AgDay Daily Recap -July 28, 2016

July 28, 2016 02:57 AM
 

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TODAY ON AGDAY
JULY 28, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -THE POLITICS OF TRADE -THE DEBATE CONTINUES OVER THE TPP. THE U.S. STEEL INDUSTRY IS FACING PRESSURE DUE TO DUMPING OVERSEAS. IN ANALYSIS-IS THE CATTLE MARKET ONLY GOING UP FROM HERE? THE GOOD NEWS IS WE'RE ONLY A HUNDRED DOLLARS OFF OF ZERO SO I THINK WE WILL FIND A BOTTOM SOON. IN DROVERS TV -THE STERLING PROFIT TRACKER TAKES ANOTHER STEP IN THE RED. AND MEET A TEXAS FARM FAMILY GUIDED BY A HIGHER CALLING...."I FINALLY REALIZED GOD CALLED ME TO BE A FARMER AND THAT'S WHAT I'VE DONE ALL MY LIFE."
BOTH SIDES OF THE CONVENTION OPPOSE TPP:
GOOD MORNING I'M BETSY JIBBEN. CLINTON IS AT THE AGRIBUSINESS DESK. TODAY IS THE FINAL DAY OF THE DEMOCRATIC NATIONAL CONVENTION. AND WHILE DEMOCRATS ARE TRYING TO CONVINCE VOTERS THAT THEIR CANDIDATE IS DRAMATICALLY DIFFERENT THAN THE REPUBLICAN'S, THE TWO PRESIDENTIAL CONTENDERS SEEM TO SHARE A COMMON GOAL -TO KILL THE TRANS-PACIFIC PARTNERSHIP. DONALD TRUMP AND HILLARY CLINTON BOTH SAY THEY OPPOSE THE SWEEPING 12 NATION TRADE AGREEMENT THAT INVOLVES COUNTRIES CIRCLING THE PACIFIC OCEAN. HOWEVER CLINTON'S POSITION IS COUNTER TO PRESIDENT OBAMA -HER OLD BOSS WHO ADDRESSED THE CONVENTION DELEGATES LAST NIGHT IN PHILADELPHIA. PRESIDENT OBAMA HAS SAID IT'S A PRIORITY FOR HIM TO GET THE TRADE PA CT COMPLETED BEFORE HE LEAVES OFFICE.
TPP IS OPPORTUNITY TO WRITE TRADE RULES IN ASIA PACIFIC:
AND ONCE AGAIN -OPPONENTS FIND THEMSELVES ON THE SAME SIDE OF THE DEBATE. OBAMA AND REPUBLICAN LAWMAKERS ARGUE THAT THE T-P-P GIVES THE U-S THE OPPORTUNITY TO WRITE THE RULES FOR TRADE IN ASIAPACIFIC...INSTEAD OF CHINA.
MCAULIFFE BACKTRACKS:
MEANWHILE LONG-TIME CLINTON ALLY -VIRGINIA GOVERNOR TERRY MA-CALL-IF MCAULIFFE -IS BACKTRACKING ON STATEMENTS HE MADE TUESDAY REGARDING T-P-P. HE TOLD POLITICO ON TUESDAY THAT HE BELIEVES CLINTON WILL SUPPORT T-P-P -WITH SOME TWEAKS -IF ELECTED. BUT A CLINTON SPOKESMAN SAYS MA-CALL-IF MCAULIFFE WAS FLAT WRONG AND THAT -QUOTING NOW -"HILLARY OPPOSES T-P-P BEFORE AND AFTER THE ELECTION". LATER, MCAULIFFE CHANGED HIS POSITION, SAYING WHAT HE "HOPED" CLINTON WOULD DO IN THE OVAL OFFICE. WHILE AGRICULTURE AND TRADE MINISTERS FROM THE 12 COUNTRIES HAVE AGREED ON THE TERMS OF THE DEAL, IN ORDER FOR TPP TO BECOME OFFICIAL, IT REQUIRES LEGISLATIVE RATIFICATION BY ALL TWELVE NATIONS. BUT HOUSE AG COMMITTEE RANKING MEMBER COLLIN PETERSON SAYS TPP IS 'DEAD IN THE WATER' FOR THE REMAINDER OF THIS CURRENT SESSION OF CONGRESS.

