AgDay Daily Recap -Jan. 28, 2016

January 28, 2016 02:57 AM
 

TODAY ON AGDAY
JAN. 28, 2016


OPENING HEADLINES:

IT’S A BUSY WEEK FOR BOTH GRAIN AND CATTLE PRODUCERS. WE’VE HIT THE ROAD TO ATTEND SOME OF THE INDUSTRY'S BIGGEST CONFERENCES.
FROM SAN DIEGO CALIFORNIA I’M CLINTON GRIFFITHS HERE WHERE THE CATTLE INDUSTRY IS GATHERING TO DISCUSS THE BIGGEST ISSUES THEY’LL FACE IN 2016
I’M TYNE MORGAN FROM THE 2016 TOP PRODUCER SEMINAR IN CHICAGO, ILLINOIS, PRODUCERS HERE ARE WEATHERING THE STORM OF THE LOWER COMMODITY PRICES IN 2016, BUT WE DO HAVE SOME BULLISH FACTORS THAT WILL GIVE YOU HOPE.
PLUS, MEET A TEXAS DUO NAMED THE 2016 THE TOP PRODUCERS OF THE YEAR.....
CATTLE INDUSTRY CHALLENGES:
GOOD MORNING I'M BETSY JIBBEN. CLINTON IS ON ASSIGNMENT AT THE CATTLE INDUSTRY CONVENTION IN SAN DIEGO.
THERE'S AN ABUNDANCE OF ISSUES FACING CATTLE PRODUCERS THAT RANGE FROM MARKET TURMOIL TO GOVERNMENT REGULATIONS.
AND FARM JOURNAL'S BEEF SECTOR IS BRINGING YOU EXTENSIVE COVERAGE.
DESPITE THE RECENT DROP IN THE MARKET, ATTENDANCE IS STRONG AT THE ANNUAL CATTLEMEN'S CONVNETION...SO FAR REGISTRATIONS STAND AT ROUGHLY 6000 PEOPLE.
TRADE, MARKETS, POLICY ARE FACTORS IN 2016 INDUSTRY:
CLINTON GRIFFITHS IS AT THE EVENT THIS WEEK. HE JOINS US WITH A PREVIEW OF THE HOT TOPICS FACING THE INDUSTRY IN THE YEAR AHEAD.
WELL, WE'RE HERE IN BEAUTIFUL SAN DIEGO, CALIFORNIA GREG HENDERSON, EDITOR OF DROVERS JOINING ME. GREG, LET'S TALK ABOUT WHAT THE INDUSTRY IS GOING TO BE DISCUSSING THIS WEEK. THE BIGGEST ISSUE THE WHOLE WEEK IS GOING TO BE MARKETS. AS YOU KNOW, THE INDUSTRY EXPERIENCED EXTREME VOLATILITY LAST FALL. IT CONTINUED OVER INTO THIS YEAR. AND CATTLEMEN ARE UPSET. THE MARKET DOES NOT SEEM TO BE RESPONDING TO FUNDAMENTALS, BEING THAT SUPPLIES ARE LOW AND DEMAND IS GOOD. THERE'S BEEN AN EXTREME VOLATILITY BOTH IN THE FUTURES AND IN THE CASH MARKET.  THAT'S GOING TO BE A BIG TOPIC THIS WEEK. WE KNOW MARKETS ARE AN ISSUE. WHAT ELSE? IS IT POLICY, IS IT TRADE? TRADE IS A BIG ISSUE. OBVIOUSLY WE WANT TO CONTINUE TO SELL BEEF INTO THE PACIFIC RIM COUNTRIES. THERE WILL BE TALK ABOUT IMPORTS COMING FROM SOUTH AMERICA. CATTLEMEN ARE NOT IN FAVOR OF THAT. SO TRADE AND POLICY ACTUALLY HAD A GOOD LAST YEAR ON POLICY ISSUES. WE'RE LOOKING TO CONTINUE THAT THIS YEAR. ALRIGHT GREG. WE'LL KEEP AN EYE ON IT. THANKS FOR BEING HERE JOINING US THIS WEEK. WE'LL HAVE MORE COVERAGE FROM THE CONVENTION IN SAN DIEGO AS WE CONTINUE.
CATTLE FUTURES:
THE CEO OF THE C-M-E GROUP IS ALSO IN SAN DIEGO THIS WEEK DISCUSSING THE CATTLE MARKET VOLATILITY THAT WE WITNESSED AT THE END OF 2015.
TERRY DUFF IS BEING ASKED ABOUT THE EFFECTIVENESS OF CATTLE FUTURES CONTRACTS WHICH ARE USED AS A RISK MANAGEMENT TOOL.
EARLIER THIS MONTH, THE NCBA SENT A LETTER TO DUFFY WHICH SPELLS OUT THE CONCERNS NCBA HAS WITH LIVESTOCK CONTRACTS WHICH LACK SOME OF THE SAME OVERSIGHT AS GRAINS.
MEANWHILE, THE CATTLE GROUP -R-CALF -IS CALLING ON THE U-S SENATE TO CONDUCT AN INVESTIGATION INTO WHAT IT CALLS "POTENTIAL ANTI-TRUST" ISSUES IN THE CATTLE AND BEEF MARKETS.
2016 TOP PRODUCER:
SOME OF THE BIGGEST FARMERS IN THE COUNTRY ARE FOCUSING ON WEATHER THIS WEEK IN CHICAGO. THEY'VE GATHERED FOR THE ANNUAL TOP PRODUCER SEMINAR, HOSTED BY OUR PARTNERS AT TOP PRODUCER MAGAZINE.
TYNE MORGAN IS IN CHICAGO AS PRODUCERS DISCUSS "WEATHERING THE POTENTIAL STORM IN 2016", TYNE.
THANKS, BETSY. THE MOOD IS A LITTLE DIFFERENT HERE AT THE 2016 TOP PRODUER SEMINAR. MANY OF THESE PRODUCERS ARE WEATHERING THE STORM OF LOWER COMMODITY PRICES. BUT BILL KIRK OF WEATHER TRENDS IS BULLISH FOR  THIS REASON: THE WEATHER.
2016 IS 2012 ALL OVER AGAIN. I DON'T WANT TO SAY IT'S GOING TO BE THAT BAD BECAUSE THE STOCKS SITUATION IS DIFFERENT, BUT THE WEATHER IS AS BAD AS 2013. WE ARE FORECATSTING THE HOTTEST, DRIEST CONDITIONS SINCE 2012. A LITTLE MORE WIDESPREAD DROUGHT POTENTIALLY. AND THEN THE DISASETER THAT'S' GOING ON DOWN IN BRAZIL. TOO DRY THEN TOO WET RIGHT AT HARVEST. THE CROP IS GOING TO BE THE SECOND HOTTEST AND DRIEST IN BRAZIL.
BUY LOW SELL HIGH:
KIRK HAS TRILLIONS OF DATA POINTS TO BACK THAT UP. WHILE KIRK BRINGS HOPE, PURDUE UNIVERSITY'S JASON HENDERSON SAYS THERE'S OPPORTUNITY TODAY TO LOCK IN BUISNESS DEALS THAT WILL HELP SET YOU UP FOR FUTURE SUCCESS.

