AgDay Daily Recap- June 28, 2016

June 28, 2016 02:57 AM
 

~TODAY ON AGDAY
JUNE 28, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -   USDA CHECKS CROP CONDITIONS--AS SUMMER HEAT  ROLLS ACROSS FARM COUNTRY.  PLUS, IT'S WHEAT HARVEST TIME IN OKLAHOMA. IN AGRIBUSINESS...DID DAIRY MARKETS MAKE THEIR   OWN PROBLEMS...DON'T EXPECT TO SEE FEW COWS... OR .... THIS BOUGHT PRODUCTION FOR THE YEAR.> AND THIS ICONIC IMAGE GETS AN ATTRIBUTION UPDATE THANKS TO A COUPLE AMATEUR HISTORY BUFFS.

WEATHER CONCERNS DURING THIS GROWING SEASON:

GOOD MORNING I'M CLINTON GRIFFITHS.  HALF WAY THROUGH THE YEAR AND HALF WAY OR MORE THROUGH THE GROWING SEASON--WEATHER  CONTINUES TO BE TOP OF MIND IN EVERY CORNER OF   THE NATION. USDA'S LATEST CROP PROGRESS REPORT SHOWING THE NATION'S CORN CROP IS IN THE SAME CONDITION AS LAST WEEK, WITH 75 PERCENT RATED GOOD TO EXCELLENT. THAT'S DESPITE THE RECENT TEMPERATURES AND PRECIPITATION...OR LACK THERE OF.  THAT'S 4 POINTS BETTER THAN THIS TIME LAST YEAR, WHEN 71 PERCENT OF THE CROP WAS IN THAT CATEGORY.  AND 6 PERCENT OF THE CROP IS SILKING, A POINT  BEHIND LAST YEAR.  IN NORTHERN INDIANA, WHERE RAINS KEPT FARMERS OUT OF THE FIELD EARLY, CORN IS GREEN AND GROWING.  73 PERCENT OF THE CORN IS GOOD TO EXCELLENT, A POINT HIGHER THAN LAST WEEK.  NOW TASSELS ARE HARD TO FIND. BUT FARMERS IN THE AREA SAY SOME EARLY PLANTED CORN SHOULD BE TASSELING IN ROUGHLY TWO WEEKS. SOUTH BEND, INDIANA FARMER, RANDY MATH-IS SAYS THE AREA RECEIVED SOME RAIN THIS WEEK. IT'S JUST WHAT THE CROPS NEED.  THEY'RE HOPEFUL YIELDS WILL HELP MAKE UP FOR LOWER PRICES.      
CROP PROGRESS:       

