10/10/2008 Farm Bureau Market Report

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Grain & Soybean Date: October 10, 2008 Soybeans Local Elevators: (Oct) EAST AR:  797 to 820 (NC) Summ. 826 to - - - River Elevators: (Oct) MISS: 790 to 844 ; AR & White 809 to - - - (NC) Summ. 859 to - - - Ark. Processor Bids: (Oct) 819 to 820  (NC) 884 to 886 Memphis:  (Oct) 840 to 850 (NC)  n/a to - - - Riceland Foods:  (Oct) Stuttgart 819 ; Pendleton 819 ; West Memphis 844 Chicago Futures: Nov down 70 at  910   Jan 09  down  70  at  925 1/2   Mar 09 down 70  at  939 1/2   May 09 down 70  at  949 3/4   Nov 09 down 70  at  942   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans were hit by an additional 2.2 million acres of production in this morning’s report. Yield was cut to 39.5 bushels per acre. Net impact was an additional 49 million bushels of soybeans, which when added to last week’s grain stocks increase, puts projected 08/09 stocks at 220 million bushels. USDA also lowered both ends of the price range by $2 per bushel to $9.60 to $11.10. Coupled with the continuing economic situation this quickly reversed the gains of the last several days, as limit declines resulted. Wheat Cash bid for October at Memphis  336 1/2 to 348 1/2; Bids to farmers at Local Elevators 361-446; River Elevators 446-461; Chicago Futures: Dec down  41 1/4  at  563 1/2    Mar 09 down 42 1/4  at  583 3/4    May 09 down  43 1/4  at  597 1/2    July 09 down  44  at  610 1/2    Sept 09 down  44  at  627 1/4    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for October at Memphis  417 to 488; Bids to farmers at River Elevators - - -; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for October at Memphis   348 1/4 to 353 1/4;   New crop at Memphis   388 1/4 to - - -; Bids to farmers at River Elevators  341 to - - - Chicago Futures: Dec down  30  at  408 1/4    Mar 09 down  30  at  425 3/4    May 09 down  30  at  437 1/2    Dec 09 down  30  at  460 1/2    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Corn was also victim to the report which saw USDA reverse yield projections yet again. A 154 bushel per acre yield raised production to 12.2 billion bushels with ending stocks of 1.15 billion bushels. Limit declines put December at Wednesday’s low and suggests the market may move below the $4 level. Wheat gapped lower, partly in reaction to a bearish supply/demand report, and partly in reaction to weakness on Wall Street and in other markets around the world. The monthly balance sheet was expected to show increased production, and indeed it did. Production was increased by 38 million bushels. What wasn’t expected was only a 10 million bushel increase in usage resulting in a carryout of 601 million bushels. These negative fundamentals will keep a lid on the rebound potential of the market. Cotton & Rice  Date: October 10, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis down 175 at  4544   Greenwood down  175 at 4544 New York Futures: Dec down  300  at  4944    Mar 09 down  300  at  5387    May 09 down  300  at  5556    July 09 down  300  at  5757    Dec 09 down  300  at  6147  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton can’t catch a break. Today’s report showed no change in yield and just a slight adjustment in projected harvested acreage. The big killer was a million bale increase in China’s production estimate which carried a like reduction in import needs. Thus U.S. export numbers dropped from 14.5 to 13 million bales, while ending stocks rose 1.3 to 6.2 million bales. Futures dropped below 50 cents, leaving little doubt that this week’s projected LDP of 2.73 cents will continue to rise. Unpriced cotton is headed to the loan. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Nov down  49  at  1367 1/2    Jan 09 down  49  at  1671    Mar 09 down  49  at  1702 1/2    May 09 down  50  at  1734    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice had little chance to move any direction but lower, despite a slight downward adjustment in long grain production. Most of that reduction was also seen in the export category. On the world side, production was raised slightly, adding a little to larger world stocks. International sales continue under pressure leaving U.S. milled quotes at a widening premium to other export quotes. Technically, November futures are in position to test earlier support just below $16.20. Cattle & Hogs  Date: October 10, 2008 Cattle As reported by Federal-State Market News, receipts were 6,220 head at sales in Arkansas this week.  Compared with last week, feeder steers sold weak to $5 lower . Steers:  Medium & Large Frame 1   400 to 450 lbs. 109.03 to - - -   500 to 550 lbs. 101.95 to - - -   600 to 650 lbs. 93.05 to - - -  Medium & Large Frame 2   400 to 450 lbs. 97.68 to - - - Heifers:  Medium & Large Frame 1   500 to 550 lbs. 86.97 to - - -  Medium & Large Frame 2   400 to 450 lbs. 81.19 to - - - Slaughter Cows, Boners 44   to   48.50 Light Weight 30 to 38 Bulls, Yield Grade   1   1000   to   2100 lbs.   52   to   61 Midwest Steers   n/a   at   - - -   to   - -- Panhandle Steers   n/a   at   - - -   to   - - - Oklahoma City Feeders Steers 500 to 550 lbs. 99 to 113   550 to 600 lbs. 93 to 109.85 Heifers 500 to 550 lbs. 87 to 98   550 to 600 lbs. 82.50 to 107 Chicago Futures: Live Cattle: Dec down 300 at 9130   Feb down 300 at 9182 Feeders: Nov down 300 at 9505   Jan down 300 at 9505 Cattle Comment Cattle futures were limit-down across the board. Weakness was mostly due to sharp losses in crude oil and corn futures. But worries about potential beef demand in light of the stronger dollar and weakening global economy played a part as well. Hogs Peoria: were 50¢ higher to $3     lower   at   40.5   to   42 Chicago Futures: Dec down 125 at 5987   Feb down 157 at 6497 Sheep St. Paul n/a   at   - - -   to   - - - Hogs Comment Hog futures posted sharp losses but did come off limit-losses before the close. Big losses in crude oil and corn hammered deferred contracts, and the stronger dollar and weakening global economy continue to create worries about pork demand. Poultry  Date: October 10, 2008 Eggs New York:  Ex. Lg. 117-121; Lg. 115-119; Med. 103-107; Chicago:  Ex. Lg. 103-111; Lg. 101-109; Med. 91-99; Eastern Region Turkeys Hens: 8-16 lbs. 95-101 Toms: 16-24 lbs. 95-102   Delmarva Broilers U.S. Grade A Trade sentiment was steady to about steady. Retail demand was fair to good with increased interest noted entering the weekend. Food service was fair to moderate. Supplies were better balanced 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