AgDay Daily Recap -December 8, 2014

December 8, 2014 02:57 AM
 

TODAY ON AGDAY
DECEMBER 8, 2014

OPEN HEADLINES:
COMING UP TODAY ON AGDAY BUILDING THE DAIRY INDUSTRY IN THE NORTHERN PLAINS... I'M MICHELLE ROOK. SOUTH DAKOTA IS THE HOT SPOT FOR DAIRY EXPANSION IN THE U.S. I'LL HAVE THE STORY TODAY ON AGDAY...MACHINERY PETE LOOKS AT SECTION 179 AND WHAT IT COULD MEAN FOR USED EQUIPMENT BUYERS. IN AGRIBUSINESS...SURVIVING THE STORAGE SITUATION…WEDO EMERGENCY STORAGE JUST ABOUT EVERY YEAR AND A LOT OF TIMES WE ARE ABLE TO CHOOSE HOW SOON WE WANT THAT MOVED OUT. AND RESEARCHERS ARE LOOKING FOR WAYS TO MAKE MORE MILK WITH LESS MONEY. AGDAY-BROUGHT TO YOU BY CHEVY SILVERADO 2014 NORTH AMERICAN TRUCK OF THE YEAR.
ROOK SOUTH DAKOTA DAIRY:
GOOD MORNING I'M CLINTON GRIFFITHS. IT'S KNOWN FOR MOUNT RUSHMORE AND THE BADLANDS, BUT SOUTH DAKOTA WOULDN'T MIND BEING KNOWN AS THE NEXT DAIRY STATE.
...AND THAT'S OUR TOP STORY ON AGDAY.
TEASE DAIRY #2:
IN ADDITION TO MORE COWS, THERE'S ALSO MORE DEMAND FOR DAIRY PRODUCTS. TOMORROW, MICHELLE WILL TALK WITH NEW AND EXISTING PROCESSORS ABOUT THEIR EXPANSION PLANS IN SOUTH DAKOTA.
AVIAN FLU:
WE RECENTLY TOLD YOU ABOUT THIS BIRD FLU OUTBREAK IN PARTS OF EUROPE. NOW IT'S BRITISH COLUMBIA CANADA--DEALING WITH THE SITUATION. FOUR POULTRY FARMS ARE UNDER QUARANTINE AFTER STATE OFFICALS DISCOVER RECENT DEATHS WERE DUE TO THE H-5 AVIAN FLU. FLOCKS ARE BEING CULLED. SEVERAL COUNTRIES IN ASIA ARE ALREADY IMPOSING TRADE RESTRICTIONS.
COTTON DEMAND:
AS COTTON HARVEST WRAPS UP, MANY COTTON FARMERS ARE STRUGGLING TO MAKE A PROFIT. AT 60 CENTS, DRYLAND COTTON PAYING ABOUT 500 DOLLARS AN ACRE…THE LAST COUPLE OF YEAR, CHINA HAD BEEN STOCKPILING COTTON, WHICH HELPED SUPPORT PRICES. IT'S NOW BACKING AWAY FROM THOSE PURCHASES. THE COUNTRY ALSO CHANGED ITS SUBSIDY PROGRAM. AND NOW DROPPING OIL PRICES COULD BE A FACTOR.
CROP WATCH INTRO:
MUCH OF CALIFORNIA RECEIVED AN ABUNDANCE OF RAINFALL LAST WEEK. DESPITE THE RAIN, THE STATE IS STILL FAR FROM RELIEVED OF ITS DROUGHT AND IT'S STILL IMPACTING WATER DELIVERIES. MIKE HOFFMAN HAS DETAILS, MIKE.
CROP WATCH:
GOOD MORNING CLINTON. LAST WEEK THE CALIFORNIA DEPARTMENT OF WATER RESOURCES ISSUED ITS FIRST WATER ALLOCATION ESTIMATES OF THE YEAR. THE ESTIMATE IS BASED ON WATER IN THE STATE'S ABOVE GROUND RESERVOIRS. AS OF NOW THE STATE IS ONLY ALLOCATING TEN PERCENT OF THE REQUESTS FROM WATER CONTRACTORS. LAST YEAR AT THIS TIME THEY ONLY RECEIVED FIVE PERCENT. MOST OF THE WATER COMES FROM SNOWPACK IN THE MOUNTAINS.AND TAKING A LOOK AT THE JET STREAM YOU CAN SEE A SYSTEM TRYING TO MOVE THROUGH THE MIDDLE OF THE COUNTRY MAY BE A PRETTY BIG SNOW STORM IN THE NORTH EAST WE ALSO HAVE A SYSTEM LURKING OFF THE WEST COAST WE'LL LET YOU KNOW WHAT HAPPENS THIS WEEK COMING UP IN A FEW MINUTES.
