01/21/2009 Farm Bureau Market Report

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Grain & Soybean Date: January 21, 2009 Soybeans Local Elevators: (Jan) EAST AR:  1003 to 1026 (NC) Summ. 884 to 914 River Elevators: (Jan) MISS: 1021 to 1036 ; AR & White 990 to 1006 (NC) Summ. 889 to 914 Ark. Processor Bids: (Jan) 1012 to 1016  (NC) 894 to 914 Memphis:  (Jan) 1035 1/2 to 1036 1/2 (NC)  914 to 919 Riceland Foods:  (Jan) Stuttgart 1016 ; Pendleton 1026 ; West Memphis 1033 Chicago Futures: Mar '09 up 28 1/2 at  1020 1/2   May '09  up  28 1/4  at  1029 1/4   Jul '09 up 27 1/2  at  1038 1/2   Sep '09 up 24 1/2  at  1004   Nov '09 up 20 1/2  at  974   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Just one more day after posting a major reversal soybeans shrugged off the bearish close to move sharply higher. Concerns about weather impact in South America, particularly Argentina, combined with a slightly weaker and stronger crude oil to bolster soybeans. This carried over into wheat, with corn a reluctant follower. Another big Chinese purchase contributed to the upturn. Today’s reversal kept the market within the boundaries of a $ trading range. A close above $10.60, or below $9.60 will signal further movement in the direction of the breakout. Corn ended the day with small gains, but couldn’t really generate much upward momentum. Slowing demand remains a problem. Ethanol use is hampered by the weak crude oil market, and feed use has been trimmed significantly as livestock and poultry production are decreasing. Big stocks suggest fewer acres are needed in ’09, but the market will try to keep this from being overdone. Wheat Cash bid for January at Memphis  446 3/4 to 456 3/4; Bids to farmers at Local Elevators 466-481; River Elevators 473-516; Chicago Futures: Mar '09 up  21 3/4  at  571 3/4    May '09 up 21 3/4  at  584 1/2    Jul '09 up  21 3/4  at  595 3/4    Sep '09 up  22 1/4  at  618 3/4    Dec '09 up  21 3/4  at  640 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for January at Memphis  536 to 545; Bids to farmers at River Elevators 635; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for January at Memphis   380 1/4 to 385 1/4;   new crop at Memphis   381 3/4 to - - -; Bids to farmers at River Elevators  345 to 370 Chicago Futures: Mar '09 up  6 3/4  at  390 1/4    May '09 up  6 1/4  at  401    Sep '09 up  5 1/2  at  421 3/4    Dec '09 up  5 3/4  at  435 3/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat futures recovered a big portion of yesterday’s losses in today’s trade. Egypt bought 60,000 tons of U.S. wheat this week, and even though it was a relatively small amount, any export business is good news these days. The condition of the Texas crop is slipping, they are dry and in need of rain, and that was supportive today as well. Cotton & Rice  Date: January 21, 2009 Cotton Spot Price, Grade 41 Staple 34: Memphis up 42 at  4323   Greenwood up  42 at 4323 New York Futures: Mar '09 up  62  at  4743    May '09 up  87  at  4712    Jul '09 up  65  at  4881    Dec '09 up  35  at  5261    - - -   - - -  at  - - -  This week's LDP rate for cotton is  14.16 cents   The estimate for next week is  13.45 cents Cotton Comment Cotton firmed today, closing slightly higher. Lower values are expected to kick export buying, but world economic conditions will continue to limit demand near term. Everyone is anticipating a significant cut in ’09 plantings, but that depends on input costs, which are declining, and the price of competing crops. For now, the feeling is acreage cuts – anywhere from 1 to 2 million acres. That could be significant later in the year certainly if weather becomes a factor. For now December has key resistance at 57.2 cents and support at 52 cents. Rice Long Grain Cash Bid for  - - - - - -  to  - - -   - - - - - -  to  - - - Chicago Futures: Mar '09 down  12  at  1302 1/2    May '09 down  17  at  1314    Jul '09 down  25 1/2  at  1319 1/2    Sep '09 down  21  at  1288    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice continued lower with March touching key long term support before firming. While futures closed lower the market did rebound from the day’s lows. U.S. milled rice remains out of the mix for most markets with current quotes ranging $100 to $200 a ton above other available growths. That means limited inquiry for U.S. rice and is leaving the overall milling industry with a lot of free time. Rough rice exports are moving at a good pace, but only account for about 1/3 of total exports. Today’s March contract low of $12.75 is only support above long term chart support located at a dollar lower. Cattle & Hogs  Date: January 21, 2009 Cattle As reported by Federal-State Market News, receipts were 899 head at sales in Conway & Pocahontas.  Compared with last week, feeder steers sold near steady . Steers:  Medium & Large Frame 1   400 to 450 lbs. 107.75 to - - -   500 to 550 lbs. 99.25 to - - -   600 to 650 lbs. 90 to - - -  Medium & Large Frame 2   400 to 450 lbs. 91.50 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 89.50 to - - -  Medium & Large Frame 2   400 to 450 lbs. 81.75 to - - - Slaughter Cows, Boners 43   to   46.50 Light Weight 28 to 34 Bulls, Yield Grade   1   1000   to   2100 lbs.   52.50   to   57.50, high dresing 58.50 Midwest Steers   were steady to $3 lower   at   81   to   82 Panhandle Steers   were $1-2.50 lower   at   81   to   82 Oklahoma City Feeders Steers 550 to 600 lbs. 103 to 107.75   600 to 650 lbs. 95.50 to 103 Heifers 550 to 600 lbs. 85 to 89   600 to 650 lbs. 84.50 to 89.60 Chicago Futures: Live Cattle: Feb '09 down 27 at 8235   Apr '09 down 15 at 8520 Feeders: Mar '09 down 40 at 9135   May '09 down 22 at 9470 Cattle Comment Cattle futures were sharply lower in early dealings, but closed near the middle of the day’s trading range. February moved to its lowest level in 6 weeks, and now has support there at $81.75. The market continues to be concerned with the state of the economy and its effect on beef demand. Hogs Peoria: were     steady   at   35.5   to   36 Chicago Futures: Feb '09 down 40 at 5932   Apr '09 down 35 at 6535 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hog futures were lower again today. February set a new contract low early today, so new support begins at $58.60. Concerns about demand and technical selling were the focus today. Poultry  Date: January 21, 2009 Eggs New York:  Ex. Lg. 127-131; Lg. 125-129; Med. 96-100; 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 mostly steady. Demand was fair at best with limited trading. Supplies were at least adequate to satisfy current 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