01/02/2008 Farm Bureau Market Report

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Grain & Soybean Date: January 02, 2008 Soybeans Local Elevators: (Jan) EAST AR:  1181 to 1209 (NC) Summ. 1073 to 1098 River Elevators: (Jan) MISS: 1194 to 1218 ; AR & White 1188 to 1194 (NC) Summ. 1071 to 1103 Ark. Processor Bids: (Jan) 1197 to 1199  (NC) 1094 to 1098 Memphis:  (Jan) 1220 3/4 to 1223 3/4 (NC)  1103 to - - - Riceland Foods:  (Jan) Stuttgart 1198 ; Pendleton 1209 ; West Memphis 1218 Chicago Futures: Jan up 33 1/2 at  1232 1/2   March  up  34 1/2  at  1248 3/4   May up 34 3/4  at  1264 1/2   Nov '08 up 27 1/2  at  1148   Nov '09 up 33  at  1070   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans rode the crest of investment buying to new contract highs. Old crop contracts are just cents away from that all time record high of $12.90, while new crop November gapped higher and closed just under $11.50. Today’s move negated last week’s key reversal, but it begins to give the market a real shaky feeling. Take advantage and be prepared for things to break at some point in the not to distant future. Beans won’t go lower until corn does, and export tariffs in China mean U.S. corn is about the only game in town. Wheat Cash bid for new crop at Memphis  695 3/4 to 702 3/4; Bids to farmers at Local Elevators 681-693; River Elevators 678-696; Chicago Futures: March up  30  at  915    May up 29 1/2  at  922 1/2    July up  15 1/4  at  790 3/4    Sept up  22  at  797    July '09 up  16  at  758    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for January at Memphis  878 to 879; Bids to farmers at River Elevators 734-780; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for January at Memphis   450 1/2 to 455 1/2;   New crop at Memphis   451 3/4 to - - -; Bids to farmers at River Elevators  439 to 454 Chicago Futures: March up  7  at  462 1/2    May up  6 3/4  at  473 1/2    July up  6 1/2  at  483    Dec '08 up  6 3/4  at  480 1/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat futures were sharply higher with old-crop March limit-up. Fund buying was the driving force behind the market today, along with the tight supply situation. Both Russia and China have raised export tariffs to slow outbound movement. July futures have initial support around $7.64 and resistance at $8.09. Cotton & Rice  Date: January 02, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis up 87 at  6363   Greenwood up  87 at 6363 New York Futures: March up  87  at  6888    May up  102  at  7059    July up  114  at  7235    Dec '08 up  146  at  7667    March '09 unchanged  0  at  7770  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton started the new year like everything else- higher. But cotton remains on the bottom of the totem pole for the time being. While old crop March is making a run at resistance between 70 and 71.45 cents; new crop December made a new contract high and could be headed higher in attempt to hold acreage. Early estimates suggest anywhere from 9.2 to 10 million acres. The National Cotton Council will release their survey in early February. Right now, the higher bean, wheat, and corn values are chewing into last year’s 11 million planted acres. With soybeans at $11 plus for the ’08 crop; cotton has to move higher or lose acreage. Rice Long Grain Cash Bid for  Jan 1283/cwt  to  - - -   Feb/March 1283/cwt  to  - - - Chicago Futures: Jan up  40  at  1396    March up  42  at  1428 1/2    May up  38  at  1453    Sept up  27  at  1407    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice gapped higher bolstered by big gains in oil, gold and grains, and another downturn in the dollar. It all adds up to further improvement of already record futures levels. With corn, wheat and beans starting the year higher, rice had to go with them. Otherwise, 2008 acreage could all be planted in beans, which require less labor and less inputs. For now, the trend is up and there is really no major chart target. The old adage “the trend is your friend” still applies, but be aware that “what goes up, must come down.” Fundamentals are unchanged with U.S. and world stocks significantly tighter than any time recently. The U.S. and Thailand are the major exporters for now. March futures have support around $13.85 and then $13.50. Cattle & Hogs  Date: January 02, 2008 Cattle As reported by Federal-State Market News, receipts were - - - head at sales in - - -.  Compared with last week, feeder steers - - - . Steers:  Medium & Large Frame - - -   - - - to - - - lbs. - - - to - - -   - - - to - - - lbs. - - - to - - -   - - - to - - - lbs. - -- to - - -  Medium & Large Frame - - -   - - - to - - - lbs. - - - to - - - Heifers:  Medium & Large Frame - - -   - - - to - - - lbs. - - - to - - -  Medium & Large Frame - - -   - - - to - - - lbs. - - - to - - - Slaughter Cows, Boners - - -   to   - - - Light Weight - - - to - - - Bulls, Yield Grade   - - -   - - -   to   - - - lbs.   - - -   to   - - - Midwest Steers   were $1.50 lower to $3 higher   at   92   to   - - - Panhandle Steers   were $1.50 to $2 lower   at   92   to   93 Oklahoma City Feeders Steers - - - to - - - lbs. - - - to - - -   - - - to - - - lbs. - - - to - - - Heifers - - - to - - - lbs. - - - to - - -   - - - to - - - lbs. - - - to - - - Chicago Futures: Live Cattle: Feb up 7 at 9625   June up 20 at 9522 Feeders: Jan down 67 at 10442   March down 60 at 10650 Cattle Comment Cattle futures closed mixed. Generally, there is a feeling that cattle have bottomed, but any upside recovery will be limited unless cutout values improve significantly. February live cattle need to close above trendline resistance around $97 to suggest a bottom has been made. Support remains the recent low of $94.50. Hogs Peoria: were $3 lower to $1     higher   at   27   to   29 Chicago Futures: Feb down 70 at 5717   June steady 0 at 7325 Sheep St. Paul n/a   at   - - -   to   - - - Hogs Comment Hogs were lower across the board. A larger than expected inventory will pressure prices for the near term. Resistance is located between $58 and $59 for February futures. Support at $57 appears weak. Poultry  Date: January 02, 2008 Eggs New York:  Ex. Lg. 163-167; Lg. 161-165; Med. 144-148; Chicago:  Ex. Lg. 152-160; Lg. 150-158; Med. 141-149; Eastern Region Turkeys Hens: 8-16 lbs. 73-75 Toms: 16-24 lbs. 73-75   Delmarva Broilers U.S. Grade A Movement of ready-to-cook whole birds was seasonal and fairly moderate overall. Seller offerings were closely balanced to tight for immediate trade needs. Live supplies were moderate; weights were mostly desirable. Processing schedules were very light on Monday as several plants closed for the holiday, but today's schedules were moderately heavy. Less than trucklot asking prices were 1 cent higher at 72 to 86 cents. The market tone was fully steady to firm. ---------------------------------------- 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? 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