TEASE:
UP NEXT, IT WAS SOLID END TO THE WEEK FOR GRAINS. WE'LL HEAD TO THE CME FOR DETAILS, AND A LOOK AT THE IMPACT EMERGENCY STORAGE IS HAVING ON DELIVERIES.
CME REPORT:
IN AGRIBUSINESS IT WAS ANOTHER MIXED DAY IN MARKETS ON FRIDAY. LETS GET DETAILS FROM THE FLOOR OF THE CME.
ANALYSIS INTRO:
AS WE RECENTLY REPORTED, A LARGE NUMBER OF GRAIN ELEVATORS IN ILLINOIS WERE USING EMERGENCY STORAGE DUE TO THE LARGE AMOUNT OF GRAIN FROM FARMERS. TYNE MORGAN TAKES A CLOSER LOOK AT ITS IMPACT ON DELIVERIES IN THIS MORNING'S ANALYSIS.
ANALYSIS:
THANKS SO MUCH I'M HERE NOW WITH ANGIE MCGUIRE OF CITIZENS GRAIN ALRIGHT WHEN WE LOOK AT THIS CORN CROP SO MUCH OF IT STILL IN TEMPORARY SO MUCH IS IN EMERGENCY STORAGE NOW EMERGENCY STORAGE SOUNDS REALLY SCARY BUT YOU DEAL WITH THAT A LOT SO HOW QUICK ARE THESE BUYERS GOING TO WANT TO MOVE THIS CROP OUT THAT'S ON THE GROUND RIGHT NOW. I THINK QUALITY ISSUES WILL HAVE MORE TO DO WITH HOW QUICKLY THEY WANT TO MOVE IT VERSUS THE ACTUAL EMERGENCY STORAGE SIDE OF THINGS WE DO EMERGENCY STORAGE JUST ABOUT EVERY YEAR AND A LOT OF TIMES WE ARE ABLE TO CHOOSE HOW SOON WE WANT THAT MOVED OUT AND WE PUT IT INTO THE END OF MARCH THEY ARE ALLOWED TO HAVE SOME EXTENSIONS IF NEEDED BUT AT THE SAME TIME WHAT YOUR SEEING RIGHT NOW IS THERE ARE SOME GRAIN PILES MOVING IN YOU ARE SEEING SOME BINS EMPTY OUT MAINLY ON THE COMMERCIAL SIDE WHICH SHOWS ME THAT THE OPPORTUNITIES ARE PRESENT AND THE COMMERCIALS ARE GOING TO BE THE ONES SELLING INTO THE MARKET YOU AS A FARMER SHOULD BE ABLE TO TAKE A QUE FROM THE COMMERCIAL IF THEY'RE EMPTYING OUT A PILE THERE'S PROBABLY A GOOD REASON AND A GOOD MARKET STRUCTURE THAT'S ALLOWING THEM TO DO SO MAYBE HOP INTO SOME OF THAT ADVANTAGE. WELL ANGIE WHEN WE TALK ABOUT THESE PILES OF GRAIN WE'RE ALSO HEARING YOU KNOW BECAUSE OF OLD MAN WINTERS EARLY ARRIVAL WE'RE HEARING SOME OF THE PORTIONS OF THE RIVER HAVING TO SHUT DOWN EARLY THAT MEANS NOT AS MANY BARGES ARE GOING TO MAKE THEIR WAY DOWN SO WHEN WE HAVE YOU KNOW COULD WE SEE A BOTTLE NECK AGAIN ON YOU KNOW WHEN WE COME TO GET THIS CROP OUT NEXT YEAR.  