 4 words. A typical sentence has 10 words, a typical paragraph has 25 words, and a typical page has 500 words. Refine Last Search The Refine last search feature can be used to modify your most recent search. (See the Advanced Searching section of this chapter.) Search Operators Boolean, wildcard and phrase search operators are available by selecting MORE>> in the Search dialog box. Double-click on any operator to add it to the Search command line or type the operator in the Type the text to find box. To see example of each operator: • Click the Search button and then the More>> button. OR • Select Search/Search from the main menu and More>>. • Click once on the operator you wish to view. The following operators are available for a word search: AND (&) - BUSINESS AND INCREASE - Returns all occurrences of BUSINESS and INCREASE in the specified search range that are near each other. “Near” is defined using the Word Proximity setting in the Search/ More>> dialog box. OR (|) - BUSINESS OR INCREASE - Returns all occurrences of the words in the specified search range without regard to proximity. NOT (~) - BUSINESS NOT INCREASE - Returns all occurrences of the word BUSINESS that are not near the word INCREASE in the specified search range. “Near” is defined using the Word Proximity setting in the Search/ More>> dialog box. Wildcard (*) - Use the asterisk (*) at the end of any part of a word to represent any character or combination of characters. For example, BUSI* may return hits such as business, businesses, busing, and Businowski. The wildcard operator cannot be used in a phrase search.

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Conducting a Search Basic Searching 1) Click the Search button on the Reader toolbar OR select Search/Search from the main menu. 2) In the Search dialog box, select where to search choosing one of the following: • Everywhere in text • Selected field* • Current Table of Contents *Note: Click a field or a TOC entry before choosing Selected field or Current Table of Contents section. 3) Type the search text (word, words within proximity or phrase) in the Type the text to find box or double click on any entry in the Word Wheel to select it as search text. 4) Click Search in the dialog box. “Hits” will be highlighted in the text and displayed in context in a separate Hit List window. The number of hits also will be displayed on the status bar at the bottom of the screen. Advanced Searching Search for Words 1) Begin a search by completing steps 1-3 of a Basic Search. 2) Select More>> to expand the Search dialog box and change to a Search for Word(s) and/or select other Search Operators which alter the nature of the search to be conducted. A Search for Phrase is conducted unless you select another type of search. 3) Specify the Word Proximity in the Search/ More>> dialog box, if you are conducting an AND or NOT search. The default proximity is 4 words. 4) Click Search in the dialog box. “Hits” will be highlighted in the text and displayed in context in a separate Hit List window. The number of hits also will be displayed on the status bar at the bottom of the screen. Refine Last Search To refine the last research: 1) Begin a search by completing steps 1-3 of a Basic Search. Click the More>> button on the Search dialog box to access all search parameters. 2) Click the Refine last search box in the lower left corner of the Search dialog box. 3) Select the Boolean operator to be applied to the refined search (just to the right of the Refine last search check box). 4) Preview the format for the refined search in the Refined Search box at the bottom of the Search dialog box. 5) Type the [New text to Find] word(s) in the Type the text to find box at the top of the Search dialog box. 6) Click Search.

Example: Your first search in the Constitution was for the word “House.” If you want to narrow the search results to include only hits of “House” which are not near “senate,” you can return to the Search dialog box, select Refine last search, select the NOT operator, specify the word proximity, type “Senate” in the Type the text to find box at the top of the Search dialog box and click the Search button. The Hit List will display only hits of “House” which were not located near “Senate” (“near” depends on the proximity that you specified). The final search command would look as follows: (House) ~ (Senate) This search could be further refined by selecting Refine last search and repeating the steps above. Example: If you want to find only occurrences of “House NOT Senate” which are near “Representative,” return to the Search dialog box, select Refine last search, select the AND operator, specify the word proximity, type “Representatives” in the Type the text to find box at the top of the Search dialog box and click on the Search button. The Hit List would display only hits of “House” which were near “Representatives” but not located near “Senate” (“near” depends on the proximity that you specified). The final search command would look as follows: [(House) ~ (Senate)] & (Representatives)

