AgDay Daily Recap -Aug. 3, 2016

August 3, 2016 02:57 AM
 

TODAY ON AGDAY
AUG. 3, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY U-S BEEF IS BACK IN BUSINESS WITH BRAZIL.
"THERE MAY BE A MARKET FOR SOME GRAIN FED BEEF DOWN THE ROAD."
IT'S A DEAL THAT'S BEEN IN THE MAKING FOR A DECADE, AND WE HAVE THE MARKET IMPACT.
MCDONALD'S IS SAYING NO TO ANTIBIOTICS AND PRESERVATIVES...
<WE ARE CREATING A DIFFERENT FOOD CULTURE AT MCCONDALS>
WE'LL GIVE YOU A TASTE OF THE NEW CULTURE CATERING TO THE HEALTH CONSCIENCE CROWD.
IN AGRIBUSINESS, VOLATILITY LEADS THE WAY IN COTTON, BUT CHINA REMAINS A BIG PLAYER.
<"WE KNOW THAT THE CHINESE  ARE TIGHT. THEY'VE BEEN SELLING SOME OF THEIR GOVERNMENT STOCKS EVERYWHERE AND IT'S JUST NOT ENOUGH.">
AND IF YOU HAVE SHOULDER PAIN, IT MAY BE A SIGN OF SOMETHING WORSE. WE'LL HAVE DETAILS IN AG FOR YOUR HEALTH.
BRAZILIAN, U.S. BEEF TRADE GETS APPROVED:
GOOD MORNING I'M TYNE MORGAN. CLINTON JOINS US FROM THE AGRIBUSINESS DESK LATER IN THE SHOW. U-S BEEF WILL HEAD TO BRAZIL FOR THE FIRST TIME IN 13 YEARS. AFTER MORE THAN A DECADE OF NEGOTIATIONS, USDA SAYS BEEF CAN HEAD SOUTH AND BRAZILLIAN BEEF WILL BE ALLOWED IN. BRAZILLIAN BEEF HASN'T BEEN ALLOWED INTO THE U-S SINCE 1999. AND U-S PRODUCT TO BRAZIL WAS BANNED IN 2003 AFTER THE B-S-E SCARE. BUT JUST THIS WEEK, THE USDA ANNOUNCING IT'S REACHED AN AGREEMENT WITH BRAZIL'S MINISTRY OF AGRICULTURE TO ALLOW MARKET ACCESS FOR BEEF AND BEEF PRODUCTS. AG SECRETARY TOM VILSACK SAYS THE U-S WELCOMES THE NEWS, AS IT'S A MARKET THAT OFFERS EXCELLENT LONG-TERM POTENTIAL.
BENEFITS FOR U.S. STILL A WAYS DOWN THE ROAD:
BRAZIL HAS 200 MILLION CONSUMERS AND A GROWING MIDDLE CLASS. PROFARMER'S JULIANNE JOHNSTONS SAYS THIS WONT' HAVE AN IMMEDIATE IMPACT ON BEEF MARKETS, AS THERE'S A 60 THOUSAND METRIC TON QUOTA IN PLACE.
"WITH BRAZIL'S ECONOMY STRUGGLING, THERE ISN'T VERY MUCH OPPORUTNITY. PERHAPS THERE MAY BE SOME OPPORTUNITY DOWN THE ROAD FOR SOME HIGHER END CUTS SINCE BRAZILLIAN BEEF IS MAINLY GRASSFED AND THERE MAY BE A MARKET FOR SOME GRAIN FED BEEF DOWN THE ROAD."

USDA ALSO DETERMINED BRAZIL'S FOOD SAFETY SYSTEM IS UP TO PAR WITH U-S STANDARDS, AND  BRAZILLIAN BEEF CAN NOW BE IMPORTED INTO THE U-S. BUT JOHNSTON SAYS SHOR-TERM, THOSE IMPORTS WILL REMAIN LOW.
PORK EXPORTS IN CHINA COULD INCREASE AFTER FLOODING:
PORK EXPORTS COULD SEE A WINDOW OF OPPORTUNITY TO CHINA. THAT'S AS MASSIVE FLOODING IS FORCING THEIR PRODUCERS TO SLAUGHTER HOGS EARLY, AND IN TURN, LOOKING AT RECORD IMPORTS OF PORK. BUT CHINA IS SENDING MIXED SIGNALS. DON ROOSE OF U-S COMMODITIES SAYS THE COUNTRY IS CANCELLING RECENT U-S PORK SHIPMENTS, PUTTING PRESSURE ON PORK PRICES.
