AgDay Daily Recap -Dec. 15, 2015

December 15, 2015 02:57 AM
 

TODAY ON AGDAY
DEC. 15, 2015


OPENING HEADLINES:
WORLD LEADERS STRIKE A CLIMATE DEAL, WHAT DOES IT MEAN HERE AT HOME. IN AGRIBUSINESS...TECHNICAL TRADING AND CUES FOR 2016. THERE'S JUST NO SUNSHINE IN THE MARKET. AND WE'LL MEET A YOUNG TEXAS FAMILY USING NEW WORLD TECHNOLOGY ON HIS FIFTH GENERATION FARM.
 200 NATIONS FORM PACT TO FIGHT CLIMATE CHANGE:
GOOD MORNING I'M CLINTON GRIFFITHS. NEARLY 200 NATIONS ADOPTED THE FIRST GLOBAL PACT TO FIGHT CLIMATE CHANGE. AND WHILE THE WORLD LEADERS AGREED COLLECTIVELY TO CUT GREENHOUSE GAS EMISSIONS, CRITICS SAY THE DEAL LACKS ANY BITE TO SANCTION COUNTRIES THAT DON'T MAKE CUTS TO POLLUTION.
CHEERS WENT UP AS THE FRENCH FOREIGN MINISTER BROUGHT DOWN THE GAVEL --DECLARING THE PARIS AGREEMENT HAD BEEN ACCEPTED.
THE PACT AIMS TO KEEP GLOBAL TEMPERATURES FROM RISING ANOTHER CELSIUS DEGREE BETWEEN NOW AND THE START OF THE 22ND CENTURY. THOUSANDS OF PROTESTERS ASSEMBLED NEAR THE EIFFEL TOWER TO DEMONSTRATE THEIR OPPOSITION --SAYING THE FINAL RESULT IS TOO WEAK TO SAVE THE PLANET. BACK IN WASHINGTON, PRESIDENT OBAMA SAYS THE PARIS DEAL CREATES AN ENDURING FRAMEWORK. EVEN IF ALL THE INITIAL TARGETS SET IN PARIS ARE MET, WE'LL ONLY BE PART OF THE WAY THERE WHEN IT COMES TO REDUCING CARBON FROM THE ATMOSPHERE, SO WE CANNOT BE COMPLACENT BECAUSE OF TODAY'S AGREEMENT.THE PRESIDENT SAYS AS TECHNOLOGY ADVANCES, EMISSION REDUCTION TARGETS CAN BE UPDATED OVER TIME. THE AGREEMENT ALSO CALLS FOR SUPPORTING THE MOST VULNERABLE NATIONS AS THEY PURSUE CLEANER ECONOMIC GROWTH. AGRICULTURE SECRETARY TOM VILSACK TOOK PART IN THE PARIS NEGOTIATIONS. HE SAYS 'THE BENCHMARKS OUTLINED IN THE DEAL BUILD ON THE AMBITIOUS CLIMATE SMART STRATEGIES BEING IMPLEMENTED BY U-S FARMERS, RANCHERS AND FORESTERS.' VILSACK SAYS EFFORTS IN THE U-S TO BOOST PRODUCTIVITY, WHILE REDUCING GREENHOUSE GAS EMISSIONS, NEEDS TO BE SHARED WITH COUNTERPARTS AROUND THE WORLD.
DOW AND DUPONT MERGER REAFFIRMED:
DOW CHEMICAL COMPANY'S BOARD RE-AFFIRMED ITS SUPPORT FOR THE COMPANY'S MERGER WITH DUPONT. THAT'S DESPITE A PUSH FROM ACTIVIST INVESTOR DANIEL LOEB WHO WANTS DOW'S CEO TO BE REMOVED. LOEB IS QUESTIONING THE TIMING OF THE PROPOSED MERGER. THE TWO COMPANIES ANNOUNCED THEIR INTENTIONS TO MERGE, CREATING A 130 BILLION DOLLAR COMPANY. TOGETHER THEY WILL FORM DOWDUPONT. THEN IN A SEPARATE MOVE, THEY WILL SPLIT-OFF THREE INDEPENDENT PUBLICLY TRADED COMPANIES. THEY WILL FOCUS ON AGRICULTURE, MATERIAL SCIENCE AND SPECIALTY PRODUCTS. THERE ARE VERY LITTLE OVERLAPPING PRODUCT LINES. WALL STREET ANALYST JONAS OX-GARD SAYS IT'S REALLY THE BEST SCENARIO FOR TWO COMPANIES COMING TOGETHER LIKE THIS.
