AgDay Daily Recap -June 21, 2016

June 21, 2016 02:57 AM
 

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TODAY ON AGDAY
JUNE 21, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -SUMMER HEAT BAKES PORTIONS OF FARM COUNTRY. WE'VE GOT THE LATEST CROP CONDITION RATINGS. I'M MICHELLE ROOK. THE DAIRY EXPANSION IN THE I-29 CORRIDOR HAS NOW CREATED A NEED FOR ADDITIONAL PROCESSORS. I'LL HAVE THE STORY TODAY ON AGDAY. IN AGRIBUSINESS...PREPARING FOR THE PENDING ACREAGE REPORT. BIG RALLY HAPPENING IN SOYBEANS AFTER THAT INTENTIONS REPORT COULD BE SWAYING SOME GUYS INTO MORE BEANS. AND CARVING A NICHE IN THE WISCONSIN DAIRY INDUSTRY.
SUMMER HEAT SPURS WILDFIRES:
GOOD MORNING I'M CLINTON GRIFFITHS. SUMMER OFFICIALLY ARRIVED MONDAY. BUT IN MANY PARTS OF THIS COUNTRY -WE DIDN'T NEED A CALENDAR TO DECLARE -IT'S DARN HOT. FIREFIGHTERS IN THE SOUTHWEST ARE BATTLING INTENSE WILDFIRES IN NO FEWER THAN FIVE STATES, WHILE ALSO COPING WITH TRIPLE DIGIT HEAT. WILDFIRES ARE CURRENTLY BURNING IN ARIZONA, CALIFORNIA, COLORADO. MONTANA AND NEW MEXICO. HEAT ADVISORIES REMAIN IN EFFECT IN THE SOUTHWEST AFTER TEMPERATURE RECORDS WERE SHATTERED OVER THE WEEKEND. SOME OF THAT HEAT WAS FELT IN THE MIDWEST AND UPPER PLAINS OVER THE WEEKEND AS TEMPERATURES HOVERED NEAR THE 90 DEGREE MARK. LAST WEEK'S DROUGHT MONITOR SHOWING "ABNORMAL DRYNESS" IS EXPANDING IN WESTERN ILLINOIS, SOUTHEAST IOWA, AND NORTHEAST MISSOURI. IT NOW ALSO COVERS MOST OF INDIANA.
CROP PROGRESS:
THE NEW CROP PROGRESS REPORT FROM USDA SHOWING THE CORN RATING DID NOT CHANGE FROM LAST WEEK. 75-PERCENT IS STILL GOOD TO EXCELLENT. WISCONSIN IS ESPECIALLY STRONG WITH 29-PERCENT EXCELLENT AND 57PERCENTGOOD. NORTH DAKOTA 12-PERCENT EXCELLENT AND 74-PERCENT GOOD. AND SEVERAL OTHER STATES -LIKE NEBRASKA AND MINNESOTA ARE APPROACHING 80-PERCENT WITH HELP FROM TIMELY RAINS. "THE RAINS IN THE MIDWEST PROVED TO BE A LITTLE BIT MORE THAN PEOPLE WERE EXPECTING OVER THE WEEKEND, ESPECIALLY TO THE NORTH AND TO THE WEST. THAT'S IN NEBRASKA, THE DAKOTAS, NORTHWEST IOWA AND MINNESOTA GETTING SOME GOOD RAINS OVER THE WEEKEND. AND THOSE RAINS ARE SPREADING TO THE CENTRAL DN SOUTHEASTERN PARTS OF THE MIDWEST," IN SOYBEANS -THERE WAS A ONE POINT DROP FROM LAST WEEK. STILL 73PERCENT IS GOOD TO EXCELLENT. WINTER WHEAT HARVEST REACHING 25-PERCENT. THAT'S THREE POINTS BEHIND THE FIVE YEAR AVERAGE.
