AgDay Daily Recap -April 21, 2016

April 21, 2016 02:57 AM
 

TODAY ON AGDAY
APRIL 21, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -GRAINS CRACK KEY RESISTANCE LEVELS AT THE CME...WHILE WE CHECK ON THE HEALTH OF THE RURAL ECONOMY. THE DOWNSIDE OF THE NATURAL GAS BOOM.  IN AGRIBUSINESS...LOOKING AT HOG MARKETS. WE ARE GOING TO BE WATCHING IS WHAT'S HAPPENING WITH CHINA. THEY HAVE BEEN IMPORTING TREMENDOUS HOG MARKET. DOES PUTTING BEEF IN THE FREEZER HURT ITS TENDERNESS? NEW RESEARCH. AND TECHNOLOGY HELPING THIS LAME DUCK GET MOBILE.
 MARCH RURAL MAIN STREET INDEX INDICATES COMMODITIES STILL STRUGGLING:
GOOD MORNING I'M CLINTON GRIFFITHS. DESPITE SOME RECENT STRENGTHENING IN COMMODITY MARKETS, THE RURAL ECONOMY CONTINUES TO SPUTTER. CREIGHTON UNIVERSITY'S ' MARCH RURAL MAINSTREET INDEX...BACKING THAT UP. IT SURVEYS BANK CEO'S IN RURAL TOWNS ACROSS 10-STATES. OUR NATIONAL REPORTER, BETSY JIBBEN TAKES A CLOSER LOOK. IN THE MIDST OF ANOTHER GROWING SEASON, INCOME IS TOP OF MIND FOR MOST FARMERS.
FARM EQUIPMENT TAKES A HIT:
FARM EQUIPMENT TOOK THE BIGGEST HIT IN MARCH'S SURVEY. IT DECLINED TO RECORD LOW LEVELS. SOMETHING THAT'S ALREADY ECHOING THROUGHOUT THE FARMING COMMUNITY. "WHEN WE HAD GOOD PRICES, WE WERE TRADING QUITE OFTEN FOR SOME NEWER EQUIP. ALSO THE VALUE IN THOSE GOOD YEARS, THE VALUE WAS VERY GOOD. NOW NO ONE IS IN A BUYING MOOD WITH USED OR NEW EQUIPMENT,"  GOSS SAYS THE SURVEY'S FARMLAND PRICE INDEX FELL BELOW GROWTH NEUTRAL FOR THE 28TH STRAIGHT MONTH. FARMLAND PRICES ARE DOWN OVER THE PAST YEAR.
APPLICATIONS FOR OPERATING LOANS STILL COMING IN:
AT A HOUSE A SUBCOMMITTEE HEARING THIS WEEK, RANDY NELSON WITH CHS CAPITAL TOLD LAWMAKERS THEY'RE STILL SEEING APPLICATIONS COME IN FOR OPERATING LOANS--AS MORE BANKS PULL BACK ON FINANCING AGRICULTURE. GOSS MENTIONED ENERGY MARKETS... JUST DAYS AFTER OPEC FAILED TO AGREE ON WHETHER TO FREEZE OIL PRODUCTION -THEREBY HELPING OIL PRICES -SAUDI ARABIA IS SECURING A 10 BILLION DOLLAR LOAN TO ADDRESS A BUDGET SHORTFALL CAUSED BY THE DROP IN OIL PRICES.
KINGDOM SEEKS LOANS FROM INTERNATIONAL BANKS:
THE WALL STREET JOURNAL SAYS THE KINGDOM IS SEEKING LOANS FROM INTERNATIONAL BANKS, LIKE J-P MORGAN AND GOLDMAN SACHS. THE ARTICLE SAYS TERMS OF THE LOAN HAVE BEEN AGREED AND ONLY REQUIRES THE DOCUMENTATION TO BE FINALIZED.  THIS IS THE FIRST TIME IN A QUARTER CENTURY THE COUNTRY SOUGHT MONEY IN THE GLOBAL CREDIT MARKET. HERE AT HOME, AFTER A SEVERAL YEAR RUN-UP IN DOMESTIC OIL PRODUCTION, THE ENERGY INFORMATION ADMINISTRATION EXPECTS A DECREASE IN LOWER 48 OIL PRODUCTION. IN RESPONSE TO CONTINUED LOW PRICES, ON-SHORE CRUDE OIL PRODUCTION IS EXPECTED TO DECLINE FROM AN AVERAGE SEVEN-POINT-FOUR MILLION BARRELS PER DAY IN 2015 TO SIX-POINT-FOUR MILLION DAILY BARRELS THIS YEAR. AND THE DOWNWARD SLIDE IS EXPECTED TO CONTINUE INTO 2017 WITH FIVEPOINT-SEVEN MILLION BARRELS. IF YOUR LOCAL ECONOMY DEPENDS ON OIL AND NATURAL GAS PRODUCTION, THEN YOU'RE WITNESSING LIFE AFTER THE DRILLING BOOM.
