10/24/2008 Farm Bureau Market Report

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Grain & Soybean Date: October 24, 2008 Soybeans Local Elevators: (Oct) EAST AR:  774 to 803 (NC) Summ. 780 to - - - River Elevators: (Oct) MISS: 744 to 830 ; AR & White 788 to 803 (NC) Summ. 835 to 870 Ark. Processor Bids: (Oct) 800 to 803  (NC) 849 to 850 Memphis:  (Oct) 828 3/4 to 833 3/4 (NC)  n/a to - - - Riceland Foods:  (Oct) Stuttgart 803 ; Pendleton 803 ; West Memphis 818 Chicago Futures: Nov down 20 3/4 at  863 3/4   Jan '09  down  21 1/2  at  867   Mar '09 down 21 1/2  at  875   May '09 down 21 1/2  at  884   Nov '09 down 20 1/2  at  890   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans traded to both sides of yesterday’s close before ending the day lower. Continued economic woes triggered sharply lower stock markets today and that kept index funds on the defensive. Crude oil declines and a stronger $ just added to the negative undertone. November futures, at today’s low were just 20 cents above the recent contract low. With index funds selling rallies, it will be difficult to put a sustained drive together. Corn closed sharply lower with December holding just above last week’s contract low. Fundamentals appear to have little influence as the market continues to follow outside markets. Wheat Cash bid for October at Memphis  301 1/4 to 391 1/4; Bids to farmers at Local Elevators 311-426; River Elevators 426-441; Chicago Futures: Dec down  6 3/4  at  516 1/4    Mar '09 down 7 1/4  at  534 3/4    May '09 down  8  at  547 1/2    Jul '09 down  8  at  560 3/4    Sep '09 down  8 1/2  at  577 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for October at Memphis  371 to 416; Bids to farmers at River Elevators 338-409; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for October at Memphis   332 3/4 to - - -;   new crop at Memphis   354 to - - -; Bids to farmers at River Elevators  294 to 318 Chicago Futures: Dec down  17 1/2  at  372 3/4    Mar '09 down  17 1/2  at  388 3/4    May '09 down  17 3/4  at  399 1/2    Dec '09 down  18 1/2  at  427 3/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat ended lower today on economic concerns and negative fundamentals. The US hard red winter wheat crop is off to a good start, and wheat-producing nations across the globe continue to increase their production estimates for this year. We will see a dramatic turnaround in the wheat supply. Cotton & Rice  Date: October 24, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis down 285 at  4223   Greenwood down  285 at 4223 New York Futures: Dec down  259  at  4649    Mar '09 down  293  at  5039    May '09 down  259  at  5253    Jul '09 down  233  at  5460    Dec '09 down  217  at  5865  This week's LDP rate for cotton is  7.38 cents   The estimate for next week is  8.76 cents Cotton Comment Just when you think it can’t get any worse, it does. That could be the theme for cotton. Today’s trade was down sharply touching the 3 cent limit several times. It sounds like a broken record but cotton suffers worse than grains in periods of economic concern such as this. Purchases of clothes can be put off, and that creates weak demand. A stronger dollar also weighs on potential exports and the U.S. industry now counts on 70 to 80% of the cotton going to export. Long term support is between 45 and 46 cents or just below today’s low. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Nov down  29  at  1441 1/2    Jan '09 down  30 1/2  at  1468    Mar '09 down  30  at  1500    May '09 down  30  at  1532    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment The pressure of the worldwide economic conditions also was seen in the rice market. U.S. price levels remain at a premium to the Asian offerings. Price levels in both Vietnam and Thailand continue to move lower. Vietnam quotes are around $425 per metric tonne and Thailand is near $600 per tonne. U.S. values are adding pressure to the market as few inquiries are being fielded and mills will have a lot of open time by year’s end. The next major long term chart support is 62% retracement value of $13.12. Cattle & Hogs  Date: October 24, 2008 Cattle As reported by Federal-State Market News, receipts were 10,775 head at sales in Arkansas this week.  Compared with last week, feeder steers sold $2-5 higher, instances $6-9 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 114.28 to - - -   500 to 550 lbs. 100.73 to - - -   600 to 650 lbs. 89.42 to - - -  Medium & Large Frame 2   400 to 450 lbs. 99.94 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 94.86 to - - -  Medium & Large Frame 2   400 to 450 lbs. 87.85 to - - - Slaughter Cows, Boners 45   to   50 Light Weight 28 to 33 Bulls, Yield Grade   1   1000   to   2100 lbs.   55   to   64, high dressing 64-66.50 Midwest Steers   n/a   at   - - -   to   - - - Panhandle Steers   n/a   at   - - -   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 232 at 8755   Feb '09 down 255 at 8840 Feeders: Nov down 295 at 9382   Jan '09 down 297 at 9310 Cattle Comment Cattle futures gapped lower in the face of renewed global economic weakness. Falling cutout value have traders worried that demand is slipping as consumers worry about the economy. Hogs Peoria: were     steady   at   36   to   37 Chicago Futures: Dec up 57 at 5850   Feb '09 down 32 at 6385 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment December hogs were higher on their discount to cash prices, but other contracts were down and traders worry that the economy will affect demand. The next resistance for December is the small chart gap between $60 and $60.20, but the gap is narrowing quickly between cash and futures prices, so the upside beyond $60 will be limited. Poultry  Date: October 24, 2008 Eggs New York:  Ex. Lg. 124-128; Lg. 122-126; Med. 107-111; Chicago:  Ex. Lg. 111-119; Lg. 109-117; Med. 99-107; Eastern Region Turkeys Hens: 8-16 lbs. 93-100 Toms: 16-24 lbs. 93-97   Delmarva Broilers U.S. Grade A Trade sentiment was about steady. Demand entering the weekend was fair at best with some caution noted. Supplies of all sizes were more than adequate 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