01/20/2009 Farm Bureau Market Report

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Grain & Soybean Date: January 20, 2009 Soybeans Local Elevators: (Jan) EAST AR:  974 to 997 (NC) Summ. 864 to 894 River Elevators: (Jan) MISS: 992 to 1007 ; AR & White 967 to 982 (NC) Summ. 868 to 894 Ark. Processor Bids: (Jan) 983 to 987  (NC) 874 to 894 Memphis:  (Jan) 1002 to 1008 (NC)  883 1/2 to 893 1/2 Riceland Foods:  (Jan) Stuttgart 987 ; Pendleton 997 ; West Memphis 1004 Chicago Futures: Mar 09 down 28 at  992   May 09  down  28  at  1001   July 09 down 27 1/2  at  1011   Sept 09 down 23 1/2  at  979 1/2   Nov 09 down 18 1/2  at  953 1/2   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans reversed big early gains to close lower for the day. Concern about continuing dry conditions in Argentina pushed the market higher early. However, growing concerns about the banking industry turned the market lower putting March futures in position to retest last week’s support near $9.60. A close outside the $1 range, $9.60 to $10.60, will suggest further movement in the direction of the breakout. Wheat Cash bid for January at Memphis  425 to - - -; Bids to farmers at Local Elevators 444-459; River Elevators 451-494; Chicago Futures: Mar 09 down  28 1/4  at  550    May 09 down 28  at  562 3/4    July 09 down  28 1/4  at  574    Sept 09 down  28  at  596 1/2    Dec 09 down  27 1/2  at  618 3/4    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for January at Memphis  524 to 533; Bids to farmers at River Elevators 398-478; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for January at Memphis   373 1/2 to - - -;   New crop at Memphis   376 1/4 to - - -; Bids to farmers at River Elevators  338 to 363 Chicago Futures: Mar 09 down  7 1/2  at  383 1/2    May 09 down  7  at  394 3/4    Sept 09 down  7  at  416 1/4    Dec 09 down  6 3/4  at  430    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment What momentum corn had gained in recent sessions was quickly lost today as the market reversed to close lower. Last week’s report that raised projected ending stocks to 1.7 billion bushels will continue to limit upside potential, unless crop conditions in South America worsen. A March close above today’s high of 4.02 or below last week’s low of $3.58 will indicate further movement in that direction. Wheat futures were sharply lower under pressure from a stronger dollar. US wheat is having a tough time staying competitive in the global market, and a stronger dollar only makes that situation worse. Cotton & Rice  Date: January 20, 2009 Cotton Spot Price, Grade 41 Staple 34: Memphis down 219 at  4281   Greenwood down  219 at 4281 New York Futures: Mar 09 down  219  at  4681    May 09 down  233  at  4725    July 09 down  230  at  4816    Dec 09 down  231  at  5226    - - -   - - -  at  - - -  This week's LDP rate for cotton is  14.16 cents   The estimate for next week is  13.07 cents Cotton Comment Cotton was lower throughout today’s session as growing concern about the current economic situation continues to pressure the market. Declining use in importing countries, like China and Turkey, will limit U.S. exports. Unfortunately, the U.S. must depend on exports with domestic mill use approaching just 4 million bales annually. The market will be on an up and down affair as adjustments are made. For now, upside is limited and it won’t get better until the market is convinced there is a need for more acres and more cotton. Current December resistance is 57.20 cents with support at 52 cents. Below that is the contract low of 45.25 cents. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Mar 09 down  50  at  1314 1/2    May 09 down  50  at  1331    July 09 down  50  at  1345    Sept 09 down  26  at  1309    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice was down the limit as the market responded to sharp declines in other commodities. Slow milled rice exports is also a bearish factor as U.S. price levels remain well above the current quotes of other available growths. U.S. stocks are projected to be fairly tight at the end of the marketing year, but that’s going to require strong movement over the next 8 months. That won’t happen with the current spread between the U.S. and other areas. March futures will test support at $13.03, just a dime above today’s close. The next support on long term charts is $12.85 and then it drops to $11.78. Cattle & Hogs  Date: January 20, 2009 Cattle As reported by Federal-State Market News, receipts were 3325 head at sales in Fort Smith, Marshall, Ola, Springdale and Ash Flat.  Compared with last week, feeder steers sold somewhat unevenly, averaging near steady . Steers:  Medium & Large Frame 1   400 to 450 lbs. 114.50 to - - -   500 to 550 lbs. 105.25 to - - -   600 to 650 lbs. 94.50 to - - -  Medium & Large Frame 2   400 to 450 lbs. 105.75 to - - - Heifers:  Medium & Large Frame 1   500 to 550 lbs. 89.25 to - - -  Medium & Large Frame 2   400 to 450 lbs. 83 to - - - Slaughter Cows, Boners 40   to   46 Light Weight n/a to - - - Bulls, Yield Grade   1   1000   to   2100 lbs.   50   to   54 Midwest Steers   were   at   81   to   85 Panhandle Steers   were   at   82   to   84.50 Oklahoma City Feeders Steers 500 to 550 lbs. 105.25 to 112   550 to 600 lbs. 103 to 107.75 Heifers 550 to 600 lbs. 85 to 89   600 to 650 lbs. 84.50 to 89.60 Chicago Futures: Live Cattle: Feb 09 down 190 at 8262   April 09 down 232 at 8535 Feeders: Mar 09 down 262 at 9175   May 09 down 247 at 9492 Cattle Comment Cattle futures gapped lower on demand concerns. Carryover from outside markets continues to be a factor, as well. February has initial support at the recent low of $82.25. Hogs Peoria: were     steady   at   35.5   to   36 Chicago Futures: Feb 09 down 22 at 5972   April 09 down 32 at 6570 Sheep St. Paul n/a   at   - - -   to   - - - Hogs Comment February hogs are beginning to consolidate in a narrow range. The market is holding above the recent contract low of $58.90, but keeps running into resistance above $60. Poultry  Date: January 20, 2009 Eggs New York:  Ex. Lg. 127-131; Lg. 125-129; Med. 94-98; Chicago:  Ex. Lg. 116-124; Lg. 114-122; Med. 84-92; Eastern Region Turkeys Hens: 8-16 lbs. 69-74 Toms: 16-24 lbs. 69-73   Delmarva Broilers U.S. Grade A Trade sentiment was about steady. Demand following the holiday weekend was mostly fair 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 2009 Arkansas Farm Bureau, Inc. All rights reserved Terms of Use