AgDay Daily Recap -Jan. 20, 2016

January 20, 2016 02:57 AM
 

TODAY ON AGDAY
JAN. 20, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -NEW UPDATES TO THE AVIAN FLU OUTBREAK IN INDIANA PLUS, KEY U.S. TRADING PARTNERS INK A DEAL TO KEEP BORDERS OPEN. IN AGRIBUSINESS OUR GUEST, CRAIG VANDYKE OF TOP THIRD AG MARKETING TAKES A LOOK AT CATTLE SHIPPING...ON THE WORLD MARKET.
 “AND CONSIDERING WHERE THE REAL IS WHERE THE U.S. DOLLAR IS IT'S GOING TO BE ATTRACTIVE FOR US THE UNITED STATES TO BE BUYING MORE BEEF FROM SOUTH AMERICA.”
AND THIS FAMILY HAS SPENT THREE DECADES TOPPING HEADS IN THE LONE-STAR STATE.
156-CHICKENS PUT DOWN AS PRECAUTION TO ELIMINATE AVIAN FLU SPREAD:
GOOD MORNING I'M CLINTON GRIFFITHS. ANIMAL HEALTH OFFICIALS ARE  HOPEFUL THEY GOT AN EARLY LEAD IN THE AVIAN FLU OUTBREAK AT INDIANA TURKEY FARMS. BUT DESPITE THE OPTIMISM, THE VIRUS HAS INDIRECTLY IMPACTED A CHICKEN OPERATION.
THE INDIANA BOARD OF ANIMAL HEALTH SAYS IT IS NOW DE-POPULATING A CHICKEN EGG LAYING BARN IN THE SAME COUNTY AS THE INFECTED TURKEY BARNS. THOSE TURKEYS TESTED POSITIVE FOR THE H7N8 STRAIN OF AVIAN FLU. OFFICIALS ARE POINTING OUT THAT THE CHICKENS DID NOT GET INFECTED WITH AVIAN FLU. HOWEVER, THEY WERE IN CLOSE PROXIMITY TO ONE OF THE INFECTED TURKEY BARNS. AND COULD BECOME A PROBLEM. IN RESPONSE, 156-THOUSAND COMMERCIAL LAYERS ARE BEING PUT-DOWN. ABOUT 245-THOUSAND TURKEYS HAVE BEEN DESTROYED. THAT BRINGS THE TOTAL TO JUST OVER 400-THOUSAND BIRDS IN DU BOIS COUNTY.
VIRUS CONFIRMED ON MULTIPLE FARMS, BUT ONLY ONE FACILITY SEES DEADLY STRAIN:
INDIANA RANKS THIRD IN EGG PRODUCTION ACROSS THE COUNTRY AND HAS 4 MILLION LAYING HENS JUST IN A 10 KILOMETER RADIUS OF THE INITIIAL OUTBREAK IN DUBOIS COUNTY.
AS WE'VE BEEN REPORTING, THE H-7-N-8 WAS CONFIRMED ON MULTIPLE INDIANA FARMS LATE LAST WEEK. BUT THE STATE SAYS ONLY ONE FACILITY SAW THE STRAIN MUTATE INTO THE HIGHLY PATHOGENIC STRAIN.
AGREEMENT BETWEEN COUNTRIES SEEKS TO RESPOND TO FUTURE DETECTIONS OF AVIAN FLU:
IN A RELATED MATTER, U-S, CANADA AND MEXICAN POULTRY OFFICIALS SIGNED AN AGREEMENT TUESDAY TO WORK TOGETHER ON AVIAN INFLUENZA'S IMPACT ON TRADE.
THE THREE-WAY DEAL CALLS FOR COLLABORATION ON RESPONDING TO FUTURE DETECTIONS OF THE VIRUS. IT ALSO SETS PARAMETERS TO MINIMIZE TRADE DISRUPTIONS.
THE U-S POULTRY AND EGG EXPORT COUNCIL SAYS MEXICO AND CANADA ACCOUNT FOR TWO THIRDS OF U-S TURKEY AND EGG EXPORTS, SO IT'S IMPERATIVE TO HAVE A DEAL LIKE THIS IN PLACE.
REAL ESTATE COMPANIES PREDICT SOFTER DEMAND FOR AGRICULTURAL LAND:
WITH FARM INCOME EXPECTED TO BE AT QUESTIONABLY LEVELS THIS YEAR, THE DEMAND FOR AGRICULTURAL LAND HAS TURNED MORE CAUTIOUS. THAT'S THE OUTLOOK FROM ONE OF THE LEADING FARM AND RANCH REAL ESTATE COMPANIES IN THE COUNTRY.
