AgDay Daily Recap -July 26, 2016

July 26, 2016 02:57 AM
 

TODAY ON AGDAY
JULY 26, 2016


OPENING HEADLINES:
TODAY ON AGDAY -FARM LOANS TICK HIGHER AS CROP PUSH THROUGH DEVELOPMENT. IN AGRIBUSINESS...IS WEATHER STILL A MARKET MOVER? IF WE GET ANOTHER INCH AND A HALF OF RAIN FOR THE REST OF JULY IN THE CORN BELT JUST GENERAL RAIN IT WOULD ACTUALLY BE THE FIFTH WETTEST JULY RECORDED FOR THE CORN BELT. THE DAIRY REPORT LOOKS AT THE GLOBE'S BIGGEST DAIRY COMPANIES. AND VISIT A SCHOOL WHERE YOU BETTER HAVE PLENTY OF "GITTY UP"....TO GO. "IF YOU DON'T LOVE HORSES YOU DON'T EVER DO IT BECAUSE IT'S TOO HARD OF WORK AND TOO MISERABLE."
AMERICAN FARMERS FORCED TO LENDERS DUE TO LOW COMMODITY PRICES:
GOOD MORNING I'M CLINTON GRIFFITHS. LOW COMMODITY PRICES CONTINUE TO PUSH AMERICAN FARMERS TO THE BANK AS LENDERS BEGIN TO KEEP A CLOSE EYE ON DEFAULTS. THE FEDERAL RESERVE BANK SAYS THE NEED FOR FARM LENDING STAYED HIGH IN THE SECOND QUARTER OF 2016, DRIVEN BY ONGOING DEMAND FOR OPERATING LOANS. THE RESERVE'S AGRICULTURAL FINANCE DATABOOK FOUND THE TOTAL NUMBER OF NON-REAL ESTATE LOANS MADE TO FARMERS IN THE SECOND QUARTER INCREASED SIX PERCENT FROM A YEAR AGO. THE REPORT SAYS THERE'S ALSO BEEN A SLIGHT REDUCTION IN THE PERFORMANCE OF AGRICULTURAL LOANS AT COMMERCIAL BANKS...AS THE CURRENT FINANCIAL ENVIRONMENT IS MAKING IT TOUGH FOR SOME GROWERS TO KEEP UP WITH PAYMENTS.  DESPITE THE SLIGHT DECLINES IN OVERALL, LOAN PERFORMANCE AND HEIGHTENED RISK, HOWEVER, PROFITABILITY AT AG BANKS REMAINS RELATIVELY STRONG.
HOT:
HEAT IN THE UPPER 90'S AND HIGHER MOVED THROUGH THE CORN BELT OVER THE EEKEND....HEADING EAST, COVERING MUCH OF THE ATLANTIC SEABOARD. HEAT -COUPLED WITH HUMDITY -HELPED GENERATE THUNDERSTORMS AND SOME VERY WELCOME MOISTURE, ESPECIALLY IN THE EASTERN CORN BELT.
CROP PROGRESS:
THE LATEST USDA CROP PROGRESS REPORT SHOWS 76 PERCENT OF NATIONS CORN CROP IS STILL RATED GOOD TO EXCELLENT. THAT'S 6 POINTS BETTER THAN LAST YEAR AT THIS TIME. NEARLY 80 (79) PERCENT OF THE CROP IS SILKING. SOYBEANS WERE ALSO UNCHANGED WITH 71 PERCENT GOOD TO EXCELLENT, ALTHOUGH THE PERCENTAGE OF THE CROP IN THE EXCELLENT CATEGORY WENT UP BY A POINT. A THIRD (35) OF THE CROP IS NOW SETTING PODS--THAT'S 9 POINTS AHEAD OF LAST YEAR..HELPED ALONG BY WARMER TEMPERATURES THIS SUMMER. LAST WEEK IN CENTRAL ILLINOIS, FARM JOURNAL HELD IT'S CORN COLLEGE EVENTS NEAR HEYWORTH. AGRONOMIST KEN FERRY SAYS EXCEPT FOR A FEW POCKETS THE CROPS ARE POLLINATING AND MOISTURE IS RELATIVELY GOOD.
