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USFR Weekly Recap - June 1-2, 2013

June 1, 2013

                                                                                                                                                                                             

THIS WEEK ON U.S. FARM REPORT

EPISODE # 2077

JUNE 1-2, 2013   

 

 

 

 

JOHN’S OPEN:

HELLO AND WELCOME TO U-S FARM REPORT, I'M JOHN PHIPPS. TO THE DELIGHT OF GRAIN FARMERS AND THE BAFFLEMENT OF MARKET COMMENTATORS, THE SHARP RALLY IN PRICES CONTINUES THIS WEEK. WHILE RELENTLESS RAIN MAY BE PART OF IT, SUFFICE IT TO SAY, MANY ADISORS ARE SCRAMBLING TO FIND REASONS FOR THE LAST THING THEY EXPECTED A FEW WEEKS AGO. LUCKILY, THIS WEEK BEGINS OUR NEW FORMAT WITH EVEN MORE TIME WITH OUR MARKET GURUS. THE TIMING COULDN'T BE BETTER, AS UNCERTAINTY GROWS IN ABOUT EVERY SECTOR. OUR FINAL BLOCK - MARKETS NOW - WILL OFFER INFORMATION OUR EXPERTS CONSIDER URGENT. LET US KNOW HOW YOU LIKE THE NEW APPROACH. AND GOOD LUCK WITH YOUR MARKETING. TIME NOW FOR THE HEADLINES. HERE'S AL PELL IN FOR TYNE.

HEADLINES:

THANKS JOHN. THE WHEAT INDUSTRY HAD A NERVOUS REACTION THIS WEEK WHEN THE GOVERNMENT ANNOUNCED THE DISCOVERY OF UN-APPROVED BIOTECH WHEAT. WHEAT PRICES FELL AFTER REPORTS CAME OUT THAT JAPAN WAS IMPOSING AN IMPORT RESTRICTION ON SOFT-WHITE WHEAT FROM THE U-S.  WHEAT GROUPS ISSUED A STATEMENT SAYING THERE IS NO REASON FOR GOVERNMENTS TO ESTABLISH A RESTRICTION ON U.S. WHEAT AS THERE'S NO EVIDENCE THE WHEAT ENTERED COMMERCIAL SUPPLIES. FOR ITS PART, MONSANTO SAYS THIS IS THE FIRST AND ONLY REPORT OF ITS TYPE IN 9 YEARS SINCE FIELD TESTING STOPPED. THE COMPANY SAYS TESTING AND VERIFYING ROUND UP READY TRAITS CAN BE TRICKY--AND ITS NOT UNUSAL TO GET SEVERAL FALSE POSITIVES IN THE PROCESS. MONSANTO SAYS IT HAS NOT INDEPENDENTLY BEEN ABLE TO VERIFY USDA'S TESTS.

CROP PROGRESS:

IN NEWS FROM THE FIELDS, CORN PLANTING REACHED 86-PERCENT COMPLETE, UP 15 POINTS FROM LAST WEEK'S HUGE GAIN. THE PACE IS JUST FOUR POINTS BEHIND AVERAGE.
THERE WAS A DRAMATIC IMPROVEMENT IN THE AMOUNT OF CORN CROPS THAT HAVE NOW EMERGED. IT'S NOW BETTER THAN HALF.  BUT AFTER HEAVY RAINS SWEPT IOWA, ILLINOIS AND INDIANA, THERE'S CONCERN OF REPLANT.

CROP WATCH:

CROP WATCH THIS WEEK BEGINS IN THE SATURATED MIDWEST. THIS PHOTO IS FROM FULTON COUNTY, INDIANA. BUT WITH THOSE WET FIELDS IT COULD BE JUST ABOUT ANYWHERE IN THE CORNBELT THIS WEEK. AND TYNE MORGAN SNAPPED THIS PHOTO AFTER SEVERE WEATHER MOVED THRU AMARILLO, TEXAS. SHE SAYS A TORNADO TOUCHED DOWN AND ONE-INCH HAIL FELL.

