AgDay Daily Recap -April 1, 2016

April 1, 2016 02:57 AM
 

TODAY ON AGDAY
APRIL 1, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -THE USDA PROSPECTIVE PLANTINGS REPORT, DELIVERS A SHOCK TO CORN MARKETS. IN AGRIBUSINESS...BREAKING DOWN THE NUMBERS.. WE ADD ACRES TO CORN AND WE ADD ACRES TO COTTON WE HAVE TO TAKE THEM OUT OF SOMETHING. AN AGDAY EXCLUSIVE, INSIDE OF THE FOLD OF FARM JOURNAL'S MILK MAGAZINE COVER STORY. MEET AN IDAHO FARM FAMILY FINDING SUCCESS THROUGH DATA MANAGEMENT AND SMART TECHNOLOGY. NEW DRONE TECHNOLOGY COULD EXTEND FLIGHT TIMES FROM MINUTES TO HOURS. AND VINEYARD SUCCESS IN A TROPICAL CLIMATE.
USDA REPORT FORECASTS INCREASE IN CORN PLANTING:
GOOD MORNING I'M CLINTON GRIFFITHS. CORN FUTURES TOOK A BIG HIT THURSDAY AS THE AG DEPARTMENT FORECASTED A HUGE INCREASE IN CORN ACRES THIS YEAR. AND AS ONE MESSAGE ON TWITTER PUT IT -THIS IS "CORNPOCALYSE". USDA EXPECTS U-S FARMERS WILL PLANT 93-POINT-SIX MILLION ACRES OF CORN THIS SPRING. THAT'S A SIX PERCENT JUMP FROM LAST YEAR.
WHEAT FORECASTED TO DROP:
THAT ESTIMATE IS WELL ABOVE THE HIGHEST ESTIMATE FROM ANALYSTS PRIOR TO THE RELEASE. SOYBEAN ACRES COME IN AT 82-MILLION -DOWN ONE PERCENT. WHEAT CONTINUES TO TAKE A BEATING -WITH A NINE PERCENT DROP IN SEEDINGS. ACREAGE COMES IN 49-POINT-SIX MILLION ACRES.
WE DID SOME CHECKING. THE LAST TIME ACREAGE WAS BELOW 50 MILLION WAS IN 1970-71 WHEN PLANTED ACRES HIT JUST 48-POINT-SEVEN. AND COTTON ACRES REBOUNDED THIS YEAR -UP ELEVEN PERCENT -COMING IN AT NINE AND HALF MILLION.
ECONOMIST REMINDS THOSE IN AG THAT NUMBERS ARE A FORECAST:
AGRICULTURAL ECONOMIST MATT ROBERTS OF THEE OHIO STATE SAYS REMEMBER THESE ARE INTENTIONS BASED ON A SURVEY WHEN SNOW IS STILL ON THE GROUND FOR MANY FARMERS.
"IT IS SIMPLY WHAT ARE FARMERS ARE EXPECTING TO PLANT. WHEN WE LOOK OVERTIME FROM NOW UNTIL THE JUNE ACTUAL PLANTINGS REPORT, THE BIGGEST DRIVER IS NOT HOW PRICES CHANGE. THE BIGGEST DRIVER IS ACTUALLY WHAT WEATHER DOES. AS WE MOVE FORWARD IF IT'S PARTICULARLY WET WE TEND TO SEE MORE ACRES LEAVE CORN AND MOVE INTO BEANS SINCE THEY CAN DEAL WITH THAT SHORTER SEASON. BUT THAT TENDS TO BE THE BIGGEST DRIVER NOT PRICES. THESE ARE INTENTIONS, THERE'S A ALOT OF VARIABILITY BETWEEN NOW AND JUNE. AND SO WE CAN NOT FORGET THIS AT THIS POINT."
QUARTERLY GRAIN STOCKS:
THE OTHER BIG REPORT IS QUARTERLY GRAIN STOCKS. AND THAT BIG CROP GOT BIGGER WITH THIS NEW DATA. USDA SAYS CORN STOCKS AS OF MARCH FIRST WAS SEVEN-POINT-EIGHT BILLION BUSHELS, UP ONE PERCENT FROM A YEAR AGO.
