AgDay Daily Recap - January 26, 2017

January 26, 2017 02:57 AM
 
AgDay

TODAY ON AGDAY
JANUARY 26, 2017


HEADLINES
"WE'RE AT TOP PRODUCER SEMINAR WHERE SOME OF THE NATION'S FARMERS  ARE WONDERING WHAT'S GOING ON IN WASHINGTON. AND SPEAKING OF  WASHINGTON, AFTER THE NEW ADMIN WAS ELECTED WE SAW A LOT MOMENTUM  IN THE STOCK MARKET. COULD THAT SPILL OVER IN COMMODITIES? I'LL HAVE  THAT STORY COMING UP TODAY ON AGDAY". ALSO - ANOTHER ATTEMPT TO DO- AWAY WITH THE ESTATE TAX. " BE CAREFUL WHAT YOU WISH FOR." PAUL NEIFFER  EXPLAINS A POSSIBLE TAX RISK TO FARMERS. IN AGRIBUSINESS... AND WHY WOULD YOU INTENTIONALLY BUILD-UP LAYERS OF ICE ON TREES? "WE  WANT TO UNDERSTAND THAT ABILITY OF TREES TO REBOUND" AGDAY-BROUGHT TO YOU BY THE DEPENDABLE, LONG LASTING CHEVY  SILVERADO.

DOW HITS 20,000
GOOD MORNING I'M BETSY JIBBEN. CLINTON GRIFFITHS IS AT THE TOP PRODUCER  SEMINAR IN CHICAGO. WHEN THE MARKETS OPEN THIS THURSDAY MORNING, WE'LL SEE IF IT CAN  MATCH OR SURPASS THE ACTION WE'VE WITNESSED THE PAST TWO DAYS. THE DOW JONES INDUSTRIAL AVERAGE TRADED OVER 20-THOUSAND POINTS FOR  THE FIRST TIME ON WEDNESDAY. THAT'S THE LATEST MILESTONE IN A RECORD- SETTING DRIVE FOR THE US STOCK MARKET. THE MARKET HAS BEEN MARCHING STEADILY HIGHER SINCE BOTTOMING OUT IN  MARCH 2009 IN THE AFTERMATH OF THE FINANCIAL CRISIS. THE RALLY HAS BEEN ESPECIALLY STRONG SINCE THE ELECTION OF DONALD  TRUMP IN NOVEMBER. ON TUESDAY THE NASDAQ AND S-AND-P-500 BOTH HIT NEW HIGHS.

REACTION TO WALL STREET’S CLIMB
WALL STREET'S ACTION CAUGHT THE ATTENTION OF ATTENDEES AT THE TOP  PRODUCER SEMINAR IN CHICAGO. THIS ANNUAL GATHERING BRINGS TOGETHER SOME OF THE BIGGEST AND MOST  SUCCESSFUL FARMERS IN THE COUNTRY.  AND THEY'RE BEING TOLD TO "KEEP  CALM AND FARM ON" IN THE FACE OF UNCERTAIN GRAIN PRICES AND THE  ECONOMY AS A WHOLE. TYNE MORGAN JOINS US WITH REACTION TO WALL STREET'S CLIMB. THANKS SO MUCH BETSY. HERE AT TOP PRODUCER SEMINAR HERE WITH MATT  BENNETT OF BENNETT CONSULTING. ALRIGHT MATT, WE HAD THE DOW HIT 20  THOUSAND. COULD THAT MOMENTUM SPILL INTO THE COMMODITY MARKETS.  WELL, I THINK IT COULD. I THINK INITALLY A LOT OF PEOPLE WERE WONDERING IF  MAYBE SOME OF THE MONEY WAS PULLED BACK FROM AG DUE TO MONEY  FLOWING INTO THE DOW BUT I THINK THERE'S STILL A LOT OF MONEY LOOKING  FOR A HOME IF YOU WILL. AND A LOT OF TIMES WHEN YOU SEE ONE MARKET  RISE, A LOT OF MARKETS WILL GO ALONG WITH IT. I DO THINK WHEN YOU LOOK AT  SOME OF THE OPEN INTEREST LIKE FOR SOYBEANS, A LOT OF NEW LONGS HAVE  ENTERED THE MARKET. SO, I'M NOT TOO WORRIED ABOUT IT. I THINK THERE'S  MONEY AVAILABLE AND I THINK IT SUPPORT THE AG MARKETS AS WELL. ALRIGHT,  IT WILL BE INTERESTING TO WATCH. MATT BENNETT OF BENNETT CONSULTING.  BETSY, BACK TO YOU. 