WHAT’S THE FUTURE OF TPP?:
ACCORDING TO OUR PARTNERS AT PROFARMER, THE MINNESOTA DEMOCRAT SAYS HE DOES NOT BELIEVE THE TPP WILL COME UP FOR A VOTE IN THE LAMEDUCK SESSION OF CONGRESS. PETERSON SAYS WITH OPPOSITION FROM BOTH PRESIDENTIAL CANDIDATES, THE DEAL DEMANDS A RE-NEGOTIATION. AT LEAST ONE OF THE TWELVE NATIONS HAS NO INTEREST IN RE-WORKING THE DEAL. JAPAN'S PRIME MINISTER SAYS "RENEGOTIATION IS IMPOSSIBLE BECAUSE THERE IS A DELICATE BALANCE,"
SHIN-ZO AH-BAY IS WORKING TO GET JAPAN'S LEGISLATIVE BODY TO RATIFY T-P-P THIS FALL. NEW ZEALAND -WHICH IS PART OF THE TPP -IS ALSO NEGOTATING FOUR OTHER TRADE DEALS WHICH COULD BOLSTER THEIR BEEF AND DAIRY SECTORS.
NEW ZEALAND PRIME MINISTER MEETS INDONESIAN PRESIDENT TO DISCUSS TRADE:
NEW ZEALAND PRIME MINISTER JOHN KEY MET WITH WITH INDONESIAS PRESIDENT TO DISCUSS A RANGE OF TOPICS, INCLUDING TRADE. THE TWO LEADERS DISCUSSIONED INDONESIA'S RESTRICTIONS ON BEEF IMPORTS -WHICH HAVE SEEN NEW ZEALAND'S EXPORTS TO THE COUNTRY DROP BY 80 PER CENT. AS FAR AS DAIRY, INDONESIA WANTS TO BECOME THE MILK PROCESSING HUB OF SOUTHEAST ASIA. IT PLANS TO INCREASE IMPORTS OF MILK FROM NEW ZEALAND. NEW ZEALAND RANKS 8TH OVERALL IN GLOBAL DAIRY PRODUCTION. BUT IT'S THE BIGGEST DAIRY EXPORTER IN THE SOUTH PACIFIC.
STEEL:
ALSO ACROSS THE PACIFIC, CHINA APPEARS TO BE HEAVILY SUBSIDIZING THE COUNTRY'S 30 LARGEST STEEL MAKERS....AND THAT'S PUTTING UNFAIR PRESSURE ON U-S STEELMAKERS BY UNDER-CUTTING PRICES. THE U-S STEEL INDUSTRY COMMISSIONED A STUDY ON STEEL COSTS. IT SAYS CHINA'S SUBSIDIES ARE ADDING TO THE GLOBAL GLUT OF THE METAL. THE REPORT SAYS THE CHINESE GOVERNMENT IS SUPPORTING THE COUNTRY'S STEEL INDUSTRY PRIMARILY THROUGH CASH GRANTS, GOVERNMENT-MANDATED MERGERS, PREF-ER-ENTIAL LOANS AND LAX ENFORCEMENT OF ENVIRONMENTAL REGULATION. BOTH PRESIDENTIAL CANDIDATES HAVE TARGETED CHINA FOR ILLEGAL PRACTICES.
