AgDay Daily Recap -June 29, 2016

June 29, 2016 02:57 AM
 

TODAY ON AGDAY
JUNE 29, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY I'M MICHELLE ROOK. WHAT WILL THE IMPACT OF THE NEW OPENING OF THE PANAMA CANAL HAVE ON EXPORT ACTIVITY HERE IN THE PACIFIC NORTHWEST? I'LL HAVE THE DETAILS TODAY ON AGDAY.
IN AGRIBUSINESS...WATCHING FOR KEYS TO THE CATTLE MARKET. ITS WATERMELON HARVEST TIME IN THE SOUTHEAST... AND THESE GOLDEN STATE GRAPE GROWERS ARE CONSTANTLY SEARCHING FOR THE NEXT VARIETY INNOVATION.
PANAMA CANAL OPEN FOR BUSINESS, NEW IMPROVED CANAL COULD BOOST U.S. SOYBEAN EXPORT:
GOOD MORNING I'M CLINTON GRIFFITHS. THE NEW PANAMA CANAL OPENED THIS WEEK. A MAJOR DEVELOPMENT FOR THE EXPORT INDUSTRY AND THE GLOBAL ECONOMY.  THE NEW CANAL IS BUILT WITH LARGER LOCKS ABLE TO ACCOMMODATE SHIPS MORE THAN TWICE THE SIZE OF CURRENT PANAMAX VESSELS. SO WHAT WILL THAT MEAN FOR U.S. SOYBEAN EXPORTS, ESPECIALLY THOSE EXPORTED OFF THE WEST COAST TO OUR NUMBER ONE CUSTOMER….CHINA? AGDAY'S MICHELLE ROOK SPOKE WITH OFFICIALS AT THE PACIFIC NORTHWEST PORTS WHILE IN WASHINGTON STATE LAST WEEK. SHE ASKED WHAT THE EXPANSION WOULD MEAN FOR BUSINESS. FOR MORE THAN 100 YEARS THE PANAMA CANAL HAS REPRESENTED AN ESSENTIAL EXPORT CHANNEL FOR U.S. SOYBEANS. "WE HAVE ABOUT 600 MILLION BUSHELS OF SOYBEANS THAT GO THROUGH THE PANAMA CANAL ON AN ANNUAL BASIS. THAT'S THE NUMBER ONE U.S. AG COMMODITY THAT UTILIZES THE PANAMA CANAL." THE NEW EXPANSION WILL JUST ENHANCE THE IMPORTANCE OF THE CANAL WITH THE ABILITY TO HANDLE THE LARGER POSPANAMAX SHIPS.
COULD NEW CANAL IMPACT COST TO FARMERS?:
SO WHAT WILL THIS COST SAVING MEAN FOR WESTERN CORN BELT FARMERS AND EXPORTS AT PACIFIC NORTHWEST PORTS, WHICH ARE THE MAIN LINK TO CHINA? OFFICIALS SAYS THEY DON'T BELIEVE THE OPENING OF THE NEW PANAMA CANAL WILL HAVE A MAJOR IMPACT ON EXPORT ACTIVITY HERE IN THE PACIFIC NORTHWEST. "I JUST THINK WITH OUR MARKETS OUT HERE YOU KNOW AND THE AREAS WE GO TO THE FREIGHT GOING ACROSS THE OCEAN IS GOING TO BE CHEAPER FROM HERE THAN GOING THROUGH THE PANAMA CANAL. SO I GUESS I DON'T SEE THAT BIG OF AN EFFECT ON US." AT THE PORT OF GRAYS HARBOR THEY ALSO EXPECT BUSINESS AS USUAL BECAUSE MOST OF THEIR VOLUME IS SOYBEAN MEAL, WHICH IS NOT THE CASE AT THE CANAL. "I THINK OUR BUSINESS HERE IS GOING TO BE FINE. WE HAVE A MODEL THAT IS VERY SUCCESSFUL AND IT WILL BE SUCCESSFUL FOR MANY MANY YEARS AHEAD OF US." THE PNW PORTS ALSO HAVE THE ADVANTAGE OF BEING ABLE TO SHIP SOYBEANS TO CHINA IN ONLY 14 TO 15 DAYS VERSES AN AVERAGE OF 25 THROUGH THE CANAL. AND IN THE EXPORT BUSINESS TIME IS MONEY. IN WASHINGTON STATE I'M MICHELLE
ROOK REPORTING FOR AGDAY. 
