07/22/2009 Farm Bureau Market Report

Click here to view this report online.

Grain & Soybean Date: July 22, 2009 Soybeans Local Elevators: (JUL) EAST AR:  999 to - - - (NC) Summ. 868 to 885 River Elevators: (JUL) MISS: 928 to 1044 ; AR & White 898 to 908 (NC) Summ. 871 to 908 Ark. Processor Bids: (JUL) - - - to - - -  (NC) 881 to 882 Memphis:  (JUL) 1028 1/2 to - - - (NC)  908 to 910 Riceland Foods:  (NC) Stuttgart 881 ; Pendleton 885 ; West Memphis 908 Chicago Futures: SEP up 3 1/2 at  945   NOV  up  3  at  908   JAN '10 up 2 1/2  at  914 3/4   MAR '10 up 3 1/4  at  920 1/4   JUL '10 up 3 1/2  at  928 1/2   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans managed to end the day on the positive side. Small gains were registered at the close as the market moved to both sides of yesterday’s close. Good weather is the major topic as the trade looks for fundamental news. While much of the crop was planted late it appears conditions have made that a mute point. Record soybean plantings and potential for record yields assures the market will have plenty of soybeans. Ultimately, this market may have to work lower. November has key support around $8.80. A move below that level will likely result in a move to support around $7.90 or perhaps even lower. Corn retraced a portion of early declines but the market still closed the day lower. Prospects of a record yield (160.4 bushels/acre in 2004) could push prospective stocks to over 2 billion bushels unless demand improves significantly. That would most likely mean a big increase in use for ethanol. There are sufficient ethanol plants either on line, or under construction to make it happen, if it is profitable. December futures made a new low today. Support at $2.93 could be tested. Wheat Cash bid for July at Memphis  414 to 422; Bids to farmers at Local Elevators 380 - 392; River Elevators 361 - 422; Chicago Futures: SEP down  12 3/4  at  522    DEC down 12 1/4  at  549    MAR '10 down  12  at  568    MAY '10 down  11 1/2  at  579 1/2    JUL '10 down  10 1/2  at  589 3/4    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for July at Memphis  508 to 525; Bids to farmers at River Elevators 362 - 442; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for July at Memphis   297 to 313;   New Crop at Memphis   297 to 300; Bids to farmers at River Elevators  285 to 310 Chicago Futures: SEP down  3 1/2  at  308    DEC down  2 3/4  at  319 1/4    MAR '10 down  3  at  332 3/4    JUL '10 down  3  at  351 1/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat futures broke out of the recent trading range and September looks poised to test support at the recent low of $5.12. The CFTC said yesterday that the failure of wheat cash prices to converge with futures prices is “unacceptable”. Today’s sell-off could be the index funds’ reaction to that statement. Cotton & Rice  Date: July 22, 2009 Cotton Spot Price, Grade 41 Staple 34: Memphis down 291 at  5404   Greenwood down  291 at 5404 New York Futures: OCT down  100  at  5901    DEC down  79  at  6116    MAR '10 down  64  at  6356    MAY '10 down  76  at  6466    - - -   - - -  at  - - -  This week's LDP rate for cotton is  3.54 cents   The estimate for next week is  3.04 cents Cotton Comment Cotton was lower as the market continues its downward retracement that began with near limit declines yesterday. December futures moved to just under 65 cents before reversing yesterday. This establishes a 10 cent trading range that is likely to hold through this year’s harvest. Big world stocks and reduced use reflect current economic conditions that will need to improve to give cotton any significant upside potential. Rice Long Grain Cash Bid for  JUL - NOV 1255/cwt  to  - - -   - - - - - -  to  - - - Chicago Futures: SEP up  11 1/2  at  1344 1/2    NOV up  13  at  1359    JAN '10 up  13 1/2  at  1372    MAR '10 up  15 1/2  at  1388    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice is still moving higher as both September and November futures appear ready to test resistance at late ’08 highs that were around $14. A smaller U.S. long grain crop appears to be driving the market despite ample worldwide stocks. Smaller U.S. long grain plantings suggest tightening stocks, but the market must still keep an eye on ample world stocks and a slow pace in the export market. Cattle & Hogs  Date: July 22, 2009 Cattle As reported by Federal-State Market News, receipts were 727 head at sales in Conway & Pocahontas.  Compared with last week, feeder steers sold steady to instances $2 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 108.75 to - - -   500 to 550 lbs. 102.50 to - - -   600 to 650 lbs. 96.25 to - - -  Medium & Large Frame 2   400 to 450 lbs. 94 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 92.75 to - - -  Medium & Large Frame 2   400 to 450 lbs. 86.25 to - - - Slaughter Cows, Boners 43.50   to   47.50 Light Weight 27 to 32 Bulls, Yield Grade   1   1400   to   2300 lbs.   53   to   59.50, high dressing 61.50 Midwest Steers   were steady to $2 higher   at   84   to   - - - Panhandle Steers   were $1.50 - $2 lower   at   82   to   - - - 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: AUG down 100 at 8502   OCT down 132 at 8980 Feeders: AUG down 12 at 10312   SEP down 50 at 10275 Cattle Comment Cattle futures ended lower, despite higher product values. Futures’ premium to cash is limiting the upside. August is testing resistance around $86, which has held the market since February. Hogs Peoria: were     steady   at   34   to   36 Chicago Futures: AUG down 40 at 6210   OCT down 82 at 5732 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hog futures ended a bit lower due to futures’ premium to cash. August has violated the recent up-trend and could work toward a retest of support at the contract low of $57.40. Poultry  Date: July 22, 2009 Eggs New York:  Ex. Lg. 105-109; Lg. 103-107; Med. 64-70; Chicago:  Ex. Lg. 86-94; Lg. 84-92; Med. 52-60; Eastern Region Turkeys Hens: 8-16 lbs. 81-83 Toms: 16-24 lbs. 81-83   Delmarva Broilers U.S. Grade A Trade sentiment was about steady to barely steady. Demand was light to fair with limited trading. Supplies of all sizes were fully sufficient for 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 2009 Arkansas Farm Bureau, Inc. All rights reserved Terms of Use