09/14/2009 Farm Bureau Market Report

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Grain & Soybean Date: September 14, 2009 Soybeans Local Elevators: (Sep) EAST AR:  882 to 898 (NC) Summ. 882 to 898 River Elevators: (Sep) MISS: 914 to 921 ; AR & White 882 to 892 (NC) Summ. 882 to 921 Ark. Processor Bids: (Sep) 892 to 894  (NC) 892 to 894 Memphis:  (Sep) 919 to - - - (NC)  919 to - - - Riceland Foods:  (Sep/Oct) Stuttgart 892 ; Pendleton 898 ; West Memphis 921 Chicago Futures: Nov up 6 at  909   Jan '10  up  3 3/4  at  913 3/4   Mar '10 up 2 3/4  at  918 1/4   Jul '10 down 1/2  at  920   Nov '10 up 1 1/2  at  900 3/4   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans rallied from overnight losses as lead November found support near the recent low. Last Friday’s report was right on target with pre-report expectations and suggests the market is comfortable working with a record crop of 3.25 billion bushels. The market made a major correction on Friday and could still work lower if weather remains good. Strong demand is needed to keep stocks from building, USDA projects use at 3.14 billion bushels. Any hint that number will be less, would pressure the market. Support is located near $8.80, $8.50 and just below $8. Corn closed slightly lower after holding firm on Friday following the USDA report. A huge crop has been expected most of the season and the market has accounted for that fact. Use is projected just a little more than the almost 13 billion bushel crop. Use will be the key. A low should be expected over the next 45 days and may be in. December tested $3.20 which is now resistance. Holding above $3.00 last week was a positive. Long term support at $2.90 and $2.65 could still come in to play. Wheat Cash bid for September at Memphis  294 to 304; Bids to farmers at Local Elevators 367; River Elevators 389-412; Chicago Futures: Dec down  13 1/4  at  454    Mar '10 down 13 1/4  at  473 3/4    May '10 down  13 1/4  at  486 1/4    Jul '10 down  13 3/4  at  497    Sep '10 down  13 3/4  at  512    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for September at Memphis  576 to - - -; Bids to farmers at River Elevators 469-553; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for September at Memphis   312 3/4 to 314 3/4;   new crop at Memphis   n/a to - - -; Bids to farmers at River Elevators  289 to 311 Chicago Futures: Dec down  2  at  317 3/4    Mar '10 down  1 3/4  at  331 1/4    Jul '10 down  1 3/4  at  349 1/2    Dec '10 down  1 3/4  at  368 3/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Despite charting a key reversal on Friday, wheat futures posted double digit losses today. Seasonally, the market rebounds after harvest, peaking in October or November, so we should be close to having the oversupply issue fully factored in to prices. Cotton & Rice  Date: September 14, 2009 Cotton Spot Price, Grade 41 Staple 34: Memphis up 115 at  5646   Greenwood up  115 at 5646 New York Futures: Oct up  115  at  6046    Dec up  97  at  6221    Mar '10 up  71  at  6429    May '10 up  68  at  6583    - - -   - - -  at  - - -  This week's LDP rate for cotton is  5.45 cents   The estimate for next week is  4.92 cents Cotton Comment Cotton firmed for the second day in a row. This is despite a slightly larger crop estimate. USDA increased 08/09 ending stocks 100,000 bales from the August report. They also raised exports 300,000 bales effectively holding ending stocks at 5.6 million bales. For the time being, cotton will continue to trade between 57 cents and 65.5 cents. Rice Long Grain Cash Bid for  Sep/Oct 1216  to  1278/cwt   Nov 1221/cwt  to  - - - Chicago Futures: Nov down  35 1/2  at  1316 1/2    Jan '10 down  36  at  1340    Mar '10 down  36  at  1364    May '10 down  36  at  1389    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice gapped lower, marking the second consecutive big decline following last week’s report. USDA bumped overall production by 6.7 million cwt. In addition, slow exports in 08/09 resulted in an upward adjustment of 7.7 million cwt in ending stocks. So, available 08/09 long grain stocks were boosted to 190.8 million cwt, up 5.7 million cwt, as opposed to being lowered. Medium grain supply was raised 8.8 million cwt from August. November futures briefly fell below the 50% retracement objective at $13.11 before closing just above that level. The next support is in the $13 to $12.85 range. Cattle & Hogs  Date: September 14, 2009 Cattle As reported by Federal-State Market News, receipts were 2,634 head at sales in Springdale & Ola.  Compared with last week, feeder steers sold firm to $5 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 107.25 to - - -   500 to 550 lbs. 100.50 to - - -   600 to 650 lbs. 95 to - - -  Medium & Large Frame 2   400 to 450 lbs. 98.25 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 94.75 to - - -  Medium & Large Frame 2   400 to 450 lbs. 87.25 to - - - Slaughter Cows, Boners 40   to   45 Light Weight 30 to 35 Bulls, Yield Grade   1   1000   to   2100 lbs.   50   to   56, high dressing 57-60.50 Midwest Steers   remained   at   83   to   85 Panhandle Steers   were $2 lower to steady   at   83   to   85.50 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 down 17 at 8705   Dec down 25 at 8667 Feeders: Oct down 40 at 9892   Nov down 35 at 9940 Cattle Comment Cattle futures ended lower today. China has announced an anti-dumping investigation against U.S. chicken in retaliation to the administration’s move to apply punitive tariffs on tires imported from China. This has traders worried that cheap chicken will flood the domestic market, further cutting beef’s market share. Hogs Peoria: were     steady   at   26   to   28 Chicago Futures: Oct down 152 at 5095   Dec down 82 at 4900 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hogs were also lower as the market fears a trade war with China. If the U.S. market is flooded with cheap chicken, pork prices would fall even more. October violated their short-term uptrend today, and this clears the way for a possible retest of the recent low of $43.57. Poultry  Date: September 14, 2009 Eggs New York:  Ex. Lg. 96-100; Lg. 94-98; Med. 71-75; Chicago:  Ex. Lg. 83-91; Lg. 81-89; Med. 63-71; Eastern Region Turkeys Hens: 8-16 lbs. 78-82 Toms: 16-24 lbs. 78-82   Delmarva Broilers U.S. Grade A The market tone was about steady to steady. Retail and food service demand was light to moderate with limited trading. Supplies of all sizes were adequate to fully adequate to satisfy current 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. 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