AgDay Daily Recap -Feb. 18, 2016

February 18, 2016 02:57 AM
 

TODAY ON AGDAY
FEB. 18, 2016
OPENING HEADLINES:

COMING UP TODAY ON AGDAY -AN UPDATE ON THE ETHANOL INDUSTRY AS LEADERS GATHER IN NEW ORLEANS.
IN AGRIBUSINESS...IF YOU'VE GOT CASH...HOW SHOULD YOU SPEND IT?  GETTING BIGGER IS NOT THE WAY TO LOWER YOUR COST.
CATTLEMEN RAISE QUESTIONS ABOUT ANOTHER MONUMENT DESIGNATION.  AND LEARNING TO GARDEN IN THE CLASSROOMS OF LOUISIANA.
MARKETING ETHANOL FOR DOMESTIC AND NATIONAL DEMAND:
GOOD MORNING I'M CLINTON GRIFFITHS. ETHANOL IS IN THE SPOTLIGHT THIS WEEK AS INDUSTRY LEADERS DISCUSS THE STATE OF THE BIO FUELS FUTURE. THE RENEWABLE FUELS ASSOCIATION'S 21ST ANNUAL NATIONAL ETHANOL CONFERENCE IS UNDERWAY THIS WEEK IN NEW ORLEANS.
THIS YEAR, THE FOCUS SEEMS TO BE ON HOW TO MARKET FUEL THROUGH BOTH DOMESTIC AND INTERNATIONAL CHANNELS WHILE BUILDING DEMAND.
RENEWABLE FUELS STRUGGLE ALONG WITH OIL PRICES:
NATIONAL REPORTER BETSY JIBBEN JOINS US WITH MORE ON THIS MATURING BUSINESS.
DESPITE GASOLINE PRICES AT MULTI YEAR-LOWS, THE RENEWABLE FUELS INDUSTRY SAYS THEY HAVE EXPERIENCED TOUGH TIMES BEFORE AND CAN MAKE IT THROUGH ANOTHER ONE.
AT THE NATIONAL ETHANOL CONFERENCE, DA-NINE JEAN DINNEEN SAYS THE BUSINESS OF ETHANOL IS ROOTED IN OCTANE. ADDING THE INDUSTRY PLANS TO BUILD DEMAND THROUGH HIGHER OCTANE FUELS AND EXPORTS.
ETHANOL EFFICIENCIES HELP WEATHER THE STORM:
SECRETARY VILSACK ALSO ON HAND TOUTING NEW USDA RESEARCH. HE SAYS THE ETHANOL INDUSTRY TODAY IS MORE EFFICIENT THAN EVER...ADDING IT'S TIME TO THROW OUT THOSE ASSUMPTIOSN FROM 15 YEARS AGO.
3:50 YOU'RE LOOKING AT EFFICIENT OPERATION THE RATIOS HAVE INCREASED FROM 2.3 TO 2.8 FOR EVERY UNIT IN AND OUT. THAT'S AN INCREDIBLE ADVANCEEMNT AND THE AIR QUALITY OF WHAT'S BEEN REDUCED IN THE COURSE OF THIS INDUSTRY OVER THE PAST 15 YEARS OR SO, WE'VE LITERALLY TAKEN 124 MILLION CARS OFF THE ROAD IN TERMS OF EMISSIONS.
DIESEL DROPS:
FOR THE FIRST TIME IN OVER A DECADE, THE RETAIL PRICE FOR ON-HIGHWAY DIESEL IS BELOW TWO BUCKS. THE ENERGY INFORMATION ADMINSTRATION SAYS THE AVERAGE NATIONAL PRICE IS A DOLLAR-98 A GALLON. THE LAST TIME IT WAS THAT LOW WAS FEBRUARY OF 2005.
