Grain & Soybean Date: January 08, 2008

Soybeans

Local Elevators:
(Jan) EAST AR:  1197 to 1217
(NC) Summ. 1106 to 1131
River Elevators:
(Jan) MISS: 1212 to 1241 ; AR & White 1204 to 1210
(NC) Summ. 1104 to 1136
Ark. Processor Bids: (Jan) 1212 to 1213  (NC) 1127 to 1131
Memphis:  (Jan) 1227 to 1232 (NC)  1134 to 1136
Riceland Foods:  (NC) Stuttgart 1213 ; Pendleton 1217 ; West Memphis 1241

Chicago Futures: Jan up 20 1/2 at  1256 1/2
  Mar  up  17 1/4  at  1267
  May up 17 1/2  at  1128 3/4
  Nov '08 up 13 1/2  at  1181
  Nov '09 up 14  at  1124
  Today's Arkansas LDP rate for soybeans is: 0¢

Soybean Comment
Soybeans closed the session with strong gains, but well below the daily highs. “Beans in the teens” was a fact again today as the July contract hit $13.05. New crop November rose to $11.94 before losing steam. Strong buying from Asia and more index fund purchasing provided the push for today’s “gap” higher move. The November contract fulfilled the fall measuring gap objective of $11.70. Today’s gap higher move could be an exhausting gap or the signal for another leg up. Producers need to stay close to this market and have a plan in place to make additional ’08 crop sales. The market is due a downside retracement.

Wheat
Cash bid for new crop at Memphis  714 to 716;
Bids to farmers at Local Elevators 699-711;
River Elevators 696-714;

Chicago Futures: Mar up  4 1/2  at  907 1/2 
  May up 4/4  at  9201/2 
  Jul up  5  at  809 
  Sep up  6 1/4  at  816 
  Jul '09 up  12 1/2  at  782 
  Today's Arkansas LDP rate for wheat is: 0¢

Grain Sorghum
Cash bid for January at Memphis  908 to - - -;
Bids to farmers at River Elevators 773-836;
Today's Arkansas LDP rate for sorghum is: 0¢

Corn
Cash bid for January at Memphis   468 3/4 to 472 3/4;
  new crop at Memphis   466 3/4 to 468 3/4;
Bids to farmers at River Elevators  454 to 469

Chicago Futures: Mar up  12 1/2  at  478 3/4 
  May up  12 1/2  at  490 
  Jul up  12 1/2  at  499 1/2 
  Dec '08 up  10 1/4  at  496 
  Today's Arkansas LDP rate for corn is: 0¢

Grain Comment
Wheat futures recovered a portion of yesterday’s big losses. Carryover from corn and soybeans was the driving force behind the market today. The USDA will release its first winter wheat seeding estimate Friday, and the trade is anticipating a 6% increase in acres over the last year. July has strong support at the recent low of $7.63, and is building resistance at the recent high of $8.19.


Cotton & Rice  Date: January 08, 2008


Cotton
Spot Price, Grade 41 Staple 34: Memphis up 98 at  6468
  Greenwood up  98 at 6468

New York Futures: Mar up  48  at  6943 
  May up  44  at  7107 
 Jul up  55  at  7285 
 Dec up  70  at  7716 
 Mar '09 up  51  at  7971 
This week's LDP rate for cotton is  0 cents
  The estimate for next week is  0 cents
Cotton Comment
Cotton pushed to a new contract high for December ’08 while old crop contracts also improved. Export movement remains near expectations, while end of year stocks for the U.S. are large. That would seem to put a cap on upside potential. However, the market must be anticipatory and expectations are for ’08 plantings to be substantially lower than in ’07. Projections put plantings in the 9.25 to 10 million acre range. This compares to 15.3 million acres in ’06 and 10.9 million acres in ’07. Unless price moves higher, another substantial cut will be seen in ’08.

Rice
Long Grain Cash Bid for  Jan 1260  to  1273/cwt
  Feb/Mar 1273/cwt  to  - - -

Chicago Futures: Jan up  36  at  1430 
 Mar up  23  at  1448 
 May up  25  at  1475 
 Sep up  25  at  1425 
 - - -   - - -  at  - - - 
Today's Arkansas LDP rate for long grain rice is  0¢
medium grain rice is  0¢
Rice Comment
Rice futures advances to new contract highs, which were also new all time CBOT highs. Prompted by across the board gains in wheat, corn and beans; rice is simply trying to remain part of the crop mix. International markets are firm. Vietnam is still awaiting new crop supplies but has already grabbed a big tender from the Philippines. Overall U.S. and world supplies are tight and there is certainly questions about how much rice the U.S. will plant in ’08. For now the trend remains higher.


Cattle & Hogs  Date: January 08, 2008

Cattle
As reported by Federal-State Market News, receipts were 2,350 head at sales in Fort Smith & Marshall.  Compared with last week, feeder steers sold $1-5 lower .

Steers:
 Medium & Large Frame 1   400 to 450 lbs. 113 to 123
  500 to 550 lbs. 102 to 112
  600 to 700 lbs. 95 to 105
 Medium & Large Frame 2   400 to 450 lbs. 102 to 112

Heifers:
 Medium & Large Frame 1   400 to 450 lbs. 92 to 102
 Medium & Large Frame 2   400 to 450 lbs. 80 to 90

Slaughter Cows, Boners 44   to   50
Light Weight 32 to 35
Bulls, Yield Grade   1   1000   to   2100 lbs.   55   to   62.50, high dressing $62.50-66.50
Midwest Steers   were $2 lower to $1.50 higher   at   92   to   - - -
Panhandle Steers   n/a   at   - - -   to   - - -

Oklahoma City Feeders
Steers 500 to 550 lbs. 115 to 125.50
  600 to 650 lbs. 100.75 to 112.50
Heifers 500 to 550 lbs. 98 to 109
  600 to 650 lbs. 94.50 to 97.50

Chicago Futures:
Live Cattle: Feb down 52 at 9407
  Jun down 20 at 9442
Feeders: Jan down 20 at 10022
  Mar down 57 at 10312

Cattle Comment
Cattle futures were under pressure today. Weak beef demand and negative packer margins are limiting the upside. Feeders were lower on renewed strength in corn. April has support at $96.55, the bottom of the trading channel that has held the market since November.

Hogs
Peoria: were     steady   at   26.5   to   27

Chicago Futures: Feb up 17 at 5587
  Jun up 37 at 7230

Sheep
St. Paul sheep shorn slaughter lambs   at   n/a   to   - - -

Hogs Comment
Hogs continue to set new lows on an almost daily basis. Large hog supplies and weak wholesale prices for pork indicate further declines are likely. Futures are oversold, but are still trading at a steep premium to cash prices so further declines are likely. Futures could drop back to the November lows just above $50.


Poultry  Date: January 08, 2008

Eggs
New York:  Ex. Lg. 158-162; Lg. 156-160; Med. 139-143;
Chicago:  Ex. Lg. 152-160; Lg. 150-158; Med. 134-142;

Eastern Region Turkeys
Hens: 8-16 lbs. 73-74
Toms: 16-24 lbs. 73-74
 

Delmarva Broilers
U.S. Grade A
Trade sentiment was mixed, but mostly steady. Supplies of all sizes were usually sufficient to satisfy trade needs. In production areas, live supplies were moderate at mixed, but mostly desirable weights.