PERDUE IMPLANTS CHANGES TO IMPROVE ANIMAL WELFARE:
THE NATION'S FOURTH-LARGEST POULTRY PRODUCER PUT COMPETITORS ON NOTICE MONDAY THAT THE BAR ON ANIMAL-WELFARE STANDARDS ARE BEING RAISED. PERDUE SAYS IT'S FOOTING THE BILL TO HAVE SOME OF ITS 2,000 GROWERS RETROFIT THEIR CHICKEN HOUSES TO INCLUDE SUCH FIRST-CLASS AMENITIES AS WINDOWS, PERCHES AND MORE ROOM FOR CHICKENS TO SPREAD THEIR WINGS, WITH 200 HOUSES EXPECTED TO BE COMPLETED BY THE END OF 2016. THE CHANGES WILL BE IMPLEMENTED OVER A PERIOD OF SEVEN YEARS.
CROP COMMENTS:
AS WE ROUND OUT JUNE WE HEAD OVER TO AGDAY METEOROLOGIST MIKE HOFFMAN FOR TODAY'S CROP COMMENTS...AND A CHECK OF CONDITIONS.
HELLO CLINTON. WE GOT THIS PICTURE FROM WILACY COUNTY TEXAS...THATS DOWN IN THE DEEP SOUTHERN PART OF THE STATE. A FARMER TELLING AGWEB THAT SORGHUM HARVEST THERE IS GOING WELL. USDA'S LATEST CROP PROGRESS REPORT SHOWS 70 PERCENT OF THE CROP IS RATED GOOD TO EXCELLENT NATIONWIDE. IN TEXAS IT'S 66 PERCENT. MEANWHILE, IN THE NORTHERN PLAINS, SUNFLOWERS ARE UP AND GROWING. 94 PERCENT OF THE NORTH DAKOTA CROP HAS EMERGED...JUST ONE PERCENT IS BLOOMING. NEARLY 70 (68) PERCENT OF SUNFLOWERS ARE IN GOOD TO EXCELLENT CONDITION.
TEASE:
UP NEXT NAOMI BLHOME OF STEWART PETERSON JOINS US TO DISCUSS CATTLE MARKETS AND SOME PENDING PRICE TRIGGERS SHE THINKS COULD MEAN MAJOR MOVES ARE COMING.
AND LATER, FROM SEEDS TO SEEDLESS A LOT OF TIME AND EFFORT GOES INTO CREATING NEW VARIETIES FOR GRAPE GROWERS. WE GET A PEAK BEHIND THE VINES IN THE GOLDEN STATE.
FROM THE FLOOR OF THE CME:
IN AGRIBUSINESS MONDAY BROUGHT A LITTLE BUMP IN MAJOR GRAINS...LETS SEE HOW TRADE FAIRED ON TUESDAY. REACTION FROM THE FLOOR OF THE CME IN CHICAGO. GRAIN MARKETS IN CHICAGO MIXED ON TUESDAY, WE HAD KIND OF BACK AND FORTH SESSION IN THE CORN MARKET SAME THING WITH THE SOYBEANS AND WHEAT. I THINK THE MARKET AS IT USUALLY DOES THIS TIME OF YEARS REACTING TO WEATHER FORECASTS AND SHIFTS IN WEATHER FORECASTS AND MID DAY SOME OF THE MODELS PUT A WHOLE BUNCH OF RAIN INTO THE CORN BELT DURING THE EARLY TO MIDDLE PART OF NEXT WEEK WHICH BRINGS YOU INTO THAT FIRST PART OF JULY. I THINK THAT'S PARTIALLY RESPONSIBLE AT LEAST FOR THE SELL OFF THAT WE SAW ON THE CORN MARKET. I THINK WE'RE GOING TO SEE A LOT OF THIS NEXT SIX OR THREE WEEKS. THE MARKET'S REALLY GOING TO BE A VICTIM OF OF WEATHER FORECAST EITHER GOOD OR BAD, THEY'RE STILL A LOT OF TIME TO GO BEFORE WE GOT A FEEL FOR WHAT TYPE OF CORN CROP IS OUT THERE AND THAT'S REALLY GONNA BE THE BIGGEST MARKET MOVER. WHAT'S THE IDEAL NUMBER GOING TO BE, THAT'S THE BIG QUESTION. AND WE MAY SEE A MARGINALLY REDUCED CORN ACRES NUMBER AGAIN JOE VACLAVIK AND GRAIN FROM THE FLOOR OF THE CME.