PITCH TO ANALYSIS:
SOYBEAN STOCKS ARE UP 15-PERCENT -COMING IN AT ONE-AND A HALF BILLION BUSHELS. OUR PARTNERS AT PROFARMER HAVE BEEN SCRUTINIZING THE REPORTS. WE'LL HEAR FROM BRIAN GRETE IN ANALYSIS.  AFTER A BIG YEAR LAST YEAR, USDA IS EXPECTING SORGHUM PLANTINGS TO DROP-OFF. IT EXPECTS SEVEN-POINT TWO MILLION ACRES, DOWN 15-PERCENT. KANSAS AND TEXAS GROW THREE-QUARTERS OF THE NATION'S SORGHUM ACRES.
FARM JOURNAL LAUNCHES MILK:
BUILDING ON ITS COMMITMENT TO THE LIVESTOCK AND DAIRY INDUSTRY'S, FARM JOURNAL IS LAUNCHING A NEW DAIRY MAGAZINE THIS MONTH. FARM JOURNAL'S MILK MAGAZINE WILL TARGET THE UPPER END OF THE PRODUCTION SCALE AS THE INDUSTRY CONTINUES ITS SHIFT TOWARD LARGER AND MORE INTEGRATED OPERATIONS.
THE STORY BEHIND DAIRY FARM IN IDAHO THAT WENT FROM MANAGING 10-8,000 COWS:
TODAY, ROUGHLY 33-HUNDRED DAIRIES PRODUCE NEARLY TWO-THIRDS OF THIS COUNTRY'S MILK. ONE OF THOSE DAIRIES IS THE WHITESIDES DAIRY BASED IN SOUTHERN IDAHO....AND THIS FAMILY FARM IS APRIL'S MILK COVER STORY.
WITH EVERY DUMP...EVERY GALLON....AND EVERY COW...COMES INFORMATION...DATA THAT'S HELPING DRIVE EFFICIENCY AT THE WHITESIDES DAIRY IN RUPERT, IDAHO. WE CAN RUN ABOUT 900 COWS AN HOUR THROUGH. BETWEEN ALL THREE FACILITIES. SPEED AND EFFICIENCY...A PREREQUISITE IN TODAY'S MARKETPLACE. THE WHITESIDES DAIRY MANAGES SOME 8-THOUSAND COWS ACROSS TWO STATES, FARM ROUGHLY 8-THOUSAND ACRES AND RUN A 5-THOUSAND HEAD HEIFER LOT.
SNOW PACK IMPROVEMENT IN CALIFORNIA:
CALIFORNIA'S SNOWPACK MEASURING 87 PERCENT OF AVERAGE IN THE SIERRA MOUNTAINS. THAT'S A BIG CHANGE FROM LAST APRIL. YOU MIGHT REMEMBER WHEN WE SHOWED YOU CALIFORNIA'S GOVERNOR STANDING ON BARE GROUND IN APRIL 2015. THE STATE THEN IMPLEMENTED A MANDATORY 25-PERCENT REDUCTION IN WATER USE STATEWIDE. THE SNOWPACK PROVIDES 30 PERCENT OF CALIFORNIA'S WATER SUPPLY.
CROP COMMENTS:
 WHILE SOME FARMERS ARE PLANTING, OTHERS ARE BUSY RE-PLANTING. MIKE HOFFMAN HAS AN UPDATE IN THIS MORNING'S CROP COMMENTS. MIKE GOOD MORNING, CLINTON. CROP COMMENTS TAKE US TO JAMESTOWN, NORTH DAKOTA WHERE FARMERS ARE GETTING A START ON FIELD WORK. TEMPS WERE IN THE 50'S. AND NOT A LOT OF SNOW THIS YEAR. USDA SAYS NORTH DAKOTA FARMERS WILL PLANT 24-PERCENT MORE CORN THIS YEAR. AND ALL WHEAT ACRES ARE DOWN 12-PERCENT. AND NOW TO TEXAS -LINDSAY KIMBRELL SAYS SHE'S IN THE MIDDLE OF REPLANTING A COUPLE HUNDRED ACRES ON THE OPERATION. S HE SAYS OTHERS WITH AN EARLIER START DATE ARE REPLATING MUCH MORE. LINDSAY SAYS SOME CORN IS STARTING TO COME UP AND IT IS LOOKING MUCH BETTER. THAT'S ALL THANKS TO SHUNSHINE AND WARM DAYS.
