AgDay Daily Recap - August 11, 2016

August 11, 2016 02:57 AM
 

TODAY ON AGDAY
AUGUST 11, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -  "I'M MICHELLE ROOK.  LOW COMMODITY PRICES DOMINATED THE DISCUSSION HERE WITH FARMERS AT FARMFEST AND SOME LAWMAKERS ARE EVEN TALKING ABOUT WRITING A NEW FARM BILL EARLIER IN RESPONSE.  I'LL HAVE THE DETAILS TODAY ON AGDAY." IN AGRIBUSINESS... GETTING YOUR MIND RIGHT FOR AUGUST. THE FACT THAT 76 PERCENT OF THIS IS GOOD TO EXCELLENT ALMOST EVERY WEEK THROUGH THIS ENTIRE SEASON THAT'S RIGHT THE REALITY OF THAT IS BIGGER YIELDS ARE COMING. ARE CATTLE MARKETS CHANGING. THE TEAM AT DROVERS TAKES A LOOK. AND THIS U-K FAVORITE IS IN DANGER OF LOSING IT'S GEOGRAPHICAL PROTECTION THANKS TO BREXIT.
LOW COMMODITY PRICES MAKE FOR A STRUGGLE FOR FARMERS:
GOOD MORNING I'M CLINTON GRIFFITHS. FARMERS ARE STRUGGLING AMIDST THE DOWNTURN IN THE COMMODITY CYCLE AND 20 YEAR LOWS IN NET FARM INCOME. CURRENTLY CORN PRICES ARE AGAIN BELOW BREAKEVENS, WITH FUTURES UNDER $3.50 AND SOYBEANS HOVERING NEAR $10.00, WHICH IS MORE THAN $2.00 OFF THE HIGHS. THAT SET THE TONE FOR FARMERS ATTENDING THIS YEAR'S FARMFEST IN REDWOOD COUNTY, MINNESOTA. AGDAY'S MICHELLE ROOK LOOKS AT HOW THAT MAY ALSO SPEED UP THE TIMELINE IN WASHINGTON FOR THE NEXT FARM BILL.
HOPE FOR HELP FROM CONGRESS AT FARM FEST:
LOW COMMODITY PRICES ARE STARTING TO TAKE A TOLL ON MINNESOTA FARMERS, WITH MOST GRAIN PRICES BELOW COST OF PRODUCTION.  DAVE FREDERICKSON, MN AGRICULTURE COMMISSIONER, "THREE DOLLAR CORN RIGHT NOW, LOCAL ELEVATOR PRICE THAT JUST DOESN'T WORK FOR FARMERS TODAY WITH LAND COSTS BEING WHAT THEY ARE, INPUT COSTS BEING WHAT THEY ARE." THAT'S EVIDENT AT SHOWS LIKE FARMFEST WHERE FARMERS WERE LOOKING, BUT NOT BUYING. IN FACT, MN GRAIN FARMERS ARE COMING OFF THREE YEARS OF DECLINES IN NET FARM INCOME FROM THE RECORD OF $260,000 IN 2012.  DAVID BAU, UNVERSITY OF MN EXTENSION EDUCATOR, "THE NET FARM INCOME IN MN FOR LAST YEAR, THIS IS 15 NUMBERS, WERE ABOUT $23,000 PER FARMERS IN MN, IN THE FIN-BIN DATABASE." AND HE SAYS UNLIKE LAST YEAR WHEN FARMERS WERE HELPED BY THE 2014 FARM PROGRAM PAYMENTS, THAT WON'T BE THE CASE THIS YEAR. BAU, "AND UNFORTUNATELY THIS YEAR THE FARM BILL, WE HAD RECORD YIELDS IN MN LAST YEAR SO MOST OF THE COUNTIES IN MN ARE GOING TO GET ZERO FARM BILL PAYMENTS ON THEIR SOYBEANS AND THE AVERAGE ON CORN IS ABOUT $31 IN MN, WHICH IS DOWN FROM LAST YEAR." AT FARMFEST I'M MICHELLE ROOK REPORTING FOR AGDAY. )
CHINA PUSHES FOR COMMERCIALIZING OF GMOS:
MEANWHILE THE CHINESE ANNOUNCING A FRESH PUSH FOR THE COMMERCIALIZATION OF GMO SOYBEANS. THE PLAN FOCUSES ON THE NEXT FIVE YEARS AND BOOSTING EFFICIENCY IN ITS OWN FARM FIELDS. CURRENTLY CHINA EMBRACES BIOTECHNOLOGY FOR COTTON GROWERS BUT HAS NOT PERMITTED THE FARMING OF GM FOOD CROPS.
