AgDay Daily Recap -December 9, 2014

December 9, 2014 02:57 AM
 

TODAY ON AGDAY
DECEMBER 9, 2014

OPEN HEADLINES:
COMING UP TODAY ON AGDAY SOUTH DAKOTA WANTS TO BE A DAIRY DESTINATION... PLUS, AS PROCESSORS PRODUCE MORE ETHANOL, EXPORTS ARE ON THE RISE. AND NO SNOW...NO PROBLEM. THESE HIGH TECH SKI RESORTS ARE BUILDING THEIR BUSINESS, ONE MAN MADE FLAKE AT A TIME. AGDAY BROUGHT TO YOU BY CHEVY SILVERADO 2014 NORTH AMERICAN TRUCK OF THE YEAR.IN AGRIBUSINESS...PROTECTING PRICES FOR THE 2015 CROP.
ROOK DAIRY PROCESSORS:
GOOD MORNING I'M CLINTON GRIFFITHS. IF YOU TRAVEL ALONG INTERSTATE 29 IN EASTERN SOUTH DAKOTA, YOU'LL SEE THE RESULTS OF HARD WORK TO MAKE THE STATE AN "INVITING" PLACE FOR DAIRY PRODUCERS AND PROCESSORS. ...AND THAT'S OUR TOP STORY ON AGDAY.
LOUISIANA RUNOFF:
A RUN OFF ELECTION FOR LOUISANA'S SENATE SEAT TOOK PLACE OVER THE WEEKEND.
REPUBLICAN BILL CASSIDY PULLING OUT THE WIN SATURDAY NIGHT...DEFEATING THREE TERM INCUMBANT MARY LANDRIEU.THE GOP GAINING 9 SEATS IN ALL DURING THE 2014 MID TERMS....REPUBLICANS NOW HOLD 54 SEATS IN THE SENATE.
SO KO F&M:
ACROSS THE PACIFIC, SOUTH KOREA NOW CONFIRMING A NEW CASE OF FOOT AND MOUTH DISEASE ON A HOG FARM JUST SOUTH OF THE COUNTRY'S CAPITOL...IT HOUSES MORE THAN 15,000 ANIMALS. OFFICIALS NOW CULLING THOSE ANIMALS SHOWING SYMPTOMS...YEAR OVER YEAR PORK IMPORTS IN SOUTH KOREA-- MAINLY FROM THE UNITED STATES AND GERMANY--ARE UP NEARLY 18 PERCENT IN THE FIRST 10 MONTHS OF THIS YEAR.
TPP:
ALSO IN THE WORLD OF TRADE...NEGOTIATORS WILL MEET FOR ANOTHER ROUND OF TALKS ON THE TRANS-PACIFIC PARTNERSHIP THIS WEEK.  THE 12 PACIFIC RIM COUNTRIES WILL MEET IN WASHINGTON D.C.  UP FOR DISCUSSION, BILATERAL MARKET ACCESS FOR AUTOMOBILES AND FOR AGRICULTURE BETWEEN JAPAN AND THE UNITED STATES...THOSE POINTS CONTINUE TO STALL PROGRESS.
ETHANOL EXPORTS:
NEW ESTIMATES INDICATE U.S. ETHANOL COMPANIES MAY EXPORT NEARLY 1 BILLION GALLONS OF THE FUEL ANNUALLY OVER THE NEXT 5 YEARS. THAT'S MORE THAN DOUBLE WHAT IT WAS IN 2010. EXPORTS ARE UP MORE THAN 30 PERCENT THIS YEAR ALONE, DUE TO LOWER PRICES AND STRONG DEMAND. THAT'S ALSO HELPED PUSH PRICES HIGHER...WHILE CRUDE OIL HAS BEEN FALLING, ETHANOL PRICES ARE CLIMBING--NOW 15 PERCENT HIGHER THAN THE FIRST OF OCTOBER.
TEASE:
UP NEXT A CHECK OF THE MARKETS OVER AT THE CME...PLUS OUR ANALYSTS DISCUSS PREPARING FOR PRICES IN THE NEW YEAR.
ANALYSIS INTRO:
FOR THOSE FARMERS THAT MISSED RECENT RALLYS--OUR ANALYST THIS MORNING SAYS ITS NOT TOO LATE. TYNE MORGAN, IN FOR AL PELL JOINS US WITH TODAY'S ANALYSIS.
ANALYSIS KIM BURTON:
ALRIGHT THANKS SO MUCH WE'RE HERE NOW WITH KIM BURTON OF TOP THIRD KIM WHEN WE LOOK AT SOME OF THESE MARKETING OPPORTUNITIES WE HAD THIS PAST YEAR NOT ALL FARMERS TOOK ADVANTAGE OF SOME OF THOSE SO HERE WE ARE SITTING YOU KNOW IN DECEMBER WHAT IS YOUR ADVICE FOR FARMERS WHEN IT COMES TO TAKING ADVANTAGE OF SOME OF THESE PRICES. WELL I REALLY FEEL THAT THEY NEED TO REALIZE THAT EVEN THOUGH THEY MIGHT HAVE MISSED SOME OPPORTUNITIES TO GET THEIR GRAIN OUT OF AT A MORE PROFITABLE LEVEL THAN WHAT THEY CAN NOW THEY NEED TO REALIZE THERE'S STILL A LOT OF OPPORTUNITIES OUT THERE LOOK AT WHEAT WE'VE SEEN A SPIKE OF OVER A DOLLAR A BUSHEL JUST IN THE LAST FEW MONTHS AND WE NEED TO TAKE ADVANTAGE OF THOSE SPIKES WHEN THEY'RE THERE BUT REALIZE THAT WE DEFINITELY CAN GET A FLOOR PUT IN THERE WITH OPTIONS AND PROTECT OURSELVES BUT WITH AN OPTION YOUR UPSIDE IS COMPLETELY OPEN SO AS THE MARKET IF IT