TRUMP ON IMMIGRATION
AFTER FOCUSING ON BUSINESS AND GETTING AMERICANS BACK TO WORK, THE  PRESIDENT'S FOCUS TURNED TO IMMIGRATION ON WEDNESDAY.  THIS TOPIC IS  IMPORTANT TO AGRICULTURE BECAUSE OF THE NEED FOR MIGRANT WORKERS. THE PRESIDENT SIGNED TWO EXECUTIVE ORDERS IN KEEPING WITH CAMPAIGN  PROMISES TO BOOST BORDER SECURITY AND CRACK DOWN ON IMMIGRANTS  LIVING IN THE U-S ILLEGALLY. THE EXECUTIVE ORDERS JUMPSTART CONSTRUCTION OF A BORDER WALL. HIS  ORDER ALSO STRIPS FUNDING FOR SANCTUARY CITIES WHICH DON'T ARREST OR  DETAIM ILLEGAL IMMIGRANTS. WE RETURN NOW TO THE TOP PRODUCER SEMINAR.  CLINTON GRIFFITHS TALKED  WITH A MAN WHO'S BEEN COVERING WASHINGTON POLITICS FOR DECADES,  CLINTON.  WELL JIM, ONE THING I CAN SAY IS THE SPEED OF THINGS HAPPENING IN  WASHINGTON SEEMS TO BE MOVING AT A LIGHTNING PACE. YES, I THINK THE  DOING IT IN A RATHER ACCELERATED FASHION WHILE HE SAID HE WOULD DO  MORE THINGS ON DAY ONE, IT LOOK A FEW MORE DAYS, BUT HIS FIRST WEEK HAS  BEEN QUITE AGGRESSIVE. SOMETHING I HAVEN'T SEEN IN MY 40 YEARS IN  WASHINGTON. AS WE START TO LOOK TO AT SOME OF THE THINGS HE'S WORKING  ON, WHAT STANDS OUT TO YOU AS WHAT'S KEY FOR AG? TRADE POLICY. EVEN  THOUGH ALL DURING THE CAMPAIGN HE WOULD WITHDRAW FROM THE TRANS  PACIFIC PARTNERSHIP, VERY IMPORTANT FOR U.S. AGRICULTURE AND ESPECIALLY THE MEAT SECTOR, HE SAID HE WOULD PREFER INSTEAD BI-LATERAL  AGREEMENTS. HE SAID EXACTLY THAT IN WITH WITHDRAW MEMORANDUM. IT WAS  NOT AN EXECUTIVE ORDER BUT A MEMORANDUM. AND HE ALSO QUICKLY SAID HE  WANTS TO RENEGOTIATE NAFTA, THE NORTH AMERICA FREE TRADE AGREEMENT.  THAT HAS BROUGHT ANXIETY TO U.S. AGRICULTURE CIRCLES. ALRIGHT, A LOT TO  WATCH. THIS IS MOVING FAST JIM. THANKS FOR BEING HERE. BACK TO YOU, BACK  IN THE STUDIO.