MIDWEST GAINS DOMINANCE IN DAIRY INDUSTRY:
FOR THE TWO DECADE THE GROWTH IN THE U.S. DAIRY INDUSTRY HAS BEEN FOCUSED ON SOUTHWESTERN STATES LIKE CALIFORNIA AND ARIZONA. HOWEVER, THE MIDWEST IS REGAINING ITS DOMINANCE IN DAIRY PRODUCTION AND PROCESSING. IN FACT, NO STATE IS SEEING MORE GROWTH THAN SOUTH DAKOTA. A FULL COURT PRESS IN RECRUITING DAIRIES HAS PAID OFF FOR THE STATE. HOWEVER, NOW THE CHICKEN AND EGG SCENARIO HAS SET IN AS PRODUCTION HAS OUTGROWN PROCESSING CAPACITY. AGDAY'S MICHELLE ROOK LOOKS AT WHAT THE STATE IS DOING NOW TO ADDRESS THIS SITUATION. SOUTH DAKOTA'S DAIRY INDUSTRY IS EXPERIENCING SOME GROWING PAINS. AFTER YEARS OF RECRUITING NEW DAIRIES AT EVENTS LIKE THE WORLD DAIRY EXPO, COW NUMBERS ARE UP IN THE STATE AND MILK PRODUCTION HAS NOW MOVED TO A SURPLUS…"WE ARE NOW AT THE POINT WHERE WE NEED TO HAVE OUR PROCESSING EXPANSION." HERE IN SOUTH DAKOTA AND THE I-29 CORRIDOR SEVERAL NEW DAIRY OPERATIONS HAVE BEEN PERMITTED BUT THEY'RE HOLDING OFF BECAUSE THEY HAVE NOWHERE TO SELL THEIR MILK. "WE'VE GOT SEVERAL PEOPLE THAT ARE WAITING IN THE WINGS AS SOON AS WE HAVE A HOME, A PLACE FOR THEIR MILK TO GO THEY ARE READY TO MAKE THE INVESTMENT IN SOUTH DAKOTA. THERE ARE A COUPLE THAT HAVE ALREADY PURCHASED PROPERTY, HAVE PERMITS IN PLACE."  IN SOUTH DAKOTA, I'M MICHELLE ROOK REPORTING FOR AGDAY.
MONSANTO SUES FORMER EMPLOYEE:
MONSANTO IS SUING A FORMER COMPUTER PROGRAMMER, WHO IS ACCUSED OF STEALING PROPRIETARY INFORMATION. AND ACCORDING TO DOW JONES WIRES, THE FORMER WORKER WAS TRYING TO LAND A NEW JOB WITH A CHINESE SEED COMPANY. THE CIVIL LAWSUIT WAS FILED LAST WEEK IN U-S DISTRICT COURT. THE WORKER -IDENTIFIED AS JUNE-REN CHINN -IS ACCUSED OF USING HIS MONSANTO CREDENTIALS TO OBTAIN MULITPLE FILES JUST DAYS BEFORE HE RESIGNED HIS JOB. THE DOW WIRE SERVICE SAYS CHEN HAD TOLD MONSANTO WAS LEAVING TO CARE FOR A SICK FATHER.
CROP COMMENTS:
 WHILE MANY OF US ARE TALKING HEAT THIS WEEK. WE'VE ALSO RECEIVED REPORTS OF CROP DAMAGE IN THE SOUTH. MIKE HOFFMAN HAS THOSE DETAILS IN CROP COMMENTS. MIKE. GOOD MORNING CLINTON. CORN GROWERS IN NORTH-EASTERN AND EAST-CENTRAL ARKANSAS WERE ASSESSING POTENTIAL LOSSES AFTER STRONG STORMS CAUSED GREENSNAP LAST WEEK. THIS PHOTO COMES FROM ST. FRANCIS COUNTY. ARKANSAS. EXTENSION SPECIALISTS SAY THERE WERE CORN LOSSES IN CROSS AND POINSETT COUNTIES TOO. LODGED STALKS MIGHT RECOVER, BUT THE SNAPPED STALKS ARE FINISHED. MEANWHILE WE RECEIVED THIS PHOTO FROM AGDAY VIEWERS IN ZUMBROTA, MINNESOTA. TIM MACK AND FAMILY AT BRIDGEVIEW FARMS ARE REGULAR AGDAY VIEWERS. THE SPRAYER GOT STUCK LAST WEEK WHEN IT HIT A SOFT SPOT ALONG THE ROAD.
TEASE:
UP NEXT WE'RE LOOKING AT USDA'S PENDING ACREAGE REPORT AND WHAT SHIFTING NUMBERS COULD MEAN FOR MARKETS. WORKING IN WISCONSIN'S DAIRY INDUSTRY MEANS THOUSANDS OF DIFFERENT JOBS. WE'LL MEET ONE MAN WHO FOUND HIS NICHE....AND IT'S A "CUT" ABOVE. DETAILS AS WE HEAD IN THE COUNTRY. AGDAY BROUGHT TO YOU BY TOP THIRD AG MARKETING -FARMERS FIRST WITH A PLAN FOR EVERY MARKET.

