09/09/2008 Farm Bureau Market Report

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Grain & Soybean Date: September 09, 2008 Soybeans Local Elevators: (Sep) EAST AR:  n/a to - - - (NC) Summ. 1093 to 1142 River Elevators: (Sep) MISS: 1111 to 1172 ; AR & White 1134 to 1154 (NC) Summ. 1111 to 1160 Ark. Processor Bids: (Sep) n/a to - - -  (NC) 1139 to - - - Memphis:  (Sep) 1156 to 1161 (NC)  1151 to 1156 Riceland Foods:  (NC) Stuttgart 1139 ; Pendleton 1142 ; West Memphis 1160 Chicago Futures: Nov up 9 at  1201   Jan '09  up  8 3/4  at  1217 3/4   Mar '09 up 8 3/4  at  1231 3/4   May '09 up 7 1/2  at  1238 1/2   Nov '09 up 8 1/2  at  1187 3/4   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans closed slightly higher after reversing early declines. November actually made a key reversal low which typically signals a bottom. The nature of the market these days make it a less reliable signal. However, there does seem to be solid support building around $11.60. Friday’s report is expected to show a slight decline in yields, however that doesn’t take into account the potential crop improvement that will be seen from recent midwest rains. Corn partially retraced early losses but still ended the day lower. The second largest yield in history is expected to be projected in Friday’s report, although it should be lowered some from the previous report. Funds continue to liquidate their positions, pushing corn toward support at $5.05. Wheat Cash bid for September at Memphis  510 1/2 to 519 1/2; Bids to farmers at Local Elevators 528; River Elevators 527-552; Chicago Futures: Dec down  13 1/4  at  730 1/2    Mar '09 down 13 1/2  at  753 3/4    May '09 down  13 3/4  at  767    Jul '09 down  15  at  777 1/2    Sep '09 down  15  at  794 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for September at Memphis  785 to 829; Bids to farmers at River Elevators 714-813; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for September at Memphis   506 1/2 to 509 1/2;   new crop at Memphis   n/a to - - -; Bids to farmers at River Elevators  489 to 513 Chicago Futures: Dec down  4 1/2  at  544 1/2    Mar '09 down  4 1/4  at  563 1/2    May '09 down  4 1/4  at  575 1/2    Dec '09 down  2  at  584    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat is grinding steadily lower with the long term retracement objective of $6.75 looming as a potential market target. Bigger world supplies, a stronger dollar, and index fund liquidation are factors in the decline. Cotton & Rice  Date: September 09, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis down 84 at  5716   Greenwood down  84 at 5716 New York Futures: Oct down  170  at  6160    Dec down  165  at  6395    Mar '09 down  181  at  6832    May '09 down  184  at  7070    Jul '09 down  179  at  7315  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton continues its sharp decline with new crop December falling below 64 cents at one point in today’s trade. While the lower mid-South crop has been hard hit by rains and wind over the last several weeks, it hasn’t given the market any boost. Big carryover stocks are sufficient to meet immediate needs. However in the long run, supplies will tighten and more cotton will be needed. That will not happen unless cotton price levels are competitive with soybeans and corn. So, at some point look for the market to make a major turn – probably in the next 3 to 4 months. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Nov up  35  at  1896    Jan '09 down  64  at  1926    Mar '09 down  64  at  1956    May '09 down  67  at  1981    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice was sharply lower in a light trade as the market sold off after recent gains. November futures left a potential one day island reversal, which is typically a strong technical signal. In this case, it would be a temporary market top. Strong support should be seen around $18.30. Overall fundamentals remain unchanged with most activity slow as new crop harvest moves forward. Friday’s report won’t likely reflect potential weather losses as a result of Hurricane Gustav. Cattle & Hogs  Date: September 09, 2008 Cattle As reported by Federal-State Market News, receipts were 1,815 head at sales in Fort Smith & Marshall.  Compared with last week, feeder steers sold steady to instances $3 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 116.30 to - - -   500 to 550 lbs. 112.07 to - - -   600 to 650 lbs. 106.35 to - - -  Medium & Large Frame 2   400 to 450 lbs. 96.03 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 106.53 to - - -  Medium & Large Frame 2   400 to 450 lbs. 96.03 to - - - Slaughter Cows, Boners 51   to   57.50 Light Weight 36 to 42 Bulls, Yield Grade   1   1000   to   2100 lbs.   65   to   74.50, high dressing 75-79 Midwest Steers   n/a   at   - - -   to   - - - Panhandle Steers   n/a   at   - - -   to   - - - Oklahoma City Feeders Steers 550 to 600 lbs. 112 to 119.50   600 to 650 lbs. 115.50 to 117.25 Heifers 550 to 600 lbs. 107 to 111.60   600 to 650 lbs. 100 to 106 Chicago Futures: Live Cattle: Dec down 82 at 10412   Feb down 52 at 10580 Feeders: Nov down 62 at 10975   Jan down 102 at 10947 Cattle Comment Cattle futures were lower again today and nearby contracts are testing support around $107.50. In the longer term, $100 may hit despite a tightening of fed cattle supplies. A stronger $, weaker exports and a narrow packing margin are weighing on the market. Feeders remain under pressure despite lower corn values. Hogs Peoria: were     steady   at   45.5   to   46 Chicago Futures: Dec down 127 at 6617   Feb down 167 at 7357 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment October hog futures dropped through another layer of support near $68, closing just below $67. The next support is the contract low of $64.20. The increasing value of the dollar and weakening economies of importing countries is decreasing export demand. That leaves excess supplies of pork in the domestic market. Poultry  Date: September 09, 2008 Eggs New York:  Ex. Lg. 127-131; Lg. 125-129; Med. 95-99; Chicago:  Ex. Lg. 121-129; Lg. 119-127; Med. 86-94; Eastern Region Turkeys Hens: 8-16 lbs. 99-102 Toms: 16-24 lbs. 99-102   Delmarva Broilers U.S. Grade A Trade sentiment was about steady. Supplies of all sizes were more than sufficient to satisfy current trade needs. In production areas, live supplies were moderate with 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