DROUGHT MONITOR:
AND TAKING A LOOK AT THE DROUGHT MONITOR YOU CAN SEE AN EXPANDING AREA OF OF DROUGHT COMING FROM WESTERN OKLAHOMA PANHANDLE EASTWARD INTO SOUTHERN MISSOURI NORTHWESTERN ARKANSAS ALTHOUGH THE WORST AREAS CONTINUE TO BE OUT WEST WE'LL HAVE YOUR FORECAST COMING UP BUT NOW HERE ARE SOME HOMETOWN TEMPS WITH THE UNIQUELY POWERFUL FORMULATION OF PROVEN INGREDIENTS RESICORE CORN HERBICIDE GIVES YOU EXTRAORDINARY POWER AT LEAST WHEN IT COMES TO WEEDS.
TEASE:
 UP NEXT WE'LL TAKE A CLOSER LOOK AT MARKETS AND CONTINUE OUR REPORT REACTION. AND LATER, CLIMATE HAS ALWAYS BEEN A MAJOR FACTOR IN WINE MAKING. WE'LL SEE HOW THESE TROPICAL VINTNERS ARE SUCCEEDING LATER ON IN THE COUNTRY.
FROM THE FLOOR OF THE CME:
IN AGRIBUSINESS MARKETS REACTING QUICKLY TO USDA'S LATEST REPORTS. LETS GET DETAILS FROM THE FOLKS IN THE HEART OF THE ACTION AT THE CME IN CHICAGO.
IT'S BEEN A BALL OF HOUSE SESSION IF YOU HAVEN'T NOTICED. IT WAS A BIG REPORT DAY. WE HAD PROSPECTIVE PLANTINGS AND QUARTERLY GRAIN STOCKS. THAT REALLY SHOOK UP THE MARKETS. A BIT MORE CORN. IT'S GOING TO BE INTERESTING TO SEE HOW WEATHER PLAYS OUT. THERE'S TALK OF SOME FLOODING IN THE DELTA COULD MOVE ABOUT A MILLION AND MILLION AND A HALF ACRES TO SOYBEANS EVENTUALLY. SO WEATHER IS GOING TO CONTINUE TO BE VERY IMPORTANT AS WE GET INTO THAT SPRING PLANTING SEASON. AS FAR AS SOYBEANS ARE CONCERNED, A BIT MORE QUIET. STILL NEED TO GET ABOVE 9.15-9.17 AND A HALF. THAT'S THE POCKET WE'VE BEEN TALKING ABOUT THE PAST FEW WEEKS. WHEAT CATCHING A BIT OF A BID. PROBABLY THE MOST BULLISH OF THE REPORTS. SO THAT'S NICE TO SEE FOR A CHANGE. WHEAT HAS OBVIOUSLY BEEN UNDER PERFORMING IN THE MARKETS OVER THE PAST SEVERAL MONTHS.
THIS HAS BEEN OLIVER SLOUP, II TRADER, FROM THE FLOOR OF THE CME.
PROFARMER:
WE MENTIONED USDA'S GRAIN STOCKS REPORT EARLIER IN THE SHOW.  LETS SEE WHAT THE FOLKS OVER AT PRO FARMER HAD TO SAY ABOUT THAT SIDE OF THE LEDGER FROM THEIR STUIDOS IN CEDAR FALLS IOWA. I THINK IT WAS ANTICIPATED GOING INTO THE PP REPORT PRETTY MUCH BY EVERYONE THAT WE WOULD SEE AN INCREASE IN CORN ACRES, BUT NOT TO THE MAGNITUDE THAT USDA INDICATED WITH IT SURVEY HERE AS OF MARCH FIRST. THE EXPECTATIONS ARE THAT CORN PLANTING WILL BE UP 5.6 MILLION ACRES FROM LAST YEAR. THAT WAS 3.6 MILLION HIGHER THAN THE TRADE ANTICIPATED, SO A BIG BEARISH REPORT HERE FOR THE CORN MARKET AS WE HEAD INTO THE SPRING PLANTING SEASON. THE OTHER SIDE OF THE MARKET THAT HAD A BIG IMPACT IN TERMS OF ACRES COMING IN HIGHER THAN ANTICIPATED WAS COTTON. UP ALMOST A MILLION ACRES FROM A YEAR AGO AND WELL ABOVE TRADE EXPECTATIONS THERE AS WELL.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY ON A BUSY DAY. MIKE, LOOKING AT THE WEATHER MAP HERE, WE HIT SOME PRETTY BAD STORM THE DAY BEFORE YESTERDAY. WHAT ABOUT NOW? WELL, IT'S GETTING READY TO GET OFF THE EAST COAST. THERE COULD BE SOME BAD STUFF ON THE MID-ATLANTIC DOWN INTO THE SOUTHEAST. THAT WHOLE STORM SYSTEM IS MOVING EASTWARD. BEHIND THAT COLD FRONT, YOU SEE MOVING INTO THE MID-ATLANTIC, THERE'S A COUPLE MORE COLD FRONT. THERE'S EVEN ANOTHER BEHIND THIS UP IN NORTHWESTERN CANADA.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY. NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL, FOR GALENA, NEVADA, MOSTLY SUNNY AND CHILLY TODAY. THE HIGH TEMPERATURE OF 49. ST. CLOUD, MINNESOTA IS BREEZY WITH CLOUDS AND SOME SUNSHINE. THE HIGH IS 35 AND AIKEN, SOUTH CAROLINA, SHOWERS AND THUNDERSTORMS. POSSIBLY HEAVY. THE HIGH IS AROUND 76.