RABOBANK REPORTS ON U.S. PROTEIN CONSUMPTION:
 EXPORTS ARE GROWING TO SOME COUNTRIES, BUT SO IS CONSUMPTION AT HOME. U-S PROTEIN CONSUMPTION PER CAPITA REACHING A 40 YEAR HIGH 2015, BUT RABOBANK WARNS THAT GROWING DEMAND COULD HIT A WALL, AND PRODUCTION WILL OUTPACE DEMAND. A NEW REPORT FROM RABOBANK SHOWS WHILE PROTEIN PRODUCERS ARE SEEING RECORD GROWTH IN DEMAND RIGHT NOW, THAT GROWTH COULD TAPER OFF IN THE NEXT COUPLE YEARS. RABOBANK SAYS PRICES OVER THE NEXT COUPLE YEARS ARE EXPECTED TO FALL, THAT'S AS THE PROTEIN MARKET UNDERGOES MASSIVE EXPANSION. THE PROTEIN SECTOR IS EXPECTED TO GROW AT A RATE OF 2 POINT 5 PERCENT ANNUALLLY. RABOBANK SAYS THEY DON'T SEE MARGINS FALLING TO THE LOWS PRODUCERS SAW IN 2008.
MCDONALD’S TO COOK WITHOUT PRESERVATIVES:
<WE ARE CREATING A DIFFERENT FOOD CULTURE AT MCCONDALS>
MCONDALDS IS CHANGING UP ITS MENU... AND THE FAST FOOD CHAIN SAYS IT'S ALL TO WOO HEALTH FOCUSED EATERS. MCDONALDS ANNOUNCING IT'S GOAL OF SOURCING CHICKEN RAISED WITHOUT ANTIBITOICS HAS BEEN ACCOMPLISHED A YEAR EARLY. BUT THE CHAIN SAYS IT'S ALSO REMOVING ARTIFICIAL PRESERVITIVES FROM ITS CHICKEN NUGGETS, BREAKFAST SAUSAGE PATTIES AND EGG PRODUCTS. AND HAMBURGER BUNS ARE ALSO GETTING A MAKOVER, AS STARTING THIS MONTH, THE BREAD WON'T CONTAIN HIGH FRUCTOSE CORN SYRUP.
UNAPPROVED WHEAT FOUND:
UNAPPROVED WHEAT SHOWING UP IN A WASHINGTON STATE FIELD IS ALREADY HAVING A RIPPLE EFFECT ON TRADE. JAPAN SAYS IT'S HALTING ALL IMPORTS OF WESTERN WHITE AND FEED WHEAT, BUT JUST FROM THE PACIFIC COAST. SHIPMENTS OUT OF THE GULF ARE STILL OKAY. JAPAN IS ASIA'S SECOND LARGEST WHEAT IMPORTER, AND THE U-S SUPPLIES ABOUT 60 PERCENT OF THE COUNTRY'S NEEDS. OFFICIALS MADE THE ANNOUNCEMENT AFTER USDA CONFIRMED UNAPPROVED GENETICALLY MODIFIED WHEAT WAS FOUND GROWING IN A WASHINGTON STATE FIELD. 22 PLANTS WERE FOUND IN A FIELD THAT HADN'T BEEN PLANTED SINCE 2015 MONSANTO TELLS AGDAY USDA IS IN A FACT-FINDING PROCESS TO FIGURE OUT HOW THOSE PLANTS GO THERE, AND MONSNTO IS PROVIDING TECHNICAL
SUPPORT. BUT NEAR-TERM, THE U-S WHEAT SUPPLY CHAIN CONINTUES TO PROVIDE SAFE AND HIGH QUALITY WHEAT FOR BOTH DOMESTIC AND FOREIGN MARKETS.
CHINA TO GET RID OF CORN STOCKS: 
CHINA IS LOOKING TO BRING ITS CORN PRODUCTION IN LINE WITH DEMAND AND GET RID OF THE MASSIVE STOCKS THAT REMAIN IN STORAGE. AND NOW A TOP OFFICIAL SAYS THE COUNTRY WILL REDUCE ITS CORN ACREAGE BY 9 PERCENT OVER THE NEXT 4 YEARS. REUTERS REPORTS CHINA WILL DROP IT'S CORN PLANTINGS BY 3 POINT 3 MILLION HECTARES, WHICH WON'T PUT A HUGE DENT IN THE COUNTRY'S SUPPLIES. JUST THIS YEAR, CHINA PUT A STOP TO THE STOCKPILING PROGRAM THAT INFLATED RESERVES, PUSHING DOWN CORN PRICES LAST YEAR.