U.S. COTTON FUMIGATED AS ZIKA PRECAUTION:
SPEAKING OF CHINA, THE COUNTRY IS NOW REQUIRING ALL U.S. COTTON BE FUMIGATED FOR ENTERING THE COUNTRY. THE REASON IS THE ZIKA VIRUS ACCORDING TO THE AMERICAN COTTON SHIPPERS ASSOCIATION. SEVERAL LATIN AMERICAN COUNTRIES ARE NOW REQUIRED TO DO THE SAME THING. THE FUMIGATION CAN EITHER BE DONE AT THEIR ORIGIN COUNTRY OR HAVE IT DONE AT A PORT IN CHINA.
AG TECHNOLOGY INVESTMENTS RECEDE:
INVESTMENTS IN AGRICULTURE TECHNOLOGY HAVE RECEDED SO FAR THIS YEAR, FOLLOWING RECORD GLOBAL INVESTMENT LAST YEAR. FUNDING FROM VENTURE CAPITALISTS AND OTHERS TOTALED $1.8 BILLION THROUGH THE FIRST SIX MONTHS OF THE YEAR. A REUTERS REPORT SAYS THAT'S DOWN 20 PERCENT FROM A YEAR EARLIER. INDUSTRY OFFICIALS SAY THE PULLBACK FALLS IN LINE WITH THE BROADER VENTURE CAPITAL MARKET. THE DECREASE COMES ON THE HEELS OF A RECORD HIGH $4.6 BILLION DOLLAR INVESTMENT IN AGRICULTURE TECHNOLOGIES LAST YEAR.
CROP COMMENTS:
FARMERS ARE PULLING SOME SAMPLES OUT OF THEIR FIELDS. MIKE HOFFMAN HAS AN UPDATE IN THIS MORNING'S CROP COMMENTS. MIKE. GOOD MORNING, CLINTON. LET'S START OFF IN NORTHWEST IOWA. MICHAEL HULSTEIN SAYS HIS CROP ISN'T BAD, BUT IT'S DEFINATELY NOT A RECORD. HE SAYS CORN LOOKS BETTER FROM THE ROAD THAN IN THE FIELD. MICHAEL SAYS CROP CONDITIONS ARE GOOD BUT THE AREA IS TURNING A LITTLE DRY. NOW ACCORDING TO USDA, 83 PERCENT OF THE CORN CROP IN IOWA IS GOOD TO EXCELLENT.
SDS DISEASE HITS SOYBEANS IN ILLINOIS:
OVER IN NORTHERN ILLINOIS, FARMERS ARE DEALING WITH SOME DISEASE ISSUES. STEVE PITSTICK TELLING US SDS IS SHOWING UP IN THE SOYBEANS. HE SAYS IT'S POPPING UP BEANS WITH AN EARLY PLANTING DATE. HOWEVER, PITSTICK SAYS THE DISEASE IS ONLY EFFECTING MINOR AREAS. USDA SAYS 79 PERCENT OF SOYBEANS ARE RATED GOOD TO EXCELLENT IN ILLINOIS. AND TAKING A LOOK AT THE WEATHER MAP STORM SYSTEM MOVING THROUGH THE UPPER MIDWEST WILL SPREAD SOME SHOWERS AND THUNDERSTOMRS AS IT HEADS TO THE EAST WE'LL HAVE YOUR FORECAST BUT NOW HERE ARE SOME HOMETOWN TEMPS.
TEASE:
NEXT IN ANALYSIS -MIKE NORTH HELPS YOU GET YOUR MIND SET FOR MID-AUGUST DOLDRUMS IN THE GRAIN MARKETS. IN OUR DROVERS REPORT WE LOOK AT THE STRENGTH OF U-S MEAT EXPORTS.
AND LATER -FOODMAKERS FEAR THE DOWNSIDE OF BREAKING AWAY FROM THE EUROPEAN UNION. < "ONCE BREXIT OCCURS, WE LOSE ALL THE PROTECTION FOR THE UK."