IN TEXAS, 80 PERCENT OF THE CROP IS NOW CUT.  IN KANASAS IT'S 58 HARVESTED.  AND THERE IN THE MIDDLE OKLAHOMA HAS 87 PERCENT IN THE BIN.  IN OKLAHOMA, FARMERS CONTINUE TO BE PLEASED WITH WHEAT YIELDS-- HELPING TO ADD TO NATIONAL  EXPECTATIONS FOR A RECORD CROP THIS YEAR. WEST OF OKLAHOMA CITY IN WASHITA COUNTY,  FARMERS  TELL US YIELDS ARE TOPPING 50 BUSHELS  PER ACRE.  BREXIT UNCERTAINTY:
IT'S BEEN MORE THAN 70 YEARS SINCE BRITAIN FACED  SO MUCH UNCERTAINTY.  A VOTE LAST WEEK TO EXIT THE E-U SENT THEIR CURRENCY INTO A TAILSPIN, EVEN SPARKING SOME VOTER REMORSE. AS A RESULT, THE U-S DOLLAR IS TRENDING HIGHER, WEIGHING ON COMMODITY PRICES.  BRITAIN'S FINANCE MINISTER IS TRYING TO CALM FEARS, AFTER BRITISH CITIZENS VOTED TO LEAVE THE   EUROPEAN UNION. GEORGE OSBORNE SAYS CONTINGENCY PLANS WERE MADE TO KEEP THE ECONOMY STABLE. AND PRIME MINISTER DAVID CAMERON SAYS HE WON'T OFFICIALLY INFORM THE E-U OF BRITAIN'S WITHDRAWAL UNTIL THEY DETERMINE WHAT TYPE OF RELATIONSHIP  U-K WANTS WITH THE E-U MOVING FORWARD. MIKE NORTH SAYS THE HYPE COULD CALM AS THE DUST SETTLES FROM THE BREXIT VOTE.    TRADE:
MONDAY, THE U-S DOLLAR TRADING ABOVE 96, ONLY EXTENDING THE GAP BETWEEN BRITAIN'S CURRENCY.  THE BRITISH POUND IS AT A 30 YEAR LOW AGAINST THE DOLLAR.   IMPROVED PANAMA CANAL COULD DOUBLE AMOUNT SHIPPED:
SPEAKING OF TRADE, TAKE A LOOK, THAT'S OFFICIALLY  THE FIRST SHIP THROUGH THE NEW LOCKS AT THE PANAMA CANAL. THE CHINESE VESSEL CARRYING MORE THAN 9 THOUSAND CONTAINERS MADE THE TREK THROUGH THE EXPANDED LOCKS OVER THE WEEKEND. SOME 30,000 PEOPLE AND FOREIGN HEADS OF STATE SHOWED UP TO CELEBRATE THE OPENING OF THE NEW EXPANSION. THE FIVE AND A QUARTER BILLION DOLLAR PROJECT IS EXPECTED TO DOUBLE THE CAPACITY AND CUT GLOBAL SHIPPING COSTS BY AN ESTIMATED 8 BILLION DOLLARS A YEAR. MIKE STEENHOEK, THE EXECUTIVE DIRECTOR OF THE SOY TRANSPORTATION COALITION SAYS HE ATTENDED THE EVENT. HE SAYS EACH YEAR, ROUGHLY 600 MILLION BUSHELS OF U.S. SOYBEANS TRANSIT THE PANAMA CANAL – THE  NUMBER ONE AG COMMODITY.   HE SAYS THE LARGER LOCKS COULD NEARLY DOUBLE  THE AMOUNT OF DRY BULK BEANS SHIPPED THROUGH THE LOCKS NOW...HELPING MAKE U.S. COMMODITIES MORE COMPETIVE ON THE WORLD MARKET. 
THE EXPORT PICTURE:
EXPORTS ARE A BIG PART OF THE FINANCIAL PICTURE. AND THIS YEAR, THE PICTURE LOOKS CHALLENGING. AG SECRETARY TOM VILSACK SAYS USDA IS PLANNING TO TAP 500- MILLION DOLLARS IN DISCRETIONARY FUNDS TO HELP COVER EXPECTED SHORTFALLS IN FARM OWNERSHIP LOANS. FSA SAYS LOWER COMMODITY PRICES AND DECLINING FARM INCOME IS FORCING BANKS TO PULL BACK ON   LENDING ADDING TO DEMAND FOR USDA'S GUARANTEED LOANS. IT'S JUST ABOUT OUT OF THE 2 BILLION DOLLARS CONGRESS APPROVED FOR THE PROGRAM.  CROP COMMENTS:
OFFICIALS IN CENTRAL CALIFORNIA SAY THERE COULD  BE MORE DEATHS FROM A MASSIVE 68-SQUARE MILE WILDFIRE. AT LEAST TWO PEOPLE ARE CONFIRMED DEAD. DOGS ARE SEARCHING FOR MORE VICTIMS. MORE RAIN IS FORECAST FOR HEAVILY FLOODED AREAS OF WEST VIRGINIA. FLOODS HAVE KILLED AT LEAST 24 PEOPLE IN THAT STATE. FARMERS ARE STILL DISCOVERING THE AFTERMATH   FROM LAST WEEK'S POWERFUL STORMS.  

