10/23/2008 Farm Bureau Market Report

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Grain & Soybean Date: October 23, 2008 Soybeans Local Elevators: (Oct) EAST AR:  768 to 794 (NC) Summ. 775 to - - - River Elevators: (Oct) MISS: 739 to 825 ; AR & White 78 to 783 (NC) Summ. 803 to 868 Ark. Processor Bids: (Oct) 785 to 788  (NC) 803 to 868 Memphis:  (Oct) 831 to 834 (NC)  n/a to - - - Riceland Foods:  (Oct) Stuttgart 824 ; Pendleton 824 ; West Memphis 839 Chicago Futures: Nov up 25 1/2 at  884 1/2   Jan '09  up  23 3/4  at  888 1/2   Mar '09 up 23 1/4  at  896 1/2   May '09 up 23  at  905 1/2   Nov '09 up 15 1/4  at  910 1/2   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans closed the day with good gains, but well below early highs. Unfortunately, the market remains extremely volatile, and subject to the influence of outside markets. A slightly weaker $ and higher crude oil prices provided support. Which direction the market goes tomorrow appears to be more closely tied to the world economic situation than to soybean fundamentals. Out guessing the market will be difficult. Initial upside resistance is around $9.40. Corn firmed but also closed off the day’s highs. Like soybeans, corn appears to be a good value, at current values. Basis levels continue to improve which is a good indication. Long term corn will close above $4.50 to indicate the market has bottomed. 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 up  5 1/4  at  523    Mar '09 up 4 1/2  at  542    May '09 up  4 3/4  at  555 1/2    Jul '09 up  4 1/2  at  568 3/4    Sep '09 up  4 3/4  at  586    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  306 to 330 Chicago Futures: Dec up  5 1/4  at  390 1/4    Mar '09 up  5 1/2  at  406 1/4    May '09 up  5 1/4  at  417 1/4    Dec '09 up  7 1/4  at  446 1/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat posted small gains, closing near the bottom of the day’s trading range. The world supply had dramatically increased over last year, and it is being reflected in export demand. Weekly exports were 14.1 million bushels, the very bottom of expectations. Canada today raised their crop estimate by 14% over the previous estimate due to better yields. The UK is expected to harvest a record 17.46 million metric tons. Cotton & Rice  Date: October 23, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis down 134 at  4508   Greenwood down  134 at 4508 New York Futures: Dec down  155  at  4888    Mar '09 down  34  at  5317    May '09 down  26  at  5502    Jul '09 down  38  at  5686    Dec '09 down  4  at  6100  This week's LDP rate for cotton is  7.56 cents   The estimate for next week is  7.36 cents Cotton Comment Cotton was hit hard again today as the market continues to bog around an area of 50 cents. The last several days have seen the market trade in a similar range without much indication it is ready to make any sustained upward move. Continued concern about the worldwide economic situation suggests upside potential will be limited. 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 up  8  at  1470 1/2    Jan '09 up  7 1/2  at  1498 1/2    Mar '09 up  6  at  1530    May '09 up  6  at  1562    n/a up  - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice closed a little higher but like soybeans and corn was unable to sustain bigger early gains. 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 23, 2008 Cattle As reported by Federal-State Market News, receipts were 2,010 head at sales in Charlotte, Ratcliff & Green Forest.  Compared with last week, feeder steers sold mostly $1-6 higher. Feeder heifers sold steady to $2 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 114.96 to - - -   500 to 550 lbs. 100.58 to - - -   600 to 650 lbs. 90.96 to - - -  Medium & Large Frame 2   400 to 450 lbs. 109.19 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 87.41 to - - -  Medium & Large Frame 2   400 to 450 lbs. 85.95 to - - - Slaughter Cows, Boners 41   to   47 Light Weight 32 to 37 Bulls, Yield Grade   1   1000   to   2100 lbs.   53   to   60, high dressing 66.50 Midwest Steers   were $1 lower   at   90   to   - - - Panhandle Steers   were $1 lower   at   90   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 200 at 8987   Feb '09 down 182 at 9095 Feeders: Nov down 215 at 9677   Jan '09 down 247 at 9607 Cattle Comment Cattle futures continued to move lower today. Disappointing cash trade and big losses in cutout values are weighing on futures. Concern about demand in the face of a global recession is also keeping a lid on prices. Hogs Peoria: were     steady   at   36.5   to   37 Chicago Futures: Dec up 27 at 5792   Feb '09 up 40 at 6417 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hogs rebounded a bit today on strength in crude oil and the stock market. Futures are still trading at a discount to cash, but the gap has narrowed, so the upside could be limited. The next resistance is the small chart gap between $60 and $60.20. Poultry  Date: October 23, 2008 Eggs New York:  Ex. Lg. 123-127; Lg. 121-125; 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 generally steady. Demand into all channels was fair to moderate with light trading. Supplies were sufficient 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