AgDay Daily Recap -Feb. 17, 2016

February 17, 2016 02:57 AM
 

TODAY ON AGDAY
FEB. 17, 2016
OPENING HEADLINES:

COMING UP TODAY ON AGDAY -THE FIRST U.S. FACTORY TO OPEN IN CUBA IN DECADES PLANS TO MAKE TRACTORS.
PLUS, A LOOK AT THE MACHINERY LEASING ENVIRONMENT FOR U.S. FARMERS. IN AGRIBUSINESS...WATCHING COMPETITORS TO THE SOUTH.
 “THEY ARE MAKING MONEY RIGHT NOW. THEY ARE HAPPY.”
AND THESE MONKS ARE SERVING THE LORD WHILE SERVING QUALITY BEER TO THEIR FELLOW MAN.
AMERICAN COMPANY TO PRODUCE TRACTORS IN CUBA:
GOOD MORNING I'M CLINTON GRIFFITHS. FOR THE FIRST TIME IN 50 YEARS, THE AMERICAN GOVERNMENT ALLOWING AN AMERICAN COMPANY TO BUILD A FACTORY IN CUBA. AND THE FIRST PRODUCT? FARM TRACTORS.
THE WHITE HOUSE IS ALLOWING A SMALL U-S COMPANY TO BUILD A TEN MILLION DOLLAR PLANT IN THE COMMUNIST COUNTRY. IT'S CONSIDERED THE FIRST SIGNIFICANT U-S BUSINESS INVESTMENT SINCE FIDEL CASTRO SEIZED POWER IN 1959. THE TRACTOR PLANT WILL ASSEMBLE SMALL TRACTORS FROM PARTS SHIPPED OVER FROM THE U-S. THE INVESTORS PLAN TO SELL ABOUT A THOUSAND OF THE 25-HORSE TRACTORS ANNUALLY.
THE TRACTORS WILL SELL FOR LESS THAN TEN-THOUSAND DOLLARS A PIECE. THE COMPANY BELIEVES IT CAN SELL HUNDREDS OF THE TRACTORS A YEAR TO CUBAN FARMERS WITH FINANCING FROM RELATIVES OUTSIDE THE COUNTRY.
FACTORY SLATED FOR OPENING IN 2017:
THE OWNERS SAID THEY EXPECT TO BE BUILDING TRACTORS IN CUBA BY THE FIRST QUARTER OF 2017. THE ASSOCIATION OF EQUIPMENT MANUFACTURERS RELEASING ITS MONTHLY MACHINERY 'FLASH REPORT.' IT SHOWS U.S. TRACTOR SALES THROUGH JANUARY 2016 ARE DOWN 6 PERCENT COMPARED TO LAST YEAR AT THIS TIME. TWO-WHEEL DRIVE SMALLER TRACTORS UNDER 40 HORSEPOWER EXPERIENCING ONE OF THE ONLY INCREASES, UP 13 PERCENT OVER LAST YEAR. WHILE OTHER 2-WHEEL DRIVE AND 4-WHEEL DRIVE TRACTORS EXPERIENCED DECREASES. COMBINE SALES WERE UP 21 PERCENT FOR THE MONTH.
THE LEASING MARKET PROVIDES EQUIPMENT OPPORTUNITY TO FARMERS:
WHILE U.S. TRACTOR SALES HAVE DECREASED OVERALL, LEASING HAS BECOME A POPULAR WAY FOR FARMERS TO GET THEIR HANDS ON A NEW PIECE OF MACHINERY WITHOUT PAYING THE BIG BUCKS. BETSY JIBBEN JOINS US WITH MORE ON THE LEASING MARKET.
LOWER COMMODITY PRICES AND DECREASED INCOME PUT A STRAIN ON FARMER'S CHECKBOOKS AND A DRAIN ON EQUIPMENT MAKERS.
"2015 TO ME, I CALL IT THE YEAR OF THE LEASE,"
MACHINERY PETE SAYS LEASING IS ATTRACTIVE FOR SOME FARMERS. WITH LEASING, FARMERS DON'T HAVE TO BUY NEW EQUIPMENT AND THEY AREN'T RACKING UP HOURS ON THE EQUIPMENT THEY OWN.
LEASING HELPS MANUFACTURERS AS WELL AS FARMERS:
MANUFACTURERS SAY THEY ARE SEEING MORE LEASING DEMAND AS WELL. AND IT MAY BE A TOOL THEY NEED.
WHILE COMPANIES ARE SEEING MORE DEMAND, IT'S NOT ALWAYS WITHIN THE FARMING SECTOR.
BUT MANAGING USED EQUIPMENT IS KEY SO MANUFACTURERS AND DEALERSAREN'T SITTING ON A GLUT OF EQUIPMENT. AEM SAYS THAT EXCESS SUPPLY HAS ALREADY IMPROVED FOR NOW.
REPORTING FOR AGDAY, I'M BETSY JIBBEN.
CROP COMMENTS:
WARM WEATHER GETTING SOME FARMERS PREPARED FOR THE SPRING SEASON.
