AgDay Daily Recap -Jan. 7, 2016

January 7, 2015 02:57 AM
 

TODAY ON AGDAY
JAN. 7, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -EL NINO DRIVEN FLOODS HIT THE WEST COAST.
WINTER WHEAT CONDITIONS HOLD STEADY IN THE PLAINS. IN AGRIBUSINESS, OUR GUEST, ANDY SHISSLER DISCUSSES GLOBAL CURRENCIES. “AND EVERYBODY ELSE IN THE WORLD, EXCEPT FOR CHINA IS DEVALUING OUR CURRENCY AND IT'S JUST KILLING THE MANUFACTURER’S SIDE HERE.”
 OUR BEEF TODAY REPORT LOOKS AT HERD EXPANSION AND PRICE POTENTIAL IN 2016. AND PLANT A PENCIL--A NEW COMPANY FINDS WAYS TO REUSE AND REPURPOSE LEFT OVERS.
DRIVING EL NINO RAINS HELP TO QUENCH WEST COAST DROUGHT:
GOOD MORNING I'M CLINTON GRIFFITHS. AFTER YEARS OF DROUGHT NOW THE NATION'S TOP AGRICULTURAL STATE IS INUNDATED WITH RAIN -THE RESULT OF EL NINO.
PARTS OF CALIFORNIA WERE SLAMMED WITH THE FIRST MAJOR EL NINO STORM OF THE SEASON ON TUESDAY AND WEDNESDAY, DEALING WITH HEAVY DOWNPOURS THAT CLOSED SOME ROADS AND JAMMED COMMUTES. FLASH-FLOOD WARNINGS WERE ISSUED FOR SOME LOW-LYING AREAS CLOSE TO LOS ANGELES. METEOROLOGISTS SAY EL NINO CREATED THE DRIVING RAINS. AG DEPARTMENT METEOROLOGISTS SAY EL NINO IS STARTING TO PEAK IN THE PACIFIC. DESPITE THE UPTICK IN EL NINO-DRIVEN PRECIPITATION, RESERVOIRS REMAINED CRITICALLY LOW IN THE STATE AND THE LANDSCAPE IS PARCHED AFTER FOUR YEARS OF DROUGHT.
"THIS IS CLEARLY MUCH BETTER THAN LAST YEAR AT THIS TIME.....BUT WE HAVEN'T HAD THE FULL AFFECT OF THE EL NINO BUT IF WE BELIEVE THE FORECASTS, THEN THAT EL NINO IS SUPPOSED TO KICK IN AS WE MOVE ONTO THE REST OF WINTER AND ONTO THE SPRING....WHICH BECOMES CRITICAL AS WE LOOK AT RESERVOIR STORAGE."
USDA RELEASES WINTER WHEAT REPORT:
USDA RELEASING ITS MONTHLY CONDITION REPORT ON WINTER WHEAT CROPS FROM NORTH TO CENTRAL PLAINS. IN OKLAHOMA -77-PERCENT IS GOOD TO EXCELLENT. 22-PERCENT FAIR RECORD RAINFALL IN OKLAHOMA IN DECEMBER PUSHED THE ENTIRE STATE INTO DROUGHT-FREE CATEGORY.
IN KANSAS 54 PERCENT IS CALLED GOOD TO EXCELLENT. ANOTHER 38-PERCENT IS FAIR. AND NEBRASKA -59-PERCENT IS GOOD TO EXCELLENT WITH 38-PERCENT IN FAIR SHAPE. AND NORTH DAKOTA'S WHEAT CROP IS OFF TO A GOOD START WITH 71-PERCENT DESCRIBED AS GOOD TO EXELLENT. 22 PERCENT IS FAIR.
COLD TEMPERATURES COULD BRING SHOCK TO WINTER WHEAT IN THE MIDWEST:
MONTANA -"NASS" SAYS SO FAR WINTER DAMAGE IS MINIMAL. AS FAR AS THE CROP ITSELF, 74-PERCENT IS GOOD TO EXCELLENT. 24-PERCENT IS FAIR. AS WE'VE BEEN DISCUSSING, WINTER WHEAT IS IN FOR A SHOCK EARLY NEXT WEEK. AN ACRTIC BLAST IS EXPECTED TO BRING THE COLDEST AIR OF THE YEAR TO MUCH OF THE MIDWEST AND EASTERN U.S. TEMPERATURES ARE EXPECTED TO 20 TO 30 DEGREES BELOW AVERAGE IN PARTS OF THE COUNTRY. PARTS OF THE UPPER MIDWEST ARE LIKELY TO SEE TEMPERATURES NEAR OR BELOW ZERO. 