MARKET’S NOW:

OUR WEEKLY MARKETING ANALYSIS EXPANDS. ALONG WITH OUR TWO ROUND-TABLES WE'RE LAUNCHING "MARKETS NOW" - A NEW SEGMENT AIMED AT GIVING VIEWERS EXACTLY WHAT THEY'VE BEEN ASKING FOR - MORE ANALYSIS AND ADVICE FROM OUR TEAM OF EXPERTS. AL IS JOINED BY ANDY SHISSLER AND ARLAN SUDERMAN.

JOHN’S WORLD:

IT'S WAY TOO EARLY TO BE COMMENTING ON ANY NEW FARM PROGRAM, BUT THE LEGISLATION PASSED OUT OF THE SENATE AG COMMITTEE THIS WEEK SHOULD OFFER SOME ROUGH GUIDELINES AS TO WHO THE WINNERS AND LOSERS THIS TRILLION-DOLLAR BOONDOGGLE MIGHT BE. FIRST, THE WINNERS: LANDOWNERS AND OPERATORS WHO BID AGGRESSIVELY ON RENTS. SINCE FARM SUBSIDIES FLOW TO THE SCARCEST RESOURCE, LITERALLY ENSURING AN EVEN HIGHER LEVEL OF FARM INCOME BY RAISING THE SAFETY NET MEANS BIDDING HIGHER IN EITHER CASE IS LESS RISKY THAN EVER, SO GO FOR IT. AS NOTED RECENTLY BY SECRETARY VILSACK, WE'RE NOW TO THE POINT WHERE 84% OF FARM OUTPUT COMES FROM 12% OF FARMERS. I THINK YOU CAN COUNT ON FURTHER CONCENTRATION, AND STRONG INCOME SUPPORT ENABLES THE AUDACIOUS TO RAMP UP TO RAPACIOUS. REMOVING THE DOWNSIDE MEANS YOU CAN FARM FOR LOWER MARGINS, AND RENTS WILL REFLECT THAT IN A HURRY. THE LOSERS: FISCAL HAWKS, WHO WERE SOLD-OUT BY HOMEBOYS TAKING CARE OF THEIR OWN DESPITE THEIR OWN PREVIOUS CRITICISM OF OUR FEDERAL BUDGET PROBLEMS. GROUPS FROM THE HERITAGE FOUNDATION TO THE AMERICAN ENTERPRISE INSTITUTE SAW THEIR FAVORITE SPENDING DISCIPLINARIANS FOLD A LIKE A CHEAP TENT. ANOTHER BIG LOSER, LIKE THE CUBS, IS A PERENNIAL ENTRY: THE KANSAS CITY FEDERAL RESERVE. FOR YEARS, ITS ANNUAL WARNINGS OF FARMLAND BUBBLES AND TROUBLE DOWN ON THE FARM HAVE BEEN WELL, TOTALLY WRONG. ANY FARM BILL THAT LOOKS LIKE THE ONE THIS WEEK WILL LOCK IN THEIR SAD STATUS.)

2ND HALF

JOHN’S OPEN:

HELLO AND WELCOME TO U-S FARM REPORT, I'M JOHN PHIPPS. ANOTHER POSSIBLE AG COMPANY TAKEOVER BY FOREIGN OWNERS HEAD-UPS THE NEWS TODAY, BUT I'M NOT SURE IT WILL BE AS ELECTRIFYING AS SUCH STORIES USED TO BE. AFTER ALL, MACHINERY COMPANIES, GRAIN MERCHANDISERS, AND INPUT SUPPLIERS HAVE GRADUALLY BECOME DOMINATED BY MULTI-NATIONAL CORPORATIONS OVER THE LAST FEW DECADES. WHILE HIDDEN MOTIVES BEHIND SUCH DEALS ARE ALWAYS SUSPECTED, IN THE END I THINK IT BOILS DOWN TO THE GLOBAL NATURE OF AGRICULTURE AND THE BUSINESS ADVANTAGES OF OPERATING WORLD-WIDE. WHAT IS ALSO BECOMING CLEAR IS THE ABILITY OF SUCH FIRMS TO FINESSE GOVERNMENTAL CONTROLS.