OKLAHOMA EARTHQUAKES INCREASE, WASTEWATER INJECTION SITES TO BLAME:
IN OKLAHOMA, THE STATE'S OIL AND GAS REGULATORS ARE CLAMPING DOWN ON OIL-DRILLERS IN RESPONSE TO A RECENT RUN OF EARTHQUAKES.
THE STATE IS ASKING OPERATORS OF NEARLY 250 INJECTION WELLS TO REDUCE THE AMOUNT OF WASTEWATER THEY INJECT UNDERGROUND.
THE NUMBER OF MINOR TO MODERATE EARTHQUAKES HAS INCREASED IN OKLAHOMA FROM A FEW DOZEN IN 2012 TO MORE THAN 900 LAST YEAR.
MEANWHILE THE SIERRA CLUB FILED SUIT THIS WEEK AGAINST THREE ENERGY COMPANIES. THE ENVIRONMENTAL GROUP BLAMES THE GROWING NUMBER OF QUAKES ON "FRACKING". SECRETARY VILSACK DIDN'T JUST TALK RENEWABLE FUELS AT THE ETHANOL CONFERENCE, HE SPOKE ABOUT AGRICULTURE'S ROLE IN CUBA.
CUBA EMBARGO DULLS AGRICULTURAL OPPORTUNITY:
AS WE MENTIONED THIS WEEK, THE WHITE HOUSE IS ALLOWING A SMALL U.S. COMPANY TO BUILD A TRACTOR PLANT IN CUBA. IT'S CONSIDERED TO BE THE FIRST U.S. BUSINESS INVESTMENT SINCE THE 50'S. THE PLANT WILL SELL ABOUT A THOUSAND 25-HORSE TRACTORS ANNUALLY, BUILT FROM PARTS SHIPPED OVER FROM THE U.S.
HOWEVER SECRETARY VILSACK SAYS IT'S A CHALLENGE FOR THOSE SAME TYPES OF OPPORTUNITIES TO BE MADE AVAILABLE WITH AG IN THE COUNTRY.
HE SAYS USDA IS PROHIBITED FROM DOING A LOT OF PROMOTING BECAUSE OF THE EMBARGO TEXT.
VILSACK SAYS THE PRESIDENT HAS ASKED AND MADE ROOM IN HIS BUDGET FOR PROMOTION IN CUBA. THAT INCLUDES HAVING MORE STAFF ON THE GROUND TO BUILD RELATIONSHIPS. VILSACK SAYS IT'S VITAL TO GET PEOPLE ON THE GROUND IN CUBA. THE U.S. HAS LOST TOO MUCH MARKETSHARE TO THE COUNTRY ONLY 90 MILES OFF THE COAST OF FLORIDA.
AG EXPORTS HELP TO CREATE FULL TIME JOB OPPORTUNITY:
 SPEAKING OF OTHER COUNTRIES--AG EXPORTS SHOWING A STRONG CORRELATION TO SUPPORTING FULL TIME JOBS. IN 2014--150 BILLION DOLLARS IN AG EXPORTS HELPED CREATE ONE POINT 1 MILLION (1,132,000) FULL TIME TIME JOBS.
A NEAR 40 THOUSAND JOB INCREASE OVER THE PREVIOUS YEAR. USDA SAYS TYPICALLY MOST OF THESE JOBS COME FROM HIGHLY PROCESSED NONBULK AG PRODUCTS. CHINESE IMPORTS OF SOYBEANS DROPPED SHARPLY LAST MONTH.
CHINA SOYBEAN IMPORTS DOWN:
OUR PARTNERS AT PRO FARMER REPORTING CHINA IMPORTED 5.66 MILLION METRIC TONS OF SOYBEANS IN JANUARY. THAT'S A 38 PERCENT DROP FROM DECEMBER AND 17 PERCENT LESS THAN THE PREVIOUS YEAR. THAT'S EXPECTED TO DROP AGAIN THIS MONTH DUE TO CHINESE LUNAR NEW YEAR FESTIVITIES AND SHIPPING DELAYS OUT OF BRAZIL.