TEASE:
WHEN WE COME BACK WE'LL CHECK IN ON DAIRY MARKETS AND WHY MIKE NORTH DOESN'T EXPECT   MUCH LIFT BETWEEN NOW AND THE END OF THE YEAR. AND LATER, AN ICONIC IMAGE GETS NEW ATTRIBUTION AS AMATEUR HISTORIANS QUESTION THE NAMES LISTED IN THE PICTURE.
FROM THE FLOOR OF THE CME:
IN AGRIBUSINESS, IT WAS A MIXED DAY IN THE COMMODITY MARKETS, WITH SOYBEANS AND CATTLE  SEEING MAJOR GAINS. SO WHAT CAUSED MONDAY'S PRICE ACTION? LET'S HEAD NOW TO THE CME FLOOR.  GRAIN MARKETS GENERALLY TRAINING AND FOR NO ESPECIALLY OVER THE SOY COMPLEX WHICH HAS BEEN THIRTY CENTS HIGHER OR TWENTY FIVE TO THIRTY CENTS HIGHER MUCH OF THE DAY REALLY RESPONDING I THINK TOO   THAT TWO MORE IDEAS IN THE MARKET WAS OVERSOLD AND FRIDAY AND IS SOME DRIER THAN EXPECTED WEATHER CONDITIONS HERE IN THE MIDWEST OVER THE WEEKEND FORECAST FOR BASICALLY A DRY WEEK IN MANY PARTS OF HTE MIDWEST THIS WEKE. CORN MARKET MORE OF A STRUGGLE HERE A CLOSE TRADING CLOSE TO THREE NINE IN DECEMBER FOR AN AREA THAT'S AN AREA THAT I WOULD EXPECT WE'LL PROBABLY TRY AND HOLD  EVEN THOUGH THERE IS NOTHING TOO TERRIBLY EXCEPTIONAL BIG  REASON OR A BIG REASON BUY THE CORN MARKET RIGHT NOW I THINK THAT PROBABLY GOING TO BE ENOUGH END USER DEMAND TO SHOW UP THESE VERY LOW LEVELS TO PROVIDE SOME SUPPORT FOR THE CORN MARKET CATTLE MARKETS GENERALLY MOVING HIGHER TODAY IN RESPONSE TO THE CATTLE ON FEED REPORT ON FRIDAY SHOWED 10 PERCENT  HIGHER PLACEMENT ABOUT TEN PERCENT HIGHER PLACEMENT BUT THIS WAS GENERALLY EXPECTED BY THE TRADE " WELL THANKS VERY MUCH THIS IS JACK'S SCOVILLE.  VICE PRESIDENT PRRESIDENT OF  GROUP CROM THE CME FLOOR.  
AGRIBUSINESS:
HERE AT THE AGRIBUSINESS DESK WE HAVE MIKE NORTH COMMODITY  RISK MANAGEMENT GROUP. MIKE LIKE LET'S TALK ABOUT MILK PRICES BECAUSE MAY WAS A FAIRLY DECENT MONTH WHEN WE SEE A LITTLE BIT OF A MOVE IN MILK PRICES WHAT DO WE EXPECT THE REST OF THE SUMMER YES SO  MAY AS A MONTH IT WILL SHOW A BAD RESULT BECAUSE THE PRICES WERE ALREADY FIGURED IN BUT THE RALLY THAT TOOK PLACE THAT BEGAN IN LATE MAY AND CARRIED INTO JUNE WAS A REAL BREATH OF FRESH AIR FOR THE DAIRY MEN IT WAS REALLY DOWNTRODDEN FOR THE LAST SEVEN MONTHS AND LOOKING FOR SOME GOOD NEWS THE CHALLENGE WE HAVE AS AN INDUSTRY IS THAT WE DID   NOT CRAWL OUT FROM UNDERNEATH ALL THESE BEARISH FUNDAMENTALS IN FACT   NATIONAL WEATHER:
<WELCOME BACK TO AGDAY FRONT MOVE THROUGH THAT FAR TO GO SOUTH AND COME BACK NORTH AND STALL OUT A LITTLE BIT STATIONARY FRONT BACK ACROSS THE SOUTHERN PLAINS INTO THE CENTRAL PORTIONS OF THE ROCKIES NOW IT IS VERY HOT TO THE SOUTHWEST THAT FRONT BUT COOLER DRIER AIR IS ACROSS MOST OF THE MIDWEST NOT IT'S NOT LIKE THERE'S GOING TO BE WAY BELOW NORMAL OR ANYTHING ARE GOING TO BE NEAR OR MAYBE EVEN SLIGHTLY ABOVE NORMAL BUT LESS HUMIDITY AND A LOT LESS HEAT THAN WE SAW BEFORE THIS FRONT CAME THROUGH. YOU CAN SEE AS WE HEAD THROUGH TODAY THE FOCUS FOR SHOWERS AND THUNDERSTORMS WILL BE FROM THE NORTHEAST DOWN THE EASTERN SEABOARD IN THE SOUTHEAST GULF COAST AREA AND THEN MAYBE A FEW ALONG THAT STATIONARY FRONT HIT AND MISS AFTERNOON VARIETY MOSTLY MISS IN THE FOUR CORNERS REGION MAYBE A COUPLE SPOTS IN CALIFORNIA NEVADA AND NOTHING IS GOING TO HELP THE DROUGHT SITUATION OUT THERE "  TEASE:
WHEN WE COME BACK WE'LL CONTINUE OUR CONVERSATION ON DAIRY -- LOOKING AT THE BRITAIN -  EU DECISION AND WHAT IT MEANS FOR PRODUCERS THERE. AND LATER A COUPLE OF AMATEUR HISTORIANS ARE RAISING QUESTIONS ABOUT A HISTORIC MOMENT FROM WORLD WAR TWO. 
 
