01/11/2008 Farm Bureau Market Report

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Grain & Soybean Date: January 11, 2008 Soybeans Local Elevators: (Jan) EAST AR:  1229 to 1249 (NC) Summ. 1170 to 1195 River Elevators: (Jan) MISS: 1138 to 1173 ; AR & White 1220 to 1241 (NC) Summ. 1158 to 1200 Ark. Processor Bids: (Jan) 1241 to 1245  (NC) 1188 to 1195 Memphis:  (Jan) 1245 3/4 to 1258 3/4 (NC)  1185 to 1195 Riceland Foods:  (NC) Stuttgart 1245 ; Pendleton 1249 ; West Memphis 1273 Chicago Futures: Jan up 42 at  1286   Mar  up  38 1/2  at  1298 3/4   May up 39 1/2  at  1317   Nov '08 up 50  at  1245   Nov '09 up 47 1/2  at  1192 1/2   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment While USDA made minor changes in the soybean supply demand number, they were the beneficiary of 1.9 bushel per acre decrease in the ’07 corn yield and a 300 million bushel boost in corn use for feed. The net result was a lowering of projected ending stocks to 1.44 billion bushels. That sent corn up the 20 cent limit with beans following. By day’s end only a few old crop soybean contracts failed to move up the 50 cent limit. Record price levels are now a fact expiring January hit $12.96. The old record from 1973 was $12.90. Most other old crop contracts have exceeded $13 and the market is even more overbought. Use this big move to add to at least ’08 crop sales. Wheat Cash bid for new crop at Memphis  701 to 716; Bids to farmers at Local Elevators 696-708; River Elevators 688-711; Chicago Futures: Mar up  26 3/4  at  909 1/4    May up 30  at  922 1/2    Jul up  30  at  806    Sep up  30  at  814 1/2    Jul '09 up  30  at  798    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for January at Memphis  911 to 938; Bids to farmers at River Elevators 802-864; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for January at Memphis   472 to 481;   new crop at Memphis   472 to 486; Bids to farmers at River Elevators  459 to 475 Chicago Futures: Mar up  20  at  495    May up  20  at  506 1/4    Jul up  20  at  516    Dec '08 up  20  at  513 1/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat futures were locked limit-up most of the day, and every contract besides nearby March closed at that level. The industry was expecting an 8% increase in wheat plantings, but there was actually a decrease in hard red winter wheat acreage. The net result was a 3.6% increase in planted acres. July has initial resistance at the recent high of $8.19. A move above that level would signal a challenge of the contract high of $8.30. Cotton & Rice  Date: January 11, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis up 300 at  6521   Greenwood up  300 at 6521 New York Futures: Mar unchanged    at  6696    May up  300  at  7164    Jul up  300  at  7340    Dec up  300  at  7756    Mar '09 up  270  at  7990  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton numbers were adjusted slightly in the monthly USDA report. Lower export projections and a modest increase in yield raised projected ending stocks 200,000 bales to 7.9 million bales. Actually a negative number, but in light of the big changes in corn and the subsequent impact on soybean and grain futures, cotton became a beneficiary. Huge losses yesterday were reversed when early gains moved to the 300 point limit and remained. It is evident cotton plantings will be significantly lower in ’08. Cotton futures must move higher to stay on even ground. Lower costs, less labor, less intensive management gives soybeans a big advantage. Producers must consider equipment and infrastructure such as gins and warehouses, but in the end the bottom line doesn’t look good for cotton. Rice Long Grain Cash Bid for  Jan 1260  to  1282/cwt   Feb/Mar 1282/cwt  to  - - - Chicago Futures: Jan down  9  at  1426    Mar down  3  at  1457 1/2    May down  2  at  1488    Sep down  9  at  1452    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice futures didn’t benefit from the overall upturn in soybeans and grains. The market traded modestly lower early. Late trading moved new contracts to the positive side leaving the market mixed for the day. Longer term rice will have to move higher if the gains in corn and beans hold. Otherwise acreage will move from rice. USDA pared 400,000 cwt off the ’07 production and 500,000 cwt off ending stocks. That all came from long grain. Projected ending stocks for all rice is now set at 24.6 million cwt, with long grain down to 11.7 million cwt. Cattle & Hogs  Date: January 11, 2008 Cattle As reported by Federal-State Market News, receipts were 11,855 head at sales in Arkansas this week.  Compared with last week, feeder steers under 500 lbs. sold $4 higher, weights over 500 lbs. steady to $2 lower. Feeder heifers sold steady to $2 lower . Steers:  Medium & Large Frame 1   400 to 450 lbs. 110 to 120   500 to 550 lbs. 98 to 108   600 to 650 lbs. 89 to 99  Medium & Large Frame 2   400 to 450 lbs. 91 to 101 Heifers:  Medium & Large Frame 1   400 to 450 lbs. 94 to 104  Medium & Large Frame 2   400 to 450 lbs. 85 to 95 Slaughter Cows, Boners 42   to   47 Light Weight 30 to 37 Bulls, Yield Grade   1   1000   to   2100 lbs.   53   to   60, high dressing 60-63 Midwest Steers   were steady   at   92   to   - - - Panhandle Steers   were steady   at   92   to   - - - Oklahoma City Feeders Steers n/a to - - - lbs. - - - to - - -   n/a to - - - lbs. - - - to - - - Heifers n/a to - - - lbs. - - - to - - -   n/a to - - - lbs. - - - to - - - Chicago Futures: Live Cattle: Feb down 185 at 9135   Jun down 22 at 9410 Feeders: Jan down 225 at 9950   Mar down 227 at 10250 Cattle Comment Cattle futures were mixed. Feeders were sharply lower in response to sharply higher corn prices. Ideas that high feed costs will push cattle to market faster were negative for live contracts. The April live contract posted sharp losses in early dealings, setting a new low for the move before closing near unchanged. Hogs Peoria: were     steady   at   26.5   to   27 Chicago Futures: Feb down 152 at 5400   Jun up 30 at 7462 Sheep St. Paul sheep shorn slaugher lambs   at   n/a   to   - - - Hogs Comment Hog futures were mixed. Nearby February posted sharp losses under pressure from its premium to cash prices. Higher corn prices have some speculating that producers will cut production, and that limited the downside. Poultry  Date: January 11, 2008 Eggs New York:  Ex. Lg. 156-160; Lg. 154-158; Med. 138-142; Chicago:  Ex. Lg. 152-160; Lg. 150-158; Med. 134-142; Eastern Region Turkeys Hens: 8-16 lbs. 71-75 Toms: 16-24 lbs. 71-75   Delmarva Broilers U.S. Grade A Trade sentiment was steady at best. Supplies of all sizes were at least sufficient to satisfy trade needs. 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