REPEALING THE FEDERAL ESTATE TAX
THANKS CLINTON. ALSO IN WASHINGTON SENATOR CHUCK GRASSLEY OF IOWA  RE-INTRODUCED LEGISLATION TO PERMANENTLY REPEAL THE FEDERAL ESTATE  TAX.  YOU MAY KNOW IT AS THE "DEATH TAX". CALLING IT A PURELY "PUNITIVE" TAX, GRASSLEY SAYS IT CAN UNFAIRLY HIT  FARM FAMILIES AS THE RESULT OF THE FARM OWNERS DEATH. A SIMILAR  VERSION HAS BEEN INTRODUCED IN THE HOUSE. THE LAWMAKER SAYS HE HOPES THIS BILL WILL BE PART OF PRESIDENT TRUMP'S  PROMISE FOR TAX REFORM. WE TALKED WITH FARM C-P-A AND AGWEB CONTRIBUTOR PAUL NEIFFER ABOUT  THE MEASURE. "WE HAVE TO BE CAREFUL WHAT WE WISH FOR BECAUSE THEY ARE FLOATING AROUND IDEAS WHERE IT  MIGHT BE LIKE CANADA WHERE THERE COULD BE A CAPITAL GAINS TAX THAT'S OWED AT DEATH. AND I  THINK MOST OF OUR FARMERS MAY WANT TO KEEP THE ESTATE TAX AS IT IS NOW. IF YOU'RE WORTH 20  MILLION OR LESS AS A FARM COUPLE, YOU'RE NOT GOING TO OWE ANY ESTATE TAXES BUT IF YOU HAVE  LAND YOU PAID 500 DOLLARS AN ACRE FOR AND YOUR HEIR IS INHERITED WITH 20 THOUSAND, YOU HAVE  TO PAY CAPITAL GAINS TAX OF 19 THOUSAND DOLLARS AN ACRE, THAT CAN ADD UP PRETTY FAST."NEIFFER ISN'T SURE THERE ARE ENOUGH VOTES TO MAKE THE REPEAL  PERMANENT. SO IF IT DOES GET PASSED, IT MIGHT ONLY BE FOR TEN YEARS.

TPOY WINNER
WE WANT TO SEND A 'CONGRATULATIONS' TO THE 2017 TOP PRODUCER OF THE  YEAR WINNER - CHALMERS AND LORI ANNE CARR.  OUR PARTNERS AT TOP PRODUCER MAGAZINE ARE RECOGNIZING THE PAIR IN  CHICAGO AT THE TOP PRODUCER SEMINAR ON THEIR ACCOMPLISHEMENTS IN  BUSINESS CONCEPTS, SUCCESSION PLANS AND STRATEGIES.  THE TWO OWN TITAN FARMS - A PACKER, GROWER AND PROCESSOR OF FRESH  PEACHES AND VEGETABLES IN SOUTH CAROLINA. THE OPERATION IS THE  SECOND LARGEST PEACH PRODUCER IN THE COUNTRY.  IT'S VERY NICE TO BE NOMINATED, VERY HUMBLING TO BE NOMINATED AT A TOP PRODUCER.  WHEN YOU LOOK AT THE PEERS WE MEET ACROSS THIS COUNTRY THAT ARE  INVOLVED IN THIS ORGANIZATION OR THE FARMING COMMUNITY AS WELL, SO TO BE RECOGNIZED AS A  LEADER IN THAT AND HOPEFULLY BE REWARDED FOR WHAT YOU DO, THAT'S A GREAT EXPERIENCE,"> ASIDE FROM THE OPERATION, CARR IS VERY VOCAL IN WASHINGTON WHEN IT  COMES TO IMMIGRANT LABOR AND THE FEDERAL H2A PROGRAM. HE HAS ALSO  BEEN INSTRUMENTAL OPENING UP U.S. PEACH EXPORTS TO MEXICO. 