"IN THE SEEDS THEY, THE SEEDS ARE THE FOUR INPUTS IN THE AG (AGRICULTURE) MARKET IT WILL BE A NUMBER TWO AFTER MONSANTO. THAT WON'T CHANGE. CROP PROTECTION, THE HERBICIDES AND PESTICIDES THEY WILL BE NUMBER THREE UP FROM BEING NUMBER FOUR AND NUMBER FIVE RESPECTIVELY. SO IT HELPS THEIR POSITION BUT IN NO SINGLE SUB-MARKET DO THEY ACTUALLY HAVE A DOMINANT POSITION.
"DUPONT SAYS THAT CURRENT CONDITIONS IN THE AGRICULTURE MARKETS AND EMERGING MARKETS WILL MAKE SALES GROWTH "CHALLENGING" IN 2016. AS A RESULT, THE COMPANY IS CUTTING 10 PERCENT OF ITS GLOBAL WORKFORCE, INCLUDING EMPLOYEES AND CONTRACTORS, A MOVE EXPECTED TO CUT COSTS BY 700 MILLION DOLLARS. AND WITH THIS MERGER, THE HEADQUARTERS FOR EACH COMPANY WILL FEEL THE CUTS. THE BIG CENTRAL LOCATIONS THEY HAVE IS MIDLAND, MICHIGAN WHERE DOW WAS HEADQUARTERED IN WILMINGTON, DELAWARE WHERE DUPONT HAS THE MAJORITY OF THEIR RESEARCH AND HEADQUARTERS. THOSE TWO LOCATIONS WILL PROBABLY BE THE HARDEST HIT IN TERMS OF CENTRALIZED COST CUTTING OR INDEED COST CUTTING.SENATE JUDICIARY COMMITTEE CHAIRMAN CHUCK GRASSLEY -WHO IS ALSO AN IOWA FARMER -SAYS THE DEAL "DEMANDS SERIOUS SCRUTINY". HIS COMMITTEE HAS JURISDICTION OVER ANTITRUST POLICY AND WILL INVESTIGATE THIS SORT OF MERGER. IN A STATEMENT, GRASSLEY SAYS "VIGOROUS ENFORCEMENT OF THE ANTITRUST LAWS IS IMPERATIVE TO MAINTAINING AN OPEN, FAIR AND COMPETITIVE MARKETPLACE."
REGISTER YOUR DRONE ONLINE:
IF YOU'RE GIVING OR GETTING A DRONE THIS HOLIDAY SEASON, DON'T FORGET TO GET IT REGISTERED. THE F-A-A ANNOUNCING MONDAY THAT RECREATIONAL USERS OF DRONES OR UNMANNED AERIAL SYSTEMS MUST REGISTER THAT MACHINE ON A NEW WEBSITE STARTING NEXT MONDAY--DECEMBER 21ST. ALSO, ANYONE THAT'S FLYING A DRONE WEIGHING BETWEEN A HALF POUND UP TO 55 POUNDS NEED TO REGISTER THEMSELVES AS AN OPERATOR. IF YOU BOUGHT THE UAS BEFORE THE DECEMBER 21ST WEBSITE GOES LIVE YOU'LL HAVE UNTIL MID-FEBRUARY TO GET REGISTERED…IF YOU OPEN IT OR BUY AFTER THE 21ST--IT HAS TO BE REGISTERED BEFORE YOU TAKE IT AND FLY IT OUTDOORS.
THERE WILL BE A COST OF 5 DOLLARS PER OPERATOR--BUT THE FEE IS WAIVED FOR THE FIRST 30 DAYS. THE ASSOCIATION FOR UNMANNED VEHICLE SYSTEMS INTERNATIONAL ESTIMATES THAT AGRICULTURE WILL ACCOUNT FOR AS MUCH AS 80 PERCENT OF ALL COMMERCIAL DRONE USE. >
FOR TODAY'S CROPWATCH-WE TAKE A LOOK AT NOT SNOW-BUT RAIN THROUGHOUT THE CORNBELT. HERE'S MIKE HOFFMAN WITH AN UPDATE.