Reader Preferences Select Edit/Preferences from the main menu to open the Document Preference dialog box. The box includes three tabs: Reader, Author, and Stopper Word List. Reader Preferences include: CD-ROM Drive Letter Every CD-ROM player is assigned a drive letter. (It is usually the last drive letter after your other drives.) Default Word Search Proximity Set the default proximity (the number of words between selected words) to be applied in multiple word (non-phrase) searches. Show Hit List? Click Show Hit List? to open a Hit List automatically after conducting a Search. The Hit List shows “hits” items found - when you do a search. Browse hits by clicking the Next/Previous Hit buttons on the toolbar or selecting Search/Search from the main menu. All hits will be highlighted in the text even if a Hit List is not activated. TOC Window Color Click the TOC Window Color button to open a dialog box containing table of Contest background color options. Select from a present color chart, or create a custom color and select it. Click OK. SAVE YOUR DOCUMENT after you select preferences!

Search Results Table of Contents Browsing Browsing Search Results Hit List After conducting a search, each occurrence of the e search text in the document will be displayed in context in a separate Hit List window. Double click on any entry in the Hit List to move to the corresponding section of text. Highlighted Hits in the Text After conducting a search, each occurrence of the search text is highlighted in the text of the document. 1) Click the First/Previous/Next/Last (Hit) buttons to move between highlighted hits in the text. 2) The number of the current hit being viewed and the total number of hits are displayed in the Status bar at the bottom of the screen. Removing the Hit List 1) Click the Clear button on the toolbar OR select Search/Clear Search from the main menu to remove the current Hit List window and the highlighting from the hits in the text. 2) Turn off the Hit List for future searches by selecting Edit/Preferences to open the Document Preferences dialog box. Click the Reader tab to open Reader Preferences. Deselect Show Hit List?.

Hyperlinks The Table of Contents (TOC) provides a convenient method for accessing any section of the QuickSearch document. Each TOC entry is hyper-linked to the corresponding section of text; just click on an entry and QuickSearch automatically will move the corresponding section to the text window. Multiple Levels QuickSearch TOC’s may include up to 32 levels. If there are sublevels in a TOC section, a “+” will appear in front of the TOC entry. To open the next level, click on the “+”. Automatic Tracing As you move through a QuickSearch document (scroll, Next Hit, Previous Hit, etc.) the Table of Contents will “track” your location in the document automatically. A box outline indicates the current TOC section.

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Chapter 3: Viewing Images A QuickSearch document may contain hyperlinked or embedded images. Different methods are used for finding and viewing each type of image Finding Images Finding Hyperlinked Images You can find hyperlinked images in a QuickSearch document by using any of the following options: • List of images • Next/Previous Image buttons or menu selections • Search feature • Special formatting/camera icon Image List - Open a comprehensive list of hyperlinked images in the document. 1) Click the Image List button on the Toolbar OR select Search/Image List from the main menu. 2) Double click on an image title in the Image List to open the image. Browsing Images - You can browse through images using the Next/Previous Image buttons or menu selections. 1) Select Nest/Previous Image buttons OR Search/ First (Nest, Previous, Last) Image from the main menu. 2) The Next and Previous Image buttons or menu selections move the reader sequentially through images in the document. 3) The First and Last Image menu selections move only to the first or last image in the document. Searching for Words in Hyperlinked Image Titles - As each hyper-linked image file is added to a QuickSearch document, it is given an Image Title. The Image Title appears with an optional camera icon at the point you have chosen in the text window. The Image Title is indexed with other text and may be found using a word or phrase search (see Chapter 1 - Searching & Browsing). Look for Special Formatting/Camera Icon – Hyperlinked images can be found by looking for words that have special formatting (the default is double-underlined text). Double click on the specially formatted text to open the image. A camera icon may precede the specially formatted image title. The image can also be opened by clicking on the camera icon. Finding Embedded Images Embedded images appear in the text at the point you have chosen. They may be found by: • Scrolling through text • Conducting a search for words/phrases that appear near the image. Scrolling for an Embedded Image Use the vertical scroll bar to scan text and locate embedded images.