 NATIONS CRITICIZED FOR STEEL DUMPING:
DURING A MEETING OF THE G-20 NATIONS, SECRETARY OF TREASURY JACOB LEW CRITICIZED NATION'S FOR THE PRACTICE OF STEEL "DUMPING", BUT DID NOT SPECIFICALLY POINT-OUT CHINA. "EXCESS CAPACITY IN STEEL AND OTHER INDUSTRIES HAS DISTORTED IMPORTANT GLOBAL MARKETS AND WE COLLECTIVELY DECIDED TO ENHANCE COMMUNICATION AND COOPERATION IN THIS AREA AND TO TAKE EFFECTIVE STEPS TO ADDRESS THIS CHALLENGE. ..THIS IS AN IMPORTANT STEP FORWARD AS WE SEE THE GLOBAL APPROACHES TO CONFRONT THE ISSUE OF EXCESS CAPACITY -A RESULT OF STRUCTURAL MISALLOCATION OF RESOURCES THAT ALSO NEGATIVELY AFFECTS TRADE AND WORKERS WORLDWIDE."ACCORDING TO THE U-S STEEL MANUFACTURERS ASSOCIATION, CHINA PRODUCED OVER 822 MILLION TONS OF STEEL IN 2014, WHICH ACCOUNTED FOR HALF OF THE WORLD'S STEEL PRODUCTION.
CROP COMMENTS:
CROP COMMENTS IS FULL OF SUNFLOWERS THIS MORNING. MIKE HOFFMAN HAS A CONDITIONS UPDATE.  GOOD MORNING, BETSY. LET'S START OFF IN JAMESTOWN, NORTH DAKOTA. OUR PHOTOJOURNALIST, MIKE BYERS SNAPPED THIS PHOTO OF THE SUNFLOWERS DURING HIS TRAVELS. USDA SAYS AS OF JULY 25TH, 70 PERCENT OF THE SUNFLOWER CROP IS RATED GOOD TO EXCELLENT IN NORTH DAKOTA. 22 PERCENT OF THE SUNFLOWERS ARE BLOOMING. AND WE RECEIVED THIS SOYBEAN PHOTO NEAR MORRIS, MINNESOTA. THE SOYBEAN CONDITION IN THIS AREA LOOKS GREAT. SOME OF THE CROP IS BLOOMING, WITH A FEW SETTING PODS.
TEASE:
CATTLE PRODUCERS ARE HOPING RELIEF COMES SOON. CLINTON GRIFFITH DISCUSSES THE CATTLE MARKET IN ANALYSIS. PLUS WE MEET A TEXAS FARM FAMILY THAT'S SEEN A LOT DURING THEIR SIX GENERATIONS ON THIS LAND -AND THEY SHOW NO SIGNS OF SLOWING-UP. IN THE COUNTRY -LATER ON AGDAY.
FROM THE FLOOR OF THE CME:
NOW LET'S HEAD TO THE CME FLOOR IN CHICAGO FOR A MID-WEEK CHECK ON THE MARKETS. WEDNESDAY'S GRAINS SAW PRETTY MUCH VERY STRONG BEANS, MEDIOCRE  CORN, ACTUALLY HEAVY IN THE WEAK SPACE AND OVERALL AGAIN THIS LOOKS JUST LIKE SOME NICE BOTTOMING ACTION WE'RE SEEING BUT EACH RALLY RIGHT NOW IS MET WITH SELLING. WHICH MAKES SENSE WHEN YOU CAN GET A HOLD OF THE BOTTOMS THAT WOULD MAKE FOR A MUCH BETTER RALLY GOING FORWARD SO AGAIN, I LIKE THE ACTION. I LIKE THE WAY WE'RE GOING. I WOULD LOOK A TEN DOLLARS BASIS NOVEMBER BEANS AND LOOKED TO BE A SELLER THERE, ONLY FOR A SPOT TO BUY THEM LOWER. LIVESTOCK TRADE, WOW, WHILE WE'VE FINALLY SEEN THAT DRAMATIC BREAK IN THE HOG MARKET IN AND OF COURSE WE'VE WATCHED IT IN KIND OF DETAILED IT, BLOW BY BLOW AND IT WAS COMING DOWN AND WATCH OVER THE NOW HE FINALLY BROKE SEVENTY THREE SEVENTY TWO I THINK THERE'S SOME REAL JEOPARDY THAT WE CAN SEE A BREAK OF SEVENTY YEAR ACTUALLY AND IN AUGUST ALTHOUGH IT COMES OFF IN TWELVE DAYS. THIS IS TODD BUBBA HOROWITZ WITH BUBBA TRADING, COMING TO YOU FROM THE CME IN CHICAGO.