FORMER BOOM TOWN FEELS THE DRAG ON THE OIL INDUSTRY:
IT'S A STORY PLAYING OUT IN SMALL TOWNS FROM NORTH DAKOTA TO TEXAS. BUT IT'S ALSO BEING FELT IN PENNSYLVANIA. RESIDENTS AND BUSINESS OWNERS IN PENNSYLVANIA'S VAST MARCELLUS SHALE NATURAL-GAS FIELD ARE ADJUSTING TO LIFE AFTER ENERGY FIZZLED. MICHAEL RUBINKAM OF THE ASSOCIATED PRESS HAS OUR STORY. MOTEL OWNER JAMIE PATEL SPENT MORE THAN A MILLION DOLLARS ON RENOVATIONS A FEW YEARS BACK ... A DECISION SHE NOW REGRETS. "NOW EVERYTHING IS KIND OF DEAD AROUND HERE." A NATURAL-GAS DRILLING BOOM THAT ONCE FILLED HER NORTHEASTERN PENNSYLVANIA MOTEL WITH WORKERS IS OVER. NOW PATEL'S STUCK WITH AN EMPTY MOTEL ... AND A BIG MORTGAGE PAYMENT. "IF IT'S CONTINUOUSLY LIKE THIS, I DO NOT KNOW HOW WE'RE GOING TO SURVIVE." OIL AND GAS DRILLERS HAVE PULLED BACK ACROSS THE COUNTRY, A REACTION TO SLUMPING ENERGY PRICES ...THIS RIG IN WESTERN PENNSYLVANIA, ONE OF THE FEW STILL OPERATING STATEWIDE. A FEW HOURS AWAY, A HOUSING COMPLEX THAT OPENED SIX YEARS AGO FOR DRILLING WORKERS SITS MOSTLY EMPTY. AS U-S GAS PRODUCTION SLOWS, NATURAL GAS FUTURES PRICES JUMPED BY THEIR HIGHEST MARGIN IN MORE THAN THREE MONTHS THIS WEEK.
MEXICO LIFTS BAN ON U.S. POULTRY, EXCEPT INDIANA POULTRY:
IN OTHER NEWS, MEXICO IS LIFTING ITS BAN ON U-S POULTRY EXPORTS IN EVERY STATE BUT INDIANA. THE BAN ORIGINALLY PUT IN PLACE ON 14 STATES DUE TO THE OUTBREAK OF HIGHLY PATHOGENIC AVIAN FLU IN 2015. MEXICO IS THE LARGEST BUYER OF U-S POULTRY AND POULTRY PRODUCTS SINCE 2010,. THEY BUY 25 PERCENT OF THE UNITED STATES' POULTRY SHIPMENT, EQUATING TO 1 POINT 2 BILLION DOLLARS A YEAR.
PITCH TO TOMORROW’S SHOW:
TOMORROW ON AGDAY, ITS BEEN A YEAR SINCE THE OUTBREAK IN THE UPPER MIDWEST. TYNE MORGAN TRAVELS TO KANSAS WHERE POULTRY PRODUCERS WERE ABLE TO STEM THEIR OWN DISASTER EARLIER THIS YEAR. SHE LOOKS AT HOW THE INDIANA REACTION IS PROVING THE INDUSTRY IS BETTER PREPARED FOR AVIAN FLU OUTBREAK.
PORK EXPORTS IMPROVE:
 MEANWHILE, U-S-D-A SAYS PORK EXPORTS ARE IMPROVING, GETTING BACK TO 2014 LEVELS. THAT'S LARGELY THANKS TO MORE INTEREST FROM CHINA. THE AGENCY REPORTING FOR THE MONTH OF FEBRUARY WERE 2 POINT 5 LARGER THAN A YEAR AO LOOKING AT VOLUME, EXPORTS EXCEEDED 35 MILLION POUNDS FOR HTE FIRST TIME SINCE 2014. LOOKING AHEAD, USDA INCRESAING ITS YEARLY EXPORT FORECAST TO 5 PERCENT ABOVE LAST YEAR. 