AGRIBUSINESS:
HERE AT THE AGRIBUSINESS DESK I HAVE NAOMI BLOOM STEWART PETERSON LET'S TALK ABOUT THE CATTLE MARKET BECAUSE WE HAVE SEEN SOME INTERESTING BACK AND FORTH HERE OVER THE LAST SIX MONTHS THE FIRST HALF OF THIS YEAR WHAT ARE YOU WATCHING AS WE GO THROUGH THIS STARTING IN JULY AND YEAH WE HAVE BEEN SEEING THE CATTLE MARKET TRADE IN THE $10 RANGE FOR THE AUGUST CONTRACT'S THE OCTOBER CONTRACT'S GOING ALL WAY BACK TO DECEMBER AND SO THE LONGER A MARKET CAN CONSOLIDATE AND TRADE SIDEWAYS THE BIGGER THE EXPLOSIVE PRICE MOVEMENT IS LATER ON DOWN THE ROAD WE DON'T HAVE THE FUNDAMENTALS RIGHT NOW TO DICTATE IF IT'S GOING TO HIGHER BREAK OUT OR A LOWER BREAK OUT BUT THE THING THAT THE CATTLE PRODUCERS NEED TO BE VERY AWARE OF IS THAT ON LONG TERM CHARTS SO MONTHLY CHARTS WE ARE STILL DEFENDING AN UPWARD CHANNEL WHICH HAS BEEN INTACT FOR A COUPLE YEARS NOW BUT AT THE SAME TIME WE ARE UP AGAINST A SHORT TERM DOWNTREND AND SO WE ARE GETTING READY TO BREAK OUT PROBABLY A THIRD QUARTER SO WHAT YOU HAVE TO BE WATCHING FOR OF COURSE IS THE DEMAND FOR THE CATTLE MARKET RIGHT NOW THE PERCEPTION IS THAT THE SUPPLIES ARE GROWING AND SO THAT IS SOMETHING THAT CAN WEIGH ON PRICES BUT SO FAR THE DEMAND HAS BEEN ABLE TO HANG IN THERE
NATIONAL WEATHER:
<WELCOME BACK TO AGDAY CANADIAN U S BORDER BUT THAT'S ABOUT IT NOW ARE SOME FRANCE ARE MOVING VERY QUICKLY LIKE A STATIONARY FRONT ACROSS THE CENTRAL PLAINS IN THE NORTHWEST AND DOWN IN THE SOUTHEAST THIS FRONT IN SOUTHERN ALABAMA SOUTHERN GEORGIA AS WE HEAD THROUGH THAT DAY WE WILL SEE THOSE AFTERNOON VARIETY SHOWERS AND THUNDERSTORMS POP UP WHEN YOU LOOK AT THE OVERALL MAP THERE'S NOT A LARGE AREA OF MOISTURE ANYWHERE JUST GOING TO HIT A MESS AND MOST OF THESE LOCATIONS AND OF COURSE IS NOT GOING TO BE ANYTHING GOING ON UNDERNEATH THAT BIG AREA OF HIGH PRESSURE FOR MOST OF THE GREAT LAKES OHIO VALLEY TENNESSEE VALLEY SECONDARY FRONT AGAIN HAS SOME MOISTURE WILL PRODUCE SOME SHOWERS AND THUNDERSTORMS AS WE HEAD THROUGH TONIGHT WILL SEE MOST OF THAT ACTIVITY CAN WE CAN ALTHOUGH NEAR THE STATIONARY FRONT OF THOSE CHANCES FOR SOME NIGHTTIME VARIETY THUNDERSTORMS BUT OUR MODEL ISN'T REALLY SHOWING ANY BIG COMPLEX DEVELOPING HEADING THROUGH THE DAY TOMORROW THEN YOU'LL SEE AGAIN THE AFTERNOON VARIETY SHOWERS AND THUNDERSTORMS POP UP PARTS OF THE WEST THOSE WILL BE MORE MISS THAN HIT I THINK THE FOUR CORNERS REGION AS YOU CAN SEE AND JUST SCATTERED AREAS ACROSS THE PLAINS IN THE SOUTHEAST THE FOCUS WILL BE ON THAT NEXT FRONT THAT'S ACTUALLY MOVING AND THAT WILL BE PRODUCED IN SOME SHOWERS AND THUNDER.
REGIONAL WEATHER:
NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS FIRST OFF FOR LAS VEGAS NEVADA PARTLY SUNNY AND HOT AFTERNOON THUNDER FROM POSSIBLE HIGH TEMPERATURE OF 107. ROCK ISLAND ILLINOIS MOSTLY SUNNY AND PLEASANT HIGH OF EIGHTY DEGREES IN EASTON PENNSYLVANIA MIX OF SUN AND CLOUDS HIGH OF EIGHTY THREE
TEASE:
WHEN WE COME BACK WE'LL CHECK IN ON WATERMELON HARVEST IN THE SOUTHEAST. AND LATER, THIS CALIFORNIA COMPANY IS CONSTANTLY WORKING TO FIND INFIELD INNOVATIONS. THE RESEARCH BEHIND GROWING GRAPES TODAY ON IN THE COUNTRY.
