AgDay Daily Recap -April 28, 2016

April 28, 2016 02:57 AM
 

TODAY ON AGDAY
APRIL 28, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY - A POPULAR CHILDREN'S PROTEIN - OFTEN FOUND IN THE SCHOOL LUNCHROOM  -FACES A MASSIVE RECALL…
AGDAY INVESTIGATES A NEW RULE INTENDED TO KEEP ANHYDROUS STORAGE SAFE...
IN AGRIBUSINESS....WHERE ARE GASOLINE PRICES HEADED THIS SUMMER?
BUT ABSOLUTELY IF YOU HAD TAKEN ADVANTAGE OF THAT EARLIER THIS YEAR AND LOCKED SOME PRICES IN YOU'RE SITTING PRETTY GOOD BECAUSE THEY COULD END UP PROBABLY BEING HIGHER LAST YEAR'S PRICE DROP IN THE CATTLE MARKET MAY FACE WASHINGTON-SCRUTINY.
AND A TINY CROP FROM PLANTING TO HARVEST IN JUST TWO WEEKS. AND A TINY CROP FROM PLANTING TO HARVEST IN JUST  TWO WEEKS.
PILGRIM’S PRIDE RECALLS CHICKEN CONTAMINATED WITH PLASTIC, WOOD, RUBBER AND METAL:
GOOD MORNING I'M CLINTON GRIFFITHS. ONE OF THE NATION'S LARGEST CHICKEN PROCESSORS LAUNCHES A MASSIVE RECALL AFTER PIECES OF PLASTIC ARE DISCOVERED IN SOME OF THEIR PRODUCTS. PILGRIM'S PRIDE IS RECALLING FOUR AND A HALF MILLION POUNDS OF FULLY COOKED CHICKEN PRODUCTS THAT MAY BE CONTAMINATED WITH PIECES OF PLASTIC, WOOD, RUBBER, EVEN METAL. THE AG DEPARTMENT SAYS THESE PARTICULAR PRODUCTS WERE SHIPPED FOR INSTITUTIONAL USE, SUCH AS SCHOOLS.  USDA'S FOOD SAFETY AND INSPECTION SERVICE SAYS THE RECALL INVOLVES BREADED CHICKEN NUGGETS AND BREADED CHICKEN PATTIES THAT MAY BE DISTRIBUTED UNDER SEVERAL BRAND NAMES.  THOSE BRANDS INCLUDE GOLD KIST FARMS AND SWEET GEORGIA. 
CHIPOTLE FIRST QUARTER SALES SHOW LOSS:
SPEAKING OF RECALLS AND FOOD SAFETY, CHIPOTLE MEXICAN GRILL POSTING IT'S FIRST QUARTER SALES. THE COMPANY REPORTING IT'S FIRST LOSS AS A PUBLIC COMPANY. REVENUES FALLING 23 PERCENT OVERALL WITH SAME STORE SALES DROPPING FOR THE SECOND STRAIGHT QUARTER--OFF NEARLY 30 PERCENT. THE RESTAURANT CHAIN CONTINUES TO STRUGGLE TO REGAIN IT'S MOMENTUM FOLLOWING AN OUTBREAK OF E. COLI LAST FALL. CHIPOLTE ISN'T ALONE, USDA SAYS THE OVERALL FARM ECONOMY CONTINUES TO STRUGGLE.
HIGHLY LEVERAGED CROPS COULD REACH HIGHEST LEVEL SINCE 2002:
THE SHARE OF FARM BUSINESSES THAT ARE HIGHLY LEVERAGED CONTINUES TO RISE, RESEARCHERS SAY IT HAS BEEN RISING SINCE 2012. THIS YEAR IT'S FORECAST TO INCREASE YET AGAIN. IN 2016, USDA SAYS THE SHARE OF VERY HIGHLY LEVERAGED CROP FARMS COULD HIT ITS HIGHEST LEVEL SINCE 2002.
LENDING INSTITUTIONS CONSIDER DEBT TO ASSET RATIOS AS THEY ASSESS CREDIT WORTHINESS OF FARMS. THE ECONOMISTS SAY SOME OF THESE HIGHLY AND VERY HIGHLY LEVERAGED FARM BUSINESSES MAY HAVE DIFFICULTY SECURING A LOAN.
