06/01/2009 Farm Bureau Market Report

Click here to view this report online.

Grain & Soybean Date: June 01, 2009 Soybeans Local Elevators: (Jun) EAST AR:  1202 to 1217 (NC) Summ. 1036 to 1050 River Elevators: (Jun) MISS: 1224 to 1237 ; AR & White 1200 to 1215 (NC) Summ. 1036 to 1070 Ark. Processor Bids: (Jun) 1212 to 1217  (NC) 1046 to 1047 Memphis:  (Jun) 1224 1/2 to 1238 1/2 (NC)  1074 to - - - Riceland Foods:  (Jun) Stuttgart 1216 ; Pendleton 1216 ; West Memphis 1236 Chicago Futures: Jul up 34 1/2 at  1218 1/2   Sep  up  24 1/2  at  1175 1/2   Nov up 23 1/2  at  1086   Jan '10 up 23 3/4  at  1088 1/2   Mar '10 up 28 1/4  at  1082   Today's Arkansas LDP rate for soybeans is: 0¢ Soybean Comment Soybeans ended the session sharply higher. With little fresh fundamental information available to base today’s move on, it has to be another decline in the dollar, strength in oil and renewed buying by index funds. Like last year, profits in crude oil translate into demand for other commodities in the fund’s mix. Technically, old crop completed a 50% retracement of last year’s decline. In addition soybeans are heavily overbought and due a correction. Corn followed the wave higher, with December closing within cents of a 38% retracement objective. Like soybeans there is little fundamental information on which to base this upturn. Planting is expected to be over 90% complete and some acreage is likely to move to soybeans but probably not much. Keep in mind the market can turn at any time, but corn will be somewhat sensitive to weather due to late planting. Wheat Cash bid for June at Memphis  599 1/2 to 604 1/2; Bids to farmers at Local Elevators 575-586; River Elevators 568-602; Chicago Futures: Jul up  37 1/4  at  674 1/2    Sep up 37 1/4  at  701    Dec up  37  at  723    Mar '10 up  36 3/4  at  738 1/4    May '10 up  37  at  747 1/4    Today's Arkansas LDP rate for wheat is: 0¢ Grain Sorghum Cash bid for June at Memphis  653 to - - -; Bids to farmers at River Elevators 591-671; Today's Arkansas LDP rate for sorghum is: 0¢ Corn Cash bid for June at Memphis   434 3/4 to 435 3/4;   new crop at Memphis   423 3/4 to - - -; Bids to farmers at River Elevators  410 to 435 Chicago Futures: Jul up  9 1/2  at  445 3/4    Sep up  9 1/2  at  455 3/4    Dec up  10  at  469 1/4    Mar '10 up  9 3/4  at  479    Today's Arkansas LDP rate for corn is: 0¢ Grain Comment Wheat led today’s charge, gapping higher and ending the session with gains of almost 40 cents. Doesn’t sound like a market that has ample world supplies and remains highly competitive on the international level. Weather will impact U.S. production but at these price levels demand will be limited. Cotton & Rice  Date: June 01, 2009 Cotton Spot Price, Grade 41 Staple 34: Memphis up 82 at  5404   Greenwood   82 at 5404 New York Futures: Jul up  82  at  5779    Oct up  76  at  6024    Dec up  87  at  6172    Mar '10 up  93  at  6370    n/a   - - -  at  - - -  This week's LDP rate for cotton is  7.59 cents   The estimate for next week is  7.69 cents Cotton Comment Cotton continued Friday’s reversal with solid gains and movement toward resistance at the recent high of 63.75 cents. Above that is the next retracement objective 69.2 cents. Fundamentally, the same situation exists as for rice. Ample world stocks could limit international demand and that nullifies part of the impact of this year’s weather impacted crop. Acreage and yields are likely to be below current USDA projections. Rice Long Grain Cash Bid for  - - - - - -  to  - - -   - - - - - -  to  - - - Chicago Futures: Jul up  22 1/2  at  1257    Sep up  24  at  1281 1/2    Nov up  25 1/2  at  1288    Jan '10 up  23  at  1302    - - -   - - -  at  - - -  Today's Arkansas LDP rate for long grain rice is  0¢ medium grain rice is  0¢ Rice Comment Rice futures followed the crowd and closed with solid gains again today. New crop contracts broke out of recent trading ranges to the topside. Typically a positive technical move and the close was near the resistance at the February high. Above this, the next resistance is located between $13.40 and $14. Inability to get rice planted in some areas of the mid-South and the overall lateness of the crop suggests production will be less than the trendline number being used by USDA. Caution should be taken with respect to how high producers push the market before pricing. The Relative Strength Index value is already approaching an overbought level. In addition, world supplies and therefore export competition are ample. Cattle & Hogs  Date: June 01, 2009 Cattle As reported by Federal-State Market News, receipts were 2,965 head at sales in Ash Flat, Ola & Springdale.  Compared with last week, feeder steers sold firm to $3 higher . Steers:  Medium & Large Frame 1   400 to 450 lbs. 119 to - - -   500 to 550 lbs. 111 to - - -   600 to 650 lbs. 104 to - - -  Medium & Large Frame 2   400 to 450 lbs. 108 to - - - Heifers:  Medium & Large Frame 1   400 to 450 lbs. 103 to - - -  Medium & Large Frame 2   400 to 450 lbs. 89 to - - - Slaughter Cows, Boners 44   to   49 Light Weight 33 to 37.50 Bulls, Yield Grade   1   1000   to   2100 lbs.   57   to   64, high dressing 65-70 Midwest Steers   were $4 lower to steady   at   80   to   84 Panhandle Steers   were $1 lower to steady   at   83   to   84.50 Oklahoma City Feeders Steers 600 to 650 lbs. 102.75 to 105.50   650 to 700 lbs. 102 to 106.10 Heifers n/a to - - - lbs. - - - to - - -   n/a to - - - lbs. - - - to - - - Chicago Futures: Live Cattle: Aug down 17 at 8165   Oct down 45 at 8725 Feeders: Aug down 157 at 10017   Sep down 137 at 10032 Cattle Comment Cattle futures failed to hold early gains. June live cattle dropped below recent support and could push toward the December ’08 low of 78.6 cents. Improving equity values suggest some economic gains but so far that hasn’t translated into better beef demand. Until cash fundamentals improve upside potential is limited. Hogs Peoria: were     steady   at   33   to   34 Chicago Futures: Jul down 47 at 6515   Aug up 7 at 6605 Sheep St. Paul sheep shorn slaughter lambs   at   n/a   to   - - - Hogs Comment Hog futures closed lower as overall packer demand remains weak. Negative packer margins will limit buying for the next several days. June futures fell below the recent H1N1 low and could be headed to $60 lower. Poultry  Date: June 01, 2009 Eggs New York:  Ex. Lg. 98-102; Lg. 96-100; Med. 65-69; Chicago:  Ex. Lg. 89-97; Lg. 87-95; Med. 56-64; Eastern Region Turkeys Hens: 8-16 lbs. 78-81 Toms: 16-24 lbs. 78-81   Delmarva Broilers U.S. Grade A Trade sentiment was mostly steady. Demand following to weekend was fair the moderate with trading usually limited to regular commitments. Supplies of all sizes were adequate to satisfy current trade requirements. In productions areas, live supplies were moderate at 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