CROP WATCH:
GOOD MORNING, CLINTON. LET'S START OFF CROPWATCH IN WESTERN IOWA. MATT RAASCH SENT US THIS PHOTO-OF NOT SNOW BUT RAIN IN DECEMBER. HE SAYS THE AREA HAS RECEIVED NEARLY 4 INCHES SINCE SATURDAY AFTERNOON AND  IT'S STILL RAINING. HE SAYS THE FIELDS ARE JUST SATURATED. MOVING JUST A LITTLE TO THE WEST...A FARMER IN SOUTHEAST SOUTH DAKOTA SENT US THIS OVER THE WEEKEND. HE SAYS STREAMS IN THE AREA ARE STILL RUNNING-SOMETHING NOT NORMALLY SEEN IN MID-DECEMBER. HE SAYS THE GROUND IN HIS AREA IS NOT FROZEN EITHER-ALSO VERY RARE FOR THE MONTH. THAT MAY NOT LAST FOR LONG THOUGH-FREEZING RAIN AND SNOW SHOWERS ON THE WAY. AND TAKING A LOOK AT THE WEATHER MAP YOU CAN SEE THERE'S ANOTHER SYSTEM WITH SNOW COMING OUT OF THE ROCKIES WHERE THAT'S HEADED NEXT I'LL LET YOU KNOW COMING UP WITH MY FORECAST IN JUST A FEW MINUTES THANKS MIKE.
TEASE:
WHEN WE COME BACK WE'LL HEAD OVER TO THE AGRIBUSINESS DESK TO TALK GRAIN MARKETS AND WHY MIKE FLOREZ THINKS WHEAT MARKETS MAY BE POISED FOR A RALLY IN 2016. AND WE'RE HEADED TO TEXAS TO MEET A YOUNG FARMER WHO USES 21ST CENTURY TECHNOLOGY ON HIS FIFTH GENERATION FARM. BUT HIS HARD-WORK ETHIC REFLECTS ON PAST GENERATIONS.
CME:
IN AGRIBUSINESS GRAINS FINDING A BIT OF GREEN, WHILE LIVESTOCK FEEL THE DOWNWARD HEAT. LETS SEE WHERE MARKETS FINISHED MONDAY FROM THE FLOOR OF THE CME. HI. A HIGHER MARKET HERE IN CHICAGO, PRETTY MUCH ACROSS THE BOARD. WE HAVE THE DECEMBER FUTURES GOING OFF THE BOARD TODAY, THAT'S ESPECIALLY IN THE OATS AND CORN. DECEMBER IS REALLY LEADING THE WAY HIGHER. THERE ARE SPECULATORS AND SOME PEOPLE WAITED TOO LONG TO GET OUT OF THOSE POSITIONS. ALSO SEEING QUITE A BIT OF ATTENTION ON SOUTH AMERICA, AND THIS TIME, PARTICULAR, IT'S ARGENTINA WHERE THE EXPORT TAXES HAVE BEEN COMPLETELY REMOVED FOR CORN AND WHEAT AND REDUCED FROM 35 TO 30 PERCENT FOR SOYBEANS. HOWEVER, THE PESO HAS NOT BEEN ALLOWED TO FLOAT. A LOT OF MOVES WERE EXPECTED ALTHOUGH IT WAS EXPECTED THE GOVERNMENT WOULD DO A LITTLE BIT MORE, ESPECIALLY IN REGARDS ALLOWING THE PESO TO FLOAT. THE CATTLE COMPLEX TRADING SHARPLY LOWER AGAIN TODAY, BEING LED LOWER BY THE FEEDER CATTLE. HOGS ON THE OTHER HAND, SHOWING SOME LOSSES BUT MUCH MORE MODERATE LOSSES.
