AgDay Daily Recap - June 15, 2016

June 15, 2016 02:57 AM
 

TODAY ON AGDAY
JUNE 15, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -PUSHING PORK AS SUPPLIES RISE. WE THINK WE'RE GOING TO HAVE SIX TO EIGHT WEEKS WEHRE WE'RE CLOSE TO SLAUGHTER CAPACITY. THE PORK INDUSTRY HOPES GROWING THE APPETITE OVERSEAS WILL HELP EAT THROUGH THE HEFTY LOAD. IN AGRIBUSINESS, IT'S A BULL MARKET DRIVEN LARGEY BY FUNDS. "I THINK THAT'S WHERE A LITTLE BIT TOO MUCH WEATHER PREMIUM IS GETTING BUILT IN FROM THE FUNDS." WE'LL TELL YOU WHY COMMODITIES ARE SO ATTRACTIVE TO THE FUNDS AND HOW LONG THE MOMENTUM COULD LAST. THESE RIPE RED CHERRIES ARE READY FOR THE PICKING, BUT HARVEST MAY NOT LAST LONG. AND THIS ISN'T ACCUPUNCTURE-IT'S DRY NEEDLING. THE BENEIFTS OF THE POPULAR TREND IN AG FOR YOUR HEALTH.
AG GROUPS ADVOCATE FOR TRADE DEALS:
GOOD MORNING I'M TYNE MORGAN. THE PRESIDENTAL ELECTION IS TAKING CENTER STAGE IN WASHINGTON, BUT THAT'S NOT STOPPING AG GROUPS FROM PUSHING FOR A MAJOR TRADE DEAL THEY CLAIM WILL BOOST FARMERS AND RANCHERS' BOTTOMLINE. MOVEMENT ON THE TRANS PACIFIC PARTNERSHIP IS AT A STANDSTILL IN WASHINGTON THE CONTROVERSIAL AGREEMENT INVOLVING 12 PACIFIC RIM COUNTRIES CONTINUES TO STIR UP DEBATE ON BOTH SIDES. JUST LAST WEEK GOOGLE PLEDGED ITS SUPPORT FOR THE AGREEMENT, CLAIMING IT'S THE COUNTERWEIGHT TO RESTRICTIVE INTERNET POLICIES AROUND THE WORLD. CHIEF AGRICULTURAL NEGOTIATOR DARCY VETTER IS CONFIDENT THAT DESPITE THIS BEING A PRESIDENTIAL ELECTION YEAR, THERE'S STILL TIME TO SEAL THE DEAL.
TOP PORK BUYER:
UNDER THE AGREEMENT, UNITED STATES' TOP PORK BUYER, JAPAN, SAYS IT WILL REMOVE THE 20 PERCENT TAX ON SEASONED GROUND BEEF AND 10 PERCENT TAX ON SAUSAGES. IN THE MEANTIME, CHINA IS ON PACE TO BEAT OUT JAPAN AS THE BIGGEST EXPORT MARKET THIS YEAR. NATIONAL REPORTER BETSY JIBBEN EXPLORES THE HURDLES THE INDUSTRY HAS TO WORK THROUGH TO MAKE SURE THE WORLD EATS MORE PORK. AN INCREASE OF PORK IS EXPECTED ON THE MARKET COME FALL. NOW THE INDUSTRY IS TRYING TO MAKE SURE THAT PRODUCT HAS A HOME. WE THINK THAT'S GOING TO BE MORE SEVERE THIS FALL. WE THINK WE'RE GOING TO HAVE SIX TO EIGHT WEEKS WEHRE WE'RE CLOSE TO SLAUGHTER CAPACITY.BUT MORE PORK PROCESSING PLANTS ARE ON THE WAY. PLANTS ARE EXPECTED TO BE UP AND RUNNING IN MICHIGAN, IOWA, MINNESOTA AND MISSOURI BY LATE 2016 OR 2017. IN APRIL ALONE, U.S. PORK EXPORTS TO CHINA SURPASSED EXPORT VOLUME TO JAPAN FOR THE FIRST TIME.
