05/09/2008 Farm Bureau Market Report

Click here to view this report online.

Grain & Soybean Date: May 09, 2008 Soybeans Local Elevators: (May) EAST AR:  1281 to 1305 (NC) Summ. 1196 to 1228 River Elevators: (May) MISS: 1260 to 1325 ; AR & White 1286 to 1293 (NC) Summ. 1202 to 1236 Ark. Processor Bids: (May) 1296 to - - -  (NC) 1224 to 1226 Memphis:  (May) 1323 to - - - (NC)  1232 3/4 to 1236 3/4 Riceland Foods:  (May) Stuttgart 1296 ; Pendleton 1305 ; West Memphis 1325 Chicago Futures: May up 51 1/4 at  1349 1/2   July  up  48  at  1358   Aug up 49 1/4  at  1353 1/4   Nov up 58  at  1303 3/4   Nov '09 up 45 1/2  at  1275 1/4   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans gapped higher in reaction to today’s supply/demand report. Ending stocks for the current marketing year were trimmed another 15 million bushels, and usage for the 08/09 marketing year is projected to increase by 49 million bushels over this year, despite record-high prices. This will mean limited progress toward replenishing depleted U.S. stocks, with the estimate for 08/09 only up 40 million bushels from this year. USDA is projecting prices to be between $10.50 and $12.00. November beans have initial resistance at $13.15 ½. Wheat Cash bid for new crop at Memphis  664 1/2 to 668 1/2; Bids to farmers at Local Elevators 637-650; River Elevators 626-663; Chicago Futures: May down  17 1/2  at  791 1/2    July down 17 1/2  at  804 1/2    Sept down  17 1/4  at  818 1/2    Dec down  16 3/4  at  839 1/2    July '09 down  11  at  852 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for May at Memphis  1020 to 1045; Bids to farmers at River Elevators 936-996; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for May at Memphis   601 1/4 to - - -;   New crop at Memphis   591 to 596; Bids to farmers at River Elevators  578 to 593 Chicago Futures: May down  1/4  at  618 1/2    July down  1  at  629 1/4    Sept up  1 1/4  at  641    Dec up  3 3/4  at  650    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Corn futures were also higher, with December again moving to a new high. USDA decreased their feed usage estimate by 14% but expect an additional billion bushels to be used in ethanol production. Usage is expected to outpace production, so ending stocks are expected to decline from 1.383 billion this year to 763 million next year. Wheat futures, on the other hand posted sharp losses. Thanks to a better crop worldwide, U.S. stocks are expected to increase to 483 million bushels in 08/09, up from 239 million this year. July has resistance around the $8.40 range, with support at the recent low of $7.77. Cotton & Rice  Date: May 09, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis up 118 at  6205   Greenwood up  118 at 6205 New York Futures: July up  70  at  7155    Dec up  88  at  8023    March '09 up  90  at  8457    May '09 up  88  at  8596    July '09 up  97  at  8716  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton ended higher in reaction to the supply/demand report. For 07/08, use and exports were reduced again, raising ending stocks to 9.9 million bales. However, U.S. production is expected to drop 25% to 14.5 million bales in 08/09. Domestic use was reduced in the initial estimates, but exports were increased, with a net result of 08/09 carryover of 5.6 million bales. December futures support around 77 cents remains intact for the time being. Additional support is seen at 75 and 71 cents. Rice Long Grain Cash Bid for  May 2140/cwt  to  - - -   June 2140/cwt  to  - - - Chicago Futures: May up  19  at  2269    July up  62 1/2  at  2297 1/2    Sept down  35  at  2000    Nov down  35  at  2000    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment New crop rice futures got hammered today after the USDA released their initial projections for 08/09 supply and use. World production is expected to climb from 427.07 million hundredweight in 07/08 to 432.04 million in 08/09. Total use is expected to climb over 3 million cwt., with a net result of an increase of world ending stocks of 82.58 million cwt, compared with 78.51 million expected at the end of this year. Old crop contracts, however, posted bullish reversals. Several exporting countries are maintaining export bans, or minimum export price levels that change as the market rises. Quotes are well above the $1,000/ ton level, but are being met with some resistance, such as the Philippines cancellation of their latest tender. It is likely they will come back to the market later, whether this will impact the market remains to be seen. November gapped lower, but closed at the top of the day’s trading range. Support begins at the recent low of $18.23. Cattle & Hogs  Date: May 09, 2008 Cattle As reported by Federal-State Market News, receipts were 8,350 head at sales in Arkansas this week.  Compared with last week, feeder steers sold unevenly, calves steady to $2 lower, yearlings steady to $1 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 118.08 to - - -   500 to 550 lbs. 108.89 to - - -   600 to 650 lbs. 106.55 to - - -  Medium & Large Frame 2   400 to 450 lbs. 109.43 to - - - Heifers:  Medium & Large Frame 1   500 to 550 lbs. 102.26 to - - -  Medium & Large Frame 2   400 to 450 lbs. 98.59 to - - - Slaughter Cows, Boners 48   to   54 Light Weight 35 to 43 Bulls, Yield Grade   1   1000   to   2100 lbs.   60   to   68 Midwest Steers   were $4 higher   at   94   to   - - - Panhandle Steers   were $4 higher   at   94   to   - - - Oklahoma City Feeders Steers 500 to 550 lbs. 111 to 127.50   550 to 600 lbs. 108 to 121 Heifers 500 to 550 lbs. 100 to 112.50   550 to 600 lbs. 96 to 111 Chicago Futures: Live Cattle: June up 87 at 9452   Aug up 90 at 10020 Feeders: May up 57 at 10735   Aug up 45 at 10992 Cattle Comment Cattle futures were sharply higher today on strong cash market fundamentals and technical buying, apparently ignoring projections for continued high feed prices. June has overhead resistance in the $95.50 area. Feeder cattle were also higher, but have resistance at the recent high of $111. Hogs Peoria: were 50¢ to $1.50     higher   at   49.5   to   50 Chicago Futures: June up 40 at 7687   Oct up 7 at 7595 Sheep St. Paul n/a   at   - - -   to   - - - Hogs Comment Hogs were higher again today. The supply/demand report confirmed that brisk export movement is helping provide support. The weaker dollar was also supportive today, as this market is leaning more and more on exports. Poultry  Date: May 09, 2008 Eggs New York:  Ex. Lg. 102-106; Lg. 100-104; Med. 91-95; Chicago:  Ex. Lg. 97-105; Lg. 95-103; Med. 84-92; Eastern Region Turkeys Hens: 8-16 lbs. 88-90 Toms: 16-24 lbs. 88-90   Delmarva Broilers U.S. Grade A Trade sentiment was mostly steady to fully steady. Demand was light to moderate better where retail ads were active with optimism noted for upcoming Mother’s Day need. Supplies of all sizes were usually sufficient for trade needs. In the parts structure, movement was fair to moderate for end of the week trading. Live supplies were adequate; weights were desirable. ---------------------------------------- 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 2008 Arkansas Farm Bureau, Inc. All rights reserved Terms of Use