CROP COMMENTS:
CINDY CLAWSON IS IN FOR MIKE HOFFMAN THIS WEEK. SHE HAS OUR FIRST LOOK AT FARM COUNTRY WEATHER AND TODAY'S CROP COMMENTS. GOOD MORNING CLINTON. FROM OUR PARTNERS AT AGWEB WE HEARD FROM A FARMER IN LINCOLN COUNTY, MISSOURI WHO IS MOSTLY FINISHED WITH CORN PLANTING. A WHOPPING 58PERCENT OF THE STATE'S CORN WAS PLANTED. NOW SOME FARMERS ARE GETTING STARTED ON BEANS. .LAST YEAR A LOT OF THIS ACREAGE WENT TO PREVENT PLANT.
TEASE:
WHEN WE COME BACK, WE'LL TAKE A CLOSER LOOK AT THE HOG MARKET, WITH NAOMI BLOHM OF STEWARD PETERSON. FOR YEARS, GRILL COOKS HAVE WORRIED ABOUT THE AFFECTS ON STEAK TENDERNESS IF YOU PULL IT FROM A FREEZER. BUT NEW RESEARCH MAY CHANGE THAT ATTITUDE. PLUS, WE HEAD TO WISCONSIN WHERE PHILLIP THE "FOWL" IS ONE LUCKY DUCK. THIS IS MACHINERY PETE -INVITING TO CHECK OUT MY NEW WEBSITE MACHINERYPETE.COM. OFFERING FARMERS TENS OF THOUSANDS OF USED EQUIPMENT LISTINGS TO SEARCH. LET MACHINERY PETE HELP YOU FIND AND VALUE YOUR NEXT PIECE OF USED EQUIPMENT.
AGRIBUSINESS:
AN UPDATE TO OUR LEAD STORY WEDNESDAY. SOYBEAN SHOOTING PAST THE 10 DOLLAR MARK MID-WEEK. THE 24 CENT RALLY LARGELY DUE TO MORE FUND BUYING. AT YESTERDAY'S CLOSE, MAY THROUGH SEPTEMBER SOYBEANS TRADING ABOVE 10 DOLLARS. HERE AT THE AGRIBUSINESS DESK WE HAVE NAOMI BLOOM, STEWART PETERSON. NAOMI, LET'S TALK ABOUT THE LEAN HOG MARKET. IT ACTUALLY HAS BEEN FAIRLY DECENT EVEN THOUGH SUPPLIES HAVE BEEN PRETTY GOOD. > YEAH, THAT HOG MARKET HAD A REAL STRONG RALLY FOR FIRST QUARTER AND THE START OF SECOND QUARTER. HOWEVER, JUST RECENTLY IT SET BACK SOMEWHAT. PART OF IT WAS IT JUST DIDN'T HAVE ENOUGH FRIENDLY NEWS TO GET THROUGH THOSE OVERHEAD RESISTANCE LEVELS ON THE CHARTS AND NOW WE ARE SEEING THE CASH MARKET SHOW MIXED SIGNS AND SIGNALS. THE FUTURES PRICE HAD BEEN HOLDING A REAL STRONG PREMIUM TO THE ACTUAL CASH MARKET, SO WE ARE SEEING THAT FUTURES PRICE COME DOWN A LITTLE BIT. OVERALL, I WOULD SAY THAT THE HOG PRICE ARE PROBABLY GOING TO STAY IN THE MID-70S AND START TO TRADE SIDEWAYS.

NATIONAL WEATHER:
WELCOME BACK TO AGDAY CINDI CLAWSON IN LOOKING AT WEATHER CHECKING THESE FRONTS CINDI AND THEY JUST KIND OF SPINNING RIGHT THERE IN THE MIDDLE OF THE COUNTRY. YEAH WE'RE FINALLY GOING TO START TO SEE SOME DECENT MOVEMENT WITH THIS SYSTEM THAT'S JUST BEEN STALLED OVER THE NATIONS MIDSECTION AND MUCH OF THE PLAINS OVER THE PAST SEVERAL DAYS.
BUT NOTICE WE ARE STILL GOING TO BE SEEING SOME RAIN IN PARTS OF TEXAS WHERE WE DON'T NEED IT. LETS TAKE A LOOK. THIS WHOLE SYSTEM AND THIS WEATHER SET UP HAS BEEN PLAGUING SOME AREAS IN THE WEST. THE PLAINS OUT IN THE ROCKIES WHERE WE HAD SO MUCH SNOW. WE ARE STILL DEALING WITH A LITTLE BIT OF RAIN ESPECIALLY IN NORTHERN TEXAS BUT THE SYSTEM IS FINALLY GETTING THE BOOT AND IS GOING TO BE MOVING THROUGH THE CENTRAL AND EASTERN CORN BELT TODAY. LETS PUT THIS INTO MOTION AND YOU'LL SEE THE MOVEMENT OF THE SYSTEM AND YOU ALSO HAVE A COLD FRONT THAT'S DRAPING DOWN FROM CANADA AS WELL THAT'S GOING TO HELP INCREASE THE PRECIPITATION AND FOCUS THAT ESPECIALLY UP IN THE GREAT LAKES.