HE SAYS IT WON'T BE LONG BEFORE GROWTH AND DEVELOPMENT IS SET AND THE FOCUS TURNS TO PESTS AND DISEASES.

ONCE YOU GET THROUGH POLINATION A BIG BATTLE IS OVER WE WORRY ABOUT THINGS LIKE WIND RAIN AND HAIL AND THOSE THINGS. DISEASE PRESSURE. YOU KNOW THAT REALLY DEPENDS ON WHERE YOU LIVE. ALL THINGS THAT WE CAN MANAGE IF THEY'RE SCOUTING THEIR FIELDS. THE INSECT PRESSURE IS PRETTY MUCH GONE NOW THAT WE HAVE OUR POLLINATION OUT OF THE WAY. SO WE JUST NEED WATER. A LOT OF AREAS ARE RUNNING RIGHT ON THE LINE AND THEY NEED TO KEEP THAT COMING TO KEEP IT MOVING. SOME AREAS AGAIN HAVE ENOUGH WATER THEY JUST ABOUT HAVE IT IN THE BAG.
FARMERS EAGER FOR HARVEST:
 KEN TOLD ME THAT FARMERS FROM LOUISIANA WHO ATTENDED CORN COLLEGE WERE ANXIOUS TO GET HOME AND START HARVESTING. SOME FARMERS IN LOUISIANA ARE EXPECTING EXCELLENT YIELDS, BUT THEY ARE CONTINUING TO FIGHT HERBICIDE-RESISTANT WEEDS THAT THREATEN THEIR YIELDS. LSU AGCENTER'S CRAIG GAUTREAUX HAS THE STORY. WITHIN A MATTER OF DAYS, FARMERS IN LOUISIANA WILL BEGIN TO HARVEST RICE, CORN AND SORGHUM WITH SOYBEANS BEING SHORTLY THEREAFTER. FOR CORN FARMERS ACROSS THE CENTRAL AND SOUTHERN PART OF THE STATE, YIELDS ARE EXPECTED TO BE VERY GOOD. LOUISIANA HAS HAD A RECENT RUN OF HIGH-YIELDING CORN CROPS, BUT SPRING FLOODING IN NORTH LOUISIANA IS GOING TO HURT THE OVERALL AVERAGE. SOME OF THE FIELDS ARE GOING TO BE DOWN. WITH THE LSU AGCENTER THIS IS CRAIG GAUTREAUX REPORTING.
MEXICAN ETHANOL PRODUCERS CONSIDER THE USE OF SORGHUM:
ETHANOL PRODUCERS FROM MEXICO ARE CONSIDERING THE USE OF SORGHUM FOR PRODUCTION. THE U.S. GRAINS COUNCIL RECENTLY HOSTING A TRADE TEAM OF MEXICAN ETHANOL PRODUCERS IN KANSAS AND TEXAS. THE EVENT SHOWCASING FACILITIES AND TOUTING THE BENEFITS OF USING. IN 2015, MEXICO'S STATE-OWNED PETROLEUM COMPANY ANNOUNCED ITS PLAN TO INTRODUCE A PILOT PROGRAM TO BLEND GASOLINE WITH ETHANOL. THE RESULTING BOOM IN ETHANOL INTEREST OPENED THE DOOR FOR THE GRAINS COUNCIL TO LEAD CONVERSATIONS AND GENERATE AWARENESS.
KAINE CRITICIZED FOR AG RECORD:
THE DEMOCRATIC CONVENTION GOT OFF TO A ROCKY START MONDAY WITH THE LEAKING OF EMAILS AND THE ANNOUNCED-RESIGNATION OF THE D-N-C CHAIR. AG SECRETARY TOM VILSACK -SAID TO BE ON THE SHORT-LIST OF V-P CANDIDATES -LOST THE BID TO VIRGINIA SENATOR TIM KAINE. SOME AG. ORGANIZATIONS ARE SPEAKING OUT ABOUT THE PICK. ACCORDING TO POLITICO, THE VIRGINIA CATTLEMEN'S ASSOCIATION TALKING ABOUT KAINE'S AG. RECORD, SAYING QUOTE -"HE HASN'T BEEN BAD, HE HASN'T BEEN GREAT." SAYING KAINE HAS APPRECIATED AG'S ROLE ON THE ECONOMY, BUT THE FOCUS OF HIS POLICIES IN WASHINGTON HAS BEEN ON HOMELAND SECURITY AND SOCIAL ISSUES. WE ASKED AN AG. LOBBYIST WHAT A CLINTON/KAINE TICKET MAY LOOK LIKE FOR AGRICULTURE.
