12/07/2009 Farm Bureau Market Report

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Grain & Soybean Date: December 07, 2009 Soybeans Local Elevators: (Dec) EAST AR:  1011 to 1029 (NC) Summ. 1025 to - - - River Elevators: (Dec) MISS: 1037 to 1058 ; AR & White 1014 to 1024 (NC) Summ. 1036 to 1073 Ark. Processor Bids: (Dec) 1019 to 1024  (NC) 1041 to 1055 Memphis:  (Dec) 1046 to 1053 (NC)  1001 1/2 to 1006 1/2 Riceland Foods:  (Dec) Stuttgart 1024 ; Pendleton 1029 ; West Memphis 1042 Chicago Futures: Jan '10 up 10 at  1053   Mar '10  up  10 1/2  at  1061   July '10 up 11  at  1075 3/4   Nov '10 up 5  at  1046 1/2   Jan '11 up 5 1/4  at  1055 3/4   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Outside markets took a backseat to seemingly insatiable Chinese demand for soybeans. Overnight strength in Chinese futures provided support for gains in U.S. futures with January closing above $10.50. The Chinese government provided subsidies on domestic supplies in an attempt to stem demand. They have purchased almost half of their annual needs and have shown little indication buying will halt. Even expectations of a record South American crop have yet to slow their buying. When it happens, U.S. beans could see a big dip, with many analysts projecting beans at $8 or lower later in the marketing year. Wheat Cash bid for December at Memphis  478 to 508; Bids to farmers at Local Elevators 510-514; River Elevators 503-537; Chicago Futures: Dec down  10 1/4  at  526 1/2    Mar '10 down 10  at  548    May '10 down  9 3/4  at  561    July '10 down  9 1/2  at  571 1/2    Dec '10 down  9 3/4  at  607 3/4    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for December at Memphis  660 to - - -; Bids to farmers at River Elevators 545-620; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for December at Memphis   358 3/4 to 359 3/4;   New crop at Memphis   341 1/2 to 381 1/2; Bids to farmers at River Elevators  338 to 369 Chicago Futures: Dec down  5  at  386 3/4    Mar '10 down  4 3/4  at  383 3/4    July '10 down  4 1/2  at  404 1/4    Dec '10 down  4 3/4  at  419 3/4    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat was lower again today. Wheat is plentiful worldwide and the recent rally has priced US wheat out of the market for most buyers. Exports are down approximately 30% from a year ago. March is testing trendline support in the $5.50 area. Corn continued lower with March futures holding just above key support between $3.75 and $3.80. Even projected bad weather forecasts and further delays in the extended harvest season are not providing much support. The best thing going is the ethanol market where good margins are expected to push usage to the projected 4.2 billion bushel level or higher. Cotton & Rice  Date: December 07,2009 Cotton Spot Price, Grade 41 Staple 34: Memphis up 87 at  6994   Greenwood up  87 at 6994 New York Futures: Dec up  62  at  7083    Mar '10 up  87  at  7469    May '10 up  84  at  7579    July '10 up  55  at  7632    - - -   - - -  at  - - -  This week's LDP rate for cotton is  0 cents   The estimate for next week is  0 cents Cotton Comment Cotton firmed slightly as the market looks at improving economic conditions and potential for tightening U.S. and world stocks. March futures are trading about 100 points below the recent contract high and continue to have an upward bias. Heading into next year, it appears that cotton plantings could increase, but strong soybean prices could limit acreage. Should the market determine additional acreage is needed, price will work higher. Rice Long Grain Cash Bid for  Dec 1440/cwt  to  - - -   - - - - - -  to  - - - Chicago Futures: Jan '10 down  11 1/2  at  1560    Mar '10 down  11  at  1588    May '10 down  12  at  1611 1/2    July '10 down  13  at  1634 1/2    - - -   - - -  at  - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice recovered a good portion of early declines but still ended the session lower. A smaller U.S. supply of long grain rice should provide upside potential especially when coupled with international factors. The Philippines have made several huge tenders, while India is expected to become an importer due to this year’s short crop. India will be more subtle than the Philippines in their buying. The U.S. has been shut out of any major sales which will be needed to keep mills operating. Resistance is the recent high near $15.75. Cattle & Hogs  Date: December 07, 2009 Cattle As reported by Federal-State Market News, receipts were 4420 head at sales in Ash Flat, Springdale and Ola.  Compared with last week, feeder steers sold $2 to $8 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 111.25 to - - -   500 to 550 lbs. 100.50 to - - -   600 to 650 lbs. 92.50 to - - -  Medium & Large Frame 2   400 to 450 lbs. 104.50 to - - - Heifers:  Medium & Large Frame 1   500 to 550 lbs. 86.25 to - - -  Medium & Large Frame 2   400 to 450 lbs. 84.25 to - - - Slaughter Cows, Boners 38   to   44 Light Weight 30 to 37 Bulls, Yield Grade   1   1000   to   2100 lbs.   50   to   57.50 Midwest Steers   n/a   at   - - -   to   - - - Panhandle Steers   n/a   at   - - -   to   - - - Oklahoma City Feeders Steers 500 to 550 lbs. 107.35 to 111.10   550 to 600 lbs. 103 to 104 Heifers 500 to 550 lbs. 93 to 96   550 to 600 lbs. 87 to 92.25 Chicago Futures: Live Cattle: Dec up 12 at 8112   Feb '10 up 10 at 8330 Feeders: Jan '10 down 50 at 9285   Mar '10 down 17 at 9395 Cattle Comment Cattle futures are still trying to recoup last week’s big losses. February live cattle still look weak technically, as prices have been unable to challenge Thursday’s high. Sharp losses in beef prices and indications of ample cattle supplies for the time being coupled to hold overhead pressure on prices. Hogs Peoria: were steady to $2     higher   at   36   to   - - - Chicago Futures: Dec up 105 at 6220   Feb '10 down 20 at 6655 Sheep St. Paul na/   at   - - -   to   - - - Hogs Comment Hogs moved higher in early dealings, but February was unable to challenge Thursday’s high of $67. That makes Thursday’s reversal still valid. Futures already hold a wide premium to cash prices and that could limit the upside. Longterm trendline support is down around $61. Poultry  Date: December 07, 2009 Eggs New York:  Ex. Lg. 127-131; Lg. 125-129; Med. 101-105; Chicago:  Ex. Lg. 121-129; Lg. 119-127; Med. 94-102; Eastern Region Turkeys Hens: 8-16 lbs. 84-89 Toms: 16-24 lbs. 84-89   Delmarva Broilers U.S. Grade A The market tone was steady. Demand following the weekend was fair to moderate. Supplies of all sizes were sufficient 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