EQUIPMENT SALES SAG DUE TO TOUGH FINANCES:
TOUGH FINANCES IS BEANING OUT IN EQUIPMENT MARKETS. THE MARCH ASSOCIATION OF EQUIPMENT MANUFACTURERS SAYS SALES OF HIGH HORSEPOWER TRACTORS CONTINUE TO SAG. TWO-WHEEL-DRIVE TRACTORS OVER 100 HP DECLINED 32 PERCENT. JANUARY TO MARCH SALES ARE DOWN 38 PERCENT COMPARED TO A YEAR AGO. HOWEVER, FARM TRACTORS UNDER 40 HORSEPOWER WERE A BRIGHT SPOT--UP 33 PERCENT FOR THE MONTH AND UP 26 PERCENT YEAR-TO-DATE. 
OSHA PLANS TO CHANGE STORAGE RULE FOR FERTILIZER:
A POTENTIAL RULE CHANGE BY THE OCCUPATIONAL  SAFETY AND HEALTH ADMINISTRATION -OR OSHA COULD ALTER HOW BUSINESSES STORE AND HANDLE ANHYDROUS AMMONIA. NATIONAL REPORTER BETSY JIBBEN TELLS US WHAT IMPACT THIS MIGHT HAVE ON AG RETAILERS.  NEBRASKA FARMER JOHN OE-HLER-KING IS NOT SURE IF THE WAY HE FERTILIZES HIS CROP TODAY WILL BE THE SAME NEXT YEAR.
<"I'M SITTING IN THE TRACTOR WONDERING WHAT I NEED TO DO FOR THIS FALL OR NEXT SPRING AND HOW TO PREPARE,">
THAT'S BECAUSE OSHA IS PLANNING TO CHANGE THE RULES GOVERNING THE STORING AND HANDLING OF ANHYDROUS AMMONIA. CURRENTLY, AG RETAILERS HAVE AN EXEMPTION TO OSHA'S SAFETY STANDARDS FOR HANDLING HIGHLY HAZARDOUS CHEMICALS. BUT THAT MAY CHANGE. OSHA SAYS IT CHANGED ITS INTERPRETATION OF THE TYPE OF FACILITY THAT FITS IN THE RETAIL DESCRIPTION.
NEW CLASSIFICATION OF RETAILER REASON FOR RULE CHANGE:
SAYING "FACILITIES THAT STORE AND DISTRIBUTE LARGE QUANTITIES OF HIGHLY HAZARDOUS CHEMICALS ARE NOT RETAILERS." INSTEAD, PUTTING SOME OF THEM UNDER THE AGRICULTURAL MERCHANT WHOLESALER BANNER WHICH WOULD REQUIRE NEW SAFETY MEASURES PUT IN PLACE.
RULE CHANGE WILL COST FARMERS A PRETTY PENNY:
THEY ESTIMATE THESE FACILITIES WILL HAVE TO MAKE  ROUGHLY 21-HUNDRED DOLLARS IN CHANGES IN ORDER TO COMPLY. NOT EVERYONE AGREES WITH THEIR ESTIMATE.
"THE COST FACTOR WILL BE HORRENDOUS. YOU CAN SAY 4-5-6 MILLION DOLLARS. I BELIEVE THAT'S ON THE LOW SIDE."
REPORTING FOR AGDAY, I'M BETSY JIBBEN.
CROP COMMENTS:
LET'S CHECK IN WITH MIKE HOFFMAN FOR THIS MORNING'S CROP COMMENTS. MIKE.  GOOD MORNING, CLINTON. LET'S START OFF IN EAST-CENTRAL ILLINOIS. RON HAASE IS TRYING TO BEAT THE RAIN, PLANTING AT 4 A.M. HE SAYS DESPITE SOME SHOWERS, IT'S FAIRLY DRY IN HIS AREA. RON SAYS A LOT OF PLANTING HAS TAKEN PLACE THE LAST 10 DAYS. HE JUST FINISHED PLANTING HIS SOYBEAN ACRES THIS WEEK.
TEASE:
WHEN WE COME BACK WE'LL CONTINUE OUR DISCUSSIONS ON INPUTS. DOUG WERLING WITH BOWER TRADING JOINS TO TALK GASOLINE PRICES AND EXPECTATIONS FOR THE COMING MONTHS.