AGRIBUSINESS:
MANY PRODUCERS ARE WONDERING IF WE'RE FINALLY SEEING A BOTTOM IN THE CATTLE MARKET.. CLINTON GRIFFITHS DISCUSSES ALL THE COMPONENTS FROM HERD EXPANSION TO WEIGHTS IN THIS MORNING'S ANALYSIS. JOINING US HERE THEY'RE IN BUSINESS DESK WE HAVE DUWAYNE BOSSE WITH BOLT MARKETING. DUWAYNE LET'S TALK ABOUT THE CATTLE MARKETS BECAUSE CATTLEMEN, WOMEN, FEEDERS, PACKERS ALL SITTING BACK SAYING WE CAN FIND A BOTTOM HERE AT ANY TIME OR HOW LONG IS THIS GOING TO GO ON?YOU AND I WERE JOKING THE GOOD NEWS IS REALLY HUNDRED DOLLARS OFF A ZERO SO I THINK WE WILL FIND A BOTTOM PRETTY SOON. BUT THERE WAS A LOT OF GUYS TALKING ABOUT A BOTTOM AROUND THIS 108 AREA THINK WE'RE GETTING THERE.

NATIONAL WEATHER:
WELCOME BACK TO AGDAY WITH METEOROLOGIST MIKE HOFFMAN. MIKE, IT FEELS LIKE WE'RE GOING THROUGH A MAJOR COOL DOWN RIGHT NOW COMPARED TO SEE YOU AT THOSE TEMPERATURES WE EXPERIENCED A WEEK OR TWO WEEKS AGO, EVEN THOUGH IT IS STILL VERY HOT. RIGHT, THAT'S ABSOLUTELY RIGHT. IT'S JUST NOT NEARLY AS HOT AS IT HAS BEEN THE PAST COUPLE OF WEEKS. IT OBVIOUSLY IS STILL LATE JULY HOWEVER SO IT'S WARM ACROSS THE ENTIRE LOWER FORTY EIGHT AND IT'S STILL VERY HOT AND MUGGY IN OUR SOUTHERN AREAS BUT AS YOU'LL SEE ON THE TEMPERATURE CHART, NOTHING LIKE LAST WEEK AS FAR AS TODAY GOES YOU'LL SEE SHOWERS AND THUNDERSTORMS SCATTERED THROUGHOUT THE MISSISSIPPI VALLEY.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS WILL HEAD UP THE IDAHO FIRST OF ALL BOISE LOTS OF SUNSHINE AND HOT HIGH TEMPS AROUND ONE HUNDRED HASTINGS NEBRASKA A MIX OF CLOUDS AND SUNSHINE HIGH OF EIGHTY THREE AND FINALLY AKRON OHIO WARM AND HUMID WITH A MIX OF SUN AND CLOUDS HIGH EIGHTY NINE
TEASE:
 STILL TO COME OUR PARTNERS AT DROVERS LOOK AT THE LATEST PROFIT TRACKER WHICH HAS BEEN A ROLLER-COASTER OF A RIDE, AND LATER WE HEAD IN THE COUNTRY TO THE LONE-STAR STATE WHERE THIS FARM FAMILY HAS BEEN WORKING THE LAND AND PRODUCING AN ABUNDANT CROP FOR SIX GENERATIONS.
DROVER’S TV REPORT:
IN OUR DROVERS TV REPORT, THE LATEST STERLING PROFIT TRACKER SHOWS MARGINS BACK IN THE RED. CATTLE FEEDING MARGINS CRUMBLED 62 DOLLARS PER HEAD LAST WEEK, FALLING 35 DOLLARS INTO NEGATIVE TERRITORY. THE PROFIT TRACKER SAYS THAT'S DUE TO A DECLINE IN CASH FED CATTLE PRICES. ONE MONTH AGO, CATTLE FEEDERS WERE EARNING 9 DOLLARS PER HEAD. A YEAR AGO LOSSES WERE CALCULATED AT 64 DOLLARS PER HEAD.