BEEF DEMAND HAS NOT REALLY SURFACED HERE AND PRICES REMAIN HIGH ON THE RETAIL LEVEL. THIS IS JACK SCOVILLE, VICE PRESIDENT OF PRICE FUTURES GROUP HERE ON THE CME GROUP FLOOR WITH SOME COMMENTS ON THE MARKETS TODAY. OUR GUEST HERE AT THE AGRIBUSINESS DESK IS MIKE FLOREZ FLOREZ TRADING MIKE LET'S TALK ABOUT THESE GRAIN MARKETS IT'S I HATE TO SAY IT IT'S KIND OF DEPRESSING BUT IT'S A LITTLE BIT DEPRESSING JUST NOT MUCH HAPPENING.>> YEAH THEY'RE IN THE DULDRUMS FOR SURE.>> THEY SURE ARE.>> I THINK YOU HAVE TO APPROACH CORN AND BEANS AS YOU KNOW YOU WANT TO SELL RALLIES IF YOU GET THEM BUT I'M NOT REALLY LOOKING FOR BIG DROPS IN THE MARKET AS WELL SO IT'S JUST WE'RE JUST IN TRADING RANGES I DO THINK THE BEAR MARKETS WILL END IN 2016.>> OKAY EXPLAIN THAT FOR ME WHAT ARE YOU WATCHING.>> I LOOK AT TIME CYCLES AND YOU KNOW WHERE WE BOTTOM NOW HAS A DIRECT CORRELATION WHERE AS SOMETHING TOP TO BOTTOM IN THE PAST SO IT'S COMING DUE IN 2016 PROBABLY YOU KNOW SPRING TIME KIND OF THING SO BUT WE COULD GET CERTAINLY GET LOWER.>> RIGHT.>> INTO THAT TYPICALLY WHEN MARKETS BOTTOM THEY KIND OF GET UGLY YOU KNOW THEY GET VOLATILE AND THEY START YOU KNOW THEY THE BOTTOM FALLS OUT I DON'T KNOW IF WE'LL BE IN THAT SITUATION BUT YOU KNOW IT'S LIKE A KIN TO OIL AND WHAT OIL'S GOING THROUGH RIGHT NOW THERE'S JUST NO SUNSHINE IN THE MARKET BUT ONE THING THAT I DO THAT DOES INTEREST ME IS THE WHEAT MARKET.>> ALRIGHT OKAY LET'S TALK ABOUT THAT. >> WELL IT'S YOU'VE GOT THE FUNDS THAT ARE REALLY SHORT THE MARKET BIG TIME AND THIS IS FIVE TIMES IN THE LAST FOUR YEARS THEY'VE GOTTEN THIS SHORT AND EVERY TIME THEY'VE GOTTEN THIS SHORT A RALLY HAS INSUED THE SMALLEST RALLY YOU GOT WAS 75 CENTS THE BIGGEST RALLY WAS 3.50 CENTS.>> WOW I THINK PEOPLE WILL TAKE THAT. >> YEA AND SO YOU KNOW I'M GOING TO PLAY THIS NOW I HAVEN'T BOUGHT ANYTHING YET BUT I THINK THE SMART WAY TO PLAY THAT IS TO BUY SOME CALLS ON MAY WHEAT YOU KNOW SOMETHING THAT'S 10 OR 20 CENTS OUT OF THE MONEY MIGHT PAY OFF PRETTY WELL SO SOMETHING THAT'S 20 CENTS OUT OF THE MONEY IN MAY WHEAT RIGHT NOW WOULD PROBABLY COST SOMEWHERE AROUND 950 DOLLARS IN THAT BALL PARK SO A WAY TO MAYBE KIND OF CATCH WHEN YOU CONVINCE YOURSELF THAT THE MARKET HAS BOTTOMED WHEN THE MARKETS START TRADING ABOVE THE 20 DAYS AVERAGE THE 40 DAY AVERAGE THAT TYPE OF THING YOU NEED MOMENTUM ON THE UPSIDE TO GET THE BALL ROLLING HERE AND WE DON'T HAVE IT YET SO JUST KEEP ON AN EYE ON THE WHEAT MARKET CAUSE I THINK THAT'S GOING TO BE THE FIRST ONE TO BOTTOM. >> ALRIGHT WELL WE WILL KEEP ON EYE ON ALL THESE MARKETS AS WE GO INTO 2016 GOING TO BE AN INTERESTING YEAR APPRECIATE YOU BEING HERE MIKE WE'LL BE BACK WITH MORE AGDAY IN JUST A MINUTE. FOR A FREE TWO WEEK TRIAL TO MIKE'S TRADING RECOMMENDATIONS CALL FLOREZ TRADING AT 800-841-2108.