CROP COMMENTS
SOME OF OUR VIEWERS IN THE MIDWEST ARE GETTING DUMPED WITH SNOW.  MIKE HOFFMAN HAS AN UPDATE. MIKE.  GOOD MORNING, BETSY.  SNOW IS PILLING UP IN SOUTH EAST SOUTH DAKOTA. THIS FARMER SAYS HE'S SCOOPING BY THE MACHINE SHED DOOR TO GET HIS  TRACTOR AND LOADER OUT.  HE'S RECEIVED OVER 9 INCHES OF SNOW IN HIS AREA WEDNESDAY MORNING  BUT WIND IS THE REAL ISSUE.  SOME AREAS SOUTH OF HIM RECEIVED OVER 16 INCHES AND COUNTING.  WHILE SOME ARE DEALING WITH SNOW- OTHERS HAVE A MUDDY MESS.  JOHN KENNAY SUMMING UP LIVESTOCK CONDITIONS IN NORTHERN ILLINOIS. AS  YOU CAN SEE, THESE LIVESTOCK PRODUCERS ARE WEARING BOOTS BUT  THEY'RE NOT TRAMPLING IN SNOW.  AND TAKING A LOOK AT THE WEATHER MAP YOU CAN SEE THE STORM SYSTEM IN THE NORTHEAST BRING THE COLDER AIR AND BRINGING THE RETURN OF SNOW FOR THE GREAT LAKES NOT A LOT GOING ON OUT WEST I’LL HAVE YOUR FORECAST FOR THE NEXT COUPLE OF DAYS COMING UP BUT FIRST HERE ARE SOME HOMETOWN TEMPS

TEASE
WHEN AGDAY CONTINUES - CRAIG VANDYKE OF TOP THIRD AG MARKETING IS  HERE.  WE'LL TALK ABOUT CATTLE MARKETS AND WHAT'S DRIVING THEM RIGHT  NOW. LATER IN OUR DROVERS REPORT - WHAT'S CAUSING THE GREAT DIVIDE BETWEEN  WHOLESALE AND RETAIL MEAT PRICES? AND MEET SOME FOLKS WHO RUN TOWARD - AND NOT AWAY - FROM ICE STORMS.  FIND OUT WHAT THEY HOPE TO LEARN. AGDAY - BROUGHT TO YOU BY RESICORE HERBICIDE FOR CORN.  WITH A UNIQUELY POWERFUL  FORMULATION OF PROVEN INGREDIENTS, RESICORE GIVES YOU EXTRAORDINARY POWER OVER WEEDS.  LEARN MORE AT POWEROVERWEEDS.COM. 

DOW DUPONT DEAL
IT LOOKS AS IF THE DOW CHEMICAL AND DUPONT TRANSACTION IS NOT A DONE  DEAL YET.DUPONT SAYING IT WILL NEED AN ADDITIONAL THREE MONTHS TO CLOSE ITS  MERGER WITH DOW CHEMICAL- AS THEY ADDRESS AND RESOLVE ANTI-TRUST  CONCERNS AROUND THE GLOBE.  THE COMPANIES SAY THE TRANSATION IS NOW LIKELY TO BE COMPLETED BY THE  END OF JUNE.

