10/06/2008 Farm Bureau Market Report

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Grain & Soybean Date: October 06, 2008 Soybeans Local Elevators: (Oct) EAST AR:  825 to 851 (NC) Summ. 838 to - - - River Elevators: (Oct) MISS: 822 to 873 ; AR & White 811 to 837 (NC) Summ. 872 to 916 Ark. Processor Bids: (Oct) 851 to 860  (NC) 899 to 902 Memphis:  (Oct) 849 to 872 (NC)  n/a to - - - Riceland Foods:  (Oct) Stuttgart 851 ; Pendleton 851 ; West Memphis 873 Chicago Futures: Nov down 70 at  922   Jan 09  down  70  at  938 1/2   Mar 09 down 70  at  951 1/2   May 09 down 70  at  962 1/2   Nov 09 down 70  at  959 1/2   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Like all other commodities, soybeans were hit by a continued selloff prompted by the current economic situation. Unfortunately, commodities are taking it on the chin as index funds continue to hunt for a safe haven. What was a gift on the move higher is now a bitter pill to swallow. Market movement has little or nothing to do with supply demand although high prices cut use to the bone. November soybeans may fall to the next support at $9.15 on weekly charts, or perhaps the next level of $7.89. Wheat Cash bid for October at Memphis  365 1/4 to 380 1/4; Bids to farmers at Local Elevators 392-477; River Elevators 477-492; Chicago Futures: Dec down  45  at  595 1/4    Mar 09 down 45 3/4  at  616    May 09 down  46 1/2  at  629 3/4    July 09 down  46 3/4  at  642    Sept 09 down  47 1/4  at  658 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for October at Memphis  480 to 516; Bids to farmers at River Elevators 411-473; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for October at Memphis   351 to 374;   New crop at Memphis   409 to - - -; Bids to farmers at River Elevators  320 to 367 Chicago Futures: Dec down  30  at  424    Mar 09 down  30  at  442 1/2    May 09 down  30  at  454 3/4    Dec 09 down  30  at  481    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat futures were sharply lower today in reaction to the meltdown on Wall Street and limit losses in other commodities. In the current climate, it is difficult to say how far these markets will fall. Also, wheat is dealing with bearish fundamentals. World production could set a new record this year, so supplies will be ample to meet demand and the price rationing seen last year is unlikely to be repeated. Cotton & Rice  Date: October 06, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis down 300 at  4916   Greenwood down  300 at 4916 New York Futures: Oct down  320  at  5241    Dec down  300  at  5441    Mar 09 down  300  at  5894    May 09 down  300  at  6080    Dec 09 down  300  at  6676  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton was off 300 points early in today’s session and ended the day there. The next major support is around 47 cents. The current economic situation leaves the cotton market very shaky. As indicated before cotton doesn’t fare very well in economic downturns. The wider spread this situation, the more pressure we will see on cotton. This year’s big carryover just adds to the immediate problem. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   - - - - - -  to  - - - Chicago Futures: Nov down  70 1/2  at  1764    Jan 09 down  71  at  1797 1/2    Mar 09 down  71  at  1829    May 09 down  71 1/2  at  1862    - - - unchanged  - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice reversed early gains to move the expanded limit lower at one point. Unfortunately, this may push November back down to retest recent support at $16.20. Again, this really has little to do with supply demand. Overall market conditions appear stable with mills working to fill prior sales. Haiti, Mexico and Central America remain a good market for U.S. rice. A 10,000 metric tonne sale to Iran was a welcome surprise, also unexpected considering the current spread between U.S. and Asian origin rice. Vietnam and Pakistan have rice available around $500 per metric tonne, while Thai rice is just under $700. U.S. milled rice remains at $800+. Cattle & Hogs  Date: October 06, 2008 Cattle As reported by Federal-State Market News, receipts were 2560 head at sales in Springdale, Ash Flat, and Ola.  Compared with last week, feeder steers were weak to $5 lower, instances $8 lower . Steers:  Medium & Large Frame 1   400 to 450 lbs. 114.61 to - - -   500 to 550 lbs. 102.29 to - - -   600 to 650 lbs. 92.94 to - - -  Medium & Large Frame 2   400 to 450 lbs. 105.68 to - - - Heifers:  Medium & Large Frame 1   500 to 550 lbs. 88.47 to - - -  Medium & Large Frame 2   400 to 450 lbs. 85.34 to - - - Slaughter Cows, Boners 44   to   50 Light Weight n/a to - - - Bulls, Yield Grade   1   1000   to   2100 lbs.   55   to   62 Midwest Steers   were steady to $2 higher   at   96   to   97 Panhandle Steers   were steady to $3 higher   at   96   to   98 Oklahoma City Feeders Steers 450 to 500 lbs. 107.50 to 114   500 to 575 lbs. 104.50 to 113 Heifers 400 to 500 lbs. 95 to 103   500 to 575 lbs. 90 to 95.75 Chicago Futures: Live Cattle: Dec down 300 at 9477   Feb down 300 at 9470 Feeders: Nov down 300 at 9780   Jan down 300 at 9740 Cattle Comment Cattle futures down the limit across the board. This market, as well, is under pressure from concerns that economic weakness will hurt demand for beef. Losses in crude oil have forced index funds to liquidate long positions. The next level of support on the weekly chart is just below $90. Hogs Peoria: were steady to 50¢     higher   at   44.5   to   - - - Chicago Futures: Dec down 105 at 5982   Feb down 177 at 6620 Sheep St. Paul n/a   at   - - -   to   - - - Hogs Comment Hogs were also lower. Weaker corn prices are a negative for deferred hogs as herd liquidations are expected to slow. General economic concerns continue to weigh on the market, sparking concerns of weakening global demand for pork. Poultry  Date: October 06, 2008 Eggs New York:  Ex. Lg. 113-117; Lg. 111-115; Med. 99-103; Chicago:  Ex. Lg. 103-111; Lg. 101-109; Med. 91-99; Eastern Region Turkeys Hens: 8-16 lbs. 98-102 Toms: 16-24 lbs. 97-102   Delmarva Broilers U.S. Grade A Trade sentiment was about steady. Demand following the weekend was fair to moderate with trading usually limited to regular commitments. Supplies were sufficient to satisfy current 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