DAIRY REPORT:
IN OUR DIARY REPORT-- BRITAIN VOTING TO LEAVE THE EUROPEAN UNION IS WEIGHING ON MILK PRICES. ANALYSTS SAY IN THE SHORT-TERM, THE MOVE REMOVES ANY HOPE FOR IMPROVED MILK PRICES THROUGH EXPORTS, AS THE U-S DOLLAR CONTINUES TO GAIN STRENGTH. BUT THE LONG-TERM IMPACT COULD COME AT THE EXPENSE OF POTENTIAL TRADE DEALS, INCLUDING T-TIP. STEWART PETERSON'S NAOMI BLOHM SAYS THE TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP COULD BE OFF THE TABLE IF OTHER COUNTRIES CHOOSE TO BACK OUT OF NEGOTIATIONS.   <IT'S VERY MUCH GOING TO BE A MAJOR HURDLE TO OVERCOME, SEEING IT HAPPEN, BECUSAE OF GREAT BRITAIN AND THE UK IS NOW OUT, OTHER COUTNIRES ARE GOING OT POTENTIALLY FOLLOW SUIT AND THE WHOLE PART OF THE TTIP SUTIATION IS TO MAKE SURE THE UNITED STATES ND THE EUROPEAN UNION WERE WORKIGN TOGETHER FOR HTE PARTNERSHIP. AND NOW WAHT IF THE UK TRIES TO DO A SEPERATE PARTNERS HIP WITH THE U.S.? SO NOW THERE'S A LOT OF UNCERTAINTY IN THE MARKET PLACE.
STRONG DOLLAR HURTS DAIRY EXPORTS:
IN THE SHORT-TERM, MILK PRICES ARE SUPRESSED BY THE VOTE. OUR REPORTING PARTNERS AT FARM JOURNAL'S MILK SAY AS THE U-S DOLLAR GAINS STRENGTH, IT'S HURTING DAIRY EXPORTS. ANALYSTS SAY THIS WILL BE A WET BLANKET ON MILK PRICES, AS EXPORTS BECOME MORE EXPENSIVE, ALREADY HIGH VALUED PRODUCTS LIKE CHEESE AND BUTTER WON'T BE ABLE TO COMPETE GLOBALLY.  
HEAT SAFETY REMINDERS:
AS HEAT BLANKETS THE COUNTRY, OSHA IS REMINDING AG TO KEEP EMPLOYEES HYDRATED AND COOL.  OFFICIALS SAY AGRICULTURAL AND CONSTRUCTION WORKERS ARE PARTICULARLY VULNERABLE TO HEAT ILLNESS BECAUSE THEY WORK IN FULL SUNLIGHT. A REVIEW OF HEAT-RELATED DEATHS FOUND   "FREQUENTLY IT WAS WORKER'S FIRST DAY ON THE JOB AND THEY WEREN'T ACCLIMATED TO THE CONSTANT EXPOSURE TO THE HEAT AND SUN."  
TEASE:
WHEN WE COME BACK, A STORY MORE THAN 70 YEARS IN THE MAKING...FROM A ONE OF THE MOST ICONIC MOMENTS IN AMERCAN HISTORY. 
IN THE COUNTRY:

AS WE HEAD FOR INDEPENDENCE DAY, WE'VE ALL SEEN  THE ICONIC IMAGE FROM WORLD WAR TWO--MARINES RAISING AN AMERICAN FLAG ON IWO JIMA. BUT OUR UNDERSTANDING OF THAT HISTORIC MOMENT IS EVEN NOW GAINING CLARITY. FOLLOWING CLAIMS FROM TWO AMATEUR HISTORIANS, THE MARINE CORPS JUST LAST WEEK, ACKNOWLEDGED THAT ONE OF THE SIX MEN LONG IDENTIFIED IN THAT ICONIC WORLD WAR II PHOTOGRAPH WAS ACTUALLY NOT IN THE IMAGE.  HE MARINES FORMED A REVIEW PANEL EARLIER THIS YEAR AFTER THE TWO HISTORY BUFFS - STUDIED A NUMBER OF PHOTOS SHOT DURING TWO FLAG-RAISINGS DURING AN INTENSE BATTLE BETWEEN AMERICAN AND JAPANESE FORCES IN 1945. 
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.   FOR MIKE HOFFMAN,  I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.  PROMO:
I'M CLINTON GRIFFITHS.  WEDNESDAY ON AGDAY..OUR FRIENDS AT THE PACKER HAVE AN UPDATE ON   WATERMELON CONDITIONS AND HARVEST IN GEORGIA.. AND DAIRY PRODUCERS IN THE NORTHEAST CONTINUE TO EXPERIENCE LABOR WOES. THAT'S WEDNESDAY ON AGDAY.  
 
 

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