AgDay Daily Recap -February 8, 2013

February 8, 2013

By: AgDay TV

TODAY ON AGDAY
FEBRUARY 8, 2013

WASDE REPORT:

GOOD MORNING I'M TYNE MORGAN. CLINTON'S ON ASSIGNMENT. THE MARKET PREPARES FOR THE LATEST GRAIN SUPPLY DATA FROM THE FEDERAL GOVERNMENT.

SOY SUPPLY:

MEANWHILE, DRY WEATHER IS HAMPERING SOUTH AMERICAN SOYBEAN PRODUCTION.THIS IS CREATING MORE DEMAND FOR U-S SOYBEANS, ALREADY TIGHT FROM LAST YEAR'S DROUGHT. THIS COULD CREATE THE TIGHTEST U-S SUPPLY SITUATION IN ALMOST FIVE DECADES. WHILE USDA WILL RELEASE ITS LATEST NUMBERS IN TODAY'S STOCKS REPORT, PROJECTIONS POINT TO A NINE-YEAR LOW OF SOYBEAN STOCKS BY THE END OF AUGUST.
THIS COULD HELP SHOOT SOYBEAN PRICES HIGHER. EVEN WITH FORECASTS FOR A LOWER SOYBEAN HARVEST IN PARTS OF SOUTH AMERICA, REPORTS RIGHT NOW ARE STILL FORECAST TO BE THE HIGHEST EVER.

CORN EXPORTS:

IN ADVANCE OF TODAY'S SUPPLY-DEMAND REPORTS, USDA RELEASED SOME NEW DATA ABOUT CORN EXPORTS.
IT SEEMS OUTSIDE COMPETITION COULD CONTINUE TO BE ON THE RISE.
USDA SAYS THE REDUCTION IN U-S CORN MARKET SHARE IS DIRECTLY TIED TO THE INCREASE NEED FOR CORN IN THE U-S, INCLUDING ETHANOL PRODUCTION.
THIS HAS OPENED THE DOOR FOR OTHER COUNTRIES TO EXPORT MORE CORN.
THE USDA SAYS BRAZIL HAS BEEN EXPORTING CORN AT A RECORD PACE.
THE DEPARTMENT ALSO FORECAST U-S CORN EXPORTS TO FALL THIS YEAR TO THE LOWEST LEVELS SINCE 1971 AND 1972, LARGELY DUE TO THE DROUGHT.

DROUGHT MONITOR:

LOOKING AT THE LATEST DROUGHT MONITOR, WHILE IMPROVEMENT CONTINUES IN THE EASTERN PORTION OF THE U-S, MANY FARMERS AND RANCHERS ARE STRUGGLING TO FIND MOISTURE IN THE WESTERN HALF. THE MONITOR SHOWS A SLIGHT IMPROVEMENT IN THE MODERATE TO SEVERE DROUGHT CATEGORIES FROM MISSOURI, THROUGH THE EASTERN PORTIONS OF THE I STATES AND INTO OHIO. EXCEPTIONAL DROUGHT EXPANDED IN COLORADO. AS YOU JUST SAW, IT SEEMS TO BE THE TALE OF TWO REGIONS WHEN TALKING ABOUT DROUGHT. I SPOKE TO TWO FARMERS WHO SAYS THE ROAD TO RECOVERY MAY BE EASIER IN THE EAST THANKS TO A MAJOR FACTOR-- MOISTURE.

CROP WATCH:

WE'LL CONTINUE OUR COVERAGE OF THE DROUGHT TOMORROW ON AGDAY. MICHELLE ROOK WILL LOOK AT POTENTIAL IMPACT ON NET FARM INCOME WITH THE PROSPECTS OF A LINGERING DROUGHT? BUT NOW, LET'S CHECK IN WITH MIKE HOFFMAN WHO HAS YOUR FIRST LOOK AT FARM COUNTRY WEATHER.