DESPITE SOME CHALLANGES WITH RESTRICTIONS AND THE U.S. DOLLAR, MORE PORK IS COMING TO MARKET, AND THE INDUSTRY HOPES YOU'RE READY. REPORTING FOR AGDAY, I'M BETSY JIBBEN.
FARMERS STILL STRUGGLING TO REPAY LOANS ON LAND:
THANKS, BETSY. INCREASED TRADE IS EXPECTED TO HELP BOOST NET FARM INCOME, BUT TODAY, FARMERS WHO EXPANDED PRODUCTION BY RENTING MORE GROUND ARE HAVING A HARD TIME REPAYING LOANS. BLOOMBERG REPORTS AS ON-FARM PROFITS SUNK TO A 14-YEAR LOW, RENTS BARELY BUDGED. F-S-A SHOWS IT'S ALLOCATED 140 MILLION DOLLARS A MONTH SINCE OCTOBER FOR DIRECT OPERATING LOANS. THAT ONLY LEAVES 129 MILLION IN THEIR BUDGET FOR THE REMAINDER OF THIS FISCAL YEAR. ESTIMATES POINT TO 39 PERCENT OF U-S FARM RENTING GROUND, WHICH COULD SIGNAL MORE CONSILDATION TO COME AS FARMS STRUGGLE TO REPAY LOANS. WALT HAGOOD FARMS SOUTH OF LUBBOCK TEXAS AND SITS ON AN AREA BANK BOARD. HE SAYS THE FINANCIAL PRESSURE IS CAUSING A DELAY IN FARMERS EVEN GETTING FINANCED FOR THE YEAR.
ODDS STACKED AGAINST YOUNG FARMERS:
MEANWHILE, FARM CREDIT SAYS YOUNG AND BEGINNING FARMERS ARE IN THE MARKET FOR MORE FARM LOANS. LOANS TO BEGINNING FARMERS SHOT UP 7 POINT 5 PERCENT FROM 2014 TO 2015.
CROP COMMENTS:
WE'RE GIVING BOTH THE WESTERN AND EASTERN CORN BELT SOME LOVE IN THIS MORNING'S CROP COMMENTS. LET'S CHECK IN WITH MIKE HOFFMAN FOR AN UPDATE. GOOD MORNING, TYNE. LET'S START OFF IN PICKAWAY COUNTY, OHIO. MIKE ESTADT SAYS CENTRAL OHIO CROPS COULD USE A DRINK OF WATER. WELL, THEY MAY BE IN LUCK. THERE'S A POSSIBILITY FOR SHOWERS IN THEIR FORECAST. USDA SAYS 65 PERCENT OF THE STATE'S CORN CROP IS RATED GOOD TO EXCELLENT. OVER IN SOUTH-CENTRAL NEBRASKA, RANDY UHRMACHER (ER-MOCK-ER) IS ABOUT DONE SPRAYING CORN. HE SAYS THE YELLOW SPOTS -DUE TO TOO MUCH RAIN -ARE SLOWLY DISAPPEARING. HE SAYS HIS AREA HAS AVERAGE LOOKING CORN AT THIS POINT. BEANS LOOK REALLY GOOD. USDA'S LATEST CROP PROGRESS REPORT SAYS 79 PERCENT OF THE STATE'S CORN AND SOYBEANS ARE BOTH RATED GOOD TO EXCELLENT. AND TAKING A LOOK AT THE CROP MOISTURE YOU CAN SEE THE WET AREAS HAVE BEEN PUSHED DOWN INTO TEXAS AND THE SOUTH EAST WITH MOST OF THE CORN BELT NO LONGER TO WET IN FACT A LOT OF DRY AREAS STARTING TO SHOW UP BUT THE REAL DRY SPOTS IN THE CROP MOISTURE OUT WEST I'LL HAVE MY FORECAST COMING UP BUT NOW HERE ARE SOME HOMETOWN TEMPS.