THE PACKER REPORTS ON WATERMELON STATUS:
IT LOOKS AS IF THERE WON'T BE A LARGE VOLUME OF WATERMELONS IN TIME FOR THE FOURTH OF JULY IN SOME AREAS. THAT'S ALL DUE TO HEAVY RAINS IN THE SOUTHEAST. THE PACKER REPORTING GEORGIA PRODUCTION STARTED LATER THAN NORMAL. INDIANA IS ALSO RUNNING BEHIND. WHICH MAY CREATE SOME SHORTAGE ISSUES FOR SOME REGIONS IN JULY. BUYERS MAY NEED TO RELY ON OTHER STATES TO FILL THE VOLUME. SOME GEORGIA GROWERS SAY NOW THAT THEY'RE UP AND RUNNING, QUALITY AND SUGAR LEVELS ARE HIGH AND RETAIL DEMAND IS STRONG. <WE GOT OFF TO A SLOW START EARLIER IN THE SEASON. NOW IT SEEMS TO BE GOING GOOD. QUALITY IS NICE AND SOLID. THE CONSUMERS SHOULD BE HAPPY  THIS YEAR WITH QUALITY.> LEGER SAYS HE WILL PACK THROUGH AUGUST. HE SAYS GEORGIA WATERMELON GROWERS EXPERIENCED A TOUGH COUPLE OF YEARS. HE HOPES TO SHOW A BETTER PROFIT BACK TO THE FARM THIS YEAR.
SLIGHT INCREASE IN APPLE PRODUCTION:
WORLDWIDE APPLE PRODUCTION IS EXPECTED TO BE UP SLIGHTLY FOR THE 2015 THROUGH '16 MARKETING YEAR, DESPITE A DIP IN U.S. CROP. AS WE REPORTED EARLIER, A USDA FORECAST SHOWS U-S APPLE EXPORTS FALLING TO THEIR LOWEST LEVEL IN SIX YEARS. THE AG DEPARTMENT EXPECTS PRODUCTION TO BE CUT BY 500-THOUSAND TONS TO ABOUT FOUR A HALF MILLION TONS. ACCORDING TO USDA'S JUNE FRESH DECIDUOUS FRUIT: WORLD MARKETS AND TRADE REPORT, WORLDWIDE PRODUCTION IS EXPECTED TO INCREASE SLIGHTLY FROM 76.4 MILLION TONS TO 76.9 MILLION TONS. USDA EXPECTS A BIG CROP IN CHINA WITH VOLUMES DOWN IN THE U.S. EUROPE AND ARGENTINA. STEH-MILT REPRESENTATIVES SAY THE APPLE CROP IS EARLIER IN THE PACIFIC NORTHWEST DUE TO A WARM SPRING.
TEASE:
WE'LL CONTINUE IN THE PRODUCE ASILE AFTER THE BREAK AS RESEARCHERS IN CALIFORNIA WORK TO BRING FRESH VARIEITIES OF GRAPES TO TABLES.
IN THE COUNTRY:
FOOD COMPANIES ARE CONSTANTLY INVOLVED IN PRODUCT RESEARCH-INCLUDING CONSUMER WANTS AND NEEDS AS WELL AS TECHNOLOGY FOR THE FUTURE. SUN WORLD -A COMPANY CELEBRATING IT'S 40TH ANNIVERSARY --IS ONE OF THE LEADING BREEDERS, GROWERS AND MARKETERS OF GRAPES IN THE WORLD. NATIONAL REPORTER BETSY JIBBEN RECENTLY SPENT A DAY WITH RESEARCHERS AS THEY WORK TO FIND THE NEXT BIG TREND. REPORTING IN COACHELLA, CALIFORNIA, I'M BETSY JIBBEN.
THANKS BETSY.
CLOSING:
FOR MIKE HOFFMAN, AND ALL OF US AT FARM JOURNAL, I'M CLINTON GRIFFITHS. HAVE A GREAT DAY IN FARM COUNTRY.
PROMO:
I'M CLINTON GRIFFITHS. THURSDAY ON AGDAY…A DEADLINE IS APPROACHING IMPACTING WEIGHTS FOR SHIPPING CONTAINERS. HOW COULD IT IMPACT AG EXPORTS? AND WE CONTINUE OUR COVERAGE FROM THE PORTS OF THE PACIFIC NORTHWEST. THAT'S THURSDAY ON AGDAY.

 

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