GRAIN MARLETS:
FARMERS FELT THE GRAIN MARKET GYRATIONS IN LATE JUNE AND JULY. BUT ACCORDING TO THE LATEST AG BAROMETER FROM PURDUE UNIVERSITY, PRODUCERS SEEM TO HAVE A BETTER LONG-TERM OUTLOOK OF THE AG ECONOMY. DESPITE THE DROP IN GRAIN PRICES, THE CONFIDENCE INDEX FOR THE MONTH OF JULY CLIMBED TO ONEHUNDRED-12. THAT'S AN IMPROVEMENT OVER JUNE AND MAY.
CASH RENTS HELP OPTIMISM:
PURDUE ECONOMISTS THINK LOWER CASH RENTS IS HELPING TO BUOY LONG-RUN OPTIMISM. AS FAR AS FARMLAND -THE PRODUCERS SEEMED MORE OPTIMISTIC THAN IN RECENT MONTHS. NEARLY A QUARTER (23%) THINK FARMLAND VALUES WILL BE HIGHER ONE YEAR FROM NOW. THAT'S THE HIGHEST LEVEL SINCE THE SURVEY STARTED NINE MONTHS AGO.  ANOTHER 25-PERCENT EXPECT FARMLAND VALUES WILL BE LOWER A YEAR FROM NOW. AS FAR AS FARMLAND AS AN INVESTMENT, 62-PERCENT OF THE RESPONDENTS GAVE A FAVORABLE RATING. THAT'S TEN POINTS HIGHER THAN MAY WHEN THIS QUESTION WAS ASKED.

CROP COMMENTS:
CINDI CLAWSON IS FILLING IN TODAY. LET'S CHECK WITH HER FOR TODAY'S CROP COMMENTS. CINDI GOOD MORNING, TYNE. LET'S START OFF IN CENTRAL ILLINOIS. DAVID O'BRIEN SAYS THE THUNDERSTORMS DON'T SEEM TO STOP HERE. HE SAYS THE AREA HAS RECEIVED TIMELY RAINS SINCE THE END OF JUNE.
TEASE:
WHEN AGDAY CONTINUES THIS WEDNESDAY MORNING OUR ATTENTION TURNS TO COTTON. THAT MARKET'S BEEN ON A RECENT UPTICK. IN NEWS FROM PACKER T-V -FIND OUT WHY "WHOLE FOODS" WILL NEED TO BE CAREFUL IN HOW IT PROMOTES ITSELF. COULD YOUR SORE SHOULDER BE A MORE SERIOUS CONDITION? SEE HOW DOCTORS RESOLVE THE ISSUE.
FROM THE FLOOR OF THE CME:
IN AGRIBUSINESS TODAY IT WAS A DOWN DAY FOR THE MAJOR GRAINS. WE GET DETAILS ON TUESDAY'S CLOSE FROM THE CME.
GRAIN MARKETS GOT A LOWER ON TUESDAY. WE HAVE THE CORN MARKET IN THIS A NEW TWO YEAR LOWS, LOWEST RATE SINCE 2014. WE HAVE THE SOYBEAN MARKET IN THIS MULTI MONTH LOWS AND THE WHEAT MARKET ALSO A LITTLE BIT LOWER. THE TALK HERE REALLY IS REVOLVING AROUND THE CROP SIZE. IT LOOKS AS IF WE ARE IN FOR A RECORD CORN CROP AND A RECORD SOYBEAN CROP HERE IN THE U.S. WEATHER DURING THE MONTH OF JULY AND INTO AUGUST SO FAR, HAS REALLY COOPERATED. WE HAVE SEE PLENTY OF RAIN THROUGHOUT MAJOR CORN SOYBEAN GROWING AREAS. SO IN TERMS OF CORN, WE'RE CERTAINLY LOOKING AT A NATIONAL YIELD NORTH OF 170 BUSHELS PER ACRE. THE PREVIOUS RECORD WAS 171. SO I THINK THAT'S A GOOD SHOT AT THIS POINT THAT WE EXCEED THAT. IN THE SOYBEANS, WE'RE LOOKING FOR SOMETHING POTENTIALLY BETWEEN 48 OR 49 BUSHELS PER ACRE. JOE VACLAVIK WITH STANDARD GRAIN FROM THE FLOOR OF THE CME.
BAYER LOSES APPEAL FOR INSECTICIDE:
ANOTHER STRIKE AGAINST BAYER CROPSCIENCE AND ITS BELT INSECTICIDE. THE COMPANY LOST AN APPEAL OF THE REGISTRATION STATUS FOR THE PRODUCT.