I'M SAYING BUY LOW, SELL HIGH. I THINK A LOT OF PEOPLE ARE LOOKING AT THIS TIME FRAME, LOWER INCOMES AND JUST THINKING ABOUT THE SHORT TERM NATURE OF THEIR BUSINESS AND THINKING ABOUT HOW WE GET THROUGH THIS NEXT YEAR. BUT IT'S ALSO AN OPPORTUNITY TO THINK ABOUT LONG TERM IS THIS THE APPROPRIATE TIME TO MAKE THE APPROOPIRATE INVESTMETNS FOR THE FUTURE. A LOT OF FARMERS THAT BOUGHT IN THE 1980S ARE DOING VERY WELL TODAY.
INTEREST RATES EXPECTED TO CLIMB:
I ALSO ASKED HENDERSON ABOUT WHAT HE THINKS THE FEDERAL RESERVE WILL DO WITH INTERESTI RATES THIS YEAR. HIS ANSWER—RATES WILL GO UP.
CROP WATCH:
LOOKING AT THE "NASS" REPORT FROM TEXAS, IT SHOWS THE 2015 COTTON HARVEST IS NEARLY COMPLETED. STATEWIDE IT REACHED 96 PERCENT THIS WEEK. THAT'S THREE POINTS BEHIND NORMAL. AND THE STATE'S PECAN HARVEST REACHED 85 PERCENT THIS WEEK WHICH IS NINE POINTS BEHIND NORMAL.
AS FAR AS WINTER WHEAT, "NASS" SAYS 95-PERCENT OF THE STATE'S CROP HAS EMERGED. BUT THERE ARE SOME PROBLEMS LOCALLY. TEXAS AGRILIFE EXTENSION SAYS ONLY 20-PERCENT OF THE TEXAS "BLACKLANDS" HAS BEEN PLANTED. AND FOR THOSE ACRES THAT DID GET PLANTED, WATERLOGGED SOILS MADE IT TOUGH FOR SEED TO SPROUT.
WEATHER PREVIEW:
AND TAKING A LOOK AT THE WEATHER MAP THE ONE STORM SYSTEM MOVING THROUGH THE GREAT LAKES ANOTHER WET ONE IN THE SOUTH EAST AND WE HAVE A COUPLE OF SYSTEM COMING IN OUT WEST WE’LL SHOW YOU THOSE COMING UP IN WEATHER.

