AgDay Daily Recap - June 2, 2016

June 2, 2016 02:57 AM
 

TODAY ON AGDAY
JUNE 2, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY :
TRADE DEAL TALK HEATS UP-WHAT'S IN IT FOR AGRICULTURE? < I'M MICHELLE ROOK. WHAT WILL THE TRANS ATLANTIC TRADE AND INVESTMENT PARTNERSHIP MEAN FOR AGRICULTURE? I'LL HAVE DETAILS TODAY ON AGDAY. >
HOW MUCH RELIEF WILL ARC PAYMENTS GIVE FARMERS FOR 2015? IN ANALYSIS-DOES A WEATHER MARKET MEAN MUCH SINCE FARMERS ALREADY EXPERIENCED A RALLY? AND AFTER MONTHS IN THE RED, CATTLE PRODUCERS ARE FINALLY SEEING SOME GREEN.
 
PUSH IS ON FOR PRESIDENT’S DIRECTIVES TO BE PUT INTO ACTION:
GOOD MORNING I'M BETSY JIBBEN. THE PUSH IS ON BY PRESIDENT OBAMA TO ADVANCE HIS TRADE AGENDA BEFORE LEAVING OFFICE.  THE PRESIDENT'S DIRECTIVE TAKES THREE ROUTES.  THE WHITE HOUSE WANTS CONGRESSS TO LIFT THE EMBARGO WITH CUBA AND NORMALIZE TRADE RELATIONS,  SECOND, THE PUSH FOR PASSAGE OF THE TRANS PACIFIC PARTNERSHIP.  AND THIRD -HIS MOST RECENT TRIP TO EUROPE TO LAY THE GROUNDWORK FOR THE TRANS ATLANTIC TRADE AND INVESTMENT PARTNERSHIP.
AG REPRESENTATIVES APPREHENSIVE ABOUT T-TIP:
WHILE FARM GROUPS HAVE BEEN LINING UP WITH THEIR SUPPORT FOR TRANS PACIFIC PARTNERSHIP AND THE LIFTING OF THE CUBA TRADE EMBARGO, THEY'RE MUCH MORE APPREHENSIVE ABOUT THE T-TIP AGREEMENT.  AGDAY'S MICHELLE ROOK LOOKS AT THE POLITICAL LANDSCAPE SURROUNDING THIS DEAL WITH EUROPE AND WHAT IS POSSIBLE TO GET DONE IN AN ELECTION YEAR.
IN WASHINGTON D.C. I'M MICHELLE ROOK REPORTING FOR AGDAY.
USDA FORECASTS U.S. AG EXPORTS:
THANKS MICHELLE. USDA JUST UPDATED ITS OUTLOOK FOR U-S AGRICULTURAL EXPORTS.  THE AG DEPARTMENT NOWS SHOWS EXPORTS AT 124AND-A-HALF BILLION DOLLARS IN FARM GOODS. THAT'S DOWN 500-MILLION DOLLARS FROM FEBRUARY.  COMPARED TO A YEAR AGO, EXPORTS ARE DOWN 11PERCENT.  U-S AG IMPORTS COME IN AT 114-POINT-EIGHT BILLION DOLLARS IN THE LATEST PROJECTION. THAT LEAVES A TRADE BALANCE SURPLUS OF NEARLY TEN BILLION DOLLARS.
 RICE TRADE WITH CUBA BEGINS AGAIN:
SPEAKING OF TRADE AND CUBA -THE COUNTRY IS NOW OPENING ITS DOOR TO MISSOURI RICE FOR THE FIRST TIME SINCE 2008.  THE COUNTRY THAT USED TO BE A MAJOR EXPORT DESTINATION FOR THE SHOW-ME CROP FORMALLY ACCEPTED A 20 TON SHIPMENT OF HIGH QUALITY LONG GRAIN RICE. MISSOURI GOVERNOR JAY NIXON MADE THE ANNOUNCEMENT DURING A RECENT VISIT TO CUBA. THE STATE RANKS FOURTH IN THE NATION FOR RICE PRODUCTION.
RICE CROP PROGRESS:
AS FAR AS THE 2016 RICE CROP....MOST IS NOW PLANTED IN THE SIX TOP-GROWING STATES. MISSOURI
AND TEXAS ARE BOTH EXPERIENCING DELAYS.  AND 88-PERCENT HAS EMERGED. THAT'S THREE POINTS