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY. GOOD TO HAVE METEOROLOGIST MIKE HOFFMAN TO BE BACK WITH US THIS WEEK-IT'S A NICE, WARM WEEK TO BE OFF. YEAH, THAT'S RIGHT, IT WAS A BEAUTIFUL WEEK BUT IT LOOKS AS IF IT'S CHANGING FOR PEOPLE. YEAH, IT IS. THE COLD AIR THAT'S BEEN OUT WEST IS COMING EAST FOR A LITTLE WHILE AND RETREAT AGAIN. WE'LL PUT THAT INTO MOTION WITH THE MAPS. AND YOU'LL NOTICE THE FIRST STORM SYSTEM THAT PRODUCED A BUNCH OF RAIN AND SNOW ACROSS THE PLAINS STATES WILL CONTINUE TO MOVE THROUGH NEW ENGLAND. A LITTLE LINGERING SHOWERS THROUGH THE EASTERN GREAT LAKES AS WELL. YOU'LL NOTICE HOW THIS SECONDARY COLD FRONT, THE FIRST ONE TAKES A LOT OF SHOWER ACTIVITY, MOST OF THE MOISTURE INTO FLORIDA. BUT THE SECONDARY ONE IS THE SHOT OF COLDER AIR BUT IT DOESN'T COME FAR SOUTH. THE REAL COLD AIR WITH THIS SYSTEM, STAYS IN THE UPPER GREAT LAKES AND DOESN'T COME ANY FARTHER SOUTH UNTIL THIS ONE COMES ON BY. YOU'LL SEE AS YOU HEAD THROUGH THIS AFTERNOON THEN THE SNOW CONTINUES TO SPREAD TO THE DAKOTAS, TO CENTRAL AND NORTHERN MINNESOTA WITH DECENT AMOUNTS THERE. THIS COLD FRONT WILL CONTINUE TO MOVE SOUTHEASTWARD. THIS IS THE ARCTIC AIR THAT'S GOING TO COME INTO THE PACIFIC NORTHWEST AND ALSO THE NORTHERN ROCKIES. FIRST OF ALL, AS WE HEAD THROUGH TOMORROW MORNING AND AS WE CONTINUE THE DAY TOMORROW, THIS IS COLDER AIR BEHIND THIS FIRST FRONT BUT THE REALLY COLD AIR STUFF IS BY THIS SECONDARY FRONT. YOU'LL NOTICE THE RAIN STARTS TO PRODUCE AGAIN INTO THIS COLD FRONT IN THE MISSISSIPPI VALLEY AS WE HEAD THROUGH TOMORROW AFTERNOON, RAIN AND SNOW IN THE NORTHWESTERN GREAT LAKES. NOW RAIN AS FAR AS PRECIPITATION ESTIMATES I SHOULD SAY BECAUSE A LOT OF THIS IS SNOW OUT THERE. OVER THE PAST 36 HOURS, YOU CAN SEE NOTHING REAL HEAVY EXCEPT FOR PARTS OF THE U-P OF MICHIGAN INTO SOUTHEASTERN PORTIONS OF CANADA BUT WE ADD ON THE NEXT 36 HOURS, WE ARE GOING TO SEE HEAVY STUFF IN PARTS OF MAINE AND ALSO WE START TO SEE SOME DECENT AMOUNTS IN PARTS OF THE LOWER MISSISSIPPI VALLEY AND THAT SYSTEM MOVING THROUGH THE UPPER PORTIONS OF THE MIDWEST. THAT AREA IS GOING TO GET SOME SNOW. YOU CAN SEE WE'VE ALREADY HAD SOME HEAVY AMOUNTS. PARTS OF THE NORTHERN AND CENTRAL ROCKIES, HIGHER ELEVATIONS ESPECIALLY. THAT'S A LITTLE IN WISCONSIN, THE U-P OF MICHIGAN, BUT ADDING ON THE NEXT 36 HOURS, WE'RE GOING TO ADD SOME DECENT SNOWFALL AMOUNTS THERE. YOU CAN SEE 4 TO 8 INCHES POSSIBLE FROM THE PANHANDLE OF NEBRASKA, PROBABLY MORE THERE, BUT IT LIGHTENS UP A LITTLE BIT AS IT HEADS THROUGH NORTHERN PORTIONS OF MINNESOTA. HIGH TEMPERATURES THIS AFTERNOON STILL VERY MILD FROM THE OHIO RIVER SOUTHWARD. YOU CAN SEE LOTS OF 60S AND 70S AND 40S ACROSS THE GREAT LAKES, WHICH IS CHILLIER THAN YOU'VE BEEN SEEING. THE COLDEST AIR IS OUT WEST. YOU CAN SEE THE LOW TEMPERATURES