AgDay Daily Recap -March 7, 2016

March 7, 2016 02:57 AM
 

TODAY ON AGDAY
MARCH 7, 2016


OPENING HEADLINES:
TODAY ON AGDAY -FARM EQUIPMENT EXPORTS FEEL THE DRAG OF THE ECONOMY.
A NEW AGREEMENT WITH CHINA COULD ALLOW THE U.S. TO EXPORT RICE TO THIS IMPORTANT MARKET.
ONE PERCENT OF THE MARKET WOULD BE WONDERFUL FOR THE UNITED STATES.
IN AGRIBUSINESS -A STATUS CHECK ON THE BRAZILIAN BEAN HARVEST.
WE WOKE UP WITH A NICE GIFT ON FRIDAY MORNING: YOU HAD THE BRAZILIAN REAL UP 2.7 PERCENT. MAKING IT MORE EXPENSIVE FOR THE REST OF THE WORLD TO COME AND BUY BRAZILIAN BEANS AND SEE HOW A DRAB DESERT CAN COME TO LIFE WITH COLOR.
LOW EQUIPMENT SALES IN U.S. BRING EQUIPMENT EXPORTS DOWN:
GOOD MORNING I'M BETSY JIBBEN. U-S AG EQUIPMENT SALES ARE TUMBLING THIS YEAR. AND THAT DOWNWARD PRESSURE IS KEEPING AG EQUIPMENT EXPORTS DOWN AS WELL.
A NEW STUDY SHOWS EXPORTS OF U.S. EQUIPMENT ARE DOWN FOR A THIRD YEAR IN A ROW. THE ASSOCIATION OF EQUIPMENT MANUFACTURERS SAYS EXPORTS OF U-S MADE AG. EQUIPMENT DROPPED 13 PERCENT LAST YEAR.  MOST COUNTRIES EXPERIENCED DOUBLE-DIGIT DECLINES. BUT ASIAN AND CENTRAL AMERICA WERE AN EXCEPTION.
STRONG U.S DOLLAR ONE INCENTIVE FOR CUSTOMERS TO BUY ELSEWHERE:
CANADA DROPPED 17 PERCENT. WHILE DOWN, AEM SAYS 2014 WAS EVEN WORSE -WITH A 30-PERCENT DROP. WHEN IT COMES TO CANADA, FARM JOURNAL'S MACHINERY PETE SAYS THE STRENGTH OF THE U-S DOLLAR OVER CANADIAN CURRENCY IS A BIG INCENTIVE FOR CUSTOMERS TO LOOK "NORTH OF THE BORDER".
U.S. DOLLAR HAS GAINED STRENGTH SINCE JULY:
CREIGHTON UNIVERSITY'S NEWEST REPORT ON BUSINESS CONDITIONS IN MID -AMERICA SAYS COMPARED TO THE KEY TRADING PARTNER OF CANADA, THE U-S DOLLAR HAS STRENGTHENED 30-PERCENT SINCE JULY 2014.
RICE TRADE WITH CHINA CAN COMMENCE:
U-S RICE PRODUCERS MAY FINALLY GET ACCESS TO CHINA. U-S PRODUCERS HAVE BEEN PUSHING TO GET INTO THAT MARKET FOR MORE THAN A DECADE.  IN JANUARY, U-S-A RICE FEDERATION SAID CHINA AND THE U-S HAD REACHED A TENTATIVE AGREEMENT ON THE PHY-TOE-SANITARY RULES. IN THIS REPORT FROM THE ARKANSAS FARM BUREAU, KEN MOORE REPORTS ON THE PENDING PARTNERSHIP.
RICE SANITATION RULES:
THE UNITED STATES AND CHINA REACHED AGREEMENT IN PRINCIPLE ON A PHYTOSANITARY PROTOCOL OR HEALTH CERTIFICATE STATING U.S. RICE IS CLEAN AND FREE OF INSECTS, ALLOWING TRADE WITH CHINA TO COMMENCE. "WE THINK IT WILL OFFER US A WONDERFUL NICHE OPPORTUNITY AND ONE PERCENT OF THE MARKET WOULD BE WONDERFUL FOR THE UNITED STATES WITH THE AMOUNT OF RICE THAT WE EXPORT EACH YEAR." CARL BROTHERS IS SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER AT RICELAND FOODS. HE SAYS THE PROTOCOL HAS THE POTENTIAL TO SIGNIFICANTLY IMPACT RICE TRADE FOR AMERICAN GROWERS. "WHEN YOU LOOK AT A MARKET THAT CAN CONSUME ALL OF OUR EXPORTS IN TWO WEEKS, JUST A ONE PERCENT SHARE OF THAT MARKET COULD BE SIGNIFICANT FOR THE UNITED STATES," BROTHERS SAID. "AND IN FACT, IF WE LOOK AT WHAT'S GOING ON IN THE WORLD AND UNITED STATES PRICES ARE $150 A TON HIGHER THAN ASIAN PRICES, WE'RE HOPEFUL THE DEMAND CAN BE CREATED IN A COUNTRY LIKE CHINA COULD SUPPORT OUR PRICES AND LET US MAINTAIN A HIGHER LEVEL OF INCOME FOR OUR GROWING COMMUNITY, WHILE THE REST OF THE WORLD MAYBE CATCHES UP."
