12/17/2008 Farm Bureau Market Report

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Grain & Soybean Date: December 17, 2008 Soybeans Local Elevators: (Dec) EAST AR:  834 to 860 (NC) Summ. 839 to - - - River Elevators: (Dec) MISS: 859 to 889 ; AR & White 845 to 862 (NC) Summ. 847 to 889 Ark. Processor Bids: (Dec) 834 to 864  (NC) 834 to 854 Memphis:  (Dec) 889 to - - - (NC)  811 to 826 Riceland Foods:  (Dec) Stuttgart 864 ; Pendleton 889 ; West Memphis 864 Chicago Futures: Jan '09 up 5 1/2 at  864   Mar '09  up  6  at  869   May '09 up 6  at  880 1/2   Jul '09 up 6 1/2  at  891 1/2   Nov '09 up 10  at  896   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans made small gains despite a sharp decline in crude oil. A very sharp decline in the value of the dollar is an offsetting factor as it makes U.S. soybeans a better buy. Firm basis levels in the Midwest suggest light farmer selling but also that demand is pretty good. January futures need to close above recent resistance in the $9.50 to $9.80 area to confirm the season low and give the market an opportunity to move higher. Corn has shown more consistent upside movement than beans or wheat over the last 2 weeks and therefore was the more likely target for profit taking. That happened today as corn slipped a little while beans and wheat made small gains. March corn has retracement objectives of $4.32 and $4.62, which could come in to play. Wheat Cash bid for December at Memphis  457 1/2 to - - -; Bids to farmers at Local Elevators 453-468; River Elevators 464-503; Chicago Futures: Mar '09 up  13 1/2  at  557 1/2    May '09 up 13 1/4  at  570 1/4    Jul '09 up  13  at  582 1/2    Sep '09 up  13 1/2  at  604 1/2    Dec '09 up  13 3/4  at  625 1/4    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for December at Memphis  517 to 535; Bids to farmers at River Elevators 408-489; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for December at Memphis   369 1/2 to - - -;   new crop at Memphis   371 1/2 to - - -; Bids to farmers at River Elevators  324 to 364 Chicago Futures: Mar '09 down  4 1/2  at  389 1/2    May '09 down  4 3/4  at  400 1/2    Sep '09 down  5 1/2  at  421 1/2    Dec '09 down  6 1/4  at  435 1/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat was higher again today. The market is keeping a close eye on the weather. There is very little snow cover in the Plains, so winter kill is a possibility in the face of freezing temperatures. Export demand is picking up as well, and traders are hopeful that the recent weakness in the dollar will spark buying interest. Cotton & Rice  Date: December 17, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis   at  4296   Greenwood    at 4296 New York Futures: Mar '09 up  182  at  4596    May '09 up  162  at  4651    Jul '09 up  176  at  4766    Dec '09 up  192  at  5205    - - -   - - -  at  - - -  This week's LDP rate for cotton is  16.48 cents   The estimate for next week is  16.13 cents Cotton Comment Cotton was sharply higher as new crop December again tested resistance at the 52 cents level. Lower price levels appear to have found fresh demand. Informa’s projected 20% acreage cut in ’09 may also have hit a nerve. They are projecting plantings of only 7.4 million acres. Production of 1.3 million bales would give a supply of 20 million bales and steady use would lower stocks to about 3 million bales. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Jan '09 down  13  at  1498    Mar '09 down  18  at  1498 1/2    May '09 down  25 1/2  at  1513    Jul '09 down  19 1/2  at  1523    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice made a huge reversal down, closing lower for the day, but well below the day’s lows. Overall fundamentals remain somewhat negative as U.S. milled rice movement is extremely slow. Many mills face a restricted milling schedule if new sales don’t surface soon. International markets are steady to firm with Vietnam continuing to garner most sales. Iraq bought from Vietnam and the Philippines are expected to confirm a sizeable purchase. Most sales are in the $400 area. This is a heavy discount to U.S. values that are hovering around $650. On the positive side, U.S. rough rice exports are good, the Obama administration appears to be favorable to more trade with Cuba, and U.S. production numbers are expected to be lowered in the January report. Cattle & Hogs  Date: December 17, 2008 Cattle As reported by Federal-State Market News, receipts were 456 head at sales in Conway.  Compared with last week, feeder steers sold unevenly on light test, mostly steady to instances $3 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 96.25 to - - -   500 to 550 lbs. n/a to - - -   600 to 650 lbs. n/a to - - -  Medium & Large Frame 2   350 to 400 lbs. 79 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 80.50 to - - -  Medium & Large Frame 2   400 to 450 lbs. 71 to - - -- Slaughter Cows, Boners 40   to   44 Light Weight 30 to 34 Bulls, Yield Grade   1   1000   to   2100 lbs.   51   to   54.50, high dressing $57 Midwest Steers   were $2-3.50 higher   at   84   to   - - - Panhandle Steers   were $1 higher to $1 lower   at   84   to   - - - Oklahoma City Feeders Steers 500 to 550 lbs. 90 to 100.50   600 to 650 lbs. 89.50 to 94 Heifers 500 to 550 lbs. 80 to 85   600 to 650 lbs. 83.50 to 86.25 Chicago Futures: Live Cattle: Feb '09 up 7 at 8687   Apr '09 up 30 at 8945 Feeders: Jan '09 up 232 at 9345   May '09 up 215 at 9485 Cattle Comment Cattle held onto yesterday’s limit gains and closed higher again today. The market is getting a boost from the weak dollar and indications the market is oversold. Hogs Peoria: were $.5     lower   at   36   to   36.5 Chicago Futures: Feb '09 up 17 at 6262   Apr '09 up 55 at 6947 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hog futures ended the day higher as well. The weaker dollar was supportive, as were indications the market is oversold. Seasonal weakness in pork prices limited the upside. Poultry  Date: December 17, 2008 Eggs New York:  Ex. Lg. 125-129; Lg. 123-127; Med. 89-93; Chicago:  Ex. Lg. 111-119; Lg. 109-117; Med. 81-89; Eastern Region Turkeys Hens: 8-16 lbs. 69-76 Toms: 16-24 lbs. 69-76   Delmarva Broilers U.S. Grade A Trade sentiment was steady to fully steady. Demand was fair to moderate as industry prepared for the holiday, and orders were limited to regular commitments. 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