12/11/2008 Farm Bureau Market Report

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Grain & Soybean Date: December 11, 2008 Soybeans Local Elevators: (Dec) EAST AR:  823 to 853 (NC) Summ. 832 to - - - River Elevators: (Dec) MISS: 837 to 872 ; AR & White 831 to 838 (NC) Summ. 837 to 877 Ark. Processor Bids: (Dec) 830 to 853  (NC) 837 to 847 Memphis:  (Dec) 871 1/2 to 878 1/2 (NC)  n/a to - - - Riceland Foods:  (Dec) Stuttgart 853 ; Pendleton 853 ; West Memphis 857 Chicago Futures: Jan '09 up 27 at  856 1/2   Mar '09  up  25 3/4  at  860 1/2   May '09 up 25 1/2  at  870   Jul '09 up 25 1/4  at  879 1/4   Nov '09 up 26 1/4  at  878 1/4   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans took the report in stride and moved sharply higher, closing above resistance around $8.40. USDA traded domestic crush over to exports leaving the use side of the balance sheet unchanged and projected ending stocks at 205 million bushels. Today’s positive move is making last week’s island reversal low look more and more like a bottom. Having broken a downtrend the market could retest resistance around $9.50 to $9.80. Corn closed higher despite a bearish supply demand report. USDA reduced ethanol use by 300 million bushels, exports by 100 million bushels, while increasing feed use by 50 million. The net reduction was added to projected ending stocks, raising that number to a very comfortable 1.47 billion bushels. Nevertheless, the market opened slightly lower then moved to the positive side, seemingly suggesting the market may have bottomed. Also, again proving the old axiom that a market bottoms on bearish news. Wheat Cash bid for December at Memphis  397 1/2 to 402 1/2; Bids to farmers at Local Elevators 404-419; River Elevators 414-454; Chicago Futures: Mar '09 down  2  at  507 1/2    May '09 down 1 3/4  at  520 3/4    Jul '09 down  1 1/2  at  533 1/2    Sep '09 down  2  at  555 1/2    Dec '09 down  3 1/4  at  575    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for December at Memphis  449 to 467; Bids to farmers at River Elevators 341-421; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for December at Memphis   321 1/2 to 327 1/2;   new crop at Memphis   333 to - - -; Bids to farmers at River Elevators  276 to 316 Chicago Futures: Mar '09 up  9 1/2  at  351 1/2    May '09 up  9 3/4  at  362 1/2    Sep '09 up  9 3/4  at  383    Dec '09 up  9 1/4  at  396 1/2    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat ended a bit lower. USDA raised U.S. ending stocks another 20 million bushels. World supply numbers were also increased again, giving this market more bearish supply-side news to deal with. The recent low of $4.71 is support. Cotton & Rice  Date: December 11, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis up 79 at  4121   Greenwood up  79 at 4121 New York Futures: Mar '09 up  49  at  4416    May '09 up  90  at  4438    Jul '09 up  95  at  4493    Dec '09 up  49  at  4838    - - -   - - -  at  - - -  This week's LDP rate for cotton is  13.70 cents   The estimate for next week is  16.48 cents Cotton Comment Cotton advanced in today’s trading despite negative adjustments in projected use. USDA trimmed 100,000 bales off domestic use and 750,000 bales off exports, while increasing production 80,000 bales. Projected ending stocks of 7.1 million bales were generally expected as economic conditions slowed use world wide. China’s projected consumption was lowered 3.5 million bales from last year, and Turkey was down 1 million bales. Both are good U.S. customers. March futures still need to close above the late November high of 48 cents to keep the market moving higher. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Jan '09 up  47  at  1455    Mar '09 up  50  at  1450    May '09 up  46  at  1466    Jul '09 up  42 1/2  at  1480    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice was sharply higher on limited adjustments in both the U.S. and world balance sheets. U.S. imports were lowered by 3 million cwt and that was the biggest adjustment. U.S. exports were lowered 1 million cwt and ending stocks declined the net of 2 million cwt to 23.4 million cwt. Many expect U.S. production to be reduced in the January report. Tuesday high of $14.83 is the next resistance as market remains on track to move to the initial retracement objective of $15.82. The international market remains subdued. Cattle & Hogs  Date: December 11, 2008 Cattle As reported by Federal-State Market News, receipts were 1,417 head at sales in Ratcliff.  Compared with last week, feeder steers sold $3-4 lower. Feeder heifers sold $1-5 lower . Steers:  Medium & Large Frame 1   400 to 450 lbs. 101.50 to - - -   500 to 550 lbs. 88.75 to - - -   600 to 650 lbs. 85.25 to - - -  Medium & Large Frame 2   400 to 450 lbs. 92.25 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 101.50 to - - -  Medium & Large Frame 2   400 to 450 lbs. 92.25 to - - - Slaughter Cows, Boners 33   to   39 Light Weight 25 to 32 Bulls, Yield Grade   1   1000   to   2100 lbs.   47.50   to   54, high dressing 55 Midwest Steers   remained   at   84   to   - - - Panhandle Steers   remained   at   84   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: Feb '09 up 2 at 8382   Apr '09 up 20 at 8562 Feeders: Jan '09 up 25 at 8760   May '09 up 47 at 8937 Cattle Comment Cattle ended higher today. Friday’s island reversal bottom could signal a major low. Fundamental support came from future’s discount to cash and stronger crude oil prices. Hogs Peoria: were     steady   at   36.5   to   37 Chicago Futures: Feb '09 down 75 at 6237   Apr '09 down 75 at 6785 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hog futures were sharply lower. USDA cut their export estimates for both 2008 and 2009 in this mornings supply/demand report, adding to the negative undertone that has been in this market for a few days. Poultry  Date: December 11, 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. 75-78 Toms: 16-24 lbs 77   Delmarva Broilers U.S. Grade A Trade sentiment was steady. Demand was fair, at times moderate for active feature activity. Supplies of all sizes were usually sufficient to satisfy 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