MOVES BACK UP THEN YOU CAN TAKE ADVANTAGE OF THAT AND ROLL THAT BACK UP SO. SO IN A SITUATION LIKE THIS OPTION IS ATTRACTIVE TO YOU. WE LIKE OPTIONS FOR TWO REASONS FOR ONE YOU KNOW EXACTLY WHAT IT'S GOING TO COST TO GET YOURSELF PROTECTED GET YOUR FLOOR BUT IT LEAVE THE UPSIDE OPEN AND SECONDLY YOU HAVE NO MARGIN CALLS THERE'S NO SURPRISES THE PREMIUMS PAID AT THE TIME YOU BUY IT AND THAT'S IT YOUR DONE SO FROM THERE YOU JUST MANAGE THE OPTION AND YOU HAVE SOMEBODY WATCHING THE MARKETS FOR YOU. WELL ALONG WITH THE UPSIDE WE ALSO HAVE SOME DOWNSIDE AND WHEN WE LOOK AT THE CROP THAT FARMERS PRODUCE THIS YEAR WITH BOTH CORN SOYBEANS YOU KNOW WHEN WE LOOK AT THAT CROP IF WE HAVE A BUMPER CROP AGAIN IN 2015 THEN WHAT ARE WE LOOKING AT IN 2016 IS 2016 PRETTY SCARY FOR YOU WHEN WE'RE LOOKING AT PRICES. WELL FROM THE RESPECT OF IF WE HAVE ANOTHER BUMPER CROP IN ADDITION TO THE ONE THAT WE JUST HAD YES IT IS A LITTLE SCARY I MEAN BUT WITH OPTION YOU CAN GO AHEAD AND PRICE 2016 YOU DON'T HAVE TO PRICE ALL OF IT BUT STILL YOU CAN GET YOURSELF IN A PROFITABLE LEVEL IF SOMETHING HAPPENS GLOBALLY OR THERE'S A WEATHER SCARE YOU KNOW WELL ADJUST IT THEN BUT THERE'S NO REASON THAT YOU CAN'T TAKE ADVANTAGE OF THOSE PRICES FARTHER OUT AND THAT WILL ALLOW YOU TO MAKE SURE THAT YOUR ALWAYS PROFITABLE AND AS ANGIE IN THE EARLIER SEGMENT YOU NEVER GO BROKE MAKING A PROFIT. ALRIGHT THANK YOU KIM SO MUCH AGAIN KIM WITH TOP THIRD ALRIGHT DOESN’T GO ANYWHERE WE'LL BE BACK WITH MORE 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.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...IT'LL BE ON THE RIGHT HAND SIDE OF THE WEBSITE. IF YOU CAN'T SEE IT, YOU MAY HAVE AN AD-BLOCKER ON YOUR BROWSER. TRY TURNING THE BLOCKER OFF OR USING A DIFFERENT BROWSER. YOU MUST 18 YEARS OR OLDER TO ENTER.  THE WINNER WILL BE ANNOUNCED BEFORE CHRISTMAS.
TEASE:
UP NEXT, A LOOK AT THE DAIRY INDUSTRY IN OUR DAIRY TODAY REPORT...
DAIRY TODAY:
IN NEWS FROM OUR PARTNERS AT DAIRY TODAY - 2014 HAS BEEN A STRONG YEAR FOR U-S DAIRY PRODUCERS. IT WAS A COMBINATION OF RECORD HIGH MILK PRICES, MODERATED FEED COSTS AND GOOD DEMAND FOR DAIRY PRODUCTS. ALL THAT SUCCESS, EVEN WHILE PRODUCTION REACHED NEW LEVELS.
NAOMI BLOHM:
BUT MANY OF THOSE FACTORS ARE LIKELY TO CHANGE IN 2015. FUTURES PRICES FOR CLASS THREE MILK HAVE ALREADY PLUNGED.AND NOW SOME PRODUCERS ARE SEEING EXPORTS FALL. WITH A STRONGER DOLLAR, U-S DAIRY PRODUCTS ARE MORE EXPENSIVE THAN OTHER DAIRY PRODUCING REGIONS IN THE WORLD. THOSE PRICES MAY NEED TO ADJUST EVEN LOWER TO BUY BACK SOME EXPORT DEMAND.
IDAHO PLANT:
GLANBIA FOODS, THE WORLD'S LARGEST AMERICAN STYLE CHEESE MAKER SAYS IT'S PLANNING MAJOR EXPANSION IN IDAHO. THE COMPANY PLANS TO INVEST MORE THAN 80 MILLION DOLLARS AT PLANTS IN GOODING AND TWIN FALLS. MUCH OF THE INVESTMENT WILL BE TO MEET DEMAND FOR HIGH QUALITY WHEY PRODUCTS. GLANBIA FOODS CURRENTLY PROCESSES MORE THAN 12 MILLION POUNDS OF MILK A DAY--THAT'S ABOUT A THIRD OF ALL THE MILK IN IDAHO. IT'S NEW FACILITIES ARE EXPECTED TO BE FULLY OPERATIONAL BY 2016.
ITC SNOWMAKING:
AS THE ON-GOING CALIFORNIA DROUGHT MOVES INTO WINTER, SKI RESORTS IN LAKE TAHOE ARE NOW SET UP TO FULLY OPERATE EVEN IF NO SNOW FALLS AT ALL THIS SEASON THANKS TO NEW, STATE-OF-THE-ART SNOWMAKING EQUIPMENT. HAVEN DALEY HAS DETAILS FROM THE SIERRA NEVADA MOUNTAIN RANGE.
CLOSE:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.

 

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