ONE PRODUCER IN MICHIGAN TELLING US GAINING PROFIT FOR HIS FEED LOT THIS YEAR MAY ALL DEPEND ON THE FUTURES MARKET. "IF WE COULD GET THE FUTURES TO COME BACK UP CLOSE TO CASH, AND CASH TO STAY IN THE 1.20 TO 1.25, ON OUR END, WE'LL BE DOING PRETTY GOOD FOR THE FEEDLOT. IT DEPENDS WHERE THE FUTURES GO FROM HERE ON OUT."THE PROFIT TRACKER SAYS BEEF PACKER MARGINS HOLDING STEADY AT 129-DOLLARS PER HEAD. A PURDUE UNIVERSITY ECONOMIST SAYS CATTLE MARKETS CAN STILL RECOVER DESPITE A ROUGH COUPLE OF MONTHS.
MAINE BLUEBERRY INDUSTRY:
IN OTHER NEWS -THE AG DEPARTMENT PLANS TO HELP THE STATE OF MAINE'S BLUEBERRY INDUSTRY BY BUYING SURPLUS CROP. USDA WILL BUY 13-MILLION DOLLARS WORTH OF WILD BLUEBERRIES TO HELP WITH FALLING PRICES AND OVER SUPPLY. THOSE BERRIES ARE A SIGNATURE CROP FOR THE STATE. THE AG DEPARTMENT HAS ALREADY PURCHASED EIGHT MILLION DOLLARS WORTH. THE BLUEBERRY INDUSTRY IS URGING USDA TO COMPLETE THE PURCHASE.
TEASE:
UP NEXT -WE'RE BOUND FOR TEXAS TO MEET A FAMILY THAT'S PUT IT'S FAITH IN THE LAND -AND THE LORD -FOR MORE THAN SIX GENERATIONS.
IN THE COUNTRY:
 FOR LIFE.FOR SIX GENERATIONS THE TRADITION OF FARMING IN THE FIELDS NORTH OF VERNON, TEXAS HAS CONTINUED. IT IS A LEGACY OF THE LAND THAT LIVES ON IN EACH MEMBER OF THE WHITE FAMILY. JESSICA DOMEL WITH THE TEXAS FARM BUREAU HAS MORE.
FARMER. THE WORD IS ALMOST SYNONYMS WITH FAMILY. 97% OF FARMS IN THE US ARE FAMILY FARMS OWNED BY MOMS AND DADS, SONS AND DAUGHTERS, AND GRANDPARENTS. LIKE DAN WHITE HIS SON CLINT AND HIS GRANDSON COLBY. "MY DAD AND I FARM TOGETHER AND MY GRANDPA AS WELL. IT'S ALL I KNOW BUT IT'S WHAT I LOVE AT THE SAME TIME. I WANTED TO I NEVER WANTED TO DO ANYTHING ELSE.  WHAT I WENT TO SCHOOL FOR. IT'S WHAT I ENJOY THE MOST."COLBY IS THE SIXTH GENERATION OF HIS FAMILY TO FARM THIS LAND. HE AND HIS DAD AND GRANDDAD GROW COTTON, WHEAT, PEANUTS & GUAR ON THE ROLLING PLAINS OF TEXAS NORTH OF VERNON. WHEN COLBY CAME BACK TO THE FARM AFTER COLLEGE, HE WASN'T JUST CHOOSING A CAREER.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR CLINTON GRIFFITHS AND MIKE HOFFMAN,  I'M BETSY JIBBEN. HAVE A GREAT DAY.
PROMO:
I'M BETSY JIBBEN. FRIDAY ON AGDAY -SPOT-ON MARKET ANALYSIS FROM OUR PARTNERS AT PROFARMER. MIKE HOFFMAN HAS YOUR WEEKEND WEATHER OUTLOOK. AND WE VISIT A GREAT AMERICAN BARN -WE HOPE YOU JOIN US. WATCH US WEEKDAYS ON AGDAY.

 

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