TEASE:
AS FARMERS RIDE CONTINUE TO RIDE THE BULL MARKET IN SOYBEANS, IT WAS KICKED OFF BY FUND BUYING. BUT IS THE FUND MONEY STILL INTERESTED IN AG? WE'RE OFF TO THE NORTHWEST TO SEE HOW BIG OF A BITE THE WEATHER TOOK OUT OF THIS YEAR'S CHERRY CROP. AND LATER, MANY FARMERS AND RANCHERS PUT WEAR-N-TEAR ON THEIR KNEES. FIND OUT HOW INFLICTING A LITTLE MORE PAIN WITH A TINY NEEDLE MAY ACTUALLY HELP.
AGRIBUSINESS:
WHILE SUPPLY-AND-DEMAND FUNDAMENTALS DRIVE GRAIN MARKET GYRATIONS.... MANAGED FUNDS ARE BECOMING A BIG PLAYER. CLINTON GRIFFITHS TAKES A CLOSER LOOK IN THIS MORNING'S ANALYSIS. DUSTIN JOHNSON WITH AGYIELD OUR GUEST HERE AT THE AGRIBUSINESS TASK THAT WAS TALKED ABOUT THE FUND MONEY AND HOW IT'S REALLY BEEN IMPACTING SOME OF THESE COMMODITIES AS WE'VE SEEN BIG TIME SHIFTSS IN THE LAST FEW MONTHS YEAH DEFINITELY WELL NUMBER ONE THING IS YOU KNOW THERE'S THIS YIELD CHASING OUT THERE IN THE FINANCIAL WORLD AND SO YOU'RE HAVING YOU KNOW THAT THE RISK FREE RATE NEAR ZERO SO WHAT DOES THAT DO IT PUSHES EVERYONE TOWARDS A RISKIER ASSETS SO COMMODITIES HAVE BEEN VERY POPULAR TRADES IN THE LAST DECADE WE KNOW YOU KNOW CRUDE OIL IS THEN YOU KNOW WELL ABOUT A HUNDRED DOLLARS AND YOU KNOW HAD A COLLAPSE A RIGHT ABSOLUTELY WE SAW THE SAME THING HAPPENED LAST YEAR THEY WENT FROM A RECORD SHORT TIME IN JUNE CAUGHT IN JUNE FOR CORN IN TWO THOUSAND FIFTEEN
NATIONAL WEATHER:
WELCOME BACK MIKE COFFMAN JOINS US AGAIN I DON'T WANT TO COMPLAIN BUT IN OUR LITTLE POCKET IN INDIANA IT'S GETTING DRY. WE HAVEN'T HAD A DECENT AMOUNT OF RAIN IN A MONTH. AND RIGHT IT'S BEEN ABOUT THAT OTHER PARTS OF MIDWEST ARE SEEING A LITTLE BIT OF THAT AS WELL ALTHOUGH I THINK WE'VE BEEN MISSED MORE OFTEN AND SOME OTHERS BUT IT IS CONCERNED WILL WE START TO SEE AN EXPANDING AREA OF DRYNESS DEVELOP AS OF TODAY YOU CAN SEE A STORM SYSTEM FROM MINNESOTA DOWN INTO THE OHIO VALLEY WITH SHOWERS AND THUNDERSTORMS A LOT OF THE MOISTURE AS YOU SEE IS BASICALLY TO THE NORTHEAST TO THE WARM FRONT AT LEAST TO START THE DAY SO FROM NORTHERN MINNESOTA DOWN INTO WISCONSIN MINNESOTA MICHIGAN NORTHERN INDIANA WHERE WE'RE LOCATED ALTHOUGH YOU CAN SEE OUR MODELS SHOW A LITTLE BIT OF NOTHING THERE RIGHT OVER US WE ARE GOING TO SEE AREAS OF SHOWERS AND THUNDERSTORMS WITH THIS SYSTEM AS IT MOVES EAST
REGIONAL WEATHER:
NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS WHERE THE TWIN FALLS IDAHO FIRST OF ALL PARTLY SUNNY AND RATHER COOL HIGH OF SIXTY SIX DENTON TEXAS PARTLY SUNNY HOT AND HUMID HIGH OF NINETY FOUR IN PERU INDIANA HUMID WITH A COUPLE OF THUNDERSTORMS AROUND HIGH AROUND EIGHTY SEVEN DEGREES
TEASE:
STILL TO COME -NEWS FROM OUR PARTNERS AT "THE PACKER"...INCLUDING A LOOK AT THIS YEARS CHERRY CROP IN THE U-S. PLUS, CAN YOU GUESS WHICH COUNTRY GROWS TEN TIMES MORE APPLES THAN THE U-S? THE ANSWER IS STRAIGHT AHEAD. AND LATER -NEEDLES HAVE BEEN USED FOR THOUSANDS OF YEARS TO TREAT PAIN. BUT WHERE THEY'RE BEING PLACED ON THE BODY IS CHANGING. WE'LL GET "TO THE POINT" LATER ON AGDAY.