SOWS TRANSPORTED:
IN OTHER NEWS, SMITHFIELD FOODS SAYS IT'S NOW TRANSITIONED MORE THAN 80 PERCENT OF SOWS AT ITS COMPANY OWNED FARMS TO GROUP HOUSING. IT EXPECTS TO BE FULLY CONVERTED BY 2017. THE COMPANY SAYS THE CONVERSION HAS BEEN CHALLENGING SINCE NO TWO FARMS ARE THE SAME. IT EXPECTS TO SPEND 360-MILLION DOLLARS ON THE EFFORT. WHILE THE COMPANY FARMS ARE ON PACE TO BE COMPLETE IN A YEAR OR TWO, CONTRACT GROWERS HAVE UNTIL 2022 TO MEET THE NEW STANDARD.
MONSANTO TO CUT COST AND JOBS:
MONSANTO SAYS IT WILL ELIMINATE ANOTHER ONE THOUSAND JOBS AS IT EXPANDS A COST-CUTTING PLAN DESIGNED TO DEAL WITH FALLING SALES OF CORN SEED AND LOWER FARM INCOMES. THESE NEW LAY-OFFS WILL BRING MONSANTO'S TOTAL PLANNED CUTS TO 36HUNDRED JOBS OVER THE NEXT TWO YEARS. THAT'S ABOUT 16-PERCENT OF ITS WORKFORCE. THE CUTS ARE PART OF A SAVINGS STRATEGY FOR THE COMPANY FOLLOWING PERFORMANCE SHORTFALLS.
IN OCTOBER THE COMPANY FIRST ANNOUNCED THE RESTRUCTURING PLAN, INTENDED TO STREAMLINE ITS SALES, R&D AND OTHER OPERATIONS. MONSANTO REPORTED A 253-MILLION DOLLAR LOSS IN THE FIRST FISCAL QUARTER, BLAMING FOREIGN CURRENCY PRESSURES. DESPITE THE DROP, THE RESULTS WERE BETTER THAN WHAT WALL STREET ANALYSTS EXPECTED.
CROP WATCH:
LET'S CHECK ON YOUR FIRST WEATHER IN FARM COUNTRY. METEOROLOGIST MIKE HOFFMAN JOINS US NOW. GOOD MORNING MIKE. GOOD MORNING CLINTON.
WE HEARD FROM A FARMER IN RUTHERFORD COUNTY, TENNESSEE WHO SAYS "FAREWELL TO 2015 AND GOOD RIDDANCE." HE SAYS HE HAD SOME GOOD YIELDS....BUT ALSO SOME VERY POOR. ALL IN ALL, WE CAME IN AT JUST BELOW THE NATIONAL AVERAGE ON OUR BEAN CROP. THEY HAD OKAY RAIN DURING THE GROWING SEASON. BUT WAY TOO MUCH DURING HARVEST. BUT HE IS VERY THANKFUL TO FINISH HARVEST BEFORE FLOODING HIS THE AREA.
CITRUS HARVEST BEGINS:
AND IN FLORIDA, THE STATE "NASS" OFFICE SAYS HARVESTING IS UNDERWAY IN ALL CITRUS COUNTIES OF THE STATE, EARLY VARIETY ORANGES AND WHITE AND RED GRAPEFRUIT ARE PRIMARILY BEING PICKED. MOST OF THIS FRUIT IS USED IN THE PROCESSED MARKETS.
AND TAKING A LOOK AT THE WEATHER MAP WELL YOU'LL NOTICE A LOT OF L'S ON THE MAP MANY STORM SYSTEMS THE STARTING ON IS IN THE PLAINS RIGHT NOW AND THERE'S JUST A TRAIN LOAD OF PRESSURE SYSTEMS COMING ACROSS THE PACIFIC WE'LL LET YOU KNOW WHAT THAT MEANS IN OUR FORECAST COMING UP IN A FEW MINUTES.