THIS IS KEN MOORE REPORTING.
AVIAN FLU UPDATE:
USDA JUST RELEASING THE RESULTS OF ITS INQUIRY INTO THE AVIAN FLU OUTBREAK IN DOWNSTATE INDIANA. THAT OUTBREAK OF H-7-N-8 WAS LIMITED TO ONE COUNTY...AND HAS SINCE BEEN CLEARED. 
USDA SAYS GENETIC ANALYSIS SHOWS THE VIRUSES WERE HIGHLY SIMILAR. THE LOW-PATH MUTATED TO THE HIGH PATH AT JUST ONE FARM.
THE AG DEPARTMENT SAYS WILDLIFE WAS TESTED ON INFECTED FARMS BUT IT WAS NOT DETECTED IN THOSE BIRDS.
CROP COMMENTS:
CINDI CLAWSON IS FILLING IN FOR MIKE THIS WEEK.  LET'S GET A CHECK FROM CINDI FOR THIS MORNING'S CROP COMMENTS.
GOOD MORNING, BETSY.
LET'S START OFF IN WESTERN ALABAMA. WILL GILMER SAYS HE'S NOT THE ONLY ONE IN NEED OF SOME COFFEE THIS MORNING. ONE OF HIS HOLSTEIN DAIRY COWS TRIED TO TAKE A LICK! THAT AREA OF ALBAMA IS WARMING UP.  TEMPERATURES ARE IN THE 70S THIS WEEK.
AND LET'S MAKE THE TREK NORTH TO CANADA.
ALEX SHAW SAYS THIS IS WHAT YOU'LL SEE DRIVING ACROSS SOUTHWESTERN ONTARIO. THERE'S A NICE BLANEKT OF SNOW FROM LAST WEEK'S WINTER STORM.  TEMPERATURES WILL ALSO WARM UP THIS WEEK. AND SPEAKING OF THOSE WARMER TEMPERATURES THEY ARE GOING TO BE WARMING UP IN A LOT OF THE UNITED STATES OVER THE NEXT WEEK WE'LL HAVE MORE DETAILS ON THAT AND NOW HERE ARE SOME HOMETOWN TEMPERATURES AND NOW HERE ARE SOME HOMETOWN TEMPS.
TEASE:
STILL AHEAD -CLINTON GRIFFITHS WITH THIS MORNING'S ANALYSIS. WE'LL BE GETTING AN UPDATE ON THE BRAZILIAN HARVEST.  PLUS, YOU MIGHT BE SURPRISED WHAT ONE RAIL COMPANY WAS ASKED TO HAUL.  AND IF YOU THINK CALIFORNIA'S "DEATH VALLEY" IS ALWAYS HOT, DRY AND DRAB...THINK AGAIN.
CME:
LETS SEE HOW THE MARKETS CLOSED LAST WEEK. FOR THAT, WE HEAD TO THE CME FLOOR IN CHICAGO.
WE'VE SEEN A LOT OF ACTIVITY GOING ON IN THE GRAINS TODAY. ESPECIALLY IN THE SOYBEANS AND IT LOOKS AS IF IT'S A LOT OF SHORT-COVERING. AS I LAST NOTICED HERE, WE WERE UP ELEVEN-AND-A-HALF OR ELEVEN-AND-THREE-QUARTER CENTS FOR THE DAY. IT LOOKS LIKE IT'S SHORT COVERING. WE LOOK AT THE CORN MARKET. THAT'S IN A TIGHT RANGE AND WE'RE ANTICIPATING IT TO STAY THAT WAY. WHEAT NOW, WE'RE HAVING A SITUATION WHERE THE CROPS ARE LOOKIGN AWFULLY GOOD AND IT LOOKS LIKE THEY'RE GOING TO STAY OUT OF DORMANCY WHICH COULD CREATE A PROBLEM LATER DOWN THE ROAD. LET'S LOOK AT THE LIVESTOCK.
THIS IS GARY KOZLOWSKI WITH FARM FINANCIAL COMING TO YOU FROM THE CME GROUP.
AGRIBUSINESS OPEN:
OVER ONE-THIRD OF BRAZIL'S SOYBEAN CROP HAS BEEN HARVESTED. AND IN MATO GROSSO, ONE OF BRAZIL'S LARGEST STATES, MORE THAN HALF OF THE CROP IS OUT OF THE GROUND. (PRO FARMER)FOR AN UPDATE ON HARVEST PROGRESS AND WEATHER CONDITIONS, CLINTON TURNS TO TED SIGHFRED WITH ZANER AG HEDGE IN THIS MORNING'S ANALYSIS.