BY TOMORROW MORNING, TEENS AND 20S ALL THE WAY THROUGH MOST OF THE ROCKIES, WESTERN PLAINS STATES, AND THEN WE HEAD THROUGH THE DAY TOMORROW. HIGH TEMPERATURES BELOW FREEZING FOR A CHANGE AND EVEN IN THE NORTHWESTERN PORTIONS IN THE PLAINS-WE ARE TALKING 50S AND 60S INTO THE OHIO VALLEY AND SOUTHEASTWARD. BUT THAT'S GOING TO BE CHANGING AS THAT COLDER AIR HEADS IN. THAT FIRST SHOT OF COOLER AIR CAME THROUGH WITH THAT FIRST TROUGH. THAT SECONDARY TROUGH, YOU'LL NOTICE THAT TAPS THE ARCTIC AIR BRIEFLY, FOR THREE OR FOUR DAYS PERHAPS. THAT GOES AWAY AGAIN AND THE RIDGE COMES BACK IN AS WE HEAD THROUGH THE EARLY PART OF NEXT WEEK. BUT THERE'S MORE SIGNS OF COLDER AIR COMING AS WE HEAD THROUGH THE MIDDLE AND LATER PARTS OF NEXT WEEK AGAIN.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY. NOW LET'S TAKE A SOME LOCAL FORECASTS. FIRST OF ALL, FOR GILLETTE, WISCONSIN, BREEZY AND COLD. TIMES FOR SNOW TODAY. HIGH TEMPERATURE OF 24 DEGREES.SHREVEPORT, LOUISIANA,SUNSHINE AND INCREASING CLOUDS. THE HIGH IS 73. AND AKRON, OHIO IS VARIABLY CLOUDY AND MILD. THE AFTERNOON HIGH TEMPERATURE IS AROUND 49 DEGREES. THANKS.
YAMAHA GIVE AWAY/TEASE:
YOU HAVE JUST A FEW DAYS LEFT TO REGISTER TO WIN THIS WORK-HORSE. A YAMAHA KODIAK 700. AGDAY IS ONCE AGAIN GIVING AWAY A BRAND NEW A-T-V TO ONE OF OUR VIEWERS. WHETHER IT'S ON THE FARM, ON THE RANCH OR OFF-ROADING IN YOUR FAVORITE SPOT, THE KODIAK HAS THE "POWER" YOU'LL NEED TO GET THROUGH THE TOUGHEST TERRAIN. WE WILL ANNOUNCE THE WINNER THIS FRIDAY MORNING. SO IF YOU HAVEN'T REGISTERED, YOU BETTER GET TO IT. GO TO AGDAY-DOT-COM AND CLICK ON THE KODIAK TO ENTER. OK, AFTER THE BREAK, IT'S OUR DAIRY TODAY REPORT ...INCLUDING A SCHEDULE OF NEXT STEPS IN ESTABLISHING A CALIFORNIA FEDERAL MILK MARKETING ORDER. AND LATER MEET A TEXAS FARM FAMILY PASSIONATE ABOUT GROWING THE AGRICULTURAL INDUSTRY IN THE LONE STAR STATE. FIND YOUR NEXT PIECE OF EQUIPMENT AT MACHINERY PETE.COM AND ENTER FOR YOUR CHANCE TO WIN A YETI COLLER. ONE YETI TUNDRA 35 COOLER IS BEING GIVEN AWAY EACH WEEK. GO TO WWW.MACHINERYPETE.COM/SURVEY, COMPLETE THE SURVEY, AND ENTER YOUR INFORMATION. YOU COULD BE NEXT OWNER OF A MACHINERY PETE YETI COOLER.
FROM DAIRY TODAY -THE U.S.D.A RELEASING A SCHEDULE OF THE STEPS NEEDED TO POTENTIALLY ESTABLISHING A CALIFORNIA FEDERAL MILK MARKETING ORDER. IT SAYS TRANSCRIPTS FROM RECENT HEARINGS ARE DUE JANUARY 15TH. THEN BRIEFS FROM THOSE 8-THOUSAND PAGES OF TRANSCRIPTS ARE DUE BY THE END OF MARCH. REPLY BRIEFS ARE DUE MID-MAY.
THEN USDA WILL ISSUE A RECOMMENDED DECISION--THAT'S FOLLOWED BY PUBLIC COMMENTS. FOLLOWING A FINAL DECISION, PRODUCERS IN CALIFORNIA WILL GET A CHANCE TO VOTE. USDA IS ESTIMATING IT COULD TAKE 18 MONTHS OR MID-2017 BEFORE A FINAL DECISION IS REACHED. U.S. BUTTER PRICES CONTINUE TO LOOK FOR A BOTTOM.
