AgDay Daily Recap -March 29, 2016

March 29, 2016 02:57 AM
 

TODAY ON AGDAY
MARCH 29, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -THE LATEST HOGS AND PIGS INVENTORY IS OUT AND IT COULD MEAN A BIGGER HERD LATER THIS YEAR.  PLUS, LEADERSHIP CHANGES ARE COMING TO THE WHEAT GROWERS ASSOCIATION. IN AGRIBUSINESS...WATCHING SPRING CATTLE MARKETS. ONE  THING THAT I ALWAYS LOOKED AT THAT WE LEARNED IN COLLEGE IS THAT WHENEVER FUEL PRICES ARE LOW, BEEF DEMAND IS USUALLY PRETTY DARN GOOD. FARMERS GET A LOOK AT ROTARY MILKING IN AUSTRALIA. AND CRAFT  BEER IS BIG BUSINESS, COULD CRAFT COFFEE BE NEXT ?
PORK SECTOR SHOW SIGNS OF CONTRACTION:
GOOD MORNING I'M CLINTON GRIFFITHS. THE LATEST GOVERNMENT REPORT ON THE SWINE SECTOR SHOWS SLIGHT SIGNS OF CONTRACTION.  USDA'S QUARTERLY HOGS AND PIGS REPORT SHOWS THE NATIONAL HERD AT 67POINT-SIX MILLION HEAD. THAT'S UP SLIGHTLY FROM A YEAR AGO. BUT DOWN ONE PERCENT FROM DECEMBER FIRST WHEN THE LAST REPORT WAS ISSUED. DESPITE THE DECLINE, OUR REPORTING PARTNERS AT THE PORK NETWORK SAYS THE PIG CROP IS BIGGER THAN MARKET ANALYSTS EXPECTED FROM THE REPORT....WHICH COULD ME LARGER SUPPLIES ON THE HORIZON.
PROMISE IN PORK PRODUCTION:
DRIVEN BY HUGE CONSUMER DEMAND FOR BACON, PORK PRODUCTION STILL SHOWS PROMISE. NEW DATA INDICATES AMERICANS ON PACE TO EAT THE MOST PORK SINCE 2007. TYNE MORGAN REPORTS ON A FAMILY, FINDING THEIR NICHE IN PASTURE RAISED PORK, AS DEMAND FOR THE PROTEIN REMAINS STRONG AS GRILLING SEASON KICKS OFF. FOR NATE AND LOANN ROBINSON, RAISING ANIMALS ISN'T JUST A JOB.
PORK AT FARMERS MARKETS:
SO, THE FAMILY TRIED THEIR HANDS AT LOCAL FARMERS MARKETS. THE BUSINESS TOOK OFF AND IN THE LAST 5 YEARS, DEMAND IS SKYROCKETING I DIDN'T THINK IT WOULD GROW THIS QUICKLY.
WHAT STARTED AS A BUSINESS IN THEIR BACKYARD, HAS BLOSSOMED INTO MAJOR CITIES LIKE DETROIT AND CHICAGO. THESE ARE SMALL ONES. THESE GO REALLY WELL IN CHICAGO. SMALLER IS BETTER."AND TO KEEP UP WITH DEMAND, THIS FAMILY HAD TO GET CREATIVE.
CHINA COULD PURCHASE MORE U.S. PORK:
BUT GRETE SAYS THE GOOD NEWS IS CHINA COULD START BUYING MORE U-S PORK TO HELP CHEW THROUGH SOME OF THAT HEFTY SUPPLY.  GRETE SAYS A BOOST IN DEMAND COULD HELP PORK PRICES IN THE COMING.
"THANKS TYNE.
MEAT PRODUCTION NUMBERS FOR FEBRUARY:
NEW NUMBERS ON COMMERCIAL RED MEAT PRODUCTION IN FEBRUARY.  THE U.S. PRODUCED 3 POINT 9 BILLION POUNDS.  THAT'S 5 PERCENT FROM A YEAR AGO. BEEF PRODUCTION CLIMBING 7 PERCENT..LIVE WEIGHT CONTINUING HIGHER AVERAGING 13-72 POUNDS. PORK OUT-PACING BEEF AND UP 3 PERCENT YEAR OVER YEAR.