AHEAD OF THE AVERAGE PACE.  MOST OF THE CROP IS GOOD. ANOTHER QUARTER IS
JUST FAIR.
ARC:
IT LOOKS LIKE THE 2015 ARC-COUNTY PAYMENTS WON'T PROVIDE FARMERS MUCH FINANCIAL RELIEF THIS FALL.  ACCORDING TO OUR REPORTING PARTNERS AT AGWEB, THE 2015 PAYMENTS RELEASED THIS FALL WIL LIKELY BE LOWER THAN THE CHECKS PRODUCERS RECEIVED LAST YEAR FOR THE 2014 CROP YEAR.  AGWEB REPORTS FARMERS IN NORTHERN ILLINOIS COULD RECEIVE 70 TO 80 DOLLARS PER ACRE FOR CORN, WHILE GROWERS IN SOUTHERN ILLINOIS MIGHT SEE 50 TO 60 DOLLARS PER BASE ACRE OF CORN. AND SOME OF THE HIGH YIELDING COUNTIES IN ILLINOIS, MIGHT NOT SEE ANY PAYMENTS AT ALL.
CROP COMMENTS:
NOW LET'S CHECK IN WITH MIKE HOFFMAN FOR THIS MORNING'S CROP COMMENTS. MIKE
GOOD MORNING, BETSY.  LET'S START OFF IN NORTHEAST NEBRASKA, MATT NELSON IS PLANTING SOYBEANS INTO HIS RYE COVER CROP.  USDA SAYS 73 PERCENT OF THE NEBRASKA SOYBEAN CROP IS IN THE GROUND. THAT'S 9 POINTS BELOW THE 5YEAR AVERAGE FOR THAT STATE.
TEASE:
WE'VE ALREADY SEEN ONE WEATHER-RELATED MARKET THIS SPRING. BUT WHAT HAPPENS THE NEXT TIME? WILL YOU BE PREPARED? WE'LL TAKE A CLOSER LOOK NEXT IN ANALYSIS. AND FIND OUT HOW LIFE-LIKE CADAVERS ARE CHANGING THINGS FOR VETERINARY STUDENTS.
FROM THE FLOOR OF THE CME:
IN AGRIBUSINESS TODAY -GRAINS WERE GREEN MOST OF THE DAY IN CHICAGO. LET'S GET A LOOK AT THE "CLOSE" FROM THE CME, WEDNESDAY AFTERNOON GRAINS AND WE SEE PRETTY MUCH HIGHER PRICES ACROSS THE BOARD. SO WITH YESTERDAY'S BEARISH REPORT, THE MARKETS ARE EXPLODING, SURPRISE SURPRISE. ALL I'M SAYING IS MAKE SURE YOU HAVE YOUR DOWNSIDE PROTECTED IF YOU'RE A FARMER OR PRODUCER BECAUSE YOU'RE NOW GETTING, IN MY OPINION, WOULD BE A GIFT IN THIS MARKET. WE'RE GETTING SOME NICE HIGH PRICES AND WE CAN HEDGE MUCH BETTER OFF AND CONTINUE TO ROLL THAT BASIS UP. WEDNESDAY'S LIVESTOCK WE SEE MODERATE PRICES, A LITTLE BIT LOWER IN FEEDERS, MORE FLAT IN THE LIVE CATTLE. AND A LITTLE HIGHER IN THE HOGS. AND LIVE CATTLE IS 117 APPEARS TO BE THE BATTLE GROUND. THAT'S THE WAY I SEE IT, THIS IS TODD HORWITZ FROM BUBBA TRADING DOT COM COMING TO YOU FROM THE FLOOR OF THE CME GROUP IN CHICAGO.
PROFARMER:
ON WEDNESDAY'S SHOW, TYNE MORGAN TALKED ABOUT HOW TO PREPARE FOR A POSSIBLE WEATHER EVENT THIS SUMMER. TODAY'S ANALYSIS EXPANDS ON THE TOPIC, ESPECIALLY CONSIDEIRNG WE'VE ALREADY SEEN A RALLY THIS YEAR.