TEASE:
WHEN AGDAY CONTINUES, WE RETURN TO SAN DIEGO FOR THIS MORNING'S ANALYSIS. WE'LL BE DISCUSSING 2016 PRICES WITH RABO AGRI-FINANCE ANALYST DON CLOSE. 
LATER....CALIFORNIA'S ORANGE CROP FACING A THREAT THAT'S ALREADY DECIMATED PARTS OF FLORIDA'S CITRUST INDUSTRY.
AND MEET A FARM FAMILY WHO STICKS OUT AMONG THE REST-WE TELL YOU WHY A TEXAS COUPLE IS THIS YEAR'S TOP PRODUCERS OF THE YEAR.


AGRIBUSINESS:
IN AGRIBUSINESS IN THIS MORNING'S ANALYSIS, WE RETURN TO THE CATTLE INDUSTRY CONVENTION IN SAN DIEGO. CLINTON DISCUSSES 2016 PRICES WITH A KEY ANALYST FROM RABO-BANK AGRIFINANCE, CLINTON.
JOINING ME NOW AT THE 2016 CATTLE INDUSTRY CONVENTION, I HAVE GOT DON CLOSE WITH ROB AGRIFINANCE. DON, LET'S TALK ABOUT THESE CATTLE MARKETS. WE HAVE SEEN SOME SURPRISING STRENGTH AS FAR AS CASH PRICES GO IN THE LAST WEEK OR TWO. > SOME VERY WELCOME RELIEF, NOVEMBER, DECEMBER--PRETTY TOUGH SLEDDING.> THEY WERE.> SEEING SOME STABILITY IN THE MARKET OBVIOUSLY THE SECOND HALF OF DECEMBER WE SAW A VERY IMPRESSIVE RECOVERY AND CUTOUT VALUES AND  THAT HAS IMPROVED PACKER MARGINS. WE ARE SEEING SOME OF THAT SHOW UP IN THEIR CASH BIDS SO YEAH WE HAVE SEEN SOME HELP.>
NATIONAL WEATHER:
WELCOME BACK TO AGDAY WITH METEOROLOGIST MIKE HOFFMAN. MIKE, THERE SEEMS TO BE A STRONG SYSTEM OFF THE PACIFIC OCEAN OR IN THE PACIFIC OCEAN I SHOULD SAY. WHAT IS THAT CAPABLE OF?> YEAH, BETSY. IT LOOKS LIKE IT IS GOING TO COME POUNDING INTO THE WEST BY THIS WEEKEND AND IT'S GOING TO BE A BIG RAIN AND SNOW MAKER IN THE MIDWEST DEPENDING ON THE TRACK OF IT. BUT IN THE MEANTIME, WE ARE TALKING FAIRLY WEAK SYSTEMS: ONE OVER THE UPPER MIDWEST, NORTHERN GREAT LAKES BRINING SOME SNOW, LIGHT SNOW GENERALLY AND IN MOST AREAS ALTHOUGH LAKE EFFECT REGIONS CAN ALWAYS GET SEVERAL INCHES.
REGIONAL WEATHER:
THAT IS A LOOK ACROSS THE COUNTRY. NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL FOR PRESCOTT, ARIZ. A GOOD DEAL OF SUN AND MILD TODAY, HIGH TEMPERATURE OF 64 DEGREES, CRUXTON, MINN. MOSTLY CLOUDY, A FEW FLURRIES POSSIBLE, HIGH OF 24 AND LAKE CITY, FLA. CLOUDY WITH LIGHT RAIN AT TIMES, HIGH TEMPERATURE OF 65.
TEASE:
STILL TO COME, CALIFORNIA'S CITRUS INDUSTRY ON HIGH ALERT AFTER THE APPEARANCE OF A CROPKILLING BUG.
AND WE'LL MEET THE WINNER OF THE TOP PRODUCER OF THE YEAR HONORS. WHAT MAKES THEIR OPERATION STICK-OUT?
DETAILS, LATER ON AGDAY.
FRESNO CITRUS CROPS COME DOWN WITH A BUG:
A DISCOVERY OF AN INSECT KNOWN TO CARRY A CITRUS-DISEASE HAS TRIGGERED A QUARENTINE IN FRES-NO CALIFORNIA.
STATE AG OFFICIALS HAVE ESTABLISHED ABOUT A HUNDRED SQUARE MILE QUARANTINE AFTER AN ASIAN CITRUS PSYLLID WAS FOUND IN THE AREA.
THE INSECT IS A MAJOR THREAT TO CITRUS CROPS BECAUSE THE BUG MAY CARRY A DISEASE CALLED CITRUS GREENING.
