10/22/2008 Farm Bureau Market Report

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Grain & Soybean Date: October 22, 2008 Soybeans Local Elevators: (Oct) EAST AR:  768 to 794 (NC) Summ. 775 to - - - River Elevators: (Oct) MISS: 739 to 825 ; AR & White 783 to 798 (NC) Summ. 803 to 868 Ark. Processor Bids: (Oct) 785 to 788  (NC) 843 to 848 Memphis:  (Oct) 831 to 834 (NC)  n/a to - - - Riceland Foods:  (Oct) Stuttgart 788 ; Pendleton 788 ; West Memphis 813 Chicago Futures: Nov down 49 at  859   Jan '09  down  50 1/2  at  864 3/4   Mar '09 down 51 1/4  at  873 1/4   May '09 down 51  at  882 1/2   Nov '09 down 51 3/4  at  895 1/4   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans led a sharp across the board decline in grains. Several nearby contracts were driven below $9, leaving the market looking extremely weak. The continued decline in oil appears to be pushing index funds to liquidate more of their holdings, which include grains and other commodities. A decline below last week’s low of $8.25 would trigger further losses. Corn gapped sharply lower and could retest last week’s low at $3.71 ½. There appears to be little communication between fundamentals and price. The same was true as the market moved sharply higher in the spring. Wheat Cash bid for October at Memphis  314 3/4 to 392 3/4; Bids to farmers at Local Elevators 314-429; River Elevators 429-444; Chicago Futures: Dec down  31 1/4  at  517 3/4    Mar '09 down 31 1/2  at  537 1/2    May '09 down  32 1/4  at  550 3/4    Jul '09 down  32 1/4  at  564 1/4    Sep '09 down  32 1/2  at  581 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for October at Memphis  393 to 438; Bids to farmers at River Elevators 359-430; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for October at Memphis   345 to 349;   new crop at Memphis   366 to - - -; Bids to farmers at River Elevators  318 to 330 Chicago Futures: Dec down  26  at  385    Mar '09 down  27  at  400 3/4    May '09 down  27 1/4  at  412    Dec '09 down  26  at  439    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat gapped lower. This market is, of course, reacting to sharp losses in stocks and crude oil. However, wheat has negative fundamentals to deal with as well. Egypt bought French wheat this week, and the strengthening U.S. dollar is making our wheat less competitive. Cotton & Rice  Date: October 22, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis down 18 at  4642   Greenwood down  18 at 4642 New York Futures: Dec down  5  at  5055    Mar '09 up  3  at  5359    May '09 up  5  at  5545    Jul '09 down  12  at  5724    Dec '09 down  29  at  6104  This week's LDP rate for cotton is  7.56 cents   The estimate for next week is  7.35 cents Cotton Comment Cotton traded to both sides of yesterday’s close and is attempting to put in a seasonal low. However, the current situation leaves that in doubt. Continued concern about the worldwide economic situation suggests upside potential will be limited, however. Which in the long term means even smaller acreage in 2009, with a further tightening of stocks. Short term, though, a retest of the recent low of 45.66 cents is still a possibility. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Nov down  39 1/2  at  1462 1/2    Jan '09 down  40 1/2  at  1491    Mar '09 down  39 1/2  at  1524    May '09 down  39 1/2  at  1556    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice was lower again as the overall international situation continues to weaken. Price levels in both Thailand and Vietnam have continued lower losing about $25 to $50 a ton this past week. Last spring’s buying frenzy may have resulted in some countries covering long term needs, meaning less demand in the immediate future. It is fairly obvious that Vietnam is willing to lower the price despite a heavy sales volume. Thai offerings are at a big premium and drawing little interest. The same is true of the U.S. except for paddy movement to Central America and Mexico. Cattle & Hogs  Date: October 22, 2008 Cattle As reported by Federal-State Market News, receipts were 1,723 head at sales in Conway & Pocahontas.  Compared with last week, feeder steers sold firm to $5 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 109.16 to - - -   500 to 550 lbs. 99.23 to - - -   600 to 650 lbs. 88.98 to - - -  Medium & Large Frame 2   550 to 600 lbs. 89.92 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 93.50 to - - -  Medium & Large Frame 2   400 to 450 lbs. 83.31 to - - - Slaughter Cows, Boners 41   to   50 Light Weight 29.50 to 35 Bulls, Yield Grade   1   1000   to   2100 lbs.   61   to   65, high dressing not tested Midwest Steers   were quoted   at   91   to   - - - Panhandle Steers   were quoted   at   91   to   - - - Oklahoma City Feeders Steers n/a to - - - lbs. - - - to - - -   n/a to - - - lbs. - - - to - - - Heifers n/a to - - - lbs. - - - to - - -   n/a to - - - lbs. - - - to - - - Chicago Futures: Live Cattle: Dec down 110 at 9187   Feb down 107 at 9277 Feeders: Nov down 52 at 9892   Jan '09 down 57 at 9855 Cattle Comment December cattle gapped lower following stocks and crude oil. The stronger dollar and fears of a global recession have traders worrying about export potential. Hogs Peoria: were     steady   at   36.5   to   37 Chicago Futures: Dec down 12 at 5765   Feb '09 down 75 at 6377 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hogs turned lower as renewed weakness in crude oil forced fund liquidation in today’s trade. The stronger dollar weighed on the market as well, reigniting fears that our prices won’t be competitive in the global market. The next resistance is the small chart gap between $60 and $60.20. Poultry  Date: October 22, 2008 Eggs New York:  Ex. Lg. 122-126; Lg. 120-124; Med. 107-111; Chicago:  Ex. Lg. 111-119; Lg. 109-117; Med. 99-107; Eastern Region Turkeys Hens: 8-16 lbs. 93-101 Toms: 16-24 lbs. 93-102   Delmarva Broilers U.S. Grade A Trade sentiment was steady to fully steady. Demand was fair to moderate with trading usually limited to regular commitments. Supplies ranged balanced to closely cleared to satisfy current trade needs. In production areas, live supplies were moderate at mixed, but 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