FROM THE FLOOR OF THE CME:
IN AGRIBUSINESS LETS RETURN TO THE FLOOR OF THE CME FOR A DEEPER DIVE INTO MONDAY'S TRADE. ALL AND ALL A PRETTY WEAK DAY HERE TODAY BUT WHEN YOU LOOK AT THE PRICE IS STILL GENERALLY HOLDING WITHIN THE TRADING RANGE SET FOR THE LAST WEEK OR TWO. WHEAT ALSO FEELING SOME PRESSURE...THE SELLING PRESSURE. THE HARVEST CONTINUES IN WINTER WHEAT COUNTRY WITH REPORTS OF EXCELLENT YIELDS. WE'LL PROBABLY SEE STALLING OF THE HARVEST IF THE RAINS DO MAKE IT INTO THE OHIO RIVER VALLEY FOR THE SOFT RED WINTER CROP...BUT THE HARD RED WINTER CROP FORCES OUT ON THE GREAT PLAINS -WHERE IT'S BEEN VERY HOT AND DRY. AND THEY SHOULD THEY SHOULD... THANKS VERY MUCH THIS IS JACK SCOVILLE. I'M VICE PRESIDENT OF PRICE FUTURES GROUP, HERE ON THE CME GROUP FLOOR FOR SOME COMMENTS FOR THE MARKETS. IN LESS THAN TWO WEEKS, USDA WILL RELEASE IT'S JUNE ACREAGE REPORT. ANALYSTS ARE ALREADY LINING UP OVER HOW BIG OF AN IMPACT IT COULD HAVE ON THE CURRENT MARKET SITUATION.
AGRIBUSINESS:
TYNE MORGAN FOCUSES ON THE CORN CROP IN TO TODAY'S ANALYSIS. HERE NOW TED SEIFRIED FROM ZANER AG. TED A LOT OF DEBATE RIGHT NOW ABOUT CORN ACRES. A LOT OF PEOPLE THOUGHT THAT BECAUSE OF THIS THIS RALLY IN SOYBEAN ACRES WE MAY BE PULLED THAT AWAY FROM CORN. WHAT DO YOU THINK? THERE ARE A COUPLE OF COMPELLING IDEAS AS TO WHY CORN ACRES COULD BE LOWER. ALRIGHT? WE HAD A BIG RALLY IN SOYBEANS FROM A PERCENTAGE BASIS. IT LOOKED, WELL IT LOOKED BETTER FROM A DOLLAR SIGN BASE THAN A PERCENTAGE BASIS. BUT A BIG RALLY IN SOYBEANS HAPPENING AFTER THAT INTENTIONS REPORT COULD SWING SOME GUYS INTO SOME MORE BEANS. AND OTHER IDEA IS THAT WEATHER CAUSED US TO MISS OUT SOME ACRES DOWN IN THE DELTA. SO THERE IS GONNA BE THAT THAT REDUCTION DOWN IN THE DELTA. BUT YOU WILL SEE HOW WE OFFSET IT. PERSONALLY I THINK THAT CORN ACRES COULD ACTUALLY GROW. YOU DO? YEAH YOU KNOW BECAUSE WE GOT OFF TO A VERY QUICK PACE OF PLANTING CORN...CORN ALSO RALLIED OFF THE LOWS.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY HERE WITH METEOROLOGIST MIKE HOFFMAN. MIKE THIS FRONT WORKING ITS WAY ACROSS THE COUNTRY IS CALLED THE COOL FRONT BUT DOESN'T FEEL TOO COOL. NO. IT TAKES THE HUMIDITY OUT OF IT A LITTLE BIT. I SUPPOSE THE COOLEST PART IS BRINGING SOME RAIN IN PLACES THAT REALLY DO NEED IT BUT RIGHT NOW THAT'S KIND OF STALLING OUT...ACROSS THE MIDSECTION OF THE COUNTRY AS YOU CAN SEE RIGHT THERE. AND THAT FRONT WILL KINDA KEEP GOING EASTWARD INTO THE EAST BUT START PULLING BACK NORTHWARDS IN THE CENTRAL PLAINS...SO LET'S PUT THE MAPS INTO MOTION YOU CAN SEE THE COLD FRONT WILL CONTINUE TO PRESS IN PARTS OF KENTUCKY TENNESSEE AND INTO THE CAROLINAS VIRGINIA. SHOWERS AND THUNDERSTORMS WILL DEVELOP THIS AFTERNOON ALONG THAT FRONT...SHOULDN'T BE QUITE AS WIDESPREAD AS WHAT WE SAW YESTERDAY FARTHER NORTH ALONG THE FRONT.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. WE HEAD TO LANDER WYOMING FIRST OF ALL SUNSHINE AND VERY HOT TEMPERATURE OF NINETY THREE, COLUMBIA MISSOURI WARM AND HUMID. A POSSIBLE THUNDERSTORM HIGH OF NINETY ONE. AND PETERSBURG VIRGINIA WARM AND HUMID WITH A THUNDERSTORM OR TWO PRETTY LIKELY. HIGH
AROUND NINETY.