YOU MAY REMEMBER, THE E-P-A PULLED THE CONDITIONAL REGISTRATION IN FEBRUARY FOR THE PRODUCT. BAYER TRIED TO GET A REVERSAL BY E-P-A'S APPEALS BOARD, BUT THE ACTION FAILED, DISTRIBUTORS AND RETAILERS WILL BE ALLOWED TO SELL ITS REMAINING BELT INVENTORIES.
CROP PROGRESS:
USDA'S CROP PROGRESS REPORT THIS WEEK SHOWS HALF OF THE NATION'S COTTON CROP IS GOOD TO EXCELLENT. THAT'S A DECLINE OF TWO POINTS FROM LAST WEEK. ANOTHER THIRD IS FAIR.
IN THE TOP COTTON GROWING STATE OF TEXAS, 42PERCENT IS GOOD TO EXCELLENT...AND NEARLY 40PERCENT IS FAIR.
AGRIBUSINESS:
CLINTON GRIFFITHS TAKES A CLOSER LOOK AT THE CURRENT COTTON MARKET -AND AS ALWAYS -MUCH OF THE ATTENTION IS ON CHINA.
 HERE AT THE AGRIBUSINESS DESK IS, WE HAVE MARK GOLD TOP THIRD AG MARKETING. MARK WE DON'T TALK A LOT ABOUT COTTON MARKETS MUCH ON THIS SHOW ALTHOUGH IT GETS TRADED QUITE A BIT AND IT'S BEEN INTERESTING THE LAST COUPLE MONTHS. WELL YOU KNOW WE'VE GOT A LOT OF FRIENDS DOWN SOUTH. AND A FAIR AMOUNT OF CLIENTS DOWN SOUTH. WE CERTAINLY DON'T WANT TO FORGET THE COTTON IT'S AN IMPORTANT MARK TO A LOT OF FOLKS OUT HERE. WE'VE HAD A GREAT RALLY IN THIS MARKET FROM FIFTY FIVE UP TO ABOUT SEVENTY FIVE CENTS AND THERE'S A GREAT MARKETING OPPORTUNITY HERE. WE KNOW THAT THERE'S TIGHTNESS. WE KNOW THAT THE CHINESE ARE TIGHT. THEY'VE BEEN SELLING SOME OF THEIR GOVERNMENT STOCKS EVERY WEEK. AND IT'S JUST NOT ENOUGH. AND WE THAT'S REALLY WHAT'S DRIVING THIS MARKET IS MUCH AS ANYTHING. BUT THE FACT OF MATTER IS WE'VE HAD THIS GREAT RALLY. YOU CAN SPEND THREE CENTS AND BUY A LEGITIMATE PUT OUT HERE TO PROTECT THE DOWNSIDE AND WOULD CERTAINLY BE LOOKING AT RIGHT NOW. YOU KNOW AGAIN IT'S ANOTHER GREAT OPPORTUNITY. YEAH WHICH IS INTERESTING IN A YEAR WE INCREASED ACREAGE, AND YOU KNOW THAT WE'VE HAD A LITTLE BIT OF DRYNESS IN THE SOUTHEAST BUT IT DOESN'T SOUND LIKE IT'S BEEN DEVASTATING FOR A LOT OF GROWERS OUT THERE, WE'RE LOOKING AT A PRETTY DECENT CROP.
NATIONAL WEATHER:
WELCOME BACK . CINDI CLAWSON FILLING IN FOR MIKE HOFFMAN THIS MORNING. CINDI, BY THE LOOKS OF THIS MAP, OUR FRIENDS IN THE SOUTHEAST, THEY NEED A DRINK. THEY DEFINITELY DO. AND I THINK THEY'VE BEEN GETTING KIND OF SPOTTY STUFF, BUT OVERALL IT'S JUST NOT ENOUGH MOISTURE FOR THEM AND YOU CAN SEE HERE ON THE CROP MOISTURE INDEX THAT IT'S GETTING BAD THERE. LET'S TAKE A LOOK. YOU COULD SEE OUT THE WORST OF IT RIGHT AROUND GEORGIA RIGHT IN CENTRAL GEORGIA AND NORTH WESTERN GEORGIA EVEN INTO PARTS OF SOUTH CAROLINA. AND AS I MENTIONED, THERE HAVE BEEN A FEW SHOWERS AND THUNDERSTORMS BUT A LOT OF IT'S BEEN HIT AND MISS IN THE SOUTHEAST A COUPLE AREAS WE'VE BEEN WATCHING THAT HAVE JUST BEEN GETTING WORSE AND THAT IS IN PARTS OF THE FAR EASTERN CORN BELT INTO THE NORTHEAST. WE'RE STARTING TO SEE SOME EXCESSIVELY DRY CONDITIONS THERE AND SEVERELY DRY CONDITIONS IN PARTS OF OF WYOMING AND MONTANA AND OF COURSE IT CONTINUES TO BE DRY IN MUCH THE WEST AS WELL. HERE'S A LOOK AT OUR FORECAST FOR THE DAY TODAY. WE HAVE A COUPLE OF SYSTEMS MAKING ITS WAY THROUGH.