SLIGHT DROP IN CHERRY HARVEST DUE TO WEATHER:
IN PACKER T-V, NOT ONLY DOES THIS YEAR'S WEATHER TAKE A SMALL BITE OUT OF THE CHERRY CROP, BUT IT'S CREATING A SHORTER HARVEST WINDOW FOR GROWERS. WE AREN'T TALKING A MAJOR SHORTAGE OF CHERRIES THIS YEAR. ACCORDING TO OUR REPORTING PARTNERS AT THE PACKER, PRODUCTION IS EXPECTED TO DROP 4 PERCENT IN THE PACIFIC NORTHWEST, NOW AT 18 POINT 4 MILLION POUNDS. THAT'S DOWN FROM THE 19 POINT 8 MILLION BOX PREVIOUSLY FORECAST. WEATHER COMPRESSED THE BLOOM PERIOD, WHICH IN TURN, SHORTENS THE TIME TO HARVEST. THE QUALITY OF THIS YEAR'S CROP LOOKS PROMISING IN OREGON, THANKS TO MOTHER NATURE.
TEASE:
STILL TO COME, IT MAKES SOME PEOPLE CRINGE, OTHERS SWEAR BY IT. THE GROWING POPULARITY OF DRY NEEDLING, AND WHAT EXPERTS ARE DOING TO BETTER UNDERSTAND IT, NEXT IN AG FOR YOUR HEALTH. WHERE CAN YOU TALK TOMORROW'S MARKETS TODAY? JOIN CHIP FLORY FIVE DAYS A WEEK FOR MARKET RALLY RADIO -ALL MARKETS ALL THE TIME.
IN THE COUNTRY:
IF THE THOUGHT OF NEEDLES MAKES YOU A LITTLE UNEASY, THE POPULAR TREND KNOWN AS DRY NEEDLING MAY NOT BE FOR YOU. BUT A GROWING NUMBER OF PEOPLE SWEAR BY IT -INSISTING IT NOT ONLY EASES PAIN, BUT MAY BE ABLE TO PREVENT INJURIES. IN THIS REPORT PROVIDED BY OHIO STATE UNIVERSITY WEXNER MEDICAL CENTER, CLARK POWELL EXPLAINS HOW IT WORKS...AND HOW IT DIFFERS FROM ACUPUNCTURE.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR ALL OF US AT AGDAY I'M TYNE MORGAN. HAVE A GREAT DAY IN FARM COUNTRY.
PROMO:
I'M TYNE MORGAN. FATHER'S DAY IS COMING-UP THIS WEEKEND. THAT MEANS BEEF ON THE GRILL FOR MANY FAMILIES. THURSDAY OUR PARTNERS AT DROVERS WILL LOOK AT WHOLESALE BEEF PRICES....AND SEE HOW THAT'S HELPING RETAILERS CLEAR THEIR MEAT CASES. WATCH US WEEKDAYS HERE ON AGDAY.
 

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