'FARMERS NATIONAL COMPANY' SAYS A SOFTER AGRICULTURAL LAND MARKET WILL CONTINUE IN 2016, WITH VALUES FOR HIGH QUALITY LAND HOLDING STEADIER, WHILE LOWER QUALITY LAND VALUES DECLINE. THOUGH DEMAND MAY BE SOFTENING, LAND VALUES IN GENERAL WILL REMAIN HISTORICALLY HIGH WHEN COMPARED TO LONG-TERM TRENDS. LAND AVAILABLE FOR SALE REMAINS LOWER THAN NORMAL AND BUYING MOMENTUM HAS TURNED MORE CAUTIOUS.
MANAGING MARGINS KEY TO SUCCESS IN 2016:
I SPOKE TO STEVE NICHOLS WITH RABO AGRIFINANCE LAST WEEK.  HE SAYS WHILE LAND PRICES ARE LIKELY TO CONTINUE THE DOWNWARD TREND-KNOWING ALL OF YOUR COSTS AND MANAGING THE MARGIN IS THE KEY TO SUCCESS IN 2016.
PRICE DROPS HALT POTASH PRODUCTION IN CANADA:
SPEAKING OF INPUT COSTS... CANADA BASED POTASH CORP SAYS ITS HALTING PRODUCTION AT A MINE IN NEW BURNSWICK. THE PICADILLIY MINE JUST OPENED IN LATE 2014--AND WAS EXPECTED TO CRANK OUT UP TO ONE POINT 8 MILLION TONS OF POTASH A YEAR.
BUT PRICES HAVE DROPPED SIGNIFICANTLY IN RECENT YEARS...FROM 900 DOLLARS A TON IN 2008 TO ROUGHLY 300 A TON NOW. THE DECISION TO INDEFINITELY SUSPEND PRODUCTION WILL RESULT IN MORE THAN 400 LAYOFFS..ALTHOUGH IT WILL BE CAPABLE OF RESTARTING PRODUCTION IF PRICES INCREASE.
FEDERAL RAILROAD ADMINISTRATION AND CANADIAN PACIFIC RAILWAY CONSIDER JOINING FORCES:
THE FEDERAL RAILROAD ADMINISTRATION SAYS IT WOULD NEED A CLOSE LOOK AT ANY POSSIBLE MEGA MERGER. THE COMMENT COMES AS CANADIAN PACIFIC RAILWAY AND NORFOLK SOUTHERN DISCUSS COMBINING FORCES. ALTHOUGH THE NEARLY 30 BILLION DOLLAR OFFER FROM C-P IS YET TO BE ACCEPTED. THE TALK HAS SHIPPERS--INCLUDING FOLKS IN AGRICULTURE--WORRIED ABOUT POSSIBLE INCREASES IN PRICES OR SERVICE CHALLENGES.
OTHER BIG RAILROAD COMPANIES SAY IF A DEAL LIKE THIS GOES THROUGH IT WOULD FORCE THEM TO LOOK AT CONSOLIDATION AS WELL.


DON’T SAY GOODBYE TO EL NINO YET:
THE EL NINO WEATHER ISN'T OVER YET...
THE AUSTRALIAN BUREAU OF METEOROLOGY SAYS STRONG WINDS ALONG THE  EQUATOR MAY SLOW THE WEATHER PHENOMENON'S DECLINE.  THEY SAY ITS NOT UNCOMMON FOR RE-INTENSIFICATION TO HAPPEN. THAT'S WHAT IT DID DURING THE 97-98 EVENT. OFFICIALS SAY DESPITE THE WINDS, THEY STILL EXPECT EL NINO TO WEAKEN IN THE COMING MONTHS.
FARM COUNTRY WEATHER:
LET'S TAKE A LOOK AT YOUR FIRST FARM COUNTRY WEATHER. MIKE HOFFMAN HAS DETAILS, MIKE. GOOD MORNING CLINTON.
WHILE MOST OF THE FARMLAND IN THE COUNTRY IS DORMANT RIGHT NOW, MANY FARM FIELDS IN FLORIDA ARE VERY ACTIVE WITH FRESH PRODUCE UP AND DOWN THE COAST. THE STATE APPEARS IN GOOD SHAPE FOR MOISTURE. THREE QUARTERS OF THE STATE'S TOP SOIL HAS ADEQUATE MOISTURE. ANOTHER 15-PERCENT IS SURPLUS. NOW TO THE WEST COAST, IN FRESNO COUNTY, CALIFORNIA, BEEHIVES FROM OUT OF STATE WERE BROUGHT IN TO PREPARE FOR ALMOND POLLINATION.