AGRIBUSINESS:
IN AGRIBUSINESS TODAY -A MINNESOTA-BASED SUGARBEET SEED COMPANY IS MAKING A BIG INVESTMENT WITH ITS FACILITIES IN THE PACIFIC NORTHWEST. BETA-SEED MADE 40-MILLION DOLLARS WORTH OF IMPROVEMENTS AT ITS FACILITY IT TANGENT, OREGON. THE COMPANY TAKES-IN BARE SEED AND ADDS TREATMENTS AND COATINGS BEFORE IT'S SHIPPED OUT TO FARMERS. "OUR RESEARCH GROUP HAS DELIVERED TREMENDOUS GENETIC POTENTIAL BUT FOR US TO DELIVER THAT PROMISE TO CUSTOMERS, WE NEED TO HAVE CONSISTENT EMERGENCE. WE NEED TO BE ABLE TO SINURE WHEN WE TAKE AN ORDER, WE'RE ABLE TO DELIVER ON THAT SEED." > BETA-SEED SAYS THEIR TANGENT SITE IS NOW FULLY AUTOMATED. IT PROCESSES MORE SUGARBEET SEED THAN ANY OTHER FACILITY IN THE U-S. THE U-S GROWS ABOUT ONE-POINT-TWO MILLION ACRES OF SUGARBEETS FOR DOMESTIC-USE. MOST OF BETASEEDS PRODUCT IS USED FOR SUGAR PRODUCTION. HOWEVER THE COMPANY ALSO PRODUCES AN ENERGY BEET USED FOR THE PRODUCTION OF BIOFUELS.  LETS CHECK PRICES NOW. WE HEAD OVER TO THE FLOOR OF THE CME IN CHICAGO FOR DETAILS.
AGRIBUSINESS TALKS USDA REPORT:
MIKE NORTH OUR GUEST HERE AT THE AGRIBUSINESS DESK. HE'S WITH COMMODITY RISK MANAGEMENT GROUP. MIKE LET'S TALK, ABOUT THE REPORT IS SUPPOSE TO BE OUT FROM USDA THIS WEEK. A LOT OF CHATTER ABOUT YIELDS AND EXPECTATIONS FOR A FOR HARVEST THIS YEAR. WHEN WE GET IN A MID AUGUST MIND SET? WHAT DO YOU THINK? I THINK THE REALITY IS THE CROP GIVEN THE CONDITIONS THAT WE'VE COME THROUGH THE FACT THAT SEVENTY SIX PERCENT OF THIS IS RATED GOOD TO EXCELLENT ALMOST EVERY WEEK THROUGH THIS ENTIRE SEASON. THAT'S RIGHT. THE REALITY IS THAT BIGGER YIELDS ARE COMING. AND SO WE SHOULD EXPECT THAT FROM THE USDA. THE QUESTION IS HOW BIG OF A STEP ARE THEY GOING TO MAKE. I THINK IF THEY COME IN ANYWHERE LESS THAN 170 NOBODY BELIEVES THEM. BECAUSE WE ALL BELIEVE SOMETHING BIGGER OUT THERE. I BELIEVE THAT THAT FOR THEM TO GO NORTH OF ONE SEVENTY ONE AND A HALF, WHICH SETS A NEW RECORD FOR THE CROP, STARTS TO GET THIS CHATTER GOING ABOUT WHERE WE GO NEXT.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY WITH MIKE HOFFMAN. MIKE, THESE LOW PRESSURE SYSTEMS ARE REALLY BRINGING SOME RAIN TO SOME SPOTS. YEAH, ONE IN THE UPPER MIDWEST ALL BRINGING SOME HEAVY AMOUNTS BUT THE ONE IN SOUTHEASTERN LOUISIANA, WAIT UNTIL YOU SEE THE RAINFALL ESTIMATES FROM OUR COMPUTER MODEL. AND WE ALSO HAVE THE REMNANTS OF A TROPICAL STORM MOVING THROUGH NORTHWESTERN MEXICO THAT WILL BE SPREADING SOME OF THAT MOISTURE IN THE NEW MEXICO AND SOME OF THE SURROUNDING STATES. THEY'RE SO LET'S PUT THE MAPS INTO MOTION. THIS IS ALL HOT AND HUMID. EAST OF THE A COLD FRONT SOUTH OF THAT A WARM FRONT ACROSS THE SOUTHERN GREAT LAKES. THIS AREA OF LOW PRESSURE JUST SLOWLY MOVING WESTWARD IT'S BEEN ON THE WEATHER MAP ALL WEEK LONG AND HASN'T MOVED A THE WHOLE LOT BUT IT IS INCHING ITS WAY TO THE WEST. SHOWERS AND THUNDERSTORMS WILL ALSO DEVELOP ALONG THAT AREA NEAR THAT AREA OF LOW PRESSURE OVER MINNESOTA AND AS WELL AS A WARM FRONT OFF TO THE EAST. IN THE PARTS OF MICHIGAN. AS WE HEAD THROUGH TONIGHT AND EVERYTHING CALMED DOWN IN MOST AREAS. ALTHOUGH THERE WILL BE SOME LINGERING SHOWERS AND THUNDERSTORMS ALONG A COLD FRONT WARM FRONT IN THE CENTRAL PLAINS ON INTO A PART OF THE GREAT LAKES AND THEN HEADING THROUGH THE
DAY TOMORROW, WE'LL CONTINUE TO SEE THE HEAVY RAIN JUST POUNDING PARTS OF THE GULF COAST AREA.
