12/19/2007 Farm Bureau Market Report

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Grain & Soybean Date: December 19, 2007 Soybeans Local Elevators: (Dec) EAST AR:  1112 to 1140 (NC) Summ. 1120 to - - - River Elevators: (Dec) MISS: 1124 to 1149 ; AR & White 1112 to 1124 (NC) Summ. 1122 to 1154 Ark. Processor Bids: (Dec) 1117 to 1130  (NC) 1136 to 1152 Memphis:  (Dec) 1149 to 1159 (NC)  1030 1/2 to - - - Riceland Foods:  (Dec) Stuttgart 1130 ; Pendleton 1140 ; West Memphis 1149 Chicago Futures: Jan up 9 1/4 at  1159   Mar  up  9 1/4  at  1177 3/4   May up 9 1/4  at  1192 3/4   Nov '08 up 17 1/2  at  1070 1/2   Nov '09 up 11  at  986   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans were higher across the board with new crop contracts leading the charge and making new highs. The president’s signing of a new energy bill shouldn’t be news, but the market appears to be reacting. The bill will mandate more corn plantings by 2010 to meet the ethanol needs. That means corn and soybeans will battle for acreage for several years to come. While there is underlying support, be aware this market can and will reverse – make an incremented sales into this market. Start with 10-20% and make more as the market rises another 25 cents or 50 cents. Wheat Cash bid for new crop at Memphis  694 3/4 to 699 3/4; Bids to farmers at Local Elevators 670-685; River Elevators 672-690; Chicago Futures: Mar up  21 1/2  at  973 1/2    May up 23  at  969    Jul up  15 1/4  at  784 3/4    Sep up  16 1/2  at  790    Jul '09 up  16 1/2  at  747 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for December at Memphis  821 to 830; Bids to farmers at River Elevators 685-748; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for December at Memphis   424 3/4 to 425 3/4;   new crop at Memphis   n/a to - - -; Bids to farmers at River Elevators  402 to 421 Chicago Futures: Mar up  2 3/4  at  434 3/4    May up  2 1/2  at  445 1/4    Jul up  2 1/2  at  452 3/4    Dec '08 up  3 3/4  at  452    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat led today’s charge with strong gains in both old and new crop contracts. The market has taken a little breather but got another boost from reports Japan is doubling its budget for wheat. South Korea is reducing its import tax and Russia will stop wheat exports in 30-45 days. July may retest resistance at $8.30. Support ranges from $7.64 down to $7.24. Cotton & Rice  Date: December 19, 2007 Cotton Spot Price, Grade 41 Staple 34: Memphis up 51 at  6102   Greenwood up  51 at 6102 New York Futures: Mar up  55  at  6627    May up  44  at  6762    Jul up  45  at  6927    Dec up  55  at  7380    Mar '09 up  55  at  7630  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton closed higher in all contracts as the market made modest gains. The market continues to labor under a substantially larger than anticipated U.S. crop. USDA moved production to just under 19 million bales which would leave stocks of 7.7 million bales. That’s a lot when domestic use is a mere 4.6 million bales. So, a big carryover will dominate the market for the time being. Old crop contracts are likely to trade in the 63 to 69 cents range for the near term. Looking ahead early prospects suggest a 10 million acre or less crop in ’08. One nationally known firm suggests the crop may be nearer 9 million acres. Production would be 15 to 16 million bales, down substantially, but still a lot to move when domestic use is as low as it is. However, that acreage would likely send ’08 prices toward the upper 70’s. Rice Long Grain Cash Bid for  Jan 1199/cwt  to  - - -   Feb/Mar 1256/cwt  to  - - - Chicago Futures: Jan up  11  at  1334    Mar up  12  at  1368    May up  12  at  1392    Sep up  12  at  1352    n/a up  - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice futures made positive moves today as the undertone of the market remains bullish. Strength in grains and particularly wheat have to provide a boost to rice where export movement and domestic mill usage continue very strong. Overall fundamentals are unchanged as the market continues to look at tightening U.S. and world stocks. A big question is what U.S. plantings will be in ’08. Exceptionally strong corn, wheat and soybean price levels may have producers thinking about what to plant next year. Weaker producing land that requires more water and fertilizer could move from rice. General feeling is nice acreage may not change substantially. Cattle & Hogs  Date: December 19, 2007 Cattle As reported by Federal-State Market News, receipts were 1,116 head at sales in Conway & Ola.  Compared with last week, feeder steers sold steady to $2 higher, heifers steady to $1 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 115 to 125   500 to 550 lbs. 102 to 112   600 to 650 lbs. 97 to 107  Medium & Large Frame 2   400 to 450 lbs. 103 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 99 to 109  Medium & Large Frame 2   400 to 450 lbs. 82 to 90.50 Slaughter Cows, Boners 44   to   48 Light Weight 30 to 36 Bulls, Yield Grade   1   1000   to   2100 lbs.   56   to   61, high dressing 62-64 Midwest Steers   were steady   at   90   to   - - - Panhandle Steers   were steady   at   90   to   - - - Oklahoma City Feeders Steers 500 to 550 lbs. 113.75 to 120.50   600 to 650 lbs. 106 to 111 Heifers 500 to 550 lbs. 99.10 to 105   550 to 600 lbs. 90 to 97 Chicago Futures: Live Cattle: Feb down 40 at 9627   Jun steady at 9445 Feeders: Jan down 95 at 10420   Mar down 72 at 10735 Cattle Comment Weaker beef cutout values turned cattle futures lower as the market failed to followthrough yesterday’s gains. Packers are expected to limit purchases going into the holidays as they attempt to adjust poor margins. Friday’s feedlot report is expected to show placements up nearly 4 percent from a year ago. February futures could retest support just above $95. Hogs Peoria: were $.5     lower   at   32.5   to   33 Chicago Futures: Feb up 27 at 6010   Jun up 22 at 7515 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hogs moved higher despite indications this week’s slaughter might top 2.4 million head for the first time in history. Ample numbers continue to pressure the market but that is being partially offset by a seasonal decline in weights. Current support for February futures is the contract low of $58.15. Resistance starts at $64. Poultry  Date: December 19, 2007 Eggs New York:  Ex. Lg. 163-167; Lg. 161-165; Med. 151-155; Chicago:  Ex. Lg. 151-159; Lg. 149-157; Med. 141-149; Eastern Region Turkeys Hens: 8-16 lbs. 78 Toms: 16-24 lbs. 78   Delmarva Broilers U.S. Grade A Trade sentiment was fully steady to firm. Supplies of all sizes were adequate to short of full trade needs as plants planned schedules for next week. In production areas, live supplies were moderate at mixed, but mostly desirable weights. ---------------------------------------- HOW TO UNSUBSCRIBE You are receiving this newsletter because you requested that your e-mail address be added to the Arkansas Farm Bureau Market Report. To unsubscribe or change your subscription information, go to http://www.arfb.com/commodity_marketing/email/ ---------------------------------------- QUESTIONS OR COMMENTS? If you have any comments or questions about this e-newsletter please e-mail us at mktrpt@arfb.com Arkansas Farm Bureau 10720 Kanis Road Little Rock, AR 72211 501-224-4400 Copyright 2007 Arkansas Farm Bureau, Inc. All rights reserved Terms of Use