MIKE HOFFMAN JOINS US WITH CROP COMMENTS. GOOD MORNING, CLINTON. LET'S START OFF IN SOUTH TEXAS. SPENCE PENNINGTON IS PLANTING SORGHUM IN HIS AREA. HE SAYS TEMPERATURES ARE IN THE 80S BUT WITH ENOUGH MOISTURE TO GET CROP UP NICELY. HOWEVER, HE SAYS THE AREA IS QUICKLY APPROACHING THE NEED FOR ANTOHER RAIN. AND FROM NORTHWEST MISSOURI, TEMPERATURES ARE EXPECTED TO REACH 70 LATER THIS WEEK. THE AREA HAS BEEN SHORT ON SNOW THIS SEASON.
TEASE:
WHEN WE COME BACK, WE'LL TAKE A LOOK AT OUR SOUTH AMERICAN COMPETITORS AND WHAT IT COULD MEAN FOR U.S. EXPORTS. AND LATER, THESE BENEDICTING MONKS ARE SERVING THEIR FELLOW MAN...CREATING A DRINK WITH HEAVENLY APPEAL.
CME:
LETS SEE HOW MARKETS KICKED OFF THE WEEK--FROM THE FLOOR OF THE CME IN CHICAGO. TUESDAY'S LIVESTOCK WOW. WE SAW MARKETS THAT WERE CREEPING ALONG, BOTH CATTLE MARKETS -FEEDER AND LIVE. NOT MUCH GOING ON, JUST LIMPING HIGHER. THEN ALL OF A SUDDEN, BOOM UP LIMIT, BOTH. BING BING. AND I THINK IT'S INTERESTING WHEN YOU LOOK AT THE ACTION BECAUSE CATTLE CAME DOWN TO THE LEVELS WE'VE BEEN LOOKING FOR. IT CAME DOWN TO 130. A LITTLE UNDER 130 IN LIVE CATTLE. A LITTLE UNDER 150 IN FEEDERS.
AGRIBUSINESS:
WHILE WE'RE DREAMING OF SPRING, HARVEST IS UNDERWAY IN SOUTH AMERICA. TYNE MORGAN JOINS WITH A LOOK AT THE EXPORT COMPETITION FROM THE SOUTHERN HEMISPHERE.
WELCOME BACK. WE ARE HERE WITH STEVE NICKLESON OF RABOBANK. STEVE, LET'S LOOK AT SOME OF THESE OTHER COUNTRIES IN PRODUCTION. WE LOOK AT ARGENTINA, WE LOOK AT THE NEW ELECTION, AND KIND OF RATCHETING DOWN THE TARIFFS THEY HAVE ON SOME THEIR PRODUCTS. WE HAVE SEEN WHEAT COME OUT. YOU KNOW, SOYBEANS RATCHETED DOWN JUST A LITTLE BUT, DO YOU THINK THEY WILL CONTINUE TO DO THAT AND IF SO WHAT WILL FARMERS' REACTION BE DOWN THERE?> YEAH, THE FIRST WITH THE REACTION OF THE FARMERS HAS BEEN HAPPY, BECAUSE THIS IS WHAT THEY DID AND NOW THEY ARE SEEING THE DEPRECIATION OF THE PESO. WELL, FIRST WE SHOULD GO THROUGH IT.
NATIONAL WEATHER:
 WELCOME BACK TO AGDAY WITH METEOROLOGIST MIKE HOFFMAN. MIKE, WE'VE BEEN WATCHING OUR WEATHER THIS WEEK. IT LOOKS LIKE WE'RE IN THAT BORDER BETWEEN WARM IN SOME PLACES AND ALMOST SPRING. NO, ABSOLUTELY. MOST AREAS GETTING THAT AREA OF COLD ARE STILL HAVING A COUPLE OF DAYS OF WARM THOUGH. AFTER THE COLD SHOT COMES AND GOES.
BASICALLY AFTER LAST WEEK'S ACTIVE WEEK, THIS ONE IS A LOT MORE TRANQUIL. A LOT LESS IS GOING ON. THIS QUICK SHOT OF COLD AIR LIKE I SAID, COMES AND GOES. THERE'S THE COLD FRONT. IT DIPS OUT INTO THE OHIO RIVER VALLEY. IT'S NOT GOING TO BRING REAL COLD AIR THERE. HIGH PRESSURE FROM THE SOUTHEAST THROUGH THE FOUR CORNER REGION IS KEEPING THINGS NICE AND DRY. THIS IS THE FIRST SYSTEM IN A WHILE THAT'S GOING UP AND DOWN THE WEST COAST.
REGIONAL WEATHER:
NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL, FOR LEWISTOWN, MONTANA, VARIABLY CLOUDY AND MILD. THE HIGH TEMPERATURE IS 53 DEGREES. JEFFERSON CITY, MISSOURI PARTY SUNNY AND RATHER MILD. THE HIGH TEMPERATURE IS 49. AND GREENFIELD, MASSACHUSETTS IS MOSTLY CLOUDY AND CHILLY. THE HIGH IS AROUND 40.
