AgDay Daily Recap -March 8, 2016

March 8, 2016 02:57 AM
 

TODAY ON AGDAY
MARCH 8, 2016
OPENING HEADLINES:

COMING UP TODAY ON AGDAY -LOOKING FOR NEW AVENUES OF ETHANOL DEMAND. PLUS, IS A MEGA-MERGER SHAKEUP IN THE WORKS? IN AGRIBUSINESS...PRICES ARE LOW BUT THEY COULD GO LOWER. MY FEAR IS THAT IF JULY 1 YOU ARE AT $3 CORN AND $7.25 BEANS WHAT ARE YOU GOING TO DO NOW? NEW IMMIGRATION NUMBERS ARE OUT...AND TELLING THE STORY OF AGRICULTURE AT ONE OF THE LARGEST LIVESTOCK SHOWS IN THE COUNTRY.
OIL MAKES SLIGHT REBOUND, BUT PRICE PER BARREL STILL REMAIN AT RECORD LOWS:
GOOD MORNING I'M CLINTON GRIFFITHS.  CRUDE OIL PRICES CONTINUE TO CLIMB OUT OF THE BASEMENT THIS WEEK. WITH MONDAY'S TRADE SEEING CRUDE CREEP BACK INTO THE UPPER 30 DOLLAR PER BARREL RANGE. OPEC REPEATEDLY ANNOUNCING IT WILL NOT CUT PRODUCTION.
OIL PRICES RAISE COMPETITION WITH ETHANOL:
HOWEVER--IN FEBRUARY, RUSSIA AND SAUDI ARABIA BOTH AGREED TO A PRODUCTION FREEZE. NATIONAL REPORTER BETSY JIBBEN REPORTS ON OIL'S IMPACT TO THE DOMESTIC ETHANOL BUSINESS AND HOW NEW MARKETS MAY HELP THE INDUSTRY.
CRUDE OIL PRICES MAY BE CREEPING HIGHER LATELY BUT PER BARRELL PRICES ARE STILL VERY LOW. BUT THAT PRICE COMPETITVENESS IN THE MARKET IS GOING TO CHALLENGE OUR ETHANOL INDUSTRY IN TERMS OF THEIR ABILITY TO STAY PROFITABLE TO MEET DEMAND THAT'S OUT THERE.
ROW CROP SECTOR AIMS TO PROTECT BIOFUEL STANDARDS:
HERE AT HOME, THE RENEWABLE FUELS STANDARD HAS CREATED DOMESTIC DEMAND. NOVAK SAYS THAT DEMAND HAS YET TO MAX OUT. THAT'S WHY THOSE IN THE ROW CROP SECTOR SAY IT'S A MUST TO DEFEND AND PROTECT THE STANDARDS FOR BIOFUEL AND ETHANOL USE. SORGHUM GROWERS AGREE THE RFS PROVIDES A HUGE SPARK IN DOMESTIC DEMAND.
SEARCH IS ON FOR NEW MARKETS:
FROM AN INTERNATIONAL STANDPOINT, THOSE IN THE INDUSTRY SAY THEY'RE ALWAYS LOOKING FOR NEW MARKETS. WE'D CERTAINLY LIKE TO BE EXPORTING MORE ETHANOL TO OUR CLOSEST NEIGHBORS, BOTH MEXICO AND CANADA. BUT THE MORE BUSINESS WE CAN GET, THE MORE DEMAND, THE BETTER PROFIT MARGINS WE'LL HAVE," SEIFRED SAYS IF CRUDE OIL PRICES ARE CLIMBING, WE'LL SEE THAT DEMAND GROW EVEN MORE.
CLEAN AIR QUALITY MAY INCREASE ETHANOL DEMAND IN OTHER COUNTRIES:
NOVOK SAYS EXPORT GROWTH HAS BEEN FAIRLY SOLID AS NEW MARKETS MAY LOOK TO CLEAN UP AIR QUALITY. "CHINA HAS INCREASED THE AMOUNT OF ETHANOL THEY'RE IMPORTING. THERE'S SIGNIFICANT GROWTH THERE. CHIN AIS A LARGE MARKET AND CERTAINLY A LARGE FUTURE MARKET OPPORTUNITY,"
ETHANOL EXPORTS MAY BE KEY TO DEMAND:
THAT'S WHY THE U.S. GRAINS COUNCIL SAYS THEY'RE WORKING ON FINDING AND FILLING THAT DEMAND. "DEMAND IS OUT THERE. STRONG PLACES LIKE JAPAN, INDIA, MEXICO, INDIA. THAT INCLUDES SECONDARY MARKETS LIKE PHILLIPPINES AND PERU EVEN THE MIDDLE EAST THERE'S DEMAND," SLEIGHT SAYS AS FARMERS SEARCH FOR NEW DRIVERS OF DEMAND.. EXPORTS OF ETHANOL MIGHT JUST BE THE ANSWER. REPORTING FOR AGDAY, I'M BETSY JIBBEN.
MERGER NEWS:
THANKS BETSY. WE CONTINUE TO GET MERGER NEWS FROM THE PROPOSED DUPONT-DOW DEAL. DOW JONES NEWSWIRE IS REPORTING BASF IS WORKING WITH ADVISERS AND FINANCING BANKS TO LOOK AT THE POSSIBILITY OF MAKING A COUNTER BID FOR THE DUPONT COMPANY. IN DECEMBER DUPONT -WHICH OWNS PIONEER -ANNOUNCED ITS INTENTIONS TO JOIN FORCES WITH DOW CHEMICAL.
B-A-S-F COURTS DUPONT:
EVEN BEFORE THE DOW-DUPONT ANNOUNCEMENT, BASF WAS EXPLORING WAYS TO PURCHASE DUPONT. B-A-S-F CURRENTLY HAS NO SEED SECTOR. IF DUPONT BREAKS-OFF ITS DEAL WITH DOW, IT WOULD HAVE TO PAY DOW NEARLY TWO BILLION DOLLARS AS A TERMINATION FEE.
DELWARE PROPOSES DOWDUPONT SETUP IN THE STATE:
MEANWHILE, A DELAWARE STATE PANEL IS MEETING TO DