Question-and-Answer Session
Operator
We’ll take our first question from Farha Aslam from Stephens Inc.
Farha Aslam – Stephens Inc.
Hi, good morning. Could you share with us Joe your [inaudible] outlook for breast meat and the quarter prices?
Joe Sanderson
Well, I’m going to let Lampkin speak about leg quarters and the export market. Why don’t you do that and then I’ll ?
Lampkin Butts
Yes, the export market – we’ve got our leg quarters booked for December obviously for export and that same range, as we’ve mentioned earlier in the call, we haven’t booked past that but the tone, the trend, the demand is still good going into the first of the year. We believe that leg quarters are still going to have a [four] in front of them.
Joe Sanderson
And breast meat, the breast meat prices, the quoted price has been fairly steady now for three or four weeks at $1.29. It would not surprise me though that in the 10 days before Christmas that demand would slacken again you could see some small downward move in boneless breast. I do believe the demand will be off through December until you get past Christmas. And then typically we see an increase in demand at the first of the year. You really start – you pack for it right after Christmas and before New Year’s. For the short term, I don’t think we’re too far away from the bottom.
Farha Aslam – Stephens Inc.
And then when you look at supply hitting the market in January, December and January, do you anticipate a heavy supply hitting the market?
Joe Sanderson
Let me give you some numbers. I mentioned this the other day. If you’ll look at the last seven weeks of egg sets, beginning October 13 through the weekend in November 24th, egg sets are 104% of last year. That’s more meat than we had a year ago. And probably with some heavier weights. So, but if you look at it compared, those numbers as Lampkin said were against cutback numbers. If you look at those 2007 egg sets against 2005, it’s only 102% of 2005. So I think there’ll be more meat but it won’t be that much more than two years ago. I’m not; today I’m not terribly worried about the pounds coming to market in January.
Farha Aslam – Stephens Inc.
Okay and then when you look at industry profitability and then Sanderson’s profitability, do you anticipate the industry will make money in January and February?
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