AGRIBUSINESS
IN ANALYSIS- WHAT'S DRIVING THE LIVESTOCK MARKET? AND HOW ARE FUND POSITIONS AND  MANAGED MONEY PLAYING A ROLE?  CLINTON GRIFFITHS SAT DOWN WITH CRAIG VANDYKE OF TOP THIRD AG  MARKETING.  WELCOME BACK TO AGDAY, CRAIG VANDYKE OUR GUEST HERE AT THE  AGRIBUSINESS DESK TODAY. CRAIG, AS WE LOOK AT THE LIVESTOCK SECTOR AS  A WHOLE, OBVIOUSLY THIS WINTER WEATHER IS HAVING AN IMPACT ON OUR  MARKET, BUT OVERALL, SINCE OCTOBER, A PRETTY SOLID TREND. YOU KNOW,  WE FOUND A LITTLE BOTTOM IN THE LIVESTOCK MARKET SINCE OCTOBER.  YOU'RE EXACTLY RIGHT. CATTLE HAS BEEN A VERY WELL DEFINED UPTREND WITH  YOUR FEW DIPS HERE AND THERE. THOSE DIPS ARE HEALTHY TO CONTINUE A  CONSISTENT UPTREND. SINCE OCTOBER, WE HAVE SEEN SOLID GAINS IN BOTH  THE HOGS AND CATTLE MARKET. AND YOU KNOW, IT'S OFTEN THE PAST COPULE  OF YEARS WHERE WE'VE BEEN THIS EXCITED FOR STRENGTH. AND I DO FEEL  LIKE THERE'S SOME COMPLACENCY THERE RIGHT NOW WHICH IS A LITTLE  CONCERNING FOR ME. BUT WE'RE SEEING THE CASH FLOWS COME BACK IN.  WE'RE SEEING MANAGED MONEY AND OPEN INTEREST HERE IN CATTLE AT 2 AND  A HALF YEAR HIGHS AND APPROACHING BIG TIME HIGHS IN OPEN INTEREST.  WE'RE SEEING FEEDER CATTLE OPEN INTEREST AT 2 YEAR HIGHS. HOG OPEN  INTEREST THE PAST WEEK HAS JUMPED 20 OR 25 THOUSAND CONTRACTS. WE'RE  SEEING CASH FLOWS COME IN HERE AND HELP DRIVE THE MARKET, OBVIOUSLY  DRIVE THE MARKET. YOU HAVE MANAGED MONEY IN THE CATTLE MARKET UP  NEAR AROUND 100 THOUSAND CONTRACTS I WOULD SUSPECT AROUND THE END  OF THIS WEEK. 130 TO 136 THOUSAND IS A RECORD HIGH. SO, WHEN YOU HAVE  THAT CASH FLOW COMING IN TWO MARKETS WHICH HAVE BEEN BEATEN DOWN  SO HARD OVER THE PAST TWO YEARS, THAT CASH FLOW IS STARTING TO BRING  HTE MARKET BACK TO NORMAL. WE CAN HAVE MORE PLAYERS INVOLVED IN THE  MARKET, INCLUDING HEDGERS AND MANAGED MONEY. WE CAN START TO SEE  MORE OF A HEALTHY MARKET. AND SO THE OPEN INTEREST PRICE IS GOOD. MY  CONCERN IN THE CATTLE MARKET IS HOW LONG DO THEY HOLD THAT LONG  POSITION AND LIVESTOCK IS LITERALLY A DIFFRENT ANIMAL THAN THE GRAIN  MARKET WHEN IT COMES TO THE MANAGED MONEY AND FUND POSITIONS.  THERE'S MORE INFLUENCE THERE IN MY OPINION. SO, WILL THEY BE ABLE TO  HOLD THAT LONG POSITION? WITH A NEW TRUMP PRESIDENCY WILL THERE BE  CHANGES IN TRADE? HAS THE BEEF POTENTIAL TO CHINA BEEN DEGATED WITH  THE TRUMP ELECTION? THERE ARE POTENTIAL FEARS OUT THERE THAT ARE  CAUSING CONCERNS TO MANAGED MONEY. ALRIGHT, TAKE ADVANTAGE OF IT  WHILE YOU CAN. YES, TAKE A LOOK AT IT WHILE WE'RE HERE. ALRIGHT,  APPRECIATE IT, CRAIG. WE'LL BE BACK WITH MORE AGDAY IN A MINUTE.  FOR A SPECIAL REPORT ON THE GRAIN MARKETS, CALL TOLL FREE AT 877-TT- HEDGE. THAT'S 877-884-3343.AGDAY - BROUGHT TO YOU BY RESICORE HERBICIDE FOR CORN.A UNIQUELY POWERFUL FORMULATION.   EXTRAORDINARY POWER OVER WEEDS.