TEASE:
 WHEN WE COME BACK, A CHECK OF MARKET ACTION IN CHICAGO PLUS, THE INFLUENCE OF CURRENCY IN PRICING COMMODITIES. AND LATER WHAT ONCE WAS TRASH IS NOW A CENTER PIECE FOR NEW LIFE. SEE HOW THIS INNOVATIVE COMPANY IS TURNING LEFT-OVERS INTO PLUSH PLANTS. THAT STORY TODAY ON IN THE COUNTRY.
CME:
IN AGRIBUSINESS IT'S BEEN A MIXED BAG THIS WEEK IN COMMODITY MARKETS. LETS SEE WHERE THINGS STAND FOLLOWING WEDNESDAY'S TRADE. FOR THAT, WE HEAD TO THE FLOOR OF THE CME IN CHICAGO. WEDNESDAY'S GRAIN SAW PRETTY MUCH MIXED TRADE PRETTY MUCH TO THE UPSIDE. WE'RE SEEING A BIT OF RECOVERY. BUT OVERALL WE HAVE A LOT OF ISSUES IN PLAY. YOU GOT THE FED INVOLVED. YOU GOT USDA REPORTS COMING OUT, YOU GOT MARKETS COLLAPSING HERE. SO YOU GOT A LOT OF INFORMATION GETTING SHOVED INTO THE MARKET THAT IT'S HAVING A MINOR AFFECT ON THE GRAIN MKTS AS WELL. BUT WE ARE AT SIGNIFICANT LOWS AFTER TOUCHING CONTRACT LOWS, WE'RE HOLDING HERE.
AGRIBUSINESS:
ANDY SHISSLER, S&W TRADING OUR GUEST HERE AT THE AGRIBUSINESS DESK TODAY. ANDY, LET'S TALK A LITTLE BIT ABOUT THE CURRENCY SITUATION. WE HAVE TALKED SO MUCH IN 2015 ABOUT THE DOLLAR AND THE STRENGTH OF THE U.S. DOLLAR AND THE IMPACT IT HAS HAD ON THE AG EXPORTS. WHAT HAVE YOU BEEN WATCHING OR SEEING AS FAR AS CURRENCY, OUR CURRENCY AND OTHERS?> WELL, I THINK TWO THINGS MAJOR AFFECTED AND NUMBER ONE IS CRUDE OIL AND ENERGY AND WHETHER POLITICALLY WE ARE TRYING TO PUNISH CERTAIN PEOPLE AROUND THE WORLD, WHETHER
NATIONAL WEATHER:

WELCOME BACK TO AGDAY METEOROLOGIST MIKE HOFFMAN JOINING US AGAIN  THIS MORNING. MIKE WE LOOK AT THIS WEATHER THAT'S BEEN COMING IN OUT WEST BOY IT'S COMING IN HARD. YEAH AS I SAID YESTERDAY ITS GREAT FOR THE LONG TERM IN CALIFORNIA SHORT TERM YOU GET MUD SLIDES AND SOME BAD ISSUES THERE. BUT IT'S JUST ONE LOW AFTER ANOTHER AT THIS POINT. AND  EVEN THE LOW PRESSURE SYSTEM OFF THE EAST COAST HAS A PRETTY IMPRESSIVE APPEARANCE TO IT.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY NOW LETS TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL FOR ASPEN COLORADO CLOUDY WITH SNOW SHOWERS TODAY HIGH TEMPERATURES OF 30 DEGREES. ROCKFORD ILLINOIS COLD WITH MAYBE A LITTLE ICE AT FIRST BUT MAINLY RAIN TODAY WITH A HIGH OF 43. AND ORLANDO FLORIDA WINDY WITH TIMES OF SUN AND CLOUDS HIGH OF 75.
BEEF TODAY:
OUR BEEF TODAY REPORT KICKS OFF THE NEXT YEAR INCLUDING A LOOK AT EXPANSION POTENTIAL AND PRICES FOR 2016. AND LATER, IT'S BEAUTY FROM LEFTOVERS...SEE HOW THESE USED-UP PENCILS CAN ALSO BE A FLORAL FOUNDATION TODAY ON IN THE COUNTRY.
OUR BEEF TODAY REPORT IS BROUGHT TO YOU BY MERCK ANIMAL HEALTH THE MAKERS OF ZUPREVO. TALK TO YOUR VETERINAIAN ABOUT ZUPREVE FOR THE TREATMENT OF BOVINE RESPIRATORY DISEASE.