LAST WEEK, SPOT CASH BUTTER FELL NEARLY 20 PERCENT TO 2-30 A POUND AT THE CME. THAT'S THE BIGGEST DROP IN 11 YEARS--SINCE A SIMILAR DROP BACK IN 2004. PRICES HAVE FALLEN 27 PERCENT SINCE SETTING A RECORD IN SEPTEMBER. PART OF THE CATALYST--RISING COLD STORAGE SUPPLIES....AND A DESIRE TO MOVE THAT BUTTER BEFORE THE END OF THE HOLIDAY SEASON.
DECEMBER FUTURES CONTRACTS AT CME WERE TRADED LOWER AGAIN MONDAY--BELOW 2-60 A POUND. EXPORTS A BIG PART OF THE REASON PRICES ARE LOWER IN 2015. CHINA BACKING OFF IT'S PEAK PURCHASES SET IN 2014. AND NOW SOME ANALYSTS SAY IT COULD BE A LONG TIME BEFORE THE COUNTRY IMPORTS DAIRY LIKE THAT AGAIN. USDA EXPECTING CHINESE PRODUCTION TO INCREASE 38 MILLION METRIC TONS AS THE COUNTRY'S DAIRY HERD GROWS BY 100-THOUSAND HEAD. CHINA COULD BE THE WORLD'S LARGEST PRODUCER OF WHOLE MILK POWDER IN 2016. U.S. ANALYSTS SAY WE'LL NEED TO FIND EXPORT OPPORTUNITIES SOMEWHERE.
THE KEY THAT I THINK NOT EVERYBODY IN THE DAIRY INDUSTRY HAS REALIZED IS HOW IMPORTANT THE DAIRY INDUSTRY HAS BECOME TO OUR MARKET. WE NOW SEND ABOUT 15 PERCENT OF OUR PRODUCTION...THAT'S ONE DAY A WEEK OF MILK PRODUCED IN THE U.S. THAT GOES OVERSEAS. WHEN THAT BACKS UP IT'S EXCESS PRODUCT IN OUR MARKET THAT INCREASES SUPPLY AND IF DEMAND DOESN'T COMPENSATE FOR IT AND DEMAND IS NOT GROWING AS FAST AS SUPPLY IS IT'S A RECPIE FOR LOWER PRICES.
 UP NEXT WE'LL MEET A YOUNG FARM FAMILY FROM TEXAS BEING RECOGNIZED FOR THEIR WORK DRIVING THE AGRICULTURAL INDUSTRY INTO THE FUTURE AT THE LONE STAR STATE.
ENTER TO WIN THIS YAMAHA KODIAK 700 EPS -A GREAT TOOL TO HAVE ON THE FARM. JUST GO TO AGDAY.COM AND CLICK ON THE LINK TO GET DETAILS.
DEADLINE IS DECEMBER 16TH SO DON'T DELAY. )
IN THE COUNTRY:
TIMOTHY AND LINDY GERTSON OF LISSIE TEXAS GROW RICE, ORGANIC CORN, GRAIN SORGHUM, SOYBEANS AND WHEAT. THEY WERE JUST NAMED THE WINNERS OF THE TEXAS FARM BUREAU OUTSTANDING YOUNG FARMER AND RANCHER COMPETITION. WE MEET THE GERTSON'S IN THIS VIDEO PROVIDED BY THE TEXAS FARM BUREAU. BE AN INNOVATOR. DON'T BE AFRAID TO TAKE RISKS. THAT WAS THE MOTTO OF TIMOTHY GERTSON'S GRANDFATHER. AND TIMOTHY IS FOLLOWING IN HIS FOOTSTEPS. HE GROWS RICE, GRAIN SORGHUM, SOYBEANS AND WHEAT IN WHARTON COUNTY. HE'S A FIFTH GENERATION FARMER. BUT HE DIDN'T WAIT AROUND FOR HIS INHERITANCE. HE AND HIS COUSIN SET OUT ON THEIR OWN. "I GREW UP WATCHING A LOT OF FINE EXAMPLES OF MY DAD, HIS BROTHERS AND MY GRANDFATHER ESPECIALLY | WE TRY NEW THINGS. WE'RE NOT AFRAID TO TRY NEW CROPS. THIS YEAR, WE'RE GROWING ORGANIC CORN. WE'VE NEVER GROWN CORN AND WE'VE NEVER GROWN ANYTHING ORGANICALLY, BUT IT SEEMED TO BE SOMETHING WE MIGHT