10/21/2009 Farm Bureau Market Report

Click here to view this report online.

Grain & Soybean Date: October 21, 2009 Soybeans Local Elevators: (Oct) EAST AR:  986 to 1015 (NC) Summ. 995 to - - - River Elevators: (Oct) MISS: 1019 to 1033 ; AR & White 985 to 995 (NC) Summ. 1009 to 1043 Ark. Processor Bids: (Oct) 995 to 1002  (NC) 1018 to - - - Memphis:  (Oct) 1028 1/2 to 1038 1/2 (NC)  N/A to - - - Riceland Foods:  (Oct/Nov) Stuttgart 1004 ; Pendleton 1015 ; West Memphis 1032 Chicago Futures: Nov up 26 at  1008 1/2   Jan '10  up  24 1/2  at  1009 3/4   Mar '10 up 21 3/4  at  1008   Jul '10 up 20  at  1000 1/2   Nov '10 up 14 1/2  at  989 1/2   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment November soybeans rallied to close above $10 for the first time since late August. Continued wet weather across much of the soybean growing area continues to support prices. It is still unclear what effect this year’s weather will have on the crop size and quality. A premium has already been built into both the soybean and corn markets, so the million dollar question is how much more is the market willing to factor in. In addition to supply concerns, demand for soybeans remains strong. Basis levels at the Gulf increased again, as many companies are having difficulty getting the supplies and quality needed for contracts. Upside objectives near $10.20 and $10.66 remain viable, while support starts at $9.65 to $9.80. December corn surged higher today, broke through the psychological barrier of $4, briefly and closed just off of today’s high. Continued weather concerns across the Midwest combined with higher crude oil and increased speculative buying continues to fuel the current rally. While the fundamentals remain supportive for higher prices, technical indicators are pointing towards an over bought market, which could lead to some profit taking in the near term. Corn prices have resistance at around $4, and support at $3.85. Wheat Cash bid for October at Memphis  382 1/2 to 397 1/2; Bids to farmers at Local Elevators 450; River Elevators 507-530; Chicago Futures: Dec up  25  at  542 1/2    Mar '10 up 24 3/4  at  560 1/4    May '10 up  23 3/4  at  571 1/4    Jul '10 up  22  at  580    Sep '10 up  21 1/2  at  590    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for October at Memphis  693 to 711; Bids to farmers at River Elevators 614-689; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for October at Memphis   393 1/4 to 398 1/4;   new crop at Memphis   358 1/4 to 398 1/4; Bids to farmers at River Elevators  374 to 391 Chicago Futures: Dec up  13 3/4  at  398 1/4    Mar '10 up  13 1/4  at  410    Jul '10 up  12 3/4  at  425 3/4    Dec '10 up  7 3/4  at  431 1/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat prices continue to show signs of life, despite bearish fundamentals. Strength from soybeans and corn spilled over into the wheat market causing a strong rally. This market continues to show signs of being overbought. A correction in the near term is not unlikely. Wheat prices have support at $5. Cotton & Rice  Date: October 21, 2009 Cotton Spot Price, Grade 41 Staple 34: Memphis up 115 at  6438   Greenwood up  115 at 6438 New York Futures: Dec up  115  at  6838    Mar '10 up  100  at  7061    May '10 up  92  at  7194    Jul '10 up  62  at  7301    - - -   - - -  at  - - -  This week's LDP rate for cotton is  2.56 cents   The estimate for next week is  .87 cents Cotton Comment Cotton prices closed the day higher again today, setting a new 2009 high. Cotton harvest continues to lag behind previous years, with only 15% of fields harvested compared to a 5-year average of 35%. In addition, crop conditions remain relatively poor with less than 50% of the crop rated good to excellent, and only 36% of the Arkansas crop is good to excellent. While the weak dollar continues to be bullish for prices; continued weak demand will likely limit upside potential. Rice Long Grain Cash Bid for  Oct/Nov 1265  to  1320/cwt   - - - - - -  to  - - - Chicago Futures: Nov up  4  at  1360 1/2    Jan '10 up  4 1/2  at  1385 1/2    Mar '10 up  6 1/2  at  1409    May '10 up  4 1/2  at  1431    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice closed the day up slightly. Rice prices are having difficulty finding any traction to move higher. The current USDA estimate (which won’t change till December) shows an increase in ending stocks, caused by strong yields, these estimates have many buyers on the sidelines waiting for lower prices that should come after harvest. Cattle & Hogs  Date: October 21, 2009 Cattle As reported by Federal-State Market News, receipts were 1,752 head at sales in Conway & Pocahontas.  Compared with last week, feeder steers sold firm to $5 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 104.50 to - - -   500 to 550 lbs. 94 to - - -   600 to 650 lbs. 85.25 to - - -  Medium & Large Frame 2   400 to 450 lbs. 86.25 to Heifers:  Medium & Large Frame 1   400 to 450 lbs. 86.50 to - - -  Medium & Large Frame 2   400 to 450 lbs. 76.25 to - - - Slaughter Cows, Boners 38   to   44 Light Weight 27 to 32.50 Bulls, Yield Grade   1   1400   to   2300 lbs.   50   to   55.50, high dressing 56-58 Midwest Steers   remained   at   84.50   to   - - - Panhandle Steers   remained   at   84.50   to   - - - Oklahoma City Feeders Steers 500 to 550 lbs. 104 to 113.50   600 to 650 lbs. 88 to 97 Heifers 500 to 550 lbs. 85 to 96.75   600 to 650 lbs. 80 to 88 Chicago Futures: Live Cattle: Dec up 92 at 8707   Feb up 92 at 8742 Feeders: Nov up 102 at 9622   Jan '10 up 107 at 9672 Cattle Comment Cattle futures bounced back today. The USDA reports that sales and prices are increasing in major Kansas and Texas/Oklahoma markets. Live December has upside objectives at the 50% retracement level of $87.13 and the 62% level of $87.98. Hogs Peoria: were $1 higher     higher   at   28   to   30 Chicago Futures: Dec up 80 at 5367   Feb '10 up 85 at 6060 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hogs regained some of yesterday’s losses. However, weak cash fundamentals continue to be a factor. December charted a bearish key reversal and could work toward support below $48. Poultry  Date: October 21, 2009 Eggs New York:  Ex. Lg. 105-109; Lg. 103-107; Med. 83-87; Chicago:  Ex. Lg. 88-96; Lg. 86-94; Med. 75-83; 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 was fair to moderate with trading usually limited to regular commitments. Supplies of all sizes were sufficient to satisfy current trade needs. 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