TEASE:
EARLIER WE TALKED ABOUT THE DAIRY GROWTH IN SOUTH DAKOTA. BUT THERE'S ANOTHER STATE BOASTING SIGNIFICANT -AND PROFITABLE -DAIRY GROWTH....DETAILS ARE COMING UP NEXT. AND MEET A MEMBER OF WISCONSIN'S DAIRY INDUSTRY. HE NEVER NEEDS TO TOUCH A COW. BUT WITHOUT HIS SKILLS, SOME OF YOU MAY NOT GET TO ENJOY CHEESE CURDS. FIND OUT WHY -LATER ON AGDAY.
MARGIN PROTECTION PROGRAM IS NOT WORKING THE WAY IT SHOULD FOR DAIRY FARMERS:
IN OUR DAIRY REPORT, DESPITE A RECENT RISE IN MILK PRICES, THE NATION'S DAIRY FARMERS CONTINUE TO FACE FINANCIAL CHALLENGES IN 2016. THE ASSOCIATED PRESS REPORTING THAT DAIRY FARMERS IN THE NORTHEAST SAY THE MARGIN PROTECTION PROGRAM ISN'T HELPING. IT'S SUPPOSED TO KICK IN WHEN THE GAP BETWEEN THE PRICE OF MILK AND THE NATIONAL AVERAGE FEED COSTS FALLS BELOW A COVERAGE LEVEL SET BY THE FARMER. FARMERS IN THE REGION SAY ITS NOT BUILT FOR THEIR REGION'S FEED COSTS. THEY SAY LABOR, TRANSPORTATION AND FEED IS ALL MORE EXPENSIVE IN THE NORTHEAST. ADDING, THE CURRENT FORMULA DOESN'T FIT TODAY'S REALTIY. ACCORDING TO USDA, 2015 WASN'T MUCH BETTER TO AMERICA'S FARMERS. IT FOUND THAT ONLY ONE STATE--IDAHO--MADE MONEY LAST YEAR. THE RESEARCH COMPARED COST OF PRODUCTION WITH MILK PRICE PER HUNDRED WEIGHT. IDAHO IS ONE OF THE LOWEST COST PRODUCERS IN THE NATION...HELPING PUT PROFITS IN THE BLACK. KENTUCKY ON THE OTHER HAND, HAD THE HIGHEST COSTS IN 2015..AT NEARLY 42 DOLLARS PER HUNDRED.
CHEESE AND BUTTER SEE GAINS IN MARKET LAST WEEK:
MEANWHILE, CHEESE AND BUTTER STARTING A FRESH WEEK AFTER BIG GAINS LAST WEEK. BOTH MARKETS STRENGTHENING TO LEVELS NOT SEEN SINCE EARLY 2016. U.S. BUTTER CLIMBED TO 2-27 A POUND WHILE BARREL CHEDDAR CHEESE CAME IN 1-51. BOTH CONSIDERABLY HIGHER THAN GLOBAL PRICES.
TEASE:
DID YOU EVER THINK HOW MANY PEOPLE IT TAKES TO KEEP WISCONSIN'S DAIRY INDUSTRY THRIVING? NEXT, MEET ONE MAN WITH A UNIQUE JOB -THAT'S "CUTTING' INTO THE CHEESE CURD BUSINESS.
IN THE COUNTRY:
WISCONSIN IS KNOWN FOR ITS AWARD-WINNING CHEESE. IT TAKES A LOT OF PEOPLE TO SUPPORT THAT INDUSTRY. THE LATEST STUDY FROM THE UNIVERSITY OF WISCONSIN EXTENSION SHOWS 78-THOUSAND JOBS ARE DIRECTLY RELATED TO THE WISCONSIN DAIRY SECTOR. AND THERE ARE MANY BUSINESSES BEHIND THE SCENES THAT HELP SUPPORT CHEESEMAKERS. IN THIS VIDEO PROVIDED BY THE WISCONSIN MILK MARKETING BOARD, MEET ONE BUSINESS OWNER WHO'S CARVED OUT A NICHE IN THE CHEESEMAKING BUSINESS.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR TYNE MORGAN AND MIKE HOFFMAN, I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
I'M CLINTON GRIFFITHS. WEDNESDAY ON AGDAY -SOME NEW YORK DAIRY WORKERS WANT TO UNIONIZE. WE'LL TALK WITH FARMERS ABOUT THE CHALLENGES THAT LABOR PROPOSAL COULD PRESENT. WATCH US WEEKDAYS HERE ON AGDAY.

 

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