WHEAT GROWER CEO STEPS DOWN:
 THE NATIONAL ASSOCIATION OF WHEAT GROWERS ANNOUNCING CURRENT C-E-O JIM PALMER IS STEPPING DOWN. THE CHIEF EXECUTIVE STARTED WITH THE ORGANIZATION IN 2013. HIS LAST DAY WILL BE MAY 31ST AS HE AIMS TO SPEND MORE QUALITY TIME WITH FAMILY.
PANAMA CANAL EXPANSION OPENING SLATED FOR JUNE 26:
THE PANAMA CANAL AUTHORITY ANNOUNCING THE OPENING OF THE PANAMA CANAL EXPANSION HAS BEEN SCHEDULED FOR JUNE 26, 2016. THE ACP SAYS THE EXPANSION IS CURRENTLY 97 PERCENT COMPLETED. 
ADM LAWSUIT:
ADM, HAS FILED A LAWSUIT AGAINST THE CANADIAN PACIFIC RAILWAY OVER SERVICE DISRUPTIONS IN 2013 AND 2014. REUTERS REPORTS THE LAWSUIT ALLEGES CANADIAN PACIFIC DELAYS AT CORN PROCESSING PLANTS IN NORTH DAKOTA AND MINNESOTA WERE PARTLY DUE TO COST-CUTTING AND THE CANADIAN RAILROAD'S PURSUIT OF MERGER PARTNERS.  CP IS SUING BACK FOR MONEY ITS SAYS IS OWED BY ADM.
CROP COMMENTS:
GOOD MORNING, CLINTON. WE RECEIVED A COUPLE OF PHOTOS FROM A VIEWER IN SOUTHWEST MINNESOTA. TYSON COOPER TELLS US THEY WERE DOING SOME SPRING TILLAGE IN THE MORNING NEAR WALNUT GROVE. BUT BY 5 P-M THE SAME DAY, THE SNOW STORM HAD MOVED IN THAT PUMMELED THE UPPER MIDWEST. TYSON SAYS THEY HAD ABOUT A FOOT OF SNOW IN SPOTS. HE'S ANXIOUS TO GET BACK INTO THE FIELDS.
TEASE:
STILL TO COME ON THIS TUESDAY MORNING, WE'LL CHECK MARKETS AND TALK CATTLE WITH MATT BENNETT. AND LATER, WHAT'S BIG IS SMALL. THE NICHE MARKETING OF CRAFT COFFEE AND IT'S POTENTIAL TO BE A BOOMING BUSINESS.
CME LAUNCH:
THE CME GROUP IS ONE STEP CLOSER TO LAUNCHING LONG-PLANNED EUROPEAN UNION WHEAT FUTURES. ACCORDING TO REUTERS, THE NEWS COMES AFTER CME RESOLVED CONTRACT  ISSUES WITH GRAIN SILO OPERATORS IN FRANCE. A LAUNCH WOULD PUT CME IN COMPETITION WITH EURO-NEXT IN PARIS, WHOSE MILLING WHEAT CONTRACT IS A BENCHMARK IN THE EUROPEAN UNION. AFTER THE LONG WEEKEND, LETS SEE HOW MARKETS KICKED OFF THIS LAST WEEK OF MARCH FROM THE FLOOR OF THE CME IN CHICAGO.
FROM THE FLOOR OF THE CME:
GRAIN MARKET TRADING MOSTLY A LITTLE BIT HIGHER, A KIND OF MIXED TONE TODAY. BUT THE WHEAT MARKET IS REALLY THE LEADER TO THE UPSIDE. WHEATIS CAUGHT IN A WEATHER MARKET SCENARIO. SOME DRY CONDITIONS BEING FORECAST FOR CENTRAL AND SOUTHERN GREAT PLAINS. AND THIS COMING ON THE HEELS OF THE FREEZE WE HAD A WEEK OR TWO AGO. SO SOME REALLY LEGITIMATE CONCERNS ABOUT ADDITIONAL LOSSES OUT THERE. DRY AND HOT WEATHER AFTER A FREEZE EVENT IS EXACTLY WHAT THE CROP DOES NOT NEED.
THIS IS JACK SCOVILLE, I'M VICE PRESIDENT OF PRICE FUTURES GROUP HERE ON THE CME GROUP FLOOR WITH SOME COMMENTS FOR THE MARKET.
AGRIBUSINESS:
IT MAY NOT FEEL LIKE GRILLING SEASON IN ALL PARTS OF THE COUNTRY, BUT AMERICAN EXPECTED TO EAT MORE RED MEAT THIS--THAT WOULD BE THE FIRST INCREASE IN 10 YEARS...SAYS USDA.  SO HOW'S IT TRANSLATING INTO CATTLE MARKETS. TYNE MORGAN JOINS US WITH A LOOK AND TODAY'S ANALYSIS.