JOINING ME HERE IN NEW ORLEANS AT THE COMMODITY CLASSIC; I HAVE TED SIEGFRIED, ZANER AG HEDGE. TED, LET'S TALK ABOUT WHAT'S GOING ON IN BRAZIL. THERE HAVE BEEN SOME MOVING PIECES THERE AND IT COULD IMPACT OUR MARKETS.> YES, WE WOKE UP WITH A NICE GIFT ON FRIDAY MORNING: YOU HAD THE BRAZILIAN REAL UP 2.7 PERCENT. MAKING IT MORE EXPENSIVE FOR THE REST OF THE WORLD TO COME AND BUY BRAZILIAN BEANS.

NATIONAL WEATHER:
WELCOME BACK TO AGDAY WITH METEOROLOGIST CINDY CLAWSON. CINDY, WHAT CAN WE EXPECT FOR WEATHER AS WE START OFF THIS WEEK? > WELL, THE ONE THING THAT MOST OF THE COUNTRY WILL BE NOTICING IS WARM TEMPERATURES AND THAT MAY NOT BE GOOD FOR DROUGHT IN SOME AREAS.
TRAIN BRINGS SNOW TO ANCHORAGE AFTER UNSEASONABLY WARM TEMPERATURES:
HERE'S AN UNUSAL TRAIN-LOAD. THE ALASKA RAILROAD ON THURSDAY SHIPPED SEVEN CARS OF SNOW. IT'S BEEN UNSEASONABLY WARM IN ANCHORAGE. THE CITY STREETS AND TRAILS NEEDED MORE SNOW FOR THE CEREMONIAL START OF THE FAMED I-DID-ROD SLEDDOG RACE AND THE CITY'S WINTER CARNIVAL.  THE CITY TYPICALLY STOCKPILES SNOW FOR THE EVENT, BUT THE WARM-UP PUT A SEVERE DENT INTO THE SNOW PILE.  ALASKA RAIL HAULED THE SNOW 360 MILES FROM FAIRBANKS TO ANCHORAGE.
TEASE:
NOT ENOUGH SNOW IN ANCHORAGE. BUT IN ONE OF THE DRIEST PLACES IN THE WORLD, THERE WAS ACTUALLY AN ABUNDANCE OF RAIN....WHICH IS HELPING
TO CREATE A COLORFUL LANDSCAPE IN AN OTHERWISE BLEAK DESERT.
MACHINERY PETE:
HOW MUCH IS YOUR TEN YEAR OLD JOHN DEERE 83HUNDRED WORTH? MACHINERY PETE SAYS WITH LOW HOURS, IT CAN BE WORTH A LOT! WELL THE TRACTOR PICTURE THAT YOU ARE LOOKING AT BEHIND ME FOLKS THAT IS A 1996 JOHN DEERE 8300 TRACTOR ONLY 666 ACTUAL HOURS ON IT AND IT SOLD ON A FARM AUCTION IN SOUTH CENTRAL NEBRASKA FEBRUARY 11, 2016, WENT FOR $95,000.
TEASE:
STILL TO COME -SEE HOW A WET WINTER CAN BRING A LOT OF COLOR, EVEN TO ONE OF THE HOTTEST AND DRIEST PLACES IN THE COUNTRY.
IN THE COUNTRY:
A RARE WILDFLOWER 'SUPER BLOOM' HAS TURNED DEATH VALLEY NATIONAL PARK IN CALIFORNIA INTO A CARPET OF COLOR. A SIGNIFICANT BLOOM LIKE THIS ONLY HAPPENS ONCE ABOUT EVERY 10 YEARS AND IT'S DRAWING TOURISTS FROM FAR AWAY. GILLIAN FLACCUS HAS OUR STORY.
GILLIAN FLACCUS, ASSOCIATED PRESS, DEATH VALLEY, CALIFORNIA.
CLOSING:
GILLIAN MENTIONED THE LAST TIME THIS OCCURRED WAS 2005 AND 1998 -THOSE WERE BOTH "EL NINO" YEARS, JUST LIKE RIGHT NOW. 
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.
FOR CLINTON GRIFFITHS AND CINDI CLAWSON I'M BETSY JIBBEN. HAVE A GREAT DAY.
PROMO:
I'M BETSY JIBBEN. TUESDAY ON AGDAY GRAIN MARKET INSIGHT FROM SOME OF THE LEADING ANALYSTS IN CHICAGO. PLUS, THE LATEST NEWS FROM THE DAIRY SECTOR. AND YOUR FARM COUNTRY FORECAST. WATCH US WEEKDAYS ON AGDAY.

 

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