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Searching for an Embedded Image* Search for text that has been placed near an image and marked as hidden. *Note: Titles of embedded images will NOT appear on an Image List. The Image List feature is only for hyperlinked images. Zooming Hyper-linked Images Marquee Image Zooming* Marquee Image Zooming allows you to select a portion of a hyper-linked image and enlarge it to the size of the image window. QuickSearch allows you to zoom to a single pixel. *Note: Marquee Image Zooming is available ONLY for hyper-linked images. 1) Click a hyperlinked image title or camera icon to open the image window. 2) Click on and hold the left mouse button and drag a box around the image area you want to enlarge. 3) When the area is defined, release the mouse button. The area selected will fill the Image Window. 4) Steps 2 and 3 may be repeated to continuing zooming. 5) To return the image to its original size, click once on the image with the left mouse button. Image Panning Image Panning allows you to use the horizontal/vertical scroll bars* to move around a hyperlinked image that has been enlarged by Marquee zooming. Click an arrow on the scroll bar OR click and drag the horizontal or vertical scroll bar button to move the image across the screen. *Note: Scroll bars do not appear on-screen until an image has been zoomed. Scale to Gray Some 1 bit (black & white) hyperlinked images can be sharpened by using the Scale to Gray feature. Scale to Gray will fill in missing pixels to improve the quality of an image. This feature is particularly useful for viewing scanned document images. To use Scale to Gray: 1) Open a hyperlinked image 2) Select View/Scale to Gray from the main menu 3) Scale to Gray will remain active until it is deselected.

Chapter 4: Printing The Print feature will print text and images in the following forms: • Highlighted lines or blocks of text • Selected Tables of Contents section(s) • Search results (“hit” lists) • Embedded images • Hyper-linked images • Zoomed portions of Hyper-linked images Print Hints Highlighted text, images and TOC sections will print in order as they are found in the document. The printed size of Zoomed and Hyper-linked images may vary between portrait and landscape page orientation settings (found via File/Print Setup). You can print multiple TOC sections by: • Using the Shift key to select a series of adjacent TOCs. • Using the CTRL key to individually select specific TOCs. • Using the Shift and CTRL keys alternately to select specific TOC groupings. Printing specifications can be set from the Windows Print Manager utility. Make Print Setup modifications before you Print. Printing Text or Images To Print portions of a document: 1) Highlight lines and/or block(s) of text. 2) Click the Print button on the toolbar. OR Select the File/Print from the main menu. OR Press CTRL+P. To Print a Single TOC section: 1) Click the TOC heading in the Table of Contents window. 2) Click the Print button on the toolbar. OR Select the File/Print TOC selection(s) from the main menu. OR Click the right mouse button and select Print TOC selection(s). OR Press CTRL+P. *Note: All the sublevels in the TOC section will be printed.

To Print Multiple TOC sections: 1) Click the first TOC section you want to print from the Table of Contents window. 2) Press and hold the CTRL key while you click the order TOC sections you want to print. They do not have to be adjacent. 3) When you have finished selecting TOCs, click the Print button on the toolbar. OR Select File/Print TOC selection(s) from the main menu. OR Click the right mouse button and select Print TOC selection(s). OR Press CTRL+P. To Print adjacent TOC sections: 1) Click the first TOC section you want to print from the Table of Contents window. 2) Press and hold the Shift key, and click the last TOC section in the series (all TOC sections between the first and last will be selected automatically). 3) Click the Print button on the toolbar. OR Select File/Print TOC selection from the main menu. OR Click the right mouse button and select Print TOC selection(s). OR Press CTRL+P. *Note: Multiple TOC Selection functions (highlighting using the Shift and/or CTRL keys) can be used in combination to select specific TOC groupings. To Print Embedded Images: 1) Highlight (double click) the embedded image(s) you want ant to print. 2) Click the Print button on the Toolbar. OR Select File/Print from the main menu. OR Press CTRL+P. To Print a Hyperlinked Image: You can print a Hyperlinked Image or a zoomed portion of a Hyperlinked Image. 1) Open the image by double clicking the Image title and/or the camera icon. OR Click the Image List button on the toolbar and double click the Image title from the list. 2) Click the Print button on the Toolbar. OR Select File/Print from the main menu. OR Press CTRL+P.