CALIFORNIA WILDFIRES:
THOUSANDS OF SOUTHERN CALIFORNIANS ARE STILL OUT OF THEIR HOMES....FORCED TO EVACUATE....AS A WILDFIRE TEARS THROUGH PARCHED VEGETATION IN LOS ANGELES COUNTY. DOZENS OF HOMES HAVE BEEN DESTROYED. THE FIRE IS AT LEAST 50 SQUARE MILES IN SIZE.
BRUTAL WINTER IN PERU:
IT'S TRULY "POLAR" OPPOSITES IN THE COUNTRY OF PERU WHICH IS NOW IN THE WINTER SEASON. FOR FARMERS WHO RAISE ALPACAS, THREE DAYS OF HEAVY SNOWFALL AND SUB-ZERO TEMPERATURES ARE TAKING A TOLL ON THE HERD. THE MERCURY HIT NINE BELOW ZERO. PERU'S GOVERNMENT HAS DECLARED A STATE OF EMERGENCY IN THE SOUTHERN ANDES AND PROMISED THREE MILLION DOLLARS IN RELIEF AMID A BITTER COLD SNAP THAT HAS KILLED 50-THOUSAND ALPACAS. PERU IS THE WORLD'S LARGEST PRODUCER OF ALPACA WOOL.

CROP COMMENTS:
MIKE. LET'S START OFF IN LAHARPE, ILLINOIS. MATT SWANSON SENT US A PICTURE OF THE FIRST DENTED CORN ON HIS FARM. SWANSON SAYS MATURITY IS AHEAD OF SCHEDULE, SO MUCH THAT EARLIER PLANTED CORN IS MOSTLY DONE. HE SAYS EAR SIZE AND DEPTH IS FALLING SHORT OF EXPECTATIONS-HE SAYS IT'S SMALLER THAN LAST YEAR IN SOME AREAS. MOVING OVER TO ARKANSAS FOR RICE HARVEST.
 HEAT COULD IMPACT CROP FLOWERING:
A UNIVERSITY OF ARKANSAS RELEASE SAYS TEMPERATUERS HAVE REACHED INTO THE 90S OR HIGHER WITHIN THE STATE THROUGHOUT MOST OF JULY. HIGH TEMPERATURES HELP THE RICE CROP. HOWEVER, EXTREME HEAT COULD IMPACT THE CROP'S FLOWERING, POLLINATION, AND YIELD. GROWERS WHO RELY JUST ON SURFACE WATER FOR IRRIGATION MAY BE IN A PINCH. AND TAKING A LOOK AT THE WEATHER MPA YOU CAN SEE A SYSTEM ALONG THE GULF COAST NOW JUST AN AREA OF LOW PRESSURE BUT A STATIONARY FRONT THROUGH THE MIDDLE OF THE COUNTRY THAT WILL BE THE FOCUS FOR SHOWERS AND THUNDER STORMS I'LL HAVE MY FORECAST COMING UP BUT NOW HERE ARE SOME HOMETOWN TEMPS
TEASE:
STILL TO COME WE'LL CONTINUE ON THE WEATHER THEME WITH A LOOK AT HOW WEATHER COULD YET IMPACT MARKETS AS WE HEAD TOWARD THE MONTH OF AUGUST. AND WE VISIT AN ARKANSAS SCHOOL SPECIALIZING IN SHOES....HORSESHOES. IT'S A FAMILY LEGACY DATING BACK MORE THAN A CENTURY.
