12/18/2008 Farm Bureau Market Report

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Grain & Soybean Date: December 18, 2008 Soybeans Local Elevators: (Dec) EAST AR:  847 to 870 (NC) Summ. 853 to - - - River Elevators: (Dec) MISS: 865 to 895 ; AR & White 852 to 867 (NC) Summ. 852 to 894 Ark. Processor Bids: (Dec) 840 to 870  (NC) 840 to 860 Memphis:  (Dec) 894 1/2 to - - - (NC)  817 1/4 to 832 1/2 Riceland Foods:  (Dec) Stuttgart 870 ; Pendleton 895 ; West Memphis 895 Chicago Futures: Jan '09 up 5 1/2 at  869 1/2   Mar '09  up  5 1/2  at  874 1/2   May '09 up 5 1/2  at  886   Jul '09 up 5 3/4  at  897 1/4   Nov '09 up 6 1/4  at  902 1/4   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Continued strong export sales continue to support soybean prices. This mornings export sales report showed 33 million tons of soybeans sold this week up 10% from last week and 30% from the 4-week average. In addition, large sales were announced to China, where the government is buying up local supplies to boost prices forcing processor to look internationally for supplies. Despite the positive export news, declines in the crude oil market and worries that the dollar maybe poised to strengthen are suppressing any large upward movement in soybean prices. 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 prices fell slightly for the second day in a row. Unlike the soybean market corn exports continue to be disappointing. Large supplies of feed wheat continue to reduce global demand for corn. Additionally, declining oil prices continue hurt ethanol producers. Ethanol is currently trading at a 51 cent premium to gasoline (Note: January 1, 2009 the tax credit declines from 51-cents to 45-cents). Wheat Cash bid for December at Memphis  471 1/2 to - - -; Bids to farmers at Local Elevators 467-482; River Elevators 478-517; Chicago Futures: Mar '09 up  14  at  571 1/2    May '09 up 14  at  584 1/4    Jul '09 up  14  at  596 1/2    Sep '09 up  12 3/4  at  617 1/4    Dec '09 up  13 1/2  at  638 3/4    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 to - - -; Bids to farmers at River Elevators  324 to 364 Chicago Futures: Mar '09 unchanged    at  389 1/2    May '09 down  1/4  at  400 1/4    Sep '09 down  1/2  at  421    Dec '09 down  1/2  at  434 3/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat prices strengthened again today despite a dismal export sales report. Less than 10 million bushels of U.S. wheat sold for export last week, of which 1.9 million was soft red winter wheat. Year-to-date exports of soft red winter wheat are down 12.1% from year-ago levels. Wheat prices continue to find support in the fact there is very little snow cover in the Plains, so winter kill is a possibility in the face of freezing temperatures. Cotton & Rice  Date: December 18, 2008 Cotton Spot Price, Grade 41 Staple 34: Memphis down 68 at  4228   Greenwood down  68 at 4228 New York Futures: Mar '09 down  68  at  4528    May '09 down  64  at  4587    Jul '09 down  66  at  4700    Dec '09 down  51  at  5154    n/a down  - - -  at  - - -  This week's LDP rate for cotton is  16.48 cents   The estimate for next week is  15.83 cents Cotton Comment December cotton was again unable to sustain gains above 52-cents and closed down slightly. Cotton prices were pressured by a bearish export report. This week’s cotton exports were down almost 30% from last week and 45% off the 4-week average. U.S. cotton exports continue to slow as global demand for cotton weakens, despite today’s weak dollar. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Jan '09 up  2  at  1500    Mar '09 down  11  at  1487 1/2    May '09 down  9 1/2  at  1503 1/2    Jul '09 down  6 1/2  at  1516 1/2    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice prices continued their decline again today. As with other crops today export report showed rice sales down 10% from last week and 17% off the 4-week average. Milled export movement remains slow, while rough exports are good. U.S. milled price levels are at a big premium to other markets. Cattle & Hogs  Date: December 18, 2008 Cattle As reported by Federal-State Market News, receipts were 756 head at sales in Charlotte, Ratcliff and Green Forest.  Compared with last week, feeder steers sold mostly firm to $3 higher on light tests . Steers:  Medium & Large Frame 1   400 to 450 lbs. 100 to - - -   500 to 550 lbs. 89 to - - -   600 to 650 lbs. 85.75 to - - -  Medium & Large Frame 2   400 to 450 lbs. n/a to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 84.50 to - - -  Medium & Large Frame 2   400 to 450 lbs. 82.50 to - - - Slaughter Cows, Boners 35   to   41 Light Weight 28 to 34 Bulls, Yield Grade   1   1000   to   2100 lbs.   50   to   56.50, high dressing untested Midwest Steers   remained   at   84   to   - - - Panhandle Steers   were $2-1 lower   at   82   to   83 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 down 117 at 8570   Apr '09 down 107 at 8837 Feeders: Jan '09 down 105 at 9240   May '09 down 155 at 9330 Cattle Comment After posting gains all week, it was time for some profit taking which caused cattle prices to close lower today. Losses were limited due to weather concerns and expectations that Friday’s cattle on feed report will show lower feed lot placing. Hogs Peoria: werwe     steady   at   36   to   36.5 Chicago Futures: Feb '09 down 15 at 6247   Apr '09 up 17 at 6965 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Lean hogs traded mixed today. Losses were limited by concerns of reduced hog numbers. Poultry  Date: December 18, 2008 Eggs New York:  Ex. Lg. 127-131; Lg. 125-129; Med. 91-95; 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. Demand approaching the weekend was seasonally fair to moderate with limited features heading into the holiday. Supplies of all sizes were usually sufficient to satisfy trade needs as plants planned reduced schedules for next week. ---------------------------------------- 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