REGIONAL WEATHER:
THAT'S A LOOK AT YOUR NATIONAL FORECAST NOW LETS CHECK ON SOME LOCAL CITIES. WRIGHT WYOMING LOOK FOR SUNSHINE AND WARMER CONDITIONSTODAY WITH A HIGH OF 68. ALSO 68 IN WINCHESTER, INDIANA BUT LOOK OUT FOR SHOWERS AND THUNDERSTORMS. AND WINSLOW, ALABAMA SHOWERS AND THUNDERSTORMS FOR YOU AS WELL.
TEASE:
WHEN WE COME BACK WE'LL LOOK AT THE PROFITABILITY OF THE BEEF INDUSTRY AS PART OF OUR WEEKLY DROVERS REPORT. WILL FREEZING A STEAK RUIN THE TENDERNESS OF YOUR FAVORITE CUT? NEW RESEARCH SAYS NOT NECESSARILY. AND FIND OUT HOW NEW TECHNOLOGY IS GIVING THIS "LAME" DUCK A NEW LEASE ON LIFE.
DROVERS REPORT:
TALK TO YOUR VETERINARIAN ABOUT ZUPREVEO FOR THE TREATMENT OF BOVINE RESPIRATORY DISEASE. FROM OUR PARTNERS AT DROVER, FEEDYARD CLOSEOUTS CONTINUE TO INCH TOWARD PROFITABILITY, EVEN AS THE CASH FED CATTLE PRICE APPEARS STUCK IN NEUTRAL. LAST WEEK'S STERLING BEEF PROFIT TRACKER ESTIMATES CATTLE SOLD LAST WEEK LOST AN AVERAGE OF $48 PER HEAD. THAT'S ABOUT $138 PER HEAD BETTER THAN THE PREVIOUS WEEK. THE IMPROVEMENT IS DUE TO SIGNIFICANT DECLINES IN THE PRICE OF FEEDER CATTLE LAST FALL. LAST WEEK'S CLOSEOUTS WERE CATTLE PLACED ON FEED THE SECOND WEEK IN NOVEMBER, ABOUT THE TIME THE MARKET SAW A SIGNIFICANT BREAK IN FEEDER CATTLE PRICES.
TEASE:
NEXT, -MEET A "LUCKY DUCK" WHO WAS ONE STEP AWAY FROM THE BUTCHER CASE, IN THE COUNTRY IS NEXT, HEAD TO AGWEB TODAY FOR YOUR CHANCE TO WIN A BRAND NEW HOT WATER POWER WASHER FROM HOTSY. NOTHING CLEANS LIKE A HOTSY.
IN THE COUNTRY:
A DUCK IN WISCONSIN, WHO LOST BOTH OF HIS FEET TO FROSTBITE, RECEIVED A NEW LEASE ON LIFE THANKS TO 3-D TECHNOLOGY. "IT WORKED. WE'RE THRILLED."  VICKI HARRISON RESCUED "PHILLIP THE DUCK" WHO SUFFERED SERIOUS INJURIES TO HIS WEBBED FEET. SHE TRIED TO GIVE HIM THE BEST QUALITY OF LIFE POSSIBLE, BUT EVENTUALLY DECIDED TO SCHEDULE TO HAVE HIM EUTHANIZED. IN A LAST DITCH EFFORT, SHE REACHED OUT TO A TECHNOLOGY TEACHER AT A LOCAL MIDDLE SCHOOL. JASON JISCHKE AND HIS STUDENTS IMMEDIATELY WENT TO WORK DESIGNING PROSTHETIC LEGS FOR THE INJURED DUCK. AFTER WEEKS OF TRIAL AND ERROR, PHILLIP WAS FITTED WITH HIS NEW 3-D ATTACHMENTS.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR CINDI CLAWSON AND ALL OF US AT AGDAY. I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
I'M CLINTON GRIFFITHS. FRIDAY ON AGDAY THE PROFARMER TEAM JOINS US WITH THEIR WEEKLY PROFIT BRIEFING. PLUS ONE YEAR AFTER A DEVASTATING BIRD FLU HITS THE MIDWEST, WHAT HAVE WE LEARNED? NEWS THAT HITS YOUR BOTTOM LINE IS ON EACH MORNING RIGHT HERE ON AGDAY.

 

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