12/08/2008 Farm Bureau Market Report

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Grain & Soybean Date: December 08, 2008 Soybeans Local Elevators: (Dec) EAST AR:  787 to 817 (NC) Summ. 800 to - - - River Elevators: (Dec) MISS: 796 to 824 ; AR & White 793 to 802 (NC) Summ. 799 to 831 Ark. Processor Bids: (Dec) 806 to 817  (NC) 811 to 815 Memphis:  (Dec) 830 1/2 to 835 1/2 (NC)  n/a to - - - Riceland Foods:  (Dec) Stuttgart 817 ; Pendleton 817 ; West Memphis 821 Chicago Futures: Jan '09 up 37 at  820 1/2   Mar '09  up  38 1/4  at  825 1/2   May '09 up 40 1/4  at  835   Jul '09 up 40 1/2  at  845 1/2   Nov '09 up 41 1/2  at  844   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Prospects of a stimulus package for the auto dealers boosted crude oil and the stock market which in turn bought renewed interest in soybeans. The big reversal left a one day island reversal feature on the January charts, suggesting a potential bottom. The market will have to close above prior support near $8.40 to sustain momentum of today’s move. This week’s report will likely show some adjustments on the demand side. Corn reversed Friday’s losses but will need to close above $3.75-3.80 to confirm a possible low. USDA may cut projected corn use by as much as 100 million bushels. Soft exports and lower ethanol factors in the expected reduction. Wheat Cash bid for December at Memphis  370 1/2 to 380 1/2; Bids to farmers at Local Elevators 387-397; River Elevators 397-432; Chicago Futures: Dec up  15 1/4  at  473    Mar '09 up 15  at  490 1/2    May '09 up  15 1/4  at  503 3/4    Jul '09 up  15 1/4  at  516 3/4    Sep '09 up  15 1/4  at  539 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for December at Memphis  411 to 429; Bids to farmers at River Elevators 304-384; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for December at Memphis   300 to - - -;   new crop at Memphis   310 1/4 to - - -; Bids to farmers at River Elevators  255 to 295 Chicago Futures: Dec up  20 3/4  at  314 1/4    Mar '09 up  20 3/4  at  330    May '09 up  21 1/4  at  340 1/2    Dec '09 up  22 1/2  at  373 3/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat followed soybeans and corn higher, but remained below $5. USDA has already revised wheat use and no major changes are expected in Thursday’s report. Wheat continues to struggle to gain potential exports in a highly competitive market. Cotton & Rice  Date: December 08, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis up 297 at  4059   Greenwood up  297 at 4059 New York Futures: Dec up  286  at  4219    Mar '09 up  297  at  4434    May '09 up  294  at  4418    Jul '09 up  276  at  4489    Dec '09 up  280  at  4878  This week's LDP rate for cotton is  13.70 cents   The estimate for next week is  16.81 cents Cotton Comment Last month’s potential double bottom formation on the March chart remained intact as the market reversed Friday’s decline and closed sharply higher. Potential improvement in the economy would help boost the outlook for cotton. The market may also be anticipating adjustments on Thursday in this year’s cotton production number. Late season weather reduced yields in the southern delta and that should be reflected in this week’s report. This week’s projected LDP is up after last week’s upturn. The long term outlook suggests cotton is probably bottoming. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Jan '09 up  36  at  1449    Mar '09 up  35  at  1428    May '09 up  35 1/2  at  1446    Jul '09 up  37 1/2  at  1467    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice moved higher for the fourth day in a row after holding support near $13. The international market remains somewhat soft with few major sales made recently. Iraq picked rice in Vietnam and Pakistan for their recent tender. Both are substantially cheaper than offerings by Thailand. U.S. milled rice sales remain slow, while rough rice continues to move to Mexico, Central and South America. No change in rice production numbers in this week’s report - that comes in January. General thinking is it will be a substantial change. Cattle & Hogs  Date: December 08, 2008 Cattle As reported by Federal-State Market News, receipts were 3,510 head at sales in Ash Flat, Springdale, & Ola.  Compared with last week, feeder steers were uneven, steers sold mostly $2-4 lower, heifers $1-2 lower . Steers:  Medium & Large Frame 1   400 to 450 lbs. 107.25 to - - -   500 to 550 lbs. 91.25 to - - -   600 to 650 lbs. 85 to - - -  Medium & Large Frame 2   400 to 450 lbs. 91.50 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 87 to - - -  Medium & Large Frame 2   400 to 450 lbs. 78.25 to - - - Slaughter Cows, Boners 36   to   42 Light Weight 30 to 36 Bulls, Yield Grade   1   1000   to   2100 lbs.   50   to   55, high dressing 55-60.50 Midwest Steers   were quoted   at   83   to   87 Panhandle Steers   were quoted   at   84   to   87 Oklahoma City Feeders Steers 550 to 600 lbs. 89 to 96.75   600 to 650 lbs. 84.50 to 94.25 Heifers 500 to 550 lbs. 83.25 to 86   600 to 650 lbs. 80 to 83.10 Chicago Futures: Live Cattle: Dec up 155 at 8310   Feb '09 up 122 at 8267 Feeders: Jan '09 up 125 at 8790   May '09 up 112 at 8892 Cattle Comment December live cattle futures left a one day island reversal formation on the charts today. This is normally a reliable sign that the market is bottoming. A strong stocks market and higher crude oil prices were also supportive. Initial resistance is located at $87.90. January feeder futures have resistance at the recent high at $92.32. Hogs Peoria: were     steady   at   35   to   37 Chicago Futures: Dec down 47 at 5697   Feb '09 down 7 at 6412 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hogs closed mixed after failing to hold early gains. Strong packer margins were enhanced by Friday’s increase in pork cutouts. However, a big weekly kill may overshadow seasonal needs. February futures have resistance around $67. Poultry  Date: December 08, 2008 Eggs New York:  Ex. Lg. 122-126; Lg. 120-124; Med. 89-93; Chicago:  Ex. Lg. 111-119; Lg. 109-117; Med. 81-89; Eastern Region Turkeys Hens: 8-16 lbs. 79-80 Toms: 16-24 lbs. 78-79   Delmarva Broilers U.S. Grade A Trade sentiment was steady. Demand following the weekend was fair to moderate with limited trading. Supplies of all sizes were usually sufficient to satisfy 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