THE POTENTIAL IS THERE WE COULD SEE THAT IT WILL PROBABLY BE IN A DIFFERENT AREA THAN WHAT WE SAW IN THIS PAST YEAR THE LOWER CRUDE OIL PRICES WILL PROBABLY OPEN UP SOME MORE RAIL TRAFFIC OR THE CAPABILITIES OF MOVING CORN AND BEANS ON THE RAIL THE BARGE SIDE OF THINGS WILL BE DIFFICULT BUT MOST OF THAT WILL BE SEEN JUST IN LOCALIZED BASIS SO IF YOU'VE GOT TO BE AWARE OF WHERE YOUR GRAIN FLOWS AND WHO YOUR BUYER IS IF YOU KNOW THAT YOUR GOING INTO THE RIVER MARKET THEN BE PREPARED THAT YOU COULD SEE SOME BASIS BACK OFF AS WINTER CONTINUES.  WELL ANGIE IF WE DO SEE SOME MORE PRODUCERS GROW SOYBEANS YOU KNOW WE'RE LOOKING AT AN UPTICK IN SOYBEAN ACRES IF WE SEE THAT THEN WHAT TYPE OF OPPORTUNITY COULD WE HAVE WITH THIS CORN MARKET. WE COULD SEE SOME SIGNIFICANT UPSIDE IN THE CORN MARKET BUT WE NEED TO BE AWARE OF HOW IF YOU WOULD HAVE SOLD FOUR DOLLAR CORN THIS FALL AND DIDN'T HAVE THE OPPORTUNITY BE AWARE OF IF FOR NEXT YEAR AND LOOK AT SELLING SOME JUST MAKE SURE YOU KNOW WHERE YOUR BOTTOM LINE IS AND TAKE ADVANTAGE AND THEN HAVE INCREMENTAL TARGET ORDERS IN PLACE TO CAPTURE THE RALLY AS IT COMES DON'T WAIT UNTIL THE MARKETS RALLY TO MAKE THE DECISION MAKE YOUR PLAN AHEAD OF TIME. ALRIGHT THANK YOU SO MUCH ALRIGHT STAY WITH US WE'LL BE BACK MORE ON AGDAY IN JUST A MOMENT.
YAMAHA GIVEAWAY:
DON'T FORGET THIS WEEK, WE'RE STILL TAKING NAMES FOR FOLKS TO WIN THIS YAMAHA VIKING SIDE BY SIDE. NOTHING SAYS FARM CHRISTMAS LIKE A FREE CAMOFLAGE 3 SEAT ATV.
IT'S THE SAME MACHINE CHIP FLOREY USED FOR THIS YEAR'S OUT DOORS ON THE FARM SHOOTS. SIX HUNDRED 86 CC'S, FOUR WHEEL DRIVE, PADDED HEAD RESTS AND A HAND HOLD BAR FOR THAT ROUGH TERRAIN. TO REGISTER TO WIN, GO TO AGDAY-DOT-COM AND CLICK ON THE YAMAHA VIKING BILLBOARD. YOU MUST 18 YEARS OR OLDER TO ENTER.
THE WINNER WILL BE ANNOUNCED BEFORE CHRISTMAS.
TEASE:
UP NEXT OUR OWN MACHINERY PETE TAKES A LOOK AT THE TAX EXTENDERS DEAL OUT OF WASHINGTON AND WHAT SECTION 179 COULD MEAN FOR BUYING USED EQUIPMENT.
MACHINERY PETE:
THANKS, GREG. YOU CAN STAY UP TO DATE WITH THE LATEST DEALS BY FOLLOWING PETE ON TWITTER OR LIKING HIM ON FACEBOOK. IN ADDITION TO HIS WEEKLY SEGMENT ON AGDAY, HE'S ALSO FEATURED EVERY WEEK ON AGRITALK AND AGWEB DOT COM.
ITC USDA MILK RESEARCH:
MANY TIMES, GOOD BUSINESS MEANS DOING MORE WITH LESS…THE USDA'S AGRICULTURAL RESEARCH SERVICE IS HELPING DAIRY FARMERS DO THAT THROUGH SOME INNOVATIVE RESEARCH. THE GOAL IS TO HELP FARMERS GET MORE PRODUCTION FROM THEIR LIVESTOCK FOR LESS COST.  THE USDA'S BOB ELLISON HAS MORE.
CLOSE:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.

 

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