NATIONAL WEATHER:
AND TAKING A LOOK AT THE WEATHER MAP TODAY YOU CAN SEE A SYSTEM MOVING THROUGH THE EASTERN CORN BELT DOWN INTO THE SOUTHERN MISSISSIPPI VALLEY AND ANOTHER ONE IN THE WEST WE'LL SHOW YOU WHERE THOSE ARE HEADED NEXT COMING UP IN JUST A LITTLE WHILE THANKS MIKE. GOOD TO SEE YOU AGAIN.
TEASE:
WHEN WE COME BACK WE'RE TALKING CATTLE MARKETS AND THE IMPACT BOTH EXPORTS AND IMPORTS ARE HAVING PRICES.
INSTINCT II NITROGEN STABILIZER MAKES NITROGEN AVAILABLE TO CORN LONGER. FOR OPTIMIZED YIELD POTENTIAL. FROM DOW AGROSCIENCES.
SCIENCE, YIELD, SUCCESS.
CME:
IN AGRIBUSINESS...LETS SEE HOW MARKETS REACTED TO THE EXTRA DAY OFF THIS WEEK. FOR TUESDAY'S CLOSE WE HEAD TO THE FLOOR OF THE CME IN CHICAGO.
TUESDAY'S LIVESTOCK SAW KIND OF MIXED PRICES A LITTLE BIT HIGHER BUT I THINK THE MORE IMPORTANT
STORY IS KIND OF WHAT WE'VE BEEN TALKING ABOUT THE LAST COUPLE OF WEEKS. THE LIVESTOCK MARKET JUMPED A LITTLE TOO FAR AND WENT WAY UP THERE AND ALL OF SUDDEN WE CAME MELTING BACK DOWN.
THIS IS TODD HORWITZ FROM BUBBA TRADING DOT COM COMING TO YOU FROM THE FLOOR OF THE CME GROUP IN CHICAGO.
AGRIBUSINESS:
CRAIG VANDYKE, TOP THIRD AG MARKETING, OUR GUEST HERE AT THE AGRIBUSINESS DESK TODAY. CRAIG, LET'S TALK ABOUT THE CATTLE EXPORT MARKETS, BECAUSE IT WAS KIND OF AN INTERESTING YEAR, BECAUSE OUR EXPORTS ENDED AT WHAT?--DOWN 12 PERCENT HERE ON U.S. BEEF, BUT WE SAW LOTS OF IMPORTS WENT UP 20 PERCENT.> YEAH, IMPORTS HAVE BEEN BIG; AUSTRALIA HAS BEEN OUR BIGGEST IMPORTER TO THE U.S. OF BEEF RIGHT NOW. YOU LOOK AT THE AUSTRALIAN HERD IT'S THE LOWEST IT HAS BEEN SINCE 1990. SO DO WE START TO SEE THOSE IMPORTS SLOW UP A LITTLE BIT? OBVIOUSLY, WE ARE GOING TO KEEP AN EYE ON EXCHANGE RATES--THAT HAS BEEN THE TALK OF THE TOWN, NOT ONLY WITH THE AUSSIE, BUT WE ALSO NEED TO START LOOKING AT THE REAL.
NATIONAL WEATHER:
WELCOME BACK AGDAY. AND WELCOME BACK TO METEOROLOGIST MIKE HOFFMAN. GOOD TO SEE YOU. LOOKS LIKE YOU SPENT A COUPLE OF DAYS TALKING TO FARMERS. YEA, MONDAY WE WERE IN LACROSSE, WISCONSIN TALKING TO PRODUCERS UP THERE.HAD A GREAT TIME AS YOU CAN SEE ON THE WEATHER MAP TODAY, A COUPLE OF STORM SYSTEMS TO DEAL WITH. THE FIRST ONE IS CENTERED OVER THE SOUTHERN MISSISSIPPI VALLEY, PARTS OF ARKANSAS AND NORTHERN MISSISSIPPI. THIS IS ALL WEAKENING AS IT COMES EAST, BUT IT'S PRODUCING LIGHT SNOW FROM MICHIGAN DOWN INTO PARTS OF TENNESSEE VALLEY. AND THEN SHOWERS ON SOUTH FROM THERE. THIS LOOKS LIKE A DECENT STORM SYSTEM ESPECIALLY ONCE IT GETS A BIT FURTHER EAST.
TEASE:
NEW NUMBERS ARE IN ON GLOBAL DAIRY PRICES AND THE PROSPECTS AREN'T WHAT THE INDUSTRY HOPED. WE'LL HAVE DETAILS AFTER THE BREAK.