TEASE:
WHEN AGDAY RETURNS, WE'LL TAKE A LOOK OTHER HEADLINES MAKING NEWS, INCLUDING AN INTERNAL INVESTIGATION AT USDA. AND LATER, BEER FROM THE BENEDICTINE--THESE MONKS AND THEIR LENTEN BREW IS PROVING POPULAR AMOUNG THE FLOCK.
USDA INVESTIGATES:
MEANWHILE, THE USDA FIRING UP ITS INTERNAL INVESTIGATORS FOLLOWING COMPLAINTS THAT AGENCY OFFICIALS SILENCED USDA RESEARCHERS. THE INSPECTOR GENERAL SAYS FOR THE FIRST THE OFFICE HAS SEEN A SIGNIFICANT VOLUME OF COMPLAINTS. IT'S TAKING THE MATTER SERIOUSLY. THE COMPLAINTS COMING ON TWO FRONTS...A RESEARCHER WHO SAYS HE WAS PUNISHED FOR COMMENTS HE MADE ABOUT NEONICOTINOIDS AND BEES --AND ALLEGATIONS OF ANIMAL ABUSE AT THE MEAT ANIMAL RESEARCH CENTER IN NEBRASKA. THE INSPECTOR GENERAL SAYS THE INVESTIGATIONS GENERALLY TAKE BETWEEN SIX MONTHS AND YEAR TO COMPLETE.
SYNGENTA DEAL COULD OPEN DOOR TO GM CROPS IN CHINA:
COULD CHEM CHINA, SYNGENTA DEAL OPEN THE DOOR FOR G-M CROPS IN CHINA?  SYNGENTA'S LEADERSHIP SAYS THEY EXPECT IT WILL. REUTERS REPORTING, THE 43 BILLION DOLLAR DEAL LIKELY TO GIVE SYNGENTA UNRIVALED ACCESS TO THE CHINESE MARKET-CHINA REMAINS ONE OF THE WORLD'S LARGEST GRAIN PRODUCERS.
AND FIND OUT WHAT SPECIAL ROLE THAT BEER PLAYS IN THE LENTEN SEASON FOR THESE BENEDICTINE MONKS.
IN THE COUNTRY:
FOR EARTH, FOR LIFE. THE CHRISTIAN SEASON OF LENT IS UPON US. MANY OF THE FAITH CHOOSE TO "FAST' DURING THIS TIME. IN ITALY, A COMMUNITY OF BENEDICTINE MONKS IS ABSTAINING FROM MOST MEALS OF THE DAY -BUT THEY'RE GETTING A LITTLE "HEAVENLY" HELP FROM HOPS AND BARLEY. <SOUND OF CHANTING> IN THIS SCENIC VALLEY OF CENTRAL ITALY, THE BENEDICTINE MONKS OF NORCIA (NOR-CHUH) SPEND THEIR DAY IN REFLECTIVE PRAYER AND CHANTING THE DIVINE WORD OF GOD. IN THE WEEKS LEADING UP TO EASTER, THEY KEEP TO A STRICT SCHEDULE OF BOTH. LIKE MANY CHRISTIANS AROUND THE WORLD, THE MONKS ARE PRACTICING ABSTINENCE FOR THE 40 DAYS BEFORE EASTER. THEY RISE AT THREE IN THE MORNING, PRAY EIGHT TIMES A DAY IN ST. BENEDICT'S BASILICA, AND FAST UNTIL EVENING. AFTER A LONG DAY OF WORK AND MEDITATION, THE MONKS ENJOY -WELL -"A COLD ONE"  PERHAPS A MONK'S BEST KEPT SECRET TO SUSTAIN THEMSELVES DURING LENT IS... CRAFT BEER.
CLOSING:
BY THE WAY, THE MONKS OF NORCIA NOT ONLY MAKE CRAFT BREW, BUT THEY ALSO HAVE RECORDED AN ALBUM OF THEIR GREGORIAN CHANTS WHICH IS AVAILABLE ON I-TUNES.  THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR MIKE HOFFMAN, BETSY JIBBEN AND TYNE MORGAN. I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
THURSDAY ON AGDAY OUR PARTNERS AT DROVERS WE'LL HAVE THE LATEST NEWS FROM THE BEEF SECTOR. AND WE'LL SEE HOW LOWER FARM INCOMES ARE DRIVING CREDIT DEMAND. AND ADVICE FOR PRODUCERS ON WEATHERING THE FINANCIAL CHALLENGES, I'M CLINTON GRIFFITHS. WATCH US ME WEEKDAYS RIGHT HERE ON AGDAY.

 

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