WEATHER
AGDAY WEATHER - BROUGHT TO YOU BY CREDENZ SOYBEAN SEED FROM BAYER. ) WELCOME BACK TO AGDAY WITH MIKE HOFFMAN. MIKE, IT LOOKS AS IF THINGS  ARE STARTING TO FINALLY DRY UP OUT WEST. YES, IT'S BEEN AN AMAZING  STREAK WITH ALL OF THOSE STORMS COMING IN BUT THE PATTERN HAS  SHIFTED. WE WILL SEE DRIER, WARMER CONDITIONS OUT WEST.  OF COURSE THAT MEANS THE OPPOSITE IS TRUE EAST. YOU CAN SEE THE COLD  FRONT COMING IN THE GREAT LAKES AND INTO THE SOUTH EAST. THERE WILL BE  SOME SHOWERS AND THUNDERSHOWERS AHEAD OF THAT FIRST COLD FRONT.  THEN IT WILL BE ALL LAKE EFFECT SNOW SHOWERS BACK BEHIND IT AS THE  COLD AIR STARTS TO COME IN. THIS IS NOT A BLAST OF A DEEP FREEZE QUITE  LIKE WE SAW YET. BUT DOWN THE ROAD, IT IS A POSSIBILITY. LET'S PUT THE MAPS  INTO MOTION. YOU CAN SEE THE IT CONTINUES TO MOVE EAST. SO IT WILL BE ALL  LAKE EFFECT OVER THE 12 HOURS. THE NEXT COLD FRONT LOOKS LIKE IT'S  POISED TO COME IN BUT THAT LOOKS LIKE IT WILL BE MOVED INTO WESTERN  CANADA. SO, HIGH PRESSURE IS GOING TO SIT OUT WEST. THAT'S JUST GOING TO  COVER EVERYTHING OFFSHORE. YOU'RE NOT GOING TO SEE ANY STORMS FOR  NOW ANYWAY COMING INTO THE WEST COAST FOR QUITE SOME TIME. FIRST  AREA OF HIGH PRESSURE MOVING EASTWARD INTO THE MISSISSIPPI VALLEY BY  THE TIME WE GET INTO TOMORROW MORNING, STILL SOME SNOW SHOWERS  INTO THE NORTHERN APPALACHIAN MOUNTAINS AND INTO THE EASTERN GREAT  LAKES. AS WE HEAD INTO THE DAY TOMORROW, YOU CAN SEE HIGHER  PRESSURE MOVING THROUGH MOST OF THE COUNTRY. MOST OF THAT LAKE  EFFECT FROM THOSE EASTERN SNOWS MOVING AND ANOTHER COLD FRONT  WILL BRING ANOTHER REINFORCING SHOT OF COLDER AIR. WITH TIME AND THIS  NEXT STORM SYSTEM OUT WEST, IT'S MOVING NORTHEASTWARD. EVERYTHING IS  COMING TO A STANDSTILL OUT WEST BUT THE COLDER AIR CONTINUES TO POUR  OUT EAST. PRECIPITATION ESTIMATES OVER THE PAST 24 HOURS, YOU CAN SEE SOME  ALONG THAT COLD FRONT IN THE SOUTHEAST. LIGHT AMOUNTS ACROSS THE  GREAT LAKES AND THE LINGERING SNOW STORM THAT MOVED ACROSS THE  NORTHERN PLAINS. ADDING IN THE NEXT 36 HOURS, YOU REALLY DON'T SEE  ANYTHING HEAVY ANYWHERE. I DON'T THINK THAT'S THE CASE. YOU'LL SEE SOME  SPOTS GET A HALF INCH OF MOISTURE OVER THE NEXT 36 HOURS OR SO.  SNOWFALL HAS BEEN THE BIG DEAL. SOUTHERN MINNESOTA, NORTHERN IOWA,  SEVERAL INCHES OF SNOW HAVE COME DOWN THERE. ADD THE NEXT 36 HOURS,  YOU'LL CONTINUE TO ADD SOME IN THE GREAT LAKES AND THE NORTHERN AND  CENTRAL APPALACHIANS WHICH IS KIND OF LAKE EFFECT AS WELL. THEY GET  THAT IN THIS SITUATION. WE'LL ADD SOME IN THOSE AREAS AND A LITTLE BIT IN  THE SOME OF THE HIGHER ELEVATIONS OUT WEST UNDER THE DOME OF HIGH  PRESSURE. AS FAR AS TEMPERATURES GO, IT'S NOT BITTERLY COLD IN THE  NORTHERN PORTIONS OF THE COUNTRY BUT IT'S A LOT CHILLIER DOWN SOUTH.  40S AND 50S FOR HIGHS NOW ALL IN THE WAY INTO DIXIE WIHT LOW TEMPS INTO  THE FREEZING MARK INTO THE TENNESSEE VALLEY AND NORTHERN PORTIONS  OF TEXAS AS WELL BUT LOWS IN THE 20S IN THE NORTHERN PLAINS AND  TOMORROW AFTERNOON IT'S MORE OF THE SAME. TEMPERATURES IN THE 20S TO THE 50S IN THE EASTERN PORTIONS OF THE COUNTRY GOING FROM NORTH  TO SOUTH. THERE'S THE JET STREAM. YOU CAN SEE THE FIRST BIT OF COLD AIR  AND ANOTHER SHOT COMING IN WITH A TROUGH COMING IN OVER THE WEEKEND  AND YET ANOTHER SHOT AS WE HEAD INTO THE MIDDLE OF NEXT WEEK. WE'LL  HAVE TO SEE WHAT HAPPENS AFTER THAT BUT AS WE GET THIS BIG CIRCULATION  OVER HUDSON BAY, WE TYPICALLY SEE THE COLD AIR GOING SOUTH. THAT'S A  LOOK ACROSS THE COUNTRY. NOW LET'S TAKE A LOOK AT SOME LOCAL  FORECASTS. FIRST OF ALL FOR GLASGOW, MONTANA, RATHER COLD WITH CLOUDS  AND SOME SUNSHINE. HIGH OF 22 DEGREES. MARSHALL, TEXAS, LOTS OF  UNSHINE, COOLER WITH A HIGH OF 52 AND FRANKFORT, KENTUCKY, CLOUDY AND  BREEZY. A RAIN OR SNOW SHOWER IS A POSSIBILITY  WITH A HIGH AROUND 40. 

