01/12/2009 Farm Bureau Market Report

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Grain & Soybean Date: January 12, 2009 Soybeans Local Elevators: (Jan) EAST AR:  956 to 971 (NC) Summ. 873 to 903 River Elevators: (Jan) MISS: 966 to 986 ; AR & White 961 to - - - (NC) Summ. 883 to 903 Ark. Processor Bids: (Jan) 957 to 976  (NC) 878 to 903 Memphis:  (Jan) 986 to - - - (NC)  893 to 903 Riceland Foods:  (Jan) Stuttgart 961 ; Pendleton 971 ; West Memphis 978 Chicago Futures: Jan '09 down 83 1/2 at  954   Mar '09  down  70  at  966   May '09 down 70  at  975 1/2   Jul '09 down 70  at  986 1/4   Nov '09 down 66 1/2  at  963   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans turned sharply lower today in reaction, or perhaps overreaction, to the annual production report. USDA added 38 million bushels to the production estimate. The trade was expecting a cut though, and the surprise factor added to the bearish tone today. Thanks to strong export demand, soybean usage was bumped up by 21 million bushels, but that wasn’t enough to offset the increase in production. Today’s chart action leaves the door open for additional weakness. The uptrend drawn off the December lows were challenged or broken, depending on the contract. Corn was limit down in reaction to the annual production report. USDA raised he production estimate to 12.101 billion bushels, up from 12.02 billion in November. The extra bushels were certainly not needed at a time when exports are down over 40% when compared with year ago numbers. Usage was also trimmed by 235 million bushels. Despite leaving a large gap on the open, the March corn chart doesn’t look terrible. The market is still trending sideways. Support at $3.75 ½ needs to hold, but a retest of the December lows looks unlikely, although not totally out of the question. Wheat Cash bid for January at Memphis  449 3/4 to - - -; Bids to farmers at Local Elevators 464-479; River Elevators 479-514; Chicago Futures: Mar '09 down  60  at  569 1/2    May '09 down 60  at  582 1/4    Jul '09 down  59 1/4  at  594    Sep '09 down  58 3/4  at  614    Dec '09 down  58 3/4  at  633 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for January at Memphis  519 to 528; Bids to farmers at River Elevators n/a; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for January at Memphis   366 3/4 to 375 3/4;   new crop at Memphis   366 1/4 to 371 1/4; Bids to farmers at River Elevators  356 to - - - Chicago Futures: Mar '09 down  30  at  380 3/4    May '09 down  30  at  391 1/4    Sep '09 down  30  at  411 1/4    Dec '09 down  30  at  424 1/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat followed corn and soybeans sharply lower, despite a surprisingly large cut in the winter wheat plantings estimate. USDA cut projected winter wheat acreage by 4 million acres, when the average trade guess was approximately 2 million. Usage estimates were cut also, though, indicating that the market didn’t need the acreage that was cut. Ending stocks are estimated to be a plentiful 655 million. Cotton & Rice  Date: January 12, 2009 Cotton Spot Price, Grade 41 Staple 34: Memphis down 265 at  4267   Greenwood down  265 at 4267 New York Futures: Mar '09 down  257  at  4675    May '09 down  250  at  4735    Jul '09 down  255  at  4865    Dec '09 down  227  at  5340    n/a down  - - -  at  - - -  This week's LDP rate for cotton is  12.97 cents   The estimate for next week is  12.84 cents Cotton Comment Cotton was also sharply lower, but that was mostly following other markets and not a reaction to the cotton report. USDA cut the production estimate by 577,000 bales from the December report. The US stocks to use ration came down slightly to 42.6 percent. World imports fell sharply, though, mostly due to lower consumption in China. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Jan '09 down  52  at  1456    Mar '09 down  50  at  1435    May '09 down  50  at  1452    Jul '09 down  50  at  1473    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice was also sharply lower. USDA’s final 2008 production estimate came in at 203.733 million cwt. The move lower is in reaction to rice market fundamentals and also carryover weakness from other commodities. U.S. milled rice quotes remain well above those of other exporting countries. This is reducing mills’ operating time, and could push futures lower. Rough rice exports remain strong, but generally account for less than 40% of total exports. Cattle & Hogs  Date: January 12, 2009 Cattle As reported by Federal-State Market News, receipts were 3,325 head at sales in Ash Flat & Springdale.  Compared with last week, feeder steers sold $5-10 higher, instances $12 higher on steers . Steers:  Medium & Large Frame 1   400 to 450 lbs. 115.75 to - - -   500 to 550 lbs. 103 to - - -   600 to 650 lbs. 92.50 to - - -  Medium & Large Frame 2   400 to 450 lbs. 111.75 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 93 to - - -  Medium & Large Frame 2   400 to 450 lbs. 87 to - - - Slaughter Cows, Boners 38   to   45 Light Weight 30 to 34 Bulls, Yield Grade   1   1000   to   2100 lbs.   50   to   57, high dressing $57-62 Midwest Steers   were quoted   at   82   to   84 Panhandle Steers   were quoted   at   82   to   85 Oklahoma City Feeders Steers 500 to 550 lbs. 107 to 114   650 to 700 lbs. 93.35 to 97.25 Heifers 550 to 600 lbs. 89 to 95.50   600 to 650 lbs. 88 to 92.35 Chicago Futures: Live Cattle: Feb '09 down 20 at 8290   Apr '09 down 32 at 8650 Feeders: Jan '09 up 110 at 9520   May '09 up 90 at 9650 Cattle Comment Cattle futures ended mixed. Feeders were supported by big losses in corn. General economic woes continue to limit gains, however. Hogs Peoria: were $1.5     higher   at   35   to   35.5 Chicago Futures: Feb '09 down 97 at 6147   Apr '09 down 112 at 6747 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hogs also continue to be under pressure from demand concerns and ideas that unemployment will lessen demand for meat. Poultry  Date: January 12, 2009 Eggs New York:  Ex. Lg. 127-131; Lg. 125-129; Med. 92-96; Chicago:  Ex. Lg. 116-124; Lg. 114-122; Med. 84-92; Eastern Region Turkeys Hens: 8-16 lbs. 69-74 Toms: 16-24 lbs. 69-74   Delmarva Broilers U.S. Grade A Trade sentiment was mostly steady. Demand following the weekend was fair at best 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