08/25/2008 Farm Bureau Market Report

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Grain & Soybean Date: August 25, 2008 Soybeans Local Elevators: (Aug) EAST AR:  n/a to - - - (NC) Summ. 1239 to 1281 River Elevators: (Aug) MISS: 1287 to 1312 ; AR & White 1270 to 1283 (NC) Summ. 1252 to 1298 Ark. Processor Bids: (Aug) n/a to - - -  (NC) 1269 to 1277 Memphis:  (Aug) 1302 to 1307 (NC)  1297 to 1302 Riceland Foods:  (Oct/Nov) Stuttgart 1277 ; Pendleton 1281 ; West Memphis 1298 Chicago Futures: Sept up 18 1/4 at  1339 1/4   Nov  up  20  at  1347   Jan 09 up 20  at  1364 1/2   Mar 09 up 18 3/4  at  1377   Nov 09 up 9  at  1335   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans firmed today, but closed well off the early highs. Weather remains a major factor as traders remain concerned about this year’s yield. A later start means the crop is vulnerable to current dry conditions in the Midwest and to an early frost. Upside potential seems limited with key resistance seen around $14.15 for the November contract. Corn lost steam after a strong opening tested near term resistance just below $6.25. It will take a close above this level to move corn toward retracement objectives between $6.44 and $6.70. Wheat Cash bid for August at Memphis  635 1/4 to 640 1/4; Bids to farmers at Local Elevators 607; River Elevators 584-646; Chicago Futures: Sept down  25 1/4  at  840 1/4    Dec down 25 3/4  at  864 3/4    Mar 09 down  26  at  889    May 09 down  25 1/4  at  904    July 09 down  24 1/4  at  911 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for August at Memphis  920 to 929; Bids to farmers at River Elevators 796-913; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for August at Memphis   560 1/4 to 565 1/4;   New crop at Memphis   n/a to - - -; Bids to farmers at River Elevators  525 to 552 Chicago Futures: Sept down  6 1/4  at  580 1/4    Dec down  6 1/2  at  600    Mar 09 down  6 1/4  at  619 1/2    Dec 09 down  1 1/2  at  636    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat was hit hard as the market failed to reverse Friday’s downward move. Trading of the last 3 days gives the market a toppy look. Initial support is located around $8.40 and then at the more recent low near $7.75. Resistance will be last week’s high of $9.59 ½ . Cotton & Rice  Date: August 25, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis down 51 at  6216   Greenwood down  51 at 6216 New York Futures: Oct down  51  at  6691    Dec down  51  at  6912    Mar 09 down  47  at  7403    May 09 down  41  at  7609    July 09 down  30  at  7785  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton traded a wide range before settling lower, near the midpoint of today’s range. Cotton would appear to have some longer term upside, but recent rains related to Hurricane Faye may have improved crop conditions in the Southeast U.S. Any additional production will keep the market on edge, until big stocks begin to disappear. Cotton appears to still be underpriced relative to grains, which means price will have to improve or more acres will move to corn or soybeans. Another acreage cut would mean very tight supplies with the 08/09 carryover now projected to be just 4.6 million bales. Current resistance is around 71 cents and then 75 cents. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   - - - - - -  to  - - - Chicago Futures: Sept up  25  at  1825    Nov up  20  at  1845    Jan 09 up  20  at  1873    Mar 09 up  20  at  1901    - - - up  - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice futures firmed again today with November and September contracts both nearly reaching 38% retracement objectives of $18.51 and $18.41. The next upside objective is about 70 cents higher. The improvement in U.S. futures is counter to what is being seen in international markets where the market is steady at best. However, that situation should be stabilizing and perhaps improving. The U.S. harvest is moving slowly with much of the Arkansas crop running somewhat behind normal. That has likely provided support to the market over the last several weeks. Cattle & Hogs  Date: August 25, 2008 Cattle As reported by Federal-State Market News, receipts were n/a head at sales in n/a.  Compared with last week, feeder steers n/a . 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   N/A   at   - - -   to   - - - Panhandle Steers   n/a   at   - - -   to   - - - Oklahoma City Feeders Steers 500 to 550 lbs. 122.50 to 125   550 to 600 lbs. 113.25 to 119 Heifers 400 to 500 lbs. 107 to 113.75   550 to 600 lbs. 113.25 to 119 Chicago Futures: Live Cattle: Oct up 2 at 10580   Dec up 45 at 10735 Feeders: Oct up 5 at 11255   Nov down 5 at 11225 Cattle Comment Cattle started the day stronger after a positive Cattle On Feed Report late Friday. Total numbers on feed were down over 4% from a year ago, while placements were the 2nd lowest since 1996. Only last year’s were lower, making this year’s actually 2% higher. A shorter slaughter week due to the Labor Day holiday will reduce this week’s needs. Overall, the market struggled to settle steady. Longer term, tighter supplies are expected to firm cash prices, but futures have already accounted for this factor. Hogs Peoria: were steady to $2     lower   at   56   to   57 Chicago Futures: Oct up 25 at 7400   Dec up 15 at 7425 Sheep St. Paul n/a   at   - - -   to   - - - Hogs Comment Hogs were mixed as light packer demand limited sales opportunities. This week’s needs have largely been covered and plants will be open one day less next week. Falling wholesale values and tightening packer margins don’t bode well short term. Poultry  Date: August 25, 2008 Eggs New York:  Ex. Lg. 127-131; Lg. 125-129; Med. 89-93; Chicago:  Ex. Lg. 117-125; Lg. 115-123; Med. 80-88; Eastern Region Turkeys Hens: 8-16 lbs. 96-99 Toms: 16-24 lbs. 96-99   Delmarva Broilers U.S. Grade A Trade sentiment was steady. Demand was light to fair with hopes of progress for upcoming holiday. Supplies of all sizes were at least adequate to satisfy trade needs. In production areas, live supplies were moderate at 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 2008 Arkansas Farm Bureau, Inc. All rights reserved Terms of Use