REGIONAL WEATHER:
THAT'S A LOOK YOUR NATIONAL FORECAST NOW LET'S CHECK OUT THE FORECAST WHERE YOU LIVE. CROWN POINT, NEW MEXICO SHOWERS AND THUNDERSTORMS HEAVY RAIN POSSIBLE IN SPOTS AROUND NEW HIGHS AROUND EIGHTY DEGREES. CARRINGTON, NORTH DAKOTA SOME SHOWERS AND THUNDERSTORMS WITH HIGH OF EIGHTY SEVEN. IN CHESTER, VERMONT MOSTLY SUNNY HIGH OF EIGHTY ONE.
TEASE:
STILL TO COME THE PAIN AND TIGHTNESS IN YOUR SHOULDER ISN'T JUST UNCOMFORTABLE, IT CAN CAUSE DANGEROUS BLOOD CLOTS. FIND OUT WHAT IT IS, LATER ON AGDAY. AND WHOLE FOODS IS TOLD TO CUT-OUT SOME OF ITS BOASTFUL CLAIMS IN ADVERTISING. DETAILS WHEN WE COME BACK.
PACKER TV:
IN PACKER TV, WHOLE FOODS MAY CLAIM IT'S THE WORLD'S HEALTHIEST GROCERY STORY, BUT IT WON'T BE ABLE TO PATENT THAT SLOGAN. THE U-S PATENT AND TRADEMARK OFFICE REJECTED THE CHAIN'S APPLICATION, SAYING THE SLOGAN CAN'T BE PROVEN. WHOLE FOODS NOW HAS 6 MONTHS TO UPDATE AND REFILE THE CASE. THE CURRENT SLOGAN IS AMERICAN'S HEALTHIEST GROCERY STORE. WITH STORES MAINLY IN THE U-S, BRITAIN AND CANADA.

UGLY PRODUCE FINDS HOME:
WAL-MART IS FINDING A HOME FOR UGLY PRODUCE. THE CHAIN IS INTRODUCING A LINE OF WHAT IT CALLS COSMETICALLY CHALLENGED APPLES FROM WASHINGTON. THE APPLES ARE BAGGED AND CALLED "I'M PERFECT." MARKETED AS BEAUTIFULLY IMPERFECT, THE PRODUCE IS OFFERED IN 5 POUND BAGS, AND WAL-MART SAYS THE FRUIT STILL TASTES GREAT. THE CHAIN IS TESTING OUT THE MARKET IN FLORIDA, AND WILL SOON BE AVAILABLE IN 12 VARIETIES, INCLUDING GRANNY SMITH AND RED DELICOUS.
TEASE:
STILL TO COME, YOU MAY THINK IT'S JUST TIGHTNESS IN YOUR SHOULDER, BUT IT MAY BE A MORE SERIOUS CONDITION THAT CAN CAUSE BLOOD CLOTS. LEARN ABOUT A SURGERY THAT CAN HELP, COMING UP NEXT.
IN THE COUNTRY:
IF YOU PLAY SPORTS OR YOU DO ANY KIND OF REPETITIVE ARM MOTION WHEN YOU WORK, YOU'VE PROBABLY FELT SORENESS IN YOUR SHOULDERS AT SOME POINT. BUT IF YOU HAVE CHRONIC TIGHTNESS IN THAT AREA, IT COULD BE SOMETHING MUCH MORE DANGEROUS THAT CAN CAUSE BLOOD CLOTS IF NOT TREATED.  FROM THEE OHIO STATE WEXNER MEDICAL CENTER, CLARK POWELL HAS MORE ON A SURGERY THAT CAN PROVIDE RELIEF.  AT OHIO STATE WEXNER MEDICAL CENTER, THIS IS CLARK POWELL REPORTING.
TEASE:
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 TYNE MORGAN. HAVE A GREAT DAY.
PROMO:
I'M TYNE MORGAN. THURSDAY ON AGDAY -IS THERE A BULLISH STORY IN CATTLE. IT'S MAKE OR BREAK FOR BEANS IN AUGUST. WHAT'S IN STORE FOR WEATHER? AND BLENDING A PASSION FOR FARMING WITH ENJOYMENT OF WATERSKIING. TUNE IN WEEKDAYS HERE ON AGDAY.

 

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