HEADLINES:

THANK YOU JOHN. U-S BASED SMITHFIELD FOODS COULD SOON FALL UNDER THE CONTROL OF A CHINESE COMPANY. CHINESE MEAT PRODUCER SCHUNG-WAY HAS AGREED TO BUY SMITHFIELD IN DEAL VALUED AT 7 POINT 1 BILLION DOLLARS...INCLUDING 4 POINT 7 BILLION IN CASH. THE LATEST DROUGHT MONITOR REPORT SHOWS THE EASTERN HALF OF THE UNITED STATES IS DROUGHT-FREE, EXCEPT FOR A FEW PATCHES. THAT'S A BIG CHANGE FROM LAST SUMMER. AND WHILE MUCH OF THE CORNBELT HAS EXCESS MOISTURE, THE CENTRAL AND SOUTHERN PLAINS ARE PARCHED. MANY FARMERS HAVE CUT THEIR WINTER WHEAT FOR HAY WITH NO HOPE TO MAKE GRAIN. TYNE MORGAN HAS DETAILS FROM THE TEXAS PANHANDLE. MEANWHILE, HERE'S WHY YOU SHOULD HEED FLOOD WARNINGS. WATCH AS FLOOD WATER QUICKLY RISES AND THEN BURSTS THROUGH THE GLASS DOORS. THIS HAPPENED AT CARL SANDBURG COLLEGE IN GALESBURG, ILLINOIS. THEY STILL HOPE TO RE-OPEN FOR A SUMMER SESSION.

COFFEE PAINTER:

SETTLE INTO YOUR FAVORITE CHAIR AND TAKE A SIP OF YOUR "MORNING WAKE-UP CALL". PERHAPS YOU CALL IT A CUP OF JOE, OR SIMPLY COFFEE. NO MATTER WHAT YOU CALL IT MORE THAN 50 PERCENT OF AMERICANS DRINK COFFEE ON A DAILY BASIS - EVERYTHING FROM BLACK TO ESPRESSO TO LATTES.  BUT THIS WEEK TEXAS COUNTRY REPORTER BOB PHILLIPS FOUND A BARISTA WHO USES HER DRINKS TO STIR UP A TOUCH OF CREATIVITY.

ANGUS SISTERS:

DID YOU GROW-UP IN THE SHOW-RING? MANY OF YOU DID. AS YOU KNOW, SHOWING LIVESTOCK TEACHES A LOT OF LIFE LESSONS. AND FOR FIVE SISTERS IN RICHFIELD, NORTH CAROLINA, THEY'RE LEARNING THOSE LESSONS TOGETHER. IN THIS PIECE FROM THE AMERICAN ANGUS ASSOCIATION, WE LEARN HOW THE HARWARD SISTERS MAKING IT ALL WORK FROM THE PENS AT HOME TO THE RING ON SHOW DAY.

TRACTOR TALES:

AL REJOINS US NOW WHERE'S TRACTOR TALES TAKING US THIS WEEK? THIS WEEK'S CLASSIC IRON COMES TO US FROM CENTRAL MONTANA.

CHURCH SALUTE:

THIS WEEKEND WE ARE GIVING OUR COUNTRY CHURCH SALUTE TO HAMMOND UNITED METHODIST CHURCH IN FORT SCOTT KANSAS. HAMMOND U-M-C HAS BEEN SERVING GOD SINCE 1883. THEY FIRST HELD SERVICES AT THE MAPLE GROVE SCHOOLHOUSE. ABOUT A YEAR LATER, THE CONGREGATION BUILT A CHURCH ON ITS PRESENT LOCATION. OVER THE YEARS, ADDITIONS AND IMPROVEMENTS WERE MADE TO THE ONE-ROOM CHURCH.
A SIMPLE NOTE IN THE ENVELOPE SAYS THE CHURCH REMAINS VIGILANT IN ITS DESIRE TO SERVE THE RURAL COMMUNITY. CONGRATULATIONS TO HAMMOND UNITED METHODIST CHURCH FOR ITS 130 YEARS OF MINISTRY. STAY WITH US - THE MAILBAG IS NEXT.

MAILBAG:

TIME NOW FOR OUR WEEKLY LOOK INSIDE THE FARM REPORT MAILBAG.

 

As always, we want to hear from you, send comments to mailbag@usfarmreport.com or leave us a voice mail at 800-792-4329.

 

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