IN OUR BEEF TODAY REPORT, THE CATTLE INDUSTRY SAW PLENTY OF EXCITEMENT IN 2015. WHILE THERE ARE PLENTY OF UNKNOWNS IN 2016--HERD EXPANSION IS EXPECTED TO CONTINUE. ON JANUARY 29TH, USDA WILL RELEASE ITS FIRST 2016 CATTLE INVENTORY REPORT. IT'S EXPECTED TO SHOW AN INCREASE IN THE NATIONAL HERD AND CONTINUED BREEDING ANIMAL RETENTION. MOST EXPECT HERD EXPANSION TO REMAIN ON THE RISE THROUGH 2017 AND 2018. ANALYSTS ALSO EXPECTING TO SEE BEEF PRODUCTION RISE ANOTHER 4 TO 5 PERCENT IN THE NEW YEAR.
"AND WHAT THAT MEANS IS THAT PRICES FOR YOUR CALVES WILL BE LOWER OVER THE NEXT 3 OR 4 YEARS SIMPLY BECAUSE THERE WILL BE MORE CATTLE BROUGHT TO MARKET. THOUGH THE RECORD PROFITS WE SAW IN 2014 AND GOOD PRICES WE SAW IN 2015 ARE NOT GOING TO CONTINUE HOWEVER IT DOES NOT LOOK LIKE A COMPLETE DISASTER FOR COW CALF OPERATIONS IT JUST MEANS WE'RE GOING TO HAVE MORE BEEF PRODUCTION IN THE PIPELINE OVER THE NEXT 2-3 YEARS."
CHIPOTLE GOES TO COURT:
ALSO FRESH OFF THE PRESSES, CHIPOLTE MEXICAN GRILL IS HEADED TO COURT. THE COMPANY JUST SERVED WITH A GRAND JURY SUBPOENA IN A FEDERAL CRIMINAL INVESTIGATION.
THE SUBPOENA PERTAINS TO A NOROVIRUS OUTBREAK AT A CHIPOTLE IN SIMI VALLEY, CALIFORNIA BACK IN AUGUST.
200 CUSTOMERS AND EMPLOYEES GOT SICK. NEW FOURTH QUARTER EARNINGS ARE ALSO OUT FOR THE COMPANY...SAME STORE SALES FALLING NEARLY 15 PERCENT. WHEN WE COME BACK, SHARPENING A PENCIL DOWN TO NOTHING DOESN'T MEAN THE END OF ITS USABLE LIFE...AT LEAST FOR THESE UNIQUE UNTINCILS. I'LL EXPLAIN NEXT.
DANISH COMPANY SPROUTS A NEW IDEA:
THE NEXT TIME YOU USE A PENCIL -LIKE MY PRODUCER -TAKE A LOOK AT THE "DULL END". AND THEN ASK YOURSELF, IS THAT AN ERASER OR COULD IT BE A SUSTAINABLE, PLANT-ABLE, WRITING UTENSIL?
A DANISH COMPANY SAYS IT CAN BE BOTH!
DO NOT ADJUST YOUR SET: IF IT LOOKS LIKE THERE'S A PENCIL SPROUTING IN THIS PLANT POT, THAT'S BECAUSE THERE IS. THERE'S ONE POKING OUT OF THAT RED-PEPPER PLANT, TOO.
THEY ARE THE CREATION OF MICHAEL STAUS-HOLM, THE CEO OF A DANISH COMPANY CALLED SPROUT. AS THE NAME SUGGESTS, THEY MAKE PRODUCTS YOU CAN PLANT AND WATCH GROW, INCLUDING PENCILS, STICKERS, EVEN GREETINGS CARDS LIKE YOU GET AT CHRISTMAS.
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. HIGH STRENGTH STEEL FOR HIGH STRENGTH DEPENDABILITY, THE CHEVY SILVERADO IS THE OFFICIAL NEWS GATHERING VEHICLE OF AGDAY TELEVISION)

PROMO:
I'M CLINTON GRIFFITHS. FRIDAY ON AGDAY - OUR PARTNERS AT PROFARMER
KICK OFF THE NEW YEAR WITH A LOOK AT COMMODITIES IN 2016. AND MIKE
HOFFMAN IS LOOKING FOR A BIG DIVE IN COLD TEMPERATURES. FOR NEWS THAT MATTERS, TUNE IN DAILY FOR AGDAY.

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