OVERALL CHINESE IMPORTS ARE OFF NEARLY 20 PERCENT IN THE FIRST FULL MONTH OF THE YEAR.
CANADIAN WHEAT REJECTED IN EGYPT:
FOR THE SECOND TIME, EGYPT HAS REJECTED A VESSEL CARRYING CANADIAN WHEAT BECAUSE EGYPTIAN OFFICIALS FOUND TRACE LEVELS OF THE FUNGUS ERGOT. HOWEVER, IT WOULD NOT SAY THE PERCENTAGE THEY FOUND.
REUTERS REPORTS THE MOVE BY THE QUARANTINE AUTHORITY IS THE LATEST IN A SERIES OF REJECTIONS, WHICH HAVE CAUSED CONCERNS ABOUT EGYPT'S NEW QUALITY RULES DISRUPTING IT'S WHEAT IMPORTS.  EGYPT IS THE WORLD'S LARGEST WHEAT BUYER. EGYPT'S SUPPLY MINISTRY SAYS THE COUNTRY ALLOWS A POINT ZERO FIVE PERCENT LEVEL OF ERGOT, BUT THE AGRICULTURAL QUARANTINE AUTHORITY HAS INSISTED ON A ZERO TOLERANCE POLICY.
CROP COMMENTS:
GOOD MORNING CLINTON.
WE HEARD FROM A REGULAR VIEWER OF OURS FROM FAIR GROVE, MISSOURI WHICH IS JUST NORTH OF SPRINGFIELD. STEVE HIGH-FILL SENT A BEFORE-AND-AFTER PHOTO OF HIS HAY BARN. THEY HAD A FULL BARN HEADED INTO WINTER. THERE WAS PLENTY OF MOISTURE LAST GROWING SEASON. STEVE SAYS THEY SOLD THE LAST OF THEIR STOCKS AROUND GROUNDHOGS DAY TO LOCAL LIVESTOCK RANCHERS AND HORSE PEOPLE. THEY'RE LOOKING FORWARD TO ANOTHER GROWING SEASON AND THEY'D APPRECIATE SPRING RAINS IN MY FORECAST.
TEASE:
NEXT, BOB UTTERBACK TALKS ABOUT WHERE PRODUCERS SHOULD FOCUS THEIR MONEY AND TIME IN 2016. THE PRESIDENT'S PEN COULD BE TAKING AWAY MORE GRAZING LAND FOR RANCHERS. AND TEACHERS HEAD TO CLASS TO LEARN HOW TO GROW THEIR OWN GARDENS.
CME:
IN AGRIBUSINESS LETS CHECK IN ON THE WEEK'S TRADE. FROM THE FLOOR OF THE CME IN CHICAGO. WEDNESDAY'S GRAIN MARKETS, RECEIVED PRETTY MUCH HIGHER PRICES ACROSS THE BOARD. A LITTLE BIT OF A CONTINUATION FROM YESTERDAY. AGAIN, THERE'S NO REAL OOPH IN THE MARKET. THERE ISN'T ANY INITIAIVE IN THE BUYING. HOWEVER, I WOULD ASSUME AT SOME POINT, THE SHORTS WILL GET NERVOUS AND WE MAY SEE MORE OF A SPIKE. BUT OVERALL, WE'RE HOLDING UP WELL. AGAIN, WE'RE MAKING NICE TECHNICAL PATTERNS THAT ARE MOVING INTO THESE MARKETS THAT ARE SHOWING AND ALLOWING US TO SAY HEY, IT LOOKS AS IF WE WANT TO GO HIGHER. THAT MAY BE THE CASE.
AGRIBUSINESS:
IN ANALYSIS THIS MORNING, TYNE MORGAN TAKES A LOOK AT WHERE FARMERS SHOULD FOCUS THEIR TIME AND MONEY IN TODAY'S MARKETS.