AGRIBUSINESS:
JOINING US AT THE AGRIBUSINESS DESK, WE'RE PLEASED TO HAVE DUWAYNE BOSSE WITH BOLT MARKETING HERE. DUWAYNE, LET'S TALK ABOUT I GUESS THE WEATHER BECAUSE THAT SEEMS TO ME THE CONVERSATION IN EVERY COFFEE SHOP ACROSS AMERICA, EVERY FARMER'S KICK AROUND WHAT THE WEATHER DOING HOW'S MY CROP LOOK. I GUESS JULY WAS INTERESTING DEPENDING ON WHERE YOU LIVE. THERE WASN'T THE LA NINA DRY WEATHER THREAT THAT WE TALKED ABOUT ALL WINTER LONG AND SPRING. WE ARE WERE ASSUMING IT WAS GOING TO HAPPEN AND IT DIDN'T AT ALL. IT WAS QUITE THE OPPOSITE. JUST BEFORE WE STARTED HERE, MIKE TANNURA FROM T-STORM, SENT ME AN E-MAIL THAT SAID IF WE GET ANOTHER INCH AND A HALF OF RAIN IN JULY IN THE CORN BELT, JUST GENERAL RAIN, IT WOULD ACTUALLY THE FIFTH WETTEST JULY RECORDED FOR THE CORN BELT. OF COURSE, RAIN IN JULY, WHAT DOES IT DO TO CORN?
NATIONAL WEATHER:
WELCOME BACK TO AGDAY WITH MIKE HOFFMAN. MIKE, WE HAD THE DOME OF DEATH LAST WEEK LAST WEEK. WE DEALT WITH ALL OF THAT HEAT AND PRESSURE. BUT WHAT ABOUT THIS WEEK? IT'S BEING SHOVED OR BEEN SHOVED SOUTH AS WE EXPECTED IT TO HOWEVER IT'S STILL VERY WARM. IN FACT, BEHIND THIS FRONT WHILE IT IS NOT AS HOT, AND NOT AS HUMID, IT'S STILL TYPICALLY WARM FOR THIS TIME OF YEAR ACROSS THE GREAT LAKES AND OHIO VALLEY INTO THE NORTH CENTRAL PLAINS STATES. THE SECONDARY COOL FRONT REALLY WON'T MAKE TOO MUCH OF A DIFFERENCE. ALTHOUGH A FEW SHOWERS AND THUNDERSTORMS WILL BE SPREAD AROUND. BUT, MOST OF THE ACTIVITY ACROSS THE CORN BELT, MID ATLANTIC INTO THE NORTHERN ROCKIES IS ALONG THIS FRONTAL SYSTEM. AND THERE'S SOME DECENT MOISTURE WITH THIS DEVELOPING AREA OF LOW PRESSURE ALONG THE GULF COAST.
REGIONAL WEATHER:
NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL, FOR HOBBS, NEW MEXICO, A MIXTURE OF SUNSHINE AND CLOUDS. MAYBE A SPOTTY THUNDERSTORM IN THE AFTERNOON. THAT'S A HIGH OF 93. RICHMOND, INDIANA IS PARTLY SUNNY AND WARM. THE HIGH IS 87. AND FINALLY, SPRINGFIELD, MASSACHUSETTS, MOSTLY SUNNY AND HOT. AFTERNOON HIGH OF 91.
TEASE:
UP NEXT OUR DAIRY REPORT TAKES A LOOK AT WHICH COMPANIES TOP THE DAIRY INDUSTRY. INCLUDING A MAJOR U.S. OPERATION CONTINUES TO GROW. PLUS -THINK YOU HAD A HARD TIME AT CLASS? HOW ABOUT SPENDING A DAY AT THE FORGE WITH FARRIERS! IN THE COUNTRY, LATER ON AGDAY.
DAIRY REPORT:
IN OUR DAIRY REPORT, RABOBANK IS RELEASING IT'S LIST OF TOP 20 DAIRY COMPANIES GLOBALLY. THIS COMES FROM 2015 NUMBERS. NESTLE REMAINS SOLIDLY AT NUMBER ONE FOLLOWED BY LACTALIS AND DANONE. HOWEVER MOVING INTO THE NUMBER FOUR SPOT IS DAIRY FARMERS OF AMERICA--PUSHING PAST NEW ZEALAND'S FONTERRA IN 2015.