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Print Setup The Print Setup option allows you to select printer type, page orientation, paper size, paper source, and printer properties (paper, graphics, fonts, device options). Make these selections before you print. To change the Print Setup: 1) Select File/Print Setup from the main menu. 2) In the Print Setup dialog box, click the down arrow in the Name pull down menu, select a printer type and enter it in the Name window (or click Network to access Network printer options). 3) To select new printer properties select Properties and make modifications. 4) Select Landscape or Portrait. 5) Select OK to exit. Page Layout You can adjust the top, bottom, left, and right margins of a printed page as follows: 1) Select File/Page Layout from the main menu. 2) In the Page Parameters dialog box, set margins (in inches) and click OK.

Chapter 5: User Annotations The reader may customize a QuickSearch document by adding “margin” Bookmarks and Notes. Annotate functions enable the reader to make customized Bookmarks in the text and make private, unsearchable comments about a document with Notes. The Bookmark feature enables the reader to “save his place,” while the Notes feature allows the reader to “write in the margins” of the text. Using Bookmarks To add a Bookmark to a document: 1) Highlight a portion of text or place the cursor where you would like to add the Bookmark. 2) Click on the Bookmark icon on the Reader toolbar OR select Annotate/Bookmark from the main menu or select Insert Bookmark from the right mouse button menu. If text has been highlighted, it is shown in the Edit Bookmark/Name text box. If not, enter a name for the bookmark in the text box. 3) Click Add to place the selected text in the Current Bookmarks list. 4) Click Go to to scroll text to the point where the bookmark appears. 5) Click Close to close the Bookmark dialog box. To go to a Bookmark: 1) Click on the Bookmark button on the toolbar OR select Insert Bookmark from the right mouse button menu to open the list of Current Bookmarks. 2) Highlight the bookmark you want to move to in the text. 3) Click Go to. The selected text will move to the top of the text window.

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To edit a Bookmark: 1) Click on the Bookmark icon on the toolbar OR select Annotate/Bookmark from the main menu OR select Insert Bookmark from the right mouse button menu to open the dialog box containing current bookmarks. 2) In the Current Bookmarks list, click on the bookmark you wish to edit. It will appear in the Edit Bookmark/Name window. 3) Make changes and click Add. To remove a Bookmark: 1) Click the Bookmark icon on the Reader toolbar or select Insert Bookmark from the right mouse button menu to open the dialog box containing current bookmarks. 2) In the Current Bookmarks list, click on the bookmark you wish to remove. It will appear in the Edit Bookmark/Name text box. 3) Click Remove. Using Notes To add a Note to a document: 1) Place the cursor in the text window where you want the note to appear. 2) Click on the Notepad button OR select Annotate/ Notes/Insert from the main menu OR select Insert Note from the right mouse button menu to open the Notepad dialog box. 3) Type in the note and click Save; a Notepad icon appears in the left margin next to the specified line of text. To View a Note: 1) Double click the Notepad icon in the left margin. 2) The Notepad dialog box displays the note. To Edit a Note: 1) Double click the icon of the note you want to edit. 2) Make changes to text. 3) Click Save. To Remove a Note: 1) Place the cursor on the Notepad icon and select Annotate/Note/Delete from the main menu OR select Delete Note from the right mouse button menu. 2) A dialog box will ask you to confirm the note deletion. 3) Click Yes. The icon will disappear after scrolling in the document.