AND LEARN ABOUT THIS TINY CROP THAT GOES FROM PLANTING TO HARVESTING IN A MATTER OF WEEKS.
FROM THE FLOOR OF THE CME:
IN AGRIBUSINESS IT'S BEEN A BUMPY AND EXCITING COUPLE OF WEEKS AT THE CME. LETS SEE HOW MARKETS CLOSED WEDNESDAY FROM THE FLOOR.  WEDNESDAY'S GRAIN WE SEE MARKETS A LITTLE BIT SOFTER HERE, BUT AGAIN I DON'T THINK IT'S A REAL SURPRISE. WE'VE SEEN MARKETS HAVE BEEN CHURNING BACK AND FORTH. REMEMBER, WE'RE ON A LONG TERM WINNING STREAK HERE. WE CAME DOWN FROM THE DEPTHS OF THE LOWS AND WE'VE NOW PUSHED UP TO BIG NUMBERS THAT'S THE WAY I SEE IT, THIS IS TODD HORWITZ FROM BUBBA TRADING.COM COMING TO YOU FROM THE FLOOR OF THE CME GROUP IN CHICAGO.
 AGRIBUSINESS:
HERE AT THE AGRIBUSINESS DESK WE HAVE DOUG WERLING WITH BOWER TRADING. DOUG, LET'S TALK ABOUT THE GASOLINE MARKETS, BECAUSE I THINK THAT AS WE HAVE TALKED BEFORE...REALLY THAT ALLOWED SOME DISPOSABLE INCOME FOR FOLKS WITH THOSE LOWER GASOLINE PRICES, BUT WE HAVE SEEN THEM TICK BACK UP.> OK, SO ESSENTIALLY AT THE BEGINNING OF THE YEAR THERE WAS A LOT OF CONCERN ABOUT GLOBAL GROWTH, WE WERE LOOKING AT $25 CRUDE OIL. NOW, TO BE HONEST WITH YOU THERE HASN'T BEEN A LOT THAT HAS CHANGED IN OIL PRODUCTION, STOCKS ARE STILL HIGH, BUT GASOLINE IS A DIFFERENT STORY. YOU SAW COMPANIES TAKE ADVANTAGE OF LOWER OIL, THEY STOCK PILED GAS AND WE SAW THOSE STOCKS ACTUALLY TOP OUT AT THE END OF FEBRUARY AND THEY HAVE GONE DOWN CONSISTENTLY EVERY WEEK SINCE WHEN YOU LOOK AT REPORTS.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY. METEOROLOGIST MIKE HOFFMAN HERE. MIKE AS WE WATCH THESE FRONTS WORK ACROSS THE COUNTRY, IT'S BEEN COOLER BEHIND THIS ONE IN THE MIDDLE. YEA, IT REALLY HAS. AND WITH ACCUMULATING SNOW IN PARTS OF THE HIGH PLAINS OF THE NORTH ANYWAY. BUT OBVIOUSLY THIS TIME OF YEAR IT MELTS PRETTY FAST. AND THAT'S ALL OF AN AREA LEFT OVER MOISTURE. THE RAIN AND SNOW ACROSS THE NORTHERN PLAINS WITH THIS SYSTEM MOVING THROUGH ILLINOIS THIS MORNING.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY, NOW LET'S LOOK AT SOME LOCAL FORECASTS. FIRST OFF ALL, AUSTIN NEVADA MOSTLY CLOUDY MAYBE A SHOWER, HIGH OF ONLY 45 DEGREES. SALINA KANSAS PARTLY SUNNY AND RATHER COMFORTABLE HIGH AROUND 66. AND FINALLY AS WE HEAD TOWARDS SALISBURY MARYLAND, CLOUDY WITH TIMES OF RAIN. HIGH JUST 59.
TEASE:
UP NEXT A CHECK OF THE BEEF INDUSTRY INCLUDING THE POSSIBILITY OF A WASHINGTON INVESTIGATION INTO LAST YEAR'S PRICE COLLAPSE. AND STEP INSIDE A GREENHOUSE WHERE A TEENY, TINY CROP CALLED MICROGREENS IS JUST WEEKS AWAY FROM HARVEST.