AFTER DECADES OF DINERS SHUNNING STEAKS AND BURGERS FOR HEALTHIER PROTEIN OPTIONS SUCH AS CHICKEN AND TURKEY, AMERICANS WILL EAT AN ESTIMATED 54.3 POUNDS OF THE RED MEAT THIS YEAR -THE FIRST INCREASE SINCE 2006 AND ALMOST HALF A POUND MORE PER PERSON THAN IN 2015, ACCORDING TO DATA FROM THE U.S. DEPARTMENT OF AGRICULTURE.
HERE NOW WITH MATT BENNETT OF BENNETT CONSULTING. MATT, RECENTLY WE HAVE HAD THIS COLD STORAGE REPORT COME OUT. IT SHOWED THAT MAYBE WE ARE EATING THROUGH A LITTLE BIT OF THIS SUPPLY SITUATION FOR RED MEAT. IS IT THAT WE HAVE RATCHETED DOWN PRODUCTION OR HAS DEMAND REALLY PICKED UP THAT MUCH?> WELL, I THINK DEMAND IS FAIRLY GOOD. I THINK ...ONE THING THAT I ALWAYS LOOKED AT THAT WE LEARNED IN COLLEGE IS THAT WHENEVER FUEL PRICES ARE LOW, BEEF DEMAND IS USUALLY PRETTY DARN GOOD. AND THAT IS WHAT I THINK IS GOING ON, BECAUSE PLACEMENTS ARE STILL PRETTY GOOD AND WEIGHTS HAVEN'T BACKED OFF QUITE AS MUCH AS WE WOULD LIKE TO SEE AND I'M NOT SURE IF FEED COSTS DON'T RALLY A WHOLE LOT THAT GUYS AREN'T GOING TO CONTINUE WITH SOME PRETTY HEAVY WEIGHTS GOING INTO 2016, SO I DO THINK THAT THERE IS STILL A FAIR AMOUNT OF SUPPLY AVAILABLE. >
NATIONAL WEATHER:
WELCOME BACK TO AGDAY HERE WITH METEOROLOGIST MIKE HOFFMAN. MIKE  WE HAD EASTER WEEKEND. GOOD WEATHER IN PARTS, BAD WEATHER IN OTHER PARTS OF THE COUNTRY. BUT WHAT ABOUT THIS WEEK? WELL LOOKS LIKE THIS WEEK WE'LL START OFF NICE AND DRY THEN A STORM COMES THROUGH AND MUCH COLDER AIR COMES THROUGH THE MIDDLE OF THE COUNTRY FOR LATER THIS WEEK. WE ALSO HAVE ANOTHER STORM SYSTEM IN THE GULF OF MEXICO WHICH WILL SCOOT ACROSS PARTS OF SOUTHERN FLORIDA, BRINGING PRETTY DECENT RAIN THE WAY IT LOOKS. STILL SOME LINGERING SNOWS IN NEW ENGLAND WITH A STORM SYSTEM FINALLY MOVING AWAY OUT THERE.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY NOW LET'S LOOK AT SOME LOCAL FORECASTS. WE'LL HEAD TO YAKIMA, WASHINGTON. FIRST OF ALL PARTLY TO MOSTLY SUNNY TODAY. HIGH TEMP OF 66.
ENID, OKLAHOMA, PARTLY SUNNY AND WINDY. HIGH OF 69. AND HARRISBURG, PA. BREEZY WITH LOTS OF SUNSHINE. AFTERNOON HIGH OF 53 DEGREES.
TEASE:
WHEN WE COME BACK, WE'LL CHECK ON THE DAIRY MARKET, INCLUDING A LOOK  AT THE FIRST ROBOTIC ROTARY MILKER IN TASMANIA. AND LATER, THE CRAFT BEEF INDUSTRY IS BOOMING..COULD COFFEE BE NEXT?
WAL-MART MILK PROCESSING PLANT SLATED FOR SUMMER CONSTRUCTION:
AS WE MENTIONED LAST WEEK, WAL-MART NOW PLANNING TO BUILD ITS FIRST  MILK PROCESSING PLANT THIS SUMMER. BUT THAT'S LIKELY TO EAT INTO DEAN FOODS BUSINESS. WAL-MART CURRENTLY ACCOUNTS FOR 16 PERCENT OF DEAN'S PROCESSING. THE NEW WAL-MART INDIANA FACILITY IS EXPECTED TO BE ONE OF THE LARGEST IN THE MILK INDUSTRY AND WILL BEGIN SUPPLYING THE RETAILER'S PRIVATE LABEL BRAND "GREAT VALUE" NEXT YEAR.