FLORIDA ORCHARDS HAVE SUFFERED FROM THE DEVASTATING INSECT OUTBREAK.
FLORIDA'S PRODUCTION ESIMATE HAS TAKEN A HUGE HIT FROM LAST YEAR -DOWN 29-PERCENT.
TRADE EMBARGO LOOSENS IN CUBA BUT NOT ENOUGH FOR AG:
 THE UNITED STATES IS LOOSENING THE U.S. TRADE EMBARGO ON CUBA WITH SOME NEW MEASURES-BUT THE MAJORITY OF AG PRODUCTS ARE LEFT OUT.
THE OBAMA ADMINISTRATION IS EASING SOME RESTRICTIONS ON FINANCING EXPORTS TO CUBA WITH SOME REVISED RULES.
THE NEW RULES ,TAKING EFFECT THIS WEEK, WILL ALLOW U.S. BANKS TO PROVIDE DIRECT FINANCING FOR EXPORTS TO CUBA.
HOWEVER, SOME AGRICULTURAL EXPORTS STILL REMAIN UNDER THE CUBAN TRADE EMBARGO.
THERE ARE SOME EXCEPTIONS WITH FOOD -AND SOME AGRICULTURAL EXPORTS STILL REMAIN UNDER THE TRADE EMBARGO.
TEASE:
UP NEXT....WE VISIT AN IMPRESSIVE FARMING OPERATION IN TEXAS. IN FACT, IT'S NAMED TOP PRODUCER OF THE YEAR.
TEXAS DAIRY DUO EARNS TOP PRODUCER AWARD:
EVERY YEAR, OUR PARTNERS AT TOP PRODUCER MAGAZINE AWARD A FARMER OR FARM FAMILY WHOM OTHERS WITHIN THE AG INDUSTRY CAN LEARN BUSINESS CONCEPTS AND SUCCESSION PLANS FROMTHIS MORNING WE TAKE YOU DOWN TO TEXAS TO MEET THIS YEAR'S TOP PRODUCERS, DONALD AND CHERI DE JONG.
THEY OFTEN SAY LEADERSHIP IS A LONELY PURSUIT...BUT FOR DONALD AND CHERI DE JONG, THIS ISN'T THE CASE.
 "DONALD IS THE DREAMER. DONALD IS THE ONE THAT WILL MAKE THE DEAL. THINKS THAT WE CAN STEP OVER THOSE BOUNDARIES. I AM USUALLY THE ONE WHO SAYS, OKAY, HOW ARE WE GOING TO PAY FOR IT, DO IT, OPERATE."
IT'S BALANCE IN THE OFFICE, ON THE FARM AND AT HOME, THAT MAKE THE DE JONGS SUCH A POWERFUL COMBINATION. THE TWO MET AT CAL-POLY STATE. CHERI'S FAMILY WERE GROCERS, AND DONALD'S WERE DAIRY PRODUCERS. . HIS FATHER CAME OVER FROM THE NETHERLANDS. AS ONE OF SEVEN KIDS, DONALD SAYS COLLEGE WAS HIS TICKET OUT FROM SOME VERY TOUGH TIMES.
SO ONLY SIX MONTHS INTO THEIR MARRIAGE, THEY FOUND A FARM FOR SALE IN CENTRAL TEXAS. WITH THE HELP OF HIS FATHER, CHERI, DONALD AND HIS YOUNGER BROTHER GOT A FRESH START.
CONGRATULATIONS TO THE DEJONGS WHO WERE PRESENTED WITH THEIR AWARD LAST NIGHT IN CHICAGO.
WE'LL ALSO VISIT THE OTHER NOMINEES -AND SHOW YOU THEIR OUTSTANDING OPERATIONS AS WELL.
CLOSING:
WELL THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.
FOR CLINTON GRIFFITHS, TYNE MORGAN AND MIKE HOFFMAN, I'M BETSY JIBBEN. HAVE A GREAT DAY.
PROMO:
I'M BETSY JIBBEN. FRIDAY ON AGDAY, OUR COVERAGE OF THE 2016 CATTLE INDUSTRY CONVENTION CONTINUES FROM SAN DIEGO. CLINTON GRIFFITHS PROVIDES IN DEPTH REPORTING OF THE ISSUES FACING CATTLE PRODUCERS. FOR NEWS THAT IMPACTS THE BOTTOM LINE, TUNE IN DAILY FOR AGDAY?

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close