WELCOME BACK. WE ARE WITH TED SEIFRIED OF ZANER AG. ALL RIGHT, TED WE KEEP HEARING ABOUT THIS WEATHER MARKET, WE HAVE HEARD ABOUT THIS FOR MONTHS, BUT CONSIDERING THAT WE HAVE ALREADY HAD THIS SURPRISE APRIL RALLY, EVEN IF WE DO HAVE A WEATHER EVENT, DO YOU THINK IT MOVES MARKETS THAT MUCH THIS SUMMER SINCE WE HAVE ALREADY HAD SUCH A BIG PRICE MOVEMENT?> WELL TO SOME EXTENT YES, BECAUSE YOU LOOK AT WHAT THE USDA IS LOOKING FOR IN CORN YIELD, THE 1.68 THAT IS A VERY HIGH NUMBER TO BE STARTING OFF WITH.
NATIONAL WEATHER:
AND WELCOME BACK. WE CONTINUE TO SEE SOME HEAVY RAINS IN PARTS OF TEXAS UNFORTUNATELY. NOT GOOD NEWS AT ALL, BUT WHEN YOU HAVE A CUTOFF SYSTEM...IT JUST SITS THERE AND SPINS. NOW IT WILL TEND TO GET MORE SCATTERED. IT'LL TEND TO GET LIGHTER AS WE HEAD THRU THE NEXT COUPLE OF DAYS. BUT NONETHELESS YOU DON'T NEED ANY MORE RAIN IN MOST OF THE STATE OF THE TEXAS. SO YOU CAN SEE ANOTHER STORM SYSTEM UP NORTH OF THE GREAT LAKES. SOME SHOWERS AND T'SHOWERS OFF THROUGHOUT THE NORTHEAST, EASTERN GL AND ALSO  LINGERING AFFECTS FROM THE REMNANTS OF BONNIE CONTINUE TO PUT DOWN SOME RAIN ALONG THE COAST OF NORTH CAROLINA. THAT SYSTEM IS FINALLY GOING TO MOVE NORTHEASTWARD. BUT YOU CAN SEE AS I PUT THINGS IN MOTION, NOT A LOT MOVING THROUGH THE SOUTHERN TIER STATES. THERE'S SOME MOVEMENT FARTHER NORTH WHERE THE JET STREAM IS MOVING A LITTLE MORE QUICKLY. BUT YOU CAN SEE THE SHOWERS AND T'STORMS ARE CONTINUING NOT ONLY FOR TEXAS BUT FOR PARTS OF OKLA, ARK, LA, AND ON UP THE FRONT OF THE APPALACHIANS AS WE HEAD THRU THE DAY TODAY.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY NOW A LOOK AT SOME LOCAL FORECASTS. WE HEAD TO FALLON NEVADA FIRST OFF ALL. PARTLY SUNNY AND QUITE WARM HIGH UP TO 93. WILMAR, MINNESOTA MOSTLY SUNNY, PLEASANTLY WARM HIGH OF 73 AND CHARLOTTE NORTH CAROLINA WARM AND HUMID,A  SPOTTY AFTERNOON THUNDERSTORM, HIGH OF 86.
TEASE:
STILL TO COME, THE GOVERNMENT'S WATCHDOG AGENCY WANTS TO FIND OUT WHY CATTLE PRICES TOOK SUCH A DEEP DECLINE. WE'LL GET DETAILS FROM OUR PARTNERS AT DROVERS.
AND FIND OUT HOW CADAVER STUDIES ARE CHANGING AT ONE VETERINARY SCHOOL....THANKS TO NEW TECHNOLOGY.
INVESTIGATION INTO CATTLE PRICES :
FROM OUR REPORTING PARTNERS AT DROVERS, THE SHARP DROP IN CATTLE PRICES WILL GET A SECOND LOOK. THE U-S GOVERNMENT ACCOUNTABILITY OFFICE ACCEPTED THE REQUEST FROM THE SENATE JUDICIARY COMMITTEE TO REVIEW THE REASONS CATTLE PRICES SAW SUCH A STEEP DROP LAST YEAR. THE U-S WATCHDOG AGENCY WILL ALSO EXPLORE THE IMPACT OF HIGH FREQUENCY TRADING ON CATTLE FUTURES. THE AGENCY DIDN'T GIVE A TIME FRAME FOR COMPLETING THE FORMAL REVIEW. THIS FOLLOWS R-CALF USA AND OTHER GROUPS ASKING THE SENATE JUDICIARY COMMITEE TO INVESTIGATE THE CATTLE PRICE COLLAPSE, ALLEGING THE PACKERS ARE MANIPULATING THE MARKETS.