BSE CONFIRMED IN FRANCE:
THE AG MINISTRY FOR FRANCE SAYS ADDITIONAL TESTING CONFIRMED A CASE OF BSE...IN THAT COUNTRY. THE OUTCOME LIKELY TO COMPROMISE FRANCE'S BSE RISK STATUS WITH THE  WORLD ORGANIZATION FOR ANIMAL HEALTH AND COULD RESULT IN SOME BANS ON EXPORTS.
GRASS FED LABELING:
 THE AMERICAN GRASS-FED ASSOCIATION WANTS UPDATED RULES FOR GRASSFED LABELING FROM USDA. ITS ASKING AT A MINIMUM TO REQUIRE PRODUCERS COMPLY WITH GRASS-FED LABEL STANDARDS SET BY USDA'S AGRICULTURAL MARKETING SERVICE IN 2006.
BUT THOSE RULES WERE REVOKED IN JANUARY BECAUSE AMS SAID IT DID NOT HAVE THE AUTHORITY TO DEFINE THE TERM GRASS-FED... IT SAYS THAT RESPONSIBILITY LIES WITH USDA'S FOOD SAFETY AND INSPECTION SERVICE.
AUSTRALIAN FIRST ROBOTIC FARM:
THE OWNER OF AUSTRALIA'S FIRST ROBOTIC DAIRY FARM IS HOPING TO EDUCATE OTHERS IN THE POTENTIAL BENEFITS. THE NUMBER OF AUSSIE FARMERS ADOPTING THE TECHNOLOGY HAS BEEN SLOW. MANY OF THE FARMERS DON'T KNOW IF IT PENCILS-OUT FOR THEM. THERE ARE CURRENTLY 40 AUTOMATED MILKING SYSTEMS RUNNING IN AUSTRALIA. DAIRY FARMER MARCUS CROWDEN SAYS THERE'S BEEN A LACK OF RESEARCH ACROSS AUSTRALIA FOR THIS TECHNOLOGY. SO HE ALLOWS OTHER FARMERS TO SEE THE SYSTEM FIRST HAND.
TEASE:
UP NEXT, A TASTY CUP OF COFFEE FROM BREWING NICHE OF THE INDUSTRY.GET THE ROOTS YOUR CROPS NEED, BY GETTING RADIATE FIRST. VISIT LOVELAND PRODUCTS DOT COME SLASH RADIATE. SEE YOUR CPS DEALER TODAY.
IN THE COUNTRY:
SPURRED ON BY THE POPULARITY OF SMALLER  COFFEE SHOPS, LARGER CHAINS SUCH AS STARBUCKS ARE STEPPING UP THEIR CREDENTIALS TO APPEAL TO THE GROWING RANKS OF COFFEE AFICIONADOS. KRYSTA FOR-EE-A (FAURIA) HAS MORE ON THIS "JOE TO GO". AMERICANS' LOVE OF COFFEE HAS GROWN OVER THE DECADES.....THE MORNING CUP OF JOE EXPANDED TO COFFEE ON THE GO.  DRINKS GOT FANCIER...AND FROTHIER. THESE DAYS, COFFEE LOVERS ARE BECOMING MORE SELECTIVE...A GROWING DEVOTION TO CRAFT, LOCALLY ROASTED COFFEE. I WOULD CALL MYSELF AN AMATEUR AFICIONADO BUT I CAN DEFINITELY TELL A GOOD CUP OF COFFEE.
KRYSTA FAURIA, ASSOCIATED PRESS. THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.
CLOSING:
FOR TYNE MORGAN AND MIKE HOFFMAN, I'M CLINTON GRIFFITHS. HAVE A GREAT  DAY.
PROMO:
I'M CLINTON GRIFFITHS -WEDNESDAY ON AGDAY -USDA IS SET TO RELEASE ITS HIGHLY ANTICIPATED PLANTING INTENTIONS FORECAST. WE'LL HAVE EXPERT PRE-REPORT ANALYSIS. PLUS THE ANNUAL I-80 PLANTING TOUR BEGINS. WATCH US WEEKDAYS HERE ON AGDAY.

 

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