RESEARCHERS SAY 2015 WAS A TOUGH YEAR FOR COMPANIES DUE TO A STRONGER U.S. DOLLAR, CURRENCY VOLATILITY AND LOWER COMMODITY PRICES. AS GROWTH SLOWS IN CHINA, RABO EXPECTS AFRICA TO BE A MAJOR TARGET FOR FUTURE DEVELOPMENT. THE EUROPEAN UNION IS LOOKING FOR WAYS TO ENCOURAGE DAIRY FARMERS TO PULL BACK ON PRODUCTION. ITS NOW CONSIDERING A NEARLY 550 MILLION DOLLAR SUPPORT PACKAGE WITH AT LEAST PART OF IT GOING TO REDUCING MILK PRODUCTION. IN THE U-K THAT COULD BE ROUGHLY 4 CENTS A GALLON THAT FARMERS ARE PAID TO MILK LESS. BRUSSELS ESTIMATES THAT ACROSS EUROPE THE SCHEME COULD PULL 1 POINT 1 BILLION TONS OF MILK FROM THE MARKET.
FRESH MILK COULD BE FRESHER LONGER:
A NEW PURDUE STUDY COULD GREATLY EXTEND THE LIFE OF FRESH MILK. RESEARCHERS FOUND THAT THE RAPID HEATING AND COOLING OF MILK SIGNIFICANTLY REDUCES THE AMOUNT OF HARMFUL BACTERIA PRESENT IN THE PRODUCT. SO MUCH THAT IT CAN EXTEND THE SELF LIFE OF MILK BY SEVERAL WEEKS...HELPING IT LAST BETWEEN 5 AND 7 WEEKS LONGER.  THE METHOD ADDS A SECOND STEP AFTER PASTEURIZATION WHERE MILK IS INCREASED BY 10 DEGREES FOR LESS THAN A SECOND-RESEARCH SHOWS IT CAN ELIMINATE MORE THAN 99 PERCENT OF THE BACTERIA LEFT AFTER THE ORIGINAL PASTEURIZATION.
TEASE:
BLACKSMITHING CAN BE HARD WORK. NEXT WE'LL MEET AN ARKANSAS FARRIER WHO ENJOYS THE WORK, AND IS WILLING TO TEACH OTHERS.
IN THE COUNTRY:
A HORSE-SHOEING SCHOOL IN YELL COUNTY, ARKANSAS IS A BECOMING A POPULAR DESTINATION FOR PEOPLE ACROSS THE COUNTRY WHO WANT TO BECOME FARRIERS. THE CLANGING OF STEEL AND SWELTERING HEAT OF A FORGE CAN BE A GRUELING -BUT ALSO REWARDING -WAY OF MAKING A LIVING. IN THIS VIDEO FROM THE ARKANSAS FARM BUREAU, KEN MOORE SHOWS US HOW FARRIERS FINESSE THE RAW MATERIAL.
D. PAUL DORRIS AND HIS FATHER ESTABLISHED THE ARKANSAS HORSESHOEING SCHOOL ON HIGHWAY 154 IN CENTERVILLE SEVEN YEARS AGO TO MEET A GROWING NEED FOR FARRIERS IN THE U.S. DORRIS LIMITS HIS CLASSES TO NO MORE THAN SIX STUDENTS SO THEY RECEIVE PERSONALIZED INSTRUCTION. THAT'S ONE OF THE REASONS THE SCHOOL ATTRACTS PEOPLE FROM CANADA, HAWAII, ALASKA AND OTHER STATES. SCHOOL'S JUST THE FIRST STEP. I TRY TO TELL THEM TO LOOK AT THIS LIKE COLLEGE. THIS IS KEN MOORE REPORTING.
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.
PROMO:
I'M CLINTON GRIFFITHS, WEDNESDAY ON AGDAY -JIM BOWER OF BOWER TRADING IS HERE AS WE DISCUSS INTEREST RATES. WE'LL HAVE PRODUCE NEWS FROM OUR PARTNERS AT THE PACKER. AND MIKE HOFFMAN WATCHES THE WEATHER. WATCH US WEEKDAYS FOR AGDAY.

 

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