TEASE:
WHEN WE COME BACK, IS THERE A SHIFT IN THE CATTLE MARKET DIRECTION? THE TEAM AT DROVER'S WEIGH IN.  THIS UNIQUE MEAT DISH IN ENGLAND MAY LOSE SOME OF ITS IDENTITY AFTER THE U-K SPLITS FROM THE E-U.
DROVERS TV:
ON DROVERS TV, THE STERLING BEEF PROFIT TRACKER LIFTING FEEDER MARGINS BACK TO BREAK EVEN. A TWO DOLLAR PER HUNDRED CASH RALLY HELPING WITH THE IMPROVING PRICE PICTURE. THE TOTAL COST OF FINISHING CATTLE LAST WEEK COMING IN A 16-62 PER HEAD. COW CALF OPERATORS EXPECTING TO SEE PROFITS OF 175 DOLLARS PER COW. BEEF PACKERS TAKING A LITTLE MONEY OUT OF THE SYSTEM LATELY, NOW SEEING MARGINS OF 91 DOLLARS PER HEAD. MARKET WATCHER SAY CATTLE MARKETS ARE IN THE MIDST OF A MAJOR TREND CHANGE.
JBS GOES TO EUROPE:
THE WORLD'S LARGEST MEAT PROCESSOR IS HEADED FOR EUROPE. JBS--FOLLOWING THROUGH ON PLANS TO RELOCATE IT'S LEGAL CORPORATE HEADQUARTERS FROM BRAZIL TO IRELAND.  THE 33 MILLION DOLLAR ASSET MOVE MADE ATTRACTIVE DUE TO THE COUNTRIES TAX STRUCTURE. JBS SAYS ITS CONTINUING TO REORGANIZE UNDER THE NAME JBS FOOD INTERNATIONAL--INCORPORATED IN IRELAND AND TRADING ON THE NEW YORK STOCK EXCHANGE.
TEASE:
WHEN VOTERS IN GREAT BRITAIN DECIDED TO BREAKOFF FROM THE EUROPEAN UNION, THEY MAY HAVE HAD UN-INTENDED CONSEQUENCE TO A POPULAR FOOD DISH. THE POLITICS OF PORK....PIE. NEXT ON AGDAY.
IN THE COUNTRY:
DURING AN AMERICAN ELECTION YEAR WE OFTEN HEAR CANDIDATES TALK ABOUT "PORK" IN THE POLITICAL PROCESS. POLITICIANS GET ACCUSED OF GETTING GOVERNMENT DOLLARS FOR PET PROJECTS IN THEIR HOME DISTRICTS. BUT IN THE POLITICS OF THE EUROPEAN UNION, "PORKPIES" ARE BEING DEBATED. THE BRITISH-MADE MEAL IS AT RISK OF LOSING TRADE PROTECTION BECAUSE OF THE BREXIT VOTE.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR MIKE HOFFMAN, AND ALL OF US AT AGDAY. I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
I'M CLINTON GRIFFITHS. FRIDAY ON AGDAY WE LOOK AT THE LATEST DROUGHT MONITOR AND SEE HOW IT'S IMPACTING CROPS IN THE EASTERN CORN BELT. THE PROFARMER EXPERTS ARE HERE WITH THEIR WEEKLY PROFIT BRIEFING. AND A GREAT AMERICAN BARN. WATCH US FRIDAY HERE ON AGDAY.

 

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