10/14/2009 Farm Bureau Market Report

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Grain & Soybean Date: October 14, 2009 Soybeans Local Elevators: (Oct) EAST AR:  974 to 1000 (NC) Summ. 980 to - - - River Elevators: (Oct) MISS: 1004 to 1019 ; AR & White 973 to 983 (NC) Summ. 997 to 1031 Ark. Processor Bids: (Oct) 983 to 987  (NC) 1006 to - - - Memphis:  (Oct) 1024 to - - - (NC)  n/a to - - - Riceland Foods:  (Oct/Nov) Stuttgart n/a ; Pendleton n/a ; West Memphis n/a Chicago Futures: Nov up 1 at  994   Jan '10  up  2 1/4  at  998   Mar '10 up 3 3/4  at  999   Jul '10 up 4 1/2  at  991   Nov '10 up 1  at  976 1/4   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans followed the same pattern as yesterday, big overnight gains with a late selloff. However, today the market remained on the positive side. November again failed to hold above $10. Harvest delays and freeze damage kept traders on the positive side, but this could be mostly accounted for by recent gains. Gains in crude oil and equities and a weaker dollar keep the funds interested in buying grains. Upside objectives near $10.20 and $10.66 remain viable, while support starts at $9.65 to $9.80. Corn made another run at the $3.90-$4.00 level, but fell back in late trade. Weather factors and potential impact on this year’s crop are influencing upside potential. Support is located between $3.75 and $3.50. Wheat Cash bid for October at Memphis  353 to 368; Bids to farmers at Local Elevators 426; River Elevators 488-511; Chicago Futures: Dec up  1 3/4  at  513    Mar '10 up 1 3/4  at  532    May '10 up  1 3/4  at  544 3/4    Jul '10 up  1/4  at  555 3/4    Sep '10 up  1/2  at  570 1/2    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for October at Memphis  666 to 675; Bids to farmers at River Elevators 488-511; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for October at Memphis   386 to - - -;   new crop at Memphis   345 to 385; Bids to farmers at River Elevators  365 to 382 Chicago Futures: Dec up  1 1/4  at  383    Mar '10 up  1 3/4  at  395    Jul '10 up  2  at  410 1/4    Dec '10 up  1/2  at  420    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat ended about a penny higher. A 200,000 ton sale of U.S. hard red winter wheat to Iraq was announced this morning, giving the market some positive news to build on. The market is oversold and wheat is heavily discounted against other commodities based upon historical relationships. It is possible that bearish fundamentals are fully factored in to prices at this level. December’s close above $5 opens the market to test resistance around $5.15. Cotton & Rice  Date: October 14, 2009 Cotton Spot Price, Grade 41 Staple 34: Memphis up 120 at  6283   Greenwood up  120 at 6283 New York Futures: Dec up  120  at  6708    Mar '10 up  90  at  6925    May '10 up  73  at  7000    Jul '10 up  57  at  7065    - - -   - - -  at  - - -  This week's LDP rate for cotton is  4.66 cents   The estimate for next week is  2.96 cents Cotton Comment Cotton was sharply higher overnight and closed the day session with strong gains. Yesterday’s move above resistance at 65.5 was technically positive. and suggests a possible move toward the 62% retracement objective of 70.5 cents on the weekly chart. Last week’s report lowered the ’09 production number, domestic use and ending stocks. It didn’t take into account the probable losses that have been lost to weather over the first half of October. While demand hasn’t improved stocks will tighten. Delays in harvest are going to result in further deterioration of this year’s crop. Rice Long Grain Cash Bid for  n/a - - -  to  - - -   n/a - - -  to  - - - Chicago Futures: Nov up  14  at  1404    Jan '10 up  12 1/2  at  1428    Mar '10 up  12  at  1452    May '10 up  13 1/2  at  1476 1/2    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment November rice futures made a new recent high in the overnight trade. However, gains were trimmed during the day. November closed above $14 and could move toward long term resistance near $16, if harvest delay continues. On the international side the market remains somewhat subdued. It should be noted that the recent Iraq tender went to sources other than the U.S. as they favored lowered prices over quality. Last week’s USDA report raised production estimates in almost all areas except Arkansas. Arkansas's yield was unchanged, given recent weather it would seem yield will be impacted along with quality. Current support is located around $14.40. Cattle & Hogs  Date: October 14, 2009 Cattle As reported by Federal-State Market News, receipts were 207 head at sales in Pocahontas.  Compared with last week, feeder steers sold unevenly, averaging near steady . Steers:  Medium & Large Frame 1   400 to 450 lbs. 97 to - - -   500 to 550 lbs. 88.75 to - - -   600 to 650 lbs. 83.87 to - - -  Medium & Large Frame 2   400 to 450 lbs. n/a to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 91 to - - -  Medium & Large Frame 2   400 to 450 lbs. 74.25 to - - - Slaughter Cows, Boners 39.50   to   43.50 Light Weight n/a to - - - Bulls, Yield Grade   1   1400   to   2300 lbs.   52   to   55, high dressing 56-57 Midwest Steers   remained   at   81   to   - - - Panhandle Steers   n/a   at   - - -   to   - - - Oklahoma City Feeders Steers 500 to 550 lbs. 106 to 113.85   600 to 650 lbs. 95 to 100 Heifers 500 to 550 lbs. 89.50 to 99   600 to 650 lbs. n/a to - - - Chicago Futures: Live Cattle: Dec up 90 at 8557   Feb '10 up 42 at 8590 Feeders: Nov up 102 at 9415   Jan '10 up 95 at 9497 Cattle Comment Cattle futures turned higher reacting to the weaker dollar and signs of economic improvement. December broke above the downtrend that has held the market since late July. The 38% retracement level just above $86.25 is the first upside objective. Hogs Peoria: were     steady   at   27   to   29 Chicago Futures: Dec up 57 at 5425   Feb '10 up 105 at 6025 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hog prices continue to have difficulty moving higher, but continue to consolidate in a range between 48 and 52. Hog prices continue to be under pressure from weak cash fundamentals. The weaker dollar is sparking optimism that export demand will improve. Poultry  Date: October 14, 2009 Eggs New York:  Ex. Lg. 100-104; Lg. 98-102; Med. 76-80; Chicago:  Ex. Lg. 86-94; Lg. 84-92; Med. 72-80; Eastern Region Turkeys Hens: 8-16 lbs. 80-85 Toms: 16-24 lbs. 80-85   Delmarva Broilers U.S. Grade A The market tone was steady to about steady. Demand was fair to moderate with trading usually limited to regular commitments. 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