CATTLE IN THE GREEN:
MEANWHILE, FEEDYARDS ARE FINALLY SEEING GREEN. THAT'S AFTER FACING MORE THAN 500 DOLLAR PER HEAD LOSSES LAST FALL. THE LATEST STERLING PROFIT TRACKER SHOWS FEEDYARD MARGINS REMAINING ABOVE 150 DOLLARS PER HEAD. THAT'S THE THIRD STRAIGHT WEEK OF PROFITS AFTER SEEING LOSSES FOR 17 MONTHS STRAIGHT. BEEF PACKER MARGINS INCREASED 22 DOLALRS PER HEAD, CREATING AN AVERAGE PROFIT OF 125 DOLLARS PER ANIMAL. THESE MARGINS ARE STEADY WITH MONTH AGO LEVELS.
BISON SALES RISE:
MEANWHILE, IT SEEMS CONSUMERS ARE TURNING TASTES TO BISON. THE NATIONAL BISON ASSOCIATION SAYS U-S SALES ARE UP 22 PERCENT IN JUST TWO YEARS. THAT'S INCLUDING SALES TO BOTH SUPERMARKETS AND RESTAURANTS. THE ASSOCIATION REPORTS SALES REACHED 340 MILLION DOLLARS IN 2015. AND NOW THE CONCERN SHIFTS TO FINDING ENOUGH MARKET-READY ANIMALS TO MEET THE GROWING DEMAND.
TEASE:
UP NEXT....DO YOU REMEMBER DISSECTING A FROG IN HIGH SCHOOL BIOLOGY? WELL THINGS HAVE CHANGED A LOT IN THE LAB. FIND OUT HOW, WHEN WE COME BACK.
IN THE COUNTRY:
CALL IT A SYNTHETIC SCHNAUZER OR A PLASTIC POODLE...A FLORIDA COMPANY IS MAKING REALISTIC, SYNTHETIC DOGS, SO VETERINARY STUDENTS CAN OPERATE ON THEM INSTEAD OF USING REAL ANIMALS.  <"BUT SKIN HAS A FAT LAYER...AND YOU CUT DOWN ITHROUGH THAT...>
CLOSING:
FOR TYNE MORGAN AND MIKE HOFFMAN, I'M BETSY JIBBEN. HAVE A GREAT DAY.

PROMO:
I'M BETSY JIBBEN. FRIDAY ON AGDAY MEET A DAIRY PRODUCER WHO PUTS HIS PEOPLE FIRST. PLUS WE VISIT A GREAT AMERICAN BARN AND MARKET ADVICE FROM THE PROFARMER PROFIT BRIEFING. TUNE IN FRIDAY FOR AGDAY.

 

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