01/22/2008 Farm Bureau Market Report

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Grain & Soybean Date: January 22, 2008 Soybeans Local Elevators: (Jan) EAST AR:  1163 to 1186 (NC) Summ. 1128 to 1160 River Elevators: (Jan) MISS: 1165 to 1213 ; AR & White 1175 to 1185 (NC) Summ. 1129 to 1163 Ark. Processor Bids: (Jan) 1166 to 1179  (NC) 1151 to 1153 Memphis:  (Jan) 1207 1/2 to 1219 1/2 (NC)  1162 1/2 to - - - Riceland Foods:  (NC) Stuttgart 1175 ; Pendleton 1185 ; West Memphis 1179 Chicago Futures: Mar down 24 1/2 at  1239 1/2   May  down  26 1/4  at  1257   Jul down 26 3/4  at  1270 3/4   Nov '08 down 37 3/4  at  1217 1/2   Nov '09 down 32  at  1203   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Recession fears pounded foreign markets yesterday and today triggering major concerns in the U.S. commodity markets. Soybeans were hit hard early despite the Federal Reserve’s ¾% in the interest rate. That tempered losses in the stock market as the day wore on, and had the same impact in beans and grains. Soybeans partially retraced declines but still ended the day lower. Further losses may be ahead, but the same fundamentals – tight stocks, battle for acreage, etc. remain. November has key support at $1 intervals starting at $12. Wheat Cash bid for new crop at Memphis  790 3/4 to 795 3/4; Bids to farmers at Local Elevators 771-793; River Elevators 773-796; Chicago Futures: Mar down  27 1/2  at  935    May down 28 1/2  at  949    Jul '08 down  5 1/2  at  873    Sep down  10  at  877    Jul '09 down  10  at  856    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for January at Memphis  909 to - - -; Bids to farmers at River Elevators 811; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for January at Memphis   477 to 481;   new crop at Memphis   464 3/4 to 468 3/4; Bids to farmers at River Elevators  462 to 477 Chicago Futures: Mar down  9 1/4  at  489    May down  9 1/4  at  501 1/4    Jul down  9 1/2  at  510    Dec down  11 3/4  at  487 3/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat reacted with other commodities to the action on Wall Street by posting sharp losses in early dealings. New crop wheat recovered to set a new contract high by the end of the day. The fundamental situation hasn’t changed. Strong demand, a smaller than expected U.S. plantings estimate and potential weather related crop problems are all supportive factors. However, the market is oversold and due a corrective pullback. Cotton & Rice  Date: January 22, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis down 90 at  6508   Greenwood down  90 at 6508 New York Futures: Mar down  90  at  6983    May down  91  at  7161    Jul down  90  at  7343    Dec down  91  at  7785    Mar '09 down  100  at  8015  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton was lower today as recession fears took over in many major countries. Cotton may be impacted more than other commodities since it is a fiber and linked more strongly to discretionary spending. Technically, December gapped below trendline support. This left a 5 day island reversal which can be a strong topping signal. Cotton will be taking cues from other commodities and the stock market. In the short run, key resistance at 77.5 cents held today. Penetration of that level would allow for a test of support near 76 cents. Or perhaps bring retracement objectives of 75.6 and 74.4 cents into play. Longer term, higher price levels will be needed if corn and soybeans maintain their current status. Otherwise acreage will continue to move away from cotton. Rice Long Grain Cash Bid for  Jan/Feb 1242  to  1253/cwt   Mar 1253/cwt  to  - - - Chicago Futures: Mar down  15  at  1412    May down  15  at  1444    Jul down  15  at  1472    Sep down  8  at  1437    n/a down  - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice was also lower today. But, while the market penetrated trendline support it held above last week’s low and remained in a consolidation pattern. Rice, like wheat is a major food grain and may be less affected by recessionary fears. A fall below last week’s low of $13.95 would bring retracement objectives of $13.79, $13.53 and $13.26 into play. Longer rice will be needed to be competitive with soybeans and grains or lose acreage. World and U.S. stocks are tight and that should keep international markets firm. Cattle & Hogs  Date: January 22, 2008 Cattle As reported by Federal-State Market News, receipts were 2,677 head at sales in Springdale, Ola, Ash Flat, Marshall & Forth Smith.  Compared with last week, feeder steers sold unevenly, mostly $2-4 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 120 to 130   500 to 550 lbs. 106 to 116   600 to 700 lbs. 92.50 to 102  Medium & Large Frame 2   400 to 450 lbs. 104 to 114 Heifers:  Medium & Large Frame 1   400 to 450 lbs. 90 to 100  Medium & Large Frame 2   400 to 450 lbs. 82 to 92 Slaughter Cows, Boners 42   to   46 Light Weight 32 to 36 Bulls, Yield Grade   1   1000   to   2100 lbs.   55   to   59, high dressing 59-62.50 Midwest Steers   were $1 lower to $2 higher   at   87   to   91.50 Panhandle Steers   were $1-1.25 higher   at   89   to   91.75 Oklahoma City Feeders Steers 500 to 550 lbs. 113 to 122   600 to 650 lbs. 105 to 109 Heifers 500 to 550 lbs. 97 to 103.85   600 to 650 lbs. 92.50 to 98.50 Chicago Futures: Live Cattle: Feb up 2 at 9102   Jun down 45 at 9282 Feeders: Jan up 27 at 9795   Mar up 5 at 10235 Cattle Comment Cattle futures were mixed. Concerns about the U.S. economy have traders worried about meat demand. Last week’s low of $89.13 becomes initial support for February live futures, with resistance beginning at $91. Hogs Peoria: were     steady   at   25.5   to   26 Chicago Futures: Feb up 30 at 5527   Jun down 100 at 7445 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hog futures ended mixed. Indications that cash prices have bottomed for now were supportive. The market is concerned that a weakening U.S. economy will hurt meat demand. April has resistance between $63 and $64. Poultry  Date: January 22, 2008 Eggs New York:  Ex. Lg. 156-160; Lg. 154-158; Med. 138-142; Chicago:  Ex. Lg. 146-154; Lg. 144-152; Med. 128-136; Eastern Region Turkeys Hens: 8-16 lbs. 72-75 Toms: 16-24 lbs. 72-75   Delmarva Broilers U.S. Grade A Trade sentiment was no better than steady. Supplies of all sizes were more than 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