10/16/2009 Farm Bureau Market Report

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Grain & Soybean Date: October 16, 2009 Soybeans Local Elevators: (Oct) EAST AR:  958 to 984 (NC) Summ. 964 to - - - River Elevators: (Oct) MISS: 992 to 1002 ; AR & White 956 to 966 (NC) Summ. 981 to 1015 Ark. Processor Bids: (Oct) 967 to 971  (NC) 990 to - - - Memphis:  (Oct) 997 1/2 to 1005 1/2 (NC)  n/a to - - - Riceland Foods:  (Oct/Nov) Stuttgart 970 ; Pendleton 984 ; West Memphis 1001 Chicago Futures: Nov down 5 1/2 at  977 1/2   Jan '10  down  5 3/4  at  982   Mar '10 down 5  at  985 1/4   Jul '10 down 5 1/4  at  982 1/4   Nov '10 down 4 1/2  at  974   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans ended lower again today. This could be just a corrective move, but it could also mean that traders have harvest delays and freeze damage 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 futures were also lower, and the same question applies. Is this just a correction, or is the crop situation fully factored in to prices? Private estimates suggest that 250 million bushels have been lost to frost. Support is located between $3.75 and $3.50. Wheat Cash bid for October at Memphis  338 3/4 to 353 3/4; Bids to farmers at Local Elevators 410; River Elevators 472-490; Chicago Futures: Dec down  6 1/4  at  498 3/4    Mar '10 down 6  at  517 3/4    May '10 down  6 1/2  at  530    Jul '10 down  7 1/4  at  540 1/4    Sep '10 down  6 1/2  at  555    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for October at Memphis  646 to 655; Bids to farmers at River Elevators 568-643; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for October at Memphis   376 to 377;   new crop at Memphis   336 to 376; Bids to farmers at River Elevators  354 to 371 Chicago Futures: Dec down  1  at  372    Mar '10 down  1 1/4  at  383 3/4    Jul '10 down  3/4  at  400 1/2    Dec '10 down  1  at  412 1/2    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat was a willing follower today. The market is oversold and wheat is heavily discounted against other commodities based upon historical relationships, but bearish fundamentals mean the upside is limited. Cotton & Rice  Date: October 16, 2009 Cotton Spot Price, Grade 41 Staple 34: Memphis up 57 at  6396   Greenwood up  57 at 6396 New York Futures: Dec up  57  at  6821    Mar '10 up  51  at  7038    May '10 up  49  at  7123    Jul '10 up  44  at  7188    - - -   - - -  at  - - -  This week's LDP rate for cotton is  2.56 cents   The estimate for next week is  .72 cents Cotton Comment Cotton ended the week on a positive note. This week’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  Oct/Nov 1255/cwt  to  - - -   - - - - - -  to  - - - Chicago Futures: Nov down  14  at  1365 1/2    Jan '10 down  13 1/2  at  1390    Mar '10 down  15  at  1412    May '10 down  15 1/2  at  1436 1/2    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice posted losses again today. This again could be a corrective pull back or it could be an indication the late harvest has been factored into prices at the current levels. 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. Cattle & Hogs  Date: October 16, 2009 Cattle As reported by Federal-State Market News, receipts were 5,985 head at sales in Arkansas this week.  Compared with last week, feeder steers n/a . Steers:  Medium & Large Frame 1   400 to 450 lbs. 105.25 to - - -   500 to 550 lbs. 99 to - - -   600 to 650 lbs. 90.25 to - - -  Medium & Large Frame 2   400 to 450 lbs. 93 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 86.25 to - - -  Medium & Large Frame 2   400 to 450 lbs. 81.50 to - - - Slaughter Cows, Boners 39   to   46 Light Weight 33 to 38 Bulls, Yield Grade   1   1000   to   2100 lbs.   50   to   56, high dressing 56-65 Midwest Steers   were $2-1 higher   at   83   to   - - - Panhandle Steers   were $2-3 higher   at   83   to   84 Oklahoma City Feeders Steers 500 to 550 lbs. 90 to 99.50   600 to 650 lbs. 87.25 to 100 Heifers 500 to 550 lbs. 83.75 to 99   600 to 650 lbs. 81 to 92.85 Chicago Futures: Live Cattle: Dec up 15 at 8580   Feb '10 up 35 at 8640 Feeders: Nov up 52 at 9512   Jan '10 up 52 at 9595 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 down 37 at 5410   Feb '10 up 10 at 6080 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment 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 16, 2009 Eggs New York:  Ex. Lg. 101-105; Lg. 99-103; Med. 78-82; 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. Demand entering the weekend was fair to moderate. Supplies of all sizes were available to satisfy current trade needs. In production areas, live supplies were moderate at desirable to heavy 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