WELCOME BACK. WE ARE HERE WITH BOB UTTERBACK OF UTTERBACK MARKETING. BOB, IT HAS BEEN AN INTERESTING TIME THE PAST FEW YEARS. WE HAVE SEEN SOME FARMS GET BIGGER. WHAT IS YOUR ADVICE TO FARMERS THAT DO HAVE EXCESS CAPITAL RIGHT NOW?> THE ECONOMIC MODEL SINCE I GRADUATED FROM PURDUE IN 1974, IS GET BIGGER TO BE MORE AND TO SPREAD YOUR COST OVER MORE UNITS AND THAT HAS WORKED TO A POINT, BUT NOW WE ARE MOVING TO A TIME PERIOD WHERE WE ARE GETTING BETTER WHEN COSTS ARE ABOVE THE REVENUE AND GETTING BIGGER IS NOT A WAY TO LOWER YOUR COSTS. I THINK YOU HAVE TO BE MORE EFFICIENT IN OPERATION AND I AM REALLY TRYING TO DIRECT MY CLIENTS. I THINK THERE ARE THREE PRIMARY AREAS I WOULD KEEP ON YOUR EXISTING FARM
NATIONAL WEATHER:
WELCOME BACK TO AGDAY WITH METEOROLOGIST MIKE HOFFMAN. MIKE, I THINK I KNOW, BUT YOU'VE BEEN SPENDING SOME TIME WITH FARMERS LATELY. WHAT ARE FARMERS BEEN ASKING YOU? I WAS IN ELKHART, INDIANA YESTERDAY. SO THEY WERE WONDERING ABOUT THE SPRING AND SUMMER FOR NORTHERN INDIANA AND SOUTHERN MICHIGAN, LOOKING BACK AT SOME OF THE EL NINO WINTERS. WE'LL BE TALKING MORE ABOUT THAT AS WE HEAD THROUGH THE NEXT COUPLE OF WEEKS RIGHT HERE.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY. NOW LET'S A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL, FOR LA JUNTA, COLORADO,IT'S PARTLY SUNNY AND WINDY AND WARM, HIGH TEMPERATURE OF 82 DEGREES. TERRE HAUTE, INDIANA, PARTLY SUNNY BECOMING WINDY AND RATHER MILD. THE HIGH IS 48. IN HARRISBURG, PENNSYLVANIA, GOOD DEAL OF SUNSHINE WITH A HIGH OF 33.
TEASE:
WHEN WE COME BACK, U.S. CATTLEMEN RAISE CONCERN OVER NEW MONUMENT DESIGNATIONS BY THE PRESIDENT.
AND LATER, A TRIP TO THE SCHOOL GARDEN IN LOUISANA.
ANTIQUITIES ACT ADDS ACRES:
THE NATIONAL CATTLEMEN'S BEEF ASSOCIATION SAYS THE PRESIDENT IS LEVERAGING THE ANTIQUITIES ACT ONCE AGAIN TO LOCK UP MILLIONS OF ACRES OUT WEST. IN A PRESS RELEASE, NCBA SAYS A TOTAL OF ONE POINT 8 MILLION ACRES IS BEING NEWLY DESIGNATED BY PRESIDENT OBAMA.
REGION INCLUDES THE SAND TO SNOW NATIONAL MONUMENT, MOJAVE TRAILS NATIONAL MONUMENT AND CASTLE MOUNTAINS NATIONAL MONUMENT.