WANT TO TRY AND GET INTO AND BREAK THE MOLD A LITTLE." HIS DECISION TO TRY ORGANICS ISN'T BECAUSE HE BELIEVES THEY ARE BETTER THAN CONVENTIONAL CROPS. BUT BECAUSE THERE'S A MARKET. AS SOMEONE WHO GROWS RICE, HE KNOWS FIRSTHAND THE FARMERS RESPONSIBILITY TO FEED THE WORLD. "THE U.S. EXPORTS 80 PERCENT OF ITS RICE. WE FEED A LOT OF PEOPLE AROUND THE WORLD. IT'S IMPORTANT DOMESTICALLY BECAUSE WE FEED DOMESTICALLY, BUT WE FEED A LOT OF PEOPLE AROUND THE WORLD. IT GOES TO A LOT OF POOR COUNTRIES. | WE FEED MORE THAN JUST AMERICANS." TIMOTHY'S START IN FARMING HAD ITS CHALLENGES. HE AND HIS COUSIN TOOK OVER A NEGLECTED FARM WITH DILAPIDATED IRRIGATION WELLS AND CANALS. THEY MADE IMPROVEMENTS TO THE PLACE AND CONTINUE TO WORK TO MAKE THEIR FARM AS EFFICIENT AS POSSIBLE. TECHNOLOGY IS A KEY. AS A YOUNG FARMER, IT'S HARD TO BALANCE FARM, FAMILY AND SERVICE. BOTH TIMOTHY AND HIS WIFE, LINDY TEACH SUNDAY SCHOOL AT THEIR CHURCH. TIMOTHY AND HIS DAD HELP WITH HABITAT FOR HUMANITY. AND HE'S THE PRESIDENT OF THE WHARTON COUNTY FARM BUREAU. HE ALSO SERVES ON SEVERAL RICE BOARDS AND COMMITTEES. HELPING TO MAKE SURE U.S. RICE IS TOP QUALITY. "WE'VE MADE A COMMITMENT TO TRY AND GROW THE BEST PACKAGE-QUALITY RICE. WHEN RICE GOES TO THE STORE, IT'S IN A CLEAR PACKAGE. YOU CAN SEE YOUR PRODUCT. YOU CAN SEE IF THERE'S BROKEN GRAINS OR IF THERE'S STAINS OR IF THE GRAINS ARE DIFFERENT LENGTHS. PEOPLE AREN'T GOING TO BUY THAT. THEY'RE GOING TO BUY THE PRETTIEST RICE IN THE BAG."
LINDY IS A REGISTERED NURSE AT A LOCAL HOSPITAL. SHE GREW UP IN ORLANDO, FLA. SO THE FARM LIFE WAS NEW TO HER. BUT SHE THINKS THE DECISION TO RAISE HER KIDS ON THE FARM IS A GREAT ONE. THE COUPLE TRIES TO INVOLVE THEIR SONS, JACOB AND NATHAN, AS MUCH AS THEY CAN. THEY ARE EXPECTING A THIRD SON IN FEBRUARY. "I LOVE SEEING HOW MUCH OUR BOYS LOVE LIVING OUT HERE AND HOW MUCH THEY LOVE INTERACTING WITH THEIR DAD, HOW THEY GET TO SEE HIM GO TO WORK ON A DAILY BASIS AND SEE WHAT HE DOES AND HOW MUCH PRIDE AND PASSION HE TAKES IN WHAT HE DOES." THE GERTSON'S WILL REPRESENT TEXAS IN THE YOUNG FARMER AND RANCHER COMPETITION DURING THE NATIONAL FARM BUREAU CONVENTION NEXT MONTH.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR MIKE HOFFMAN, AND ALL OF US AT AGDAY. I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
I'M CLINTON GRIFFITHS. AFTER YEARS OF SITTING AT RECORD-LOW LEVELS, IT APPEARS SHORT-TERM INTEREST RATES MAY BE MOVING HIGHER. WEDNESDAY ON AGDAY WE'LL DISCUSS THE FEDERAL RESERVE AND THE LIKEHLIHOOD TO HIKE INTEREST RATES. WATCH US WEEKDAYS HERE ON AGDAY.
 

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