TEASE:
UP NEXT A NEW DRONE COULD GREAT EXTEND THE FLIGHT TIME OF THESE AERIAL OBSERVERS. WE'LL HAVE DETAILS AFTER THE BREAK. AND LATER, SUCCEEDING IN WINE MAKING WHILE LIVING IN A TROPICAL CLIMATE. WE'LL TELL YOU HOW THIS OPERATION IS WINNING THANKS MODERN AG TECHNOLOGY.
HYDROGEN FUEL CELLS GIVE DRONES MORE FLIGHT TIME:
IN NEWS FROM OUR DRONE ZONE -AN ENGLISH COMPANY SAYS IT HAS DEVELOPED A WAY TO DRAMATICALLY INCREASE THE FLIGHT TIME OF U-A-V'S. UK-BASED "INTELLIGENT ENERGY" SAYS HYDROGEN FUEL CELLS CAN EXTEND FLIGHT TIEMS FROM 15 MINUTES TO UP TO TWO HOURS. INDUSTRY EXPERTS SAY THIS TECHNOLOGY COULD BE A GAME-CHANGER. ON TOP OF THE DRONE ARE TWO HYDROGEN FUEL CELL STACKS FITTED WITH FANS TO USHER IN OXYGEN, WHICH PROMPTS THE CHEMICAL REACTION. HUGHES SAYS THE WATER BY-PRODUCT PRODUCED BY THE REACTION IS SO MINIMAL IT DISAPPEARS AS VAPOR.
TEASE:
NEXT, THE TROPICS ARE NOT NOTED AS A PLACE TO GROW WINE GRAPES. BUT WE FOUND A VINEYARD WITH PLENTY OF SUCCESS.


IN THE COUNTRY:
WINE GRAPES NEED JUST THE RIGHT CONDITIONS TO SUCCESSFULLY GROW.  AND TROPICAL CLIMATE WOULD NORMALLY SPELL DEATH FOR THE CROP. BUT THAT APPEARS TO BE CHANGING. AT FIRST GLANCE THIS MIGHT PASS AS A VINEYARD IN TUSCANY OR BORDEAUX OR NAPA VALLEY IN CALIFORNIA. BUT THIS ACTUALLY GRAPE HARVEST TIME IN THE COUNTRY OF MEE-AN-MAR (MYANMAR) IN SOUTHEAST ASIA. FOR THE PAST 12 YEARS, THE VINEYARD OWNER -WHO IS A GERMAN TRANSPLANT -HAS BEEN BUILDING A MARKET AND A REPUTATION FOR VERY DRINKABLE WINES. HIS BUSINESS PARTNER SAYS THERE ARE SPECIAL GROWING CHALLENGES,
CLOSING:
 THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.  FOR OUR PARTNERS AT PROFARMER AND MIKE HOFFMAN, I'M CLINTON GRIFFITHS. HAVE A GREAT WEEKEND.
PROMO:
I'M CLINTON GRIFFITHS -MONDAY ON AGDAY -MACHINERY PETE JOINS US FOR HIS WEEKLY LOOK AT THE HOTTEST EQUIPMENT PRICES. MIKE HOFFMAN HAS YOUR PLANTING FORECAST. AND ANALYSIS OF THE GRAIN MARKETS. WATCH US WEEKDAYS RIGHT HERE ON AGDAY.

 

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