2015 CATTLE PRICE COLLAPSE UNDER INVESTIGATION:
LAST YEAR'S PRICE DROP IN THE CATTLE MARKET MAY BE GETTING A CLOSER LOOK FROM WASHINGTON. IN RESPONSE TO R-CALF USA'S JANUARY REQUEST, THE SENATE JUDICIARY COMMITTEE REQUESTING THE COMPTROLLER GENERAL OF THE U.S. TO USE THE GOVERNMENT ACCOUNTABILITY OFFICE TO INITIATE AN INVESTIGATION INTO THE 2015 CATTLE PRICE COLLAPSE.  MEMBERS OF THE COMMITTEE ASKING THE GAO TO INVESTIGATE THE CAUSE OF THE SUDDEN 15.1 PERCENT DROP IN FED CATTLE PRICES THAT OCCURRED DURING THE LATTER HALF OF 2015. SPECIFICALLY REQUESTING THE GAO TO CONDUCT QUOTE "A REVIEW OF THE STRUCTURE OF THE MARKET AND OF ANY POSSIBLE ANTICOMPETITIVE CONDUCT."
STERLING PROFIT TRACKER:
SPEAKING OF PRICES, CASH FED CATTLE PULLING BACK AGAIN LAST WEEK.  THE STERLING BEEF PROFIT TRACKER SASY THAT PUSHED FEEDYARD LOSSES TO 123 DOLLAR ON EVERY ANIMAL. THAT'S 75 BUCKS HIGHER THAN THE PREVIOUS WEEK. THE FIVE AREA CASH PRICE HOVERING NEAR 126--AVERAGE BREAK EVENS ARE 135 PER HUNDRED.
MCDONALDS SUSTAINABLE BEEF MOVE UNDERWAY:
TWO YEARS AGO MCDONALDS SAID IT WOULD START BUYING SOME OF ITS BEEF FROM SUSTAINABLE SOURCES...A MOVE IT SAYS IS TO SATISFY CONSUMER DEMAND A BIG DECISION CONSIDERING THE COMPANY SELLS 2 PERCENT OF WORLDS BEEF. MCDONALD'S SAYS FIRST PHASE IS NEARLY COMPLETE AND IT'S STARTING IN CANADA. IT WORKED WITH LOCAL CATTLE GROUPS TO COME UP WITH A VERIFICATION SYSTEM... ITS HOPING TO USE THAT SYSTEM FOR SOURCING SOON.
HENDERSON SAYS MCDONALDS SAYS THE INITIATIVE IS DESIGNED TO GROW THEIR BUSINESS AND THE MARKET FOR BEEF.
TEASE:
 NEXT WE VISIT A GREENHOUSE WHERE RESEARCHERS SEE BIG POTENTIAL FOR THE TINIEST OF CROPS. IN THE COUNTRY IS NEXT.

IN THE COUNTRY:
IT'S ONE OF AGRICULTURE'S SMALLEST CROPS, AND  CAN BE GROWN IN ABOUT TWO WEEKS. MICROGREENS ARE TINY PLANTS THAT ADD ZEST TO SALADS AND MAIN DISHES, AND ARE POPULAR WITH CHEFS AND CUSTOMERS AT HIGH END RESTAURANTS.  IN THIS REPORT PROVIDED BY THE U-T INSTITUTE OF AG, CHARLES DENNEY HAS MORE ON THE SCIENCE OF MICROGREENS.
THIS IS CHARLES DENNEY REPORTING.
CLOSING:
UTIA EXPERTS SAY THE MAIN INGREDIENT NEEDED TO GROW MICROGREENS IS SUNLIGHT – FOUR HOURS A DAY IF POSSIBLE. THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.
FOR BETSY JIBBEN AND MIKE HOFFMAN, I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
I'M CLINTON GRIFFITHS. FRIDAY ON AGDAY -OUR PARTNERS AT PROFARMER JOIN US WITH THEIR WEEKLY PROFIT BRIEFING. MIKE HOFFMAN HAS YOUR PLANTING FORECAST. FOR NEWS THAT DIRECTLY AFFECTS YOUR BOTTOM LINE, TUNE IN WEEKDAYS FOR AGDAY.

 

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