08/20/2009 Farm Bureau Market Report

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Grain & Soybean Date: August 20, 2009 Soybeans Local Elevators: (Aug) EAST AR:  n/a to - - - (NC) Summ. 928 to 944 River Elevators: (Aug) MISS: 980 to 997 ; AR & White 942 to 967 (NC) Summ. 928 to 967 Ark. Processor Bids: (Aug) 943 to - - -  (NC) 938 to - - - Memphis:  (Aug) 979 to 997 (NC)  972 to - - - Riceland Foods:  (NC) Stuttgart 938 ; Pendleton 944 ; West Memphis 967 Chicago Futures: Sep up 2 1/4 at  999 1/4   Nov  down  1  at  957   Jan '10 down 3 1/2  at    Mar '10 down 5 1/4  at  959 1/2   Jul '10 down 7  at  960   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans were mostly lower with only lead September higher. A fairly tight trading range held within a consolidation area above support at $9.40 for the November contract. Overall the crop is in good shape but continues to lag behind normal in maturation. That will keep the market on edge for the time being. A close below $9.40 would encounter trendline support around $9.20. Corn was slightly lower, like soybeans. There is no question the corn crop will be a near record. The question is whether use will be anywhere near the USDA estimate, which indicates use will increase over 550 million bushels in 09/10. Much of this is in ethanol use. USDA has reduced feed use slightly, at the same time the livestock industry is facing major contradictions. Key support between $3.10 and $3.20 will be tested. Wheat Cash bid for August at Memphis  323 to 364; Bids to farmers at Local Elevators 305-309; River Elevators 276-349; Chicago Futures: Sep up  3  at  469    Dec up 3  at  496 1/2    Mar '10 up  2 3/4  at  515 1/2    May '10 up  3  at  527 3/4    Jul '10 up  3 1/2  at  539 3/4    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for August at Memphis  545 to 552; Bids to farmers at River Elevators 469-546; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for August at Memphis   314 1/2 to 318 1/2;   new crop at Memphis   n/a to - - -; Bids to farmers at River Elevators  292 to 315 Chicago Futures: Sep down  1 1/2  at  318 1/2    Dec down  3 1/2  at  324    Mar '10 down  4  at  337 1/4    Jul '10 down  3 3/4  at  355 1/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat futures traded in a narrow range before closing a bit higher. Supply concerns are pressuring the market. The downside could be limited in the short term, though, because the market is oversold and because wheat is undervalued when compared with soybeans. Cotton & Rice  Date: August 20, 2009 Cotton Spot Price, Grade 41 Staple 34: Memphis down 24 at  5212   Greenwood down  24 at 5212 New York Futures: Oct down  24  at  5662    Dec down  28  at  5875    Mar '10 down  25  at  6119    May '10 down  33  at  6248    - - -   - - -  at  - - -  This week's LDP rate for cotton is  2.82 cents   The estimate for next week is  4.55 cents Cotton Comment Cotton was lower for the day as demand remains light. Export projections for 09/10 are about 75% of 08/09 and that could slip lower. Total use at 13.7 is just over this year’s projected production. Improving economic conditions world wide are needed to improve demand. Technically, the market has significant resistance at 65-66 cents with support at 58 to 59 cents. Rice Long Grain Cash Bid for  Aug-Nov 1234/cwt  to  - - -   - - - - - -  to  - - - Chicago Futures: Sep up  1/2  at  1319    Nov unchanged    at  1344    Jan '10 up  2  at  1366    Mar '10 up  3 1/2  at  1390 1/2    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice futures were unchanged to slightly higher. This year’s crop size is still questionable. But beginning harvest activities, particularly in Texas and Louisiana, are likely to pressure a market that has had little active buying demand. Buyers remain on the sideline in a “wait and see” mode. November futures have completed a 38% retracement of June to August gains. Downside retracement objectives at $13.11 and $12.85 could come into play. Cattle & Hogs  Date: August 20, 2009 Cattle As reported by Federal-State Market News, receipts were 1,056 head at sales in Green Foreset & Ratcliff.  Compared with last week, feeder steers sold firm to $4 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 112.25 to - - -   500 to 550 lbs. 105.25 to - - -   600 to 650 lbs. 107.50 to - - -  Medium & Large Frame 2   400 to 450 lbs. n/a to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 101 to - - -  Medium & Large Frame 2   400 to 450 lbs. 95.50 to - - - Slaughter Cows, Boners 38   to   46 Light Weight 30 to 38 Bulls, Yield Grade   1   1000   to   2100 lbs.   56.50   to   61, high dressing 61-65 Midwest Steers   were steady to $1 higher   at   80   to   81 Panhandle Steers   remained   at   80   to   81 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: Oct up 15 at 8882   Dec up 27 at 8860 Feeders: Sep down 5 at 10110   Nov down 10 at 10130 Cattle Comment Cattle futures ended mixed. Beef values are under pressure from weakness in the pork market, and that is keeping a lid on prices. October has found support at $87.50 for the time being. A close below that level would open $1-$2 additional downside risk. Hogs Peoria: were $1     higher   at   23   to   25 Chicago Futures: Oct up 117 at 4692   Dec up 152 at 4615 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hogs turned higher today. This market is technically oversold and due a corrective bounce. Ideas that cash hogs are stabilizing were also supportive, but supply-side concerns will probably limit the upside through fall. Poultry  Date: August 20, 2009 Eggs New York:  Ex. Lg. 94-98; Lg. 92-96; Med. 66-70; Chicago:  Ex. Lg. 83-91; Lg. 81-89; Med. 58-66; Eastern Region Turkeys Hens: 8-16 lbs. 80-82 Toms: 16-24 lbs. 79.5-82   Delmarva Broilers U.S. Grade A The market tone was steady. Supplies of all sizes were balanced to satisfy trade needs. In production areas, live supplies were moderate at 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