THAT PUTS THE TOTAL LAND SET ASIDE OVER THE LAST SEVEN YEARS TO 265 MILLION ACRES. NCBA SAYS CATTLEMEN ARE LIKELY TO LOSE THESE ACRES TO GRAZING IN THE COMING YEARS. "THE ANTIQUITIES ACT IS SOMETHING PUT IN PLACE, I THINK, WITH A VERY NOBLE INTENTIONS AND THAT WAS IDENTIFYING INDIVIDUAL SPOTS THROUGHOUT THE COUNTRY WHERE THERE ARE HISTORICAL AREAS IN ORDER TO PROTECT THEM. THAT WAS THE INTENT WHEN TEDDY ROOSEVELT WAS WORKING ON THIS. BUT UNFORTUNATELY THAT INTENT HAS EXPANDED. INSTEAD OF LOOKING AT INDIVIDUAL SITES, WE HAVE PRESIDENT OBAMA ACTUALLY LOCKING UP MILLIONS OF ACRES OF LAND WITH THE ANTIQUITIES ACT. AND THE WAY IT'S SET-UP, CONGRESS DOES NOT HAVE TO APPROVE THIS. SO HE CAN DO THIS ALL ON HIS OWN, " NCBA SAYS THEY EXPECT THE PRESIDENT TO CONTINUE THE DESIGNATIONS THROUGH THIS YEAR ADDING AN ADDITIONAL 10 MILLION ACRES IN ALL.
 TYSON STRATEGIZES MARKET PLANS:
THE U.S. LARGEST MEAT PROCESSOR --TYSON FOODS SAYS IT'S PLANNING TO GROW AND PROTECT MARKET SHARE IN 2016 AMID LOWER LIVESTOCK PRICES. THE FOOD COMPANY SEEING STOCKS PRICES CLIMB MORE THAN 50 PERCENT OVER THE LAST YEAR AS MARGINS IMPROVE.
ON THE BEEF SIDE, THE COMPANY SAYS IT'S CURRENTLY THE LOWEST MARKET SEGMENT OF THE BUSINESS. THEY PLAN TO INCREASE MARKETING AND BRANDING OF PRODUCTS IN HOPES OF DRIVING SALES.
NEW VIDEO FROM COMMONGROUND:
THAT NEW VIDEO ROLLING OUT FROM COMMONGROUND.
THAT'S THE GRASSROOTS ORGANIZATION STARTED BY THE NATIONAL CORN  GROWERS ASSOCIATION AND UNITED SOYBEAN BOARD TO RAISE AWARENESS BY GIVING FARM WOMEN AN OPPORTUNITY TO TALK WITH CONSUMERS ABOUT AG ISSUES. THE NEW VIDEO HIGHLIGHTS HOW RANCHERS CARE FOR THEIR ANIMALS AND FEATURES COLORADO RANCHER KELSEY POPE AND HER MOTHER CINDY FRASIER. COMMONGROUND IS NOW ACTIVE IN 18 STATES.
TEASE:
WHEN AGDAY CONTINUES GET YOUR WORK GLOVES ON AND GRAB A SHOVEL, WE'RE GOING TO THE GARDEN.
TEACHERS LEARN TO INCORPORATE GARDENING INTO CURRICULUM:
WITH MORE MODERATE TEMPERATURES IN THE SOUTH, SOME GREEN-THUMBERS ARE ALREADY DIGGING INTO THEIR GARDENS.
THIS SPRING WE MIGHT SEE AN INCREASING NUMBER OF LOUISIANA SCHOOLS PLANT GARDENS IN THEIR YARDS, THANKS IN PART TO A PROGRAM SUPPORTED BY THE LSU AGCENTER. TOBIE BLANCHARD SHOWS US HOW THEY HOPE TO GET THINGS "GREAUXING".
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR BETSY JIBBEN, TYNE MORGAN AND MIKE HOFFMAN, I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
I'M CLINTON GRIFFITHS. FRIDAY ON AGDAY OUR PARTNERS AT DROVERS WE'LL HAVE THE LATEST NEWS FROM THE BEEF SECTOR. AND WE'LL HAVE TIPS FOR PRODUCERS ON WEATHERING THE FINANCIAL CHALLENGES THEY COULD FACE IN 2016. WATCH AGDAY AT 8 EASTERN HERE ON RFD.

 

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