09/02/2008 Farm Bureau Market Report

Click here to view this report online.

Grain & Soybean Date: September 02, 2008 Soybeans Local Elevators: (Sept) EAST AR:  - - - to - - - (NC) Summ. 1191 to 1233 River Elevators: (Sept) MISS: 1238 to 1259 ; AR & White 1210 to 1228 (NC) Summ. 1209 to 1250 Ark. Processor Bids: (Sept) - - - to - - -  (NC) 1221 to 1229 Memphis:  (Sept) 1248 1/2 to 1253 1/2 (NC)  1243 1/2 to 1248 1/2 Riceland Foods:  (Oct/Nov) Stuttgart 1229 ; Pendleton 1233 ; West Memphis 1250 Chicago Futures: Nov down 25 1/2 at  1298 1/2   Jan 09  down  26  at  1315 1/2   Mar 09 down 26  at  1327 3/4   May 09 down 26 1/2  at  1335 1/2   Nov 09 down 18  at  1283   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans were hit early as funds liquidated contracts following a sharp drop in oil. In addition, the dollar moved to the highest level in 11 months, raising concerns about this year’s potential exports. For the most part, this does not speak to current fundamentals and the question of weather impact. Rain may improve yield prospects in some parts of the Midwest, while hurting the crop in the Midsouth. No doubt, the tightening of available supplies and the weather impact on the Southern harvest is a positive for the basis and futures in the short term. This helped mitigate early losses, boosting November back near $13 at the close. Corn was hit by the same circumstances and reacted in the same way, trimming big losses by the close. Today’s low of $5.56 now becomes support. Wheat Cash bid for September at Memphis  536 3/4 to - - -; Bids to farmers at Local Elevators 569; River Elevators 569-594; Chicago Futures: Dec down  34 1/2  at  766 3/4    Mar 09 down 34 1/2  at  790 3/4    May 09 down  34 1/2  at  805    July 09 down  31 3/4  at  818 3/4    Sept 09 down  30 1/4  at  834 1/4    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for September at Memphis  856 to 865; Bids to farmers at River Elevators 759-875; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for September at Memphis   522 1/4 to 529 1/4;   New crop at Memphis   - - - to - - -; Bids to farmers at River Elevators  501 to 525 Chicago Futures: Dec down  15 3/4  at  569 1/4    Mar 09 down  16  at  588    May 09 down  16  at  600 1/4    Dec 09 down  14  at  606    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat gapped lower following crude oil, and is now trading at the lowest level. The index funds have been forced to liquidate positions due to the losses in crude oil. The very wide Gulf basis has indicated for some time that U.S. wheat was overpriced on the global market, and the improving dollar has not helped that situation. Cotton & Rice  Date: September 02, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis up 38 at  6316   Greenwood up  38 at 6316 New York Futures: Oct up  38  at  6791    Dec up  40  at  7018    Mar 09 up  38  at  7476    May 09 up  40  at  7678    July 09 up  54  at  7885  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton moved in a similar pattern to soybeans and corn, down early, but eventually moving higher. In the case of cotton, the market actually moved to the positive side. There is little doubt the lingering effects of Hurricane Gustav will impact cotton yields and quality in Mississippi, Louisiana and Arkansas. Longer term, any cut in this year’s production will tighten stocks next year. For now, resistance at 71 cents and support at 67 cents are the market extremes. A close outside either would indicate further movement in that direction. Rice Long Grain Cash Bid for  Sept - - -  to  - - -   - - - - - -  to  - - - Chicago Futures: Nov down  62  at  1835    Jan 09 down  63  at  1866    Mar 09 down  62  at  1895    May 09 down  62  at  1920    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice was sharply lower throughout the session, ending near the day’s lows. No doubt the near $3 gains over the last two weeks left the market vulnerable to a set back. However, there is also little question that the lingering remnants of Hurricane Gustav will have an impact on this year’s yield. This should tighten U.S. long grains stocks even more, eventually leading to a higher price. Current support starts at $17.60 which is the top of an 18 cent gap that was left when the market moved higher. International conditions remain unchanged. Cattle & Hogs  Date: September 02, 2008 Cattle As reported by Federal-State Market News, receipts were 2146 head at sales in Springdale, Ash Flat, Ola and Marshall.  Compared with last week, feeder steers sold near steady, instances $1-$2 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 117.15 to - - -   500 to 550 lbs. 110.96 to - - -   600 to 650 lbs. 106.46 to - - -  Medium & Large Frame 2   400 to 450 lbs. - - - to - - - Heifers:  Medium & Large Frame 1   500 to 550 lbs. 98.31 to - - -  Medium & Large Frame 2   400 to 450 lbs. 95.81 to - - - Slaughter Cows, Boners 49   to   55 Light Weight 38 to 41 Bulls, Yield Grade   1   1000   to   2100 lbs.   65   to   70 Midwest Steers   were   at   99   to   - - - Panhandle Steers   were   at   99   to   - - - Oklahoma City Feeders Steers 500 to 550 lbs. 117 to 125   550 to 600 lbs. 113.25 to 119 Heifers 500 to 550 lbs. 107.50 to 113.50   550 to 600 lbs. 107.50 to 112.75 Chicago Futures: Live Cattle: Dec down 30 at 10610   Feb up 2 at 10675 Feeders: Nov up 100 at 11127   Jan up 120 at 11070 Cattle Comment Live cattle futures were a bit lower today. Market ready supplies of cattle are expected to tighten in the near term, but the real determining factor may be heavy competition from pork. Either pork or beef could be featured items next week. Live cattle futures are trying to hold support between $103 and $104. Hogs Peoria: were $1.50 to $3     lower   at   45   to   46 Chicago Futures: Dec up 40 at 6995   Feb up 105 at 7700 Sheep St. Paul n/a   at   - - -   to   - - - Hogs Comment October hogs charted big gains today, but failed to break through resistance at the top of the recent chart gap of $70.50. Upside potential is limited by heavy supplies of pork and weak wholesale values. Poultry  Date: September 02, 2008 Eggs New York:  Ex. Lg. 131-135; Lg. 129-133; Med. 95-99; Chicago:  Ex. Lg. 121-129; Lg. 119-127; Med. 86-94; Eastern Region Turkeys Hens: 8-16 lbs. 97-100 Toms: 16-24 lbs. 97-100   Delmarva Broilers U.S. Grade A Trade sentiment was about steady to steady. Post holiday demand was light to fair following the weekend. Supplies of all sizes were at least adequate to satisfy trade needs. In productions 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