TEASE
UP NEXT IS OUR DROVERS REPORT. WE'LL LOOK AT WHY THERE'S SUCH A BIG  DIVIDE BETWEEN RETAIL AND WHOLESALE BEEF PRICES. AND WE'LL INVESTIGATE THE SCIENCE BEHIND ICE STORMS. IT TAKES US TO AN  ICY FOREST IN NEW HAMPSHIRE. AGDAY - BROUGHT TO YOU BY TOP THIRD AG MARKETING.  FARMER-FIRST, WITH A PLAN FOR EVERY  MARKET.

DROVERS REPORT
THE PRICE GAP IS WIDENING BETWEEN WHOLESALE AND RETAIL BEEF PRICES.  ACCORDING TO DROVERS,  WHOLESALE FOOD PRICES ARE SHARPLY LOWER ACROSS THE BOARD - WHOLESALE BEEF  PRICES 18 PERCENT LOWER THAN A YEAR AGO.  RETAIL BEEF PRICES NOT BUDGING AS MUCH-ROUGHLY 7 PERCENT LOWER  THAN LAST YEAR.  NOW FOOD SERVICE PRICES IN GENERAL BARELY RESPONDING TO LOWER  WHOLESALE FOOD PRICES.  INDUSTRY LEADERS SAY FOOD SERVICE PRICES TEND TO BE LESS VOLITAL AND  STICKIER THAN AT RETAIL STORES.  "WHATEVER THE REASON WITH THE WIDENIGN GAP WITH GROCERY STORE AND FOOD SERVICE COSTS,  ANALYSTS BELIEVE THE NET IMPACT IS MORE TRAFFIC PER GROCERY STORES. THAT SHOULD BE A POSITIVE  TREND FOR BEEF AS IT HAS GOOD EXPOSURE AT RETAIL OUTLETS AND STILL HOLDS A FAVORABLE POSITION  AMONG CONSUMERS,"HENDERSON SAYS THE PRICE OF FOOD PRODUCTS OVERALL SOLD BY RETAILERS  IS  JUST 2.2 PERCENT LOWER THAN A YEAR AGO.  USDA'S COLD STORAGE REPORT SHOWING A RECORD AMOUNT OF BEEF IN THE  FREEZER FOR THE MONTH OF DECEMBER.  IT SHOWED 567 MILLION POUNDS OF BEEF COMPARED TO 512 MILLLION LAST  YEAR.  IT'S A DIFFERENT STORY FOR HOGS- TOTAL PORK IN STORAGE CAME IN AT ROUGHLY 477 MILLION POUNDS - ACCORDING TO TOP THIRD AG MARKETING - THAT'S THE LOWEST LEVEL SINCE  AUGUST OF 2011.  MILK PRODUCTION FOR THE FINAL MONTH OF 2016 IS UP ONCE AGAIN.  ACCORDING TO USDA'S MILK PRODUCTION REPORT,  FOURTH QUARTER MILK PRODUCTION IN THE U.S. TOTALING 52-POINT-5 BILLION  POUNDS, UP 2-POINT-4 PERCENT FROM THE SAME MONTHS LAST YEAR.  PRODUCTION PER COW AVERAGED ABOVE 19-HUNDRED POUNDS FOR DECEMBER  - 35 POUNDS ABOVE A YEAR AGO. THIS IS THE HIGHEST PRODUCTION PER COW  FOR THE MONTH OF DECEMBER SINCE RECORDS HAVE BEEN KEPT BACK IN 2003.  USDA'S GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION  PROPOSALS, ALSO KNOWN AS GIPSA, ARE ON HOLD FOR 60 DAYS.  THE REVIEW HAS BEEN PUT IN PLACE BY PRESIDENT DONALD TRUMP. GIPSA IS THOUGHT TO LEVEL THE PLAYING FIELD BETWEEN PRODUCERS AND  PACKERS. MANY INDUSTRY GROUPS SUCH AS NCBA AND NPPC OPPOSING THE  REGULATIONS. WHILE THE NATIONAL FARMERS UNION AND R-CALF FAVOR THE RULES. 