AND LATER, THE BEAUTY OF FINELY CRAFTED HAT. WE'RE OFF TO THE LONE STAR
STATE TO SEE A FAMILY BUSINESS AT WORK.
DAIRY TRADE AUCTION NEW ZEALAND:
THE GLOBAL DAIRY TRADE AUCTION IN NEW ZEALAND THIS WEEK HAS ANALYST PUSHING PRICE RECOVERY FARTHER DOWN THE ROAD. BOTH PRICES AND VOLUMES WERE LOWER THIS WEEK.
THAT PUSHED PRICES NEARLY A PERCENT AND A HALF LOWER TO 24-HUNDRED DOLLARS PER TON. MANY ANALYSTS THINK WE NEED TO SEE PRICES BACK ABOVE 3-THOUSAND BEFORE RECOVERY CAN START. BUTTER SAW THE BIGGEST DROP AT AUCTION--DOWN NEARLY 6 PERCENT...TO  1-43 PER POUND. CHEDDAR CHEESE FELL MORE THAN 3 PERCENTAGE POINTS.
THAT'S QUITE DIFFERENT THAN CURRENT U.S. PRICES WERE BOTH BUTTER AND CHEESE ARE ABOVE WORLD AUCTION LEVELS.
MILK PRODUCTION UP FIVE PERCENT:
BEHIND THE GLOBAL SLUMP...MILK PRODUCTION GROWTH--ESPECIALLY IN THE EUROPEAN UNION. OVERALL PRODUCTION IS UP 5 PERCENT FOR NOVEMBER YEAR OVER YEAR.
DENNY’S GOES CAGE FREE:
ANOTHER POPULAR BREAKFAST CHAIN IS MOVING TO CAGE FREE EGGS. DENNY'S ANNOUNCED IT WILL START SERVING 100 PERCENT CAGE-FREE EGGS BY 2026. WE'VE SEEN FAST-FOOD CHAINS MAKE THE SWITCH, BUT DENNY'S IS THE FIRST WITHIN THE FAMILY DINING SECTOR TO DO SO.
DENNY'S C-E-O SAYS THEY BELIEVE THEIR GUESTS CARE ABOUT HOW THEIR FOOD IS SOURCED AND SO DO THEY.
TEASE:
STILL TO COME WE'RE HEADED IN THE COUNTRY TO TEXAS WHERE COWBOY HATS OFTEN DEFINE WHO YOU ARE. WE'LL MEET A COUPLE OF BROTHERS TRYING TO KEEP THAT HERITAGE ALIVE.

IN THE COUNTRY:
FOR MANY TEXANS, THE COWBOY HAT MAY BE A STAPLE, REPRESENTING NOT JUST WHO YOU ARE BUT WHERE YOU CAME FROM…
FOR ONE FAMILY, IT'S A 30 YEAR BUSINESS, CREATING THAT PERFECT SHAPE FOR MANY FAMOUS SOUTHERNERS.
JESSICA DOMEL WITH TEXAS FARM BUREAU REPORTS ABOUT THE FAMILY BEHIND THE HAT.
THE COWBOY HAT. AN ICONIC TEXAS SYMBOL. GETTING THAT FIRST HAT SHAPED IS A RITE OF PASSAGE FOR MANY TEXANS. "IT'S SO IMPORTANT FOR THE CUSTOMER TO FEEL COMFORTABLE, FEEL RIGHT, TO MAKE THAT HAT THEIR OWN, IT'S GOT TO BE SHAPED RIGHT." SCOTT CATALENA AND HIS BROTHER TRAVIS DON'T JUST SHAPE HATS. THEY MAKE THEM. THEIR FAMILY HAS BEEN CRAFTING QUALITY HEADWEAR IN DOWNTOWN BRYAN FOR OVER 30 YEARS. THEY'VE MADE HATS FOR WILLIE NELSON & AARON WATSON. AS WELL AS FOR FULL TIME RANCHERS & FIRST TIME WEARERS. IT DOESN'T MATTER WHO YOU ARE, EVERY HAT IS SPECIAL. "TEXANS USE HATS FOR WHAT HATS WERE MEANT TO BE USED FOR. IT'S MORE OF A TOOL. IT'S PART OF A CULTURE, IT IS PART OF THAT PERSON AND AFTER A WHILE THAT HAT TAKES ON THAT PERSON'S PERSONALITY."
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. THURSDAY ON AGDAY BIG STORM MOVING ACROSS THE  COUNTRY AND THE EAST COAST APPEARS TO BE IN THE BULLSEYE. PLUS WE'LL TALK ABOUT WEATHER IMPACTS IN THE NEW YEAR. COVERING FARM COUNTRY TUNE IN DAILY FOR AGDAY.

 

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