TEASE
STILL TO COME WE VISIT A FOREST THAT ALMOST LOOKS LIKE A REAL-LIFE SCENE  FROM THE MOVIE "FROZEN". BUT THERE IS NO ICE QUEEN ELSA. BUT THERE ARE  PLENTY OF HEARTY USDA RESEARCHERS. AGDAY - BROUGHT TO YOU BY TOP THIRD AG MARKETING.  FARMER-FIRST, WITH A PLAN FOR EVERY  MARKET.

IN THE COUNTRY
"IN THE COUNTRY - BROUGHT TO YOU BY KUBOTA.  SEE THE ALL-NEW KOMMANDER-PRO ZERO-TURN  MOWER AT KUBOTA.COM." THE ICE STORM THAT BLANKETED A WIDE SPANSE OF THE NATION'S MID-SECTION  TWO WEEKS AGO REMINDS US HOW ICE CAN HAVE A DEVASTATING EFFECT ON  ALL OF THOSE WHO GET HIT. AT THE HUBBARD BROOK EXPERIMENTAL FOREST IN NEW HAMPSHIRE,  RESEARCHERS WITH THE USDA FOREST SERVICE HAVE BEEN STUDYING  HOW  EXTREME WEATHER EVENTS, SUCH AS AN ICE STORM, AFFECT THE FOREST ECOSYSTEM. INSTEAD OF GOING TO ICE STORMS, OR WAITING FOR AN ICE STORM TO HIT THE  FOREST, THEY DECIDED TO MAKE THEIR OWN ICE STORMS. "AND I LIKE TO THINK THERE IS AN ART TO SCULPTING FORESTS, AND SO WE JUST SLOWLY BUILD UP LAYERS AND LAYERS OF ICE." "WE WANT TO UNDERSTAND THAT ABILITY OF TREES TO REBOUND FROM THINGS, EVEN SOME THINGS THAT LOOK SOMEWHAT DEVASTATING.  BUT WE ALSO KNOW THAT THAT ABILITY TO REBOUND IS NOT INFINITE."> ROO-STAD SAYS THEIR HYPOTHESIS IS THE FOREST WILL HAVE A MUCH HARDER  TIME RECOVERING FROM BACK-TO-BACK ICE STORMS. AN ICE STORM IN  1998 LEFT MILLIONS WITHOUT POWER AND CAUSED MORE THAN  FOUR BILLION  DOLLARS IN ECONOMIC DAMAGE.

CLOSE
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.  FOR ALL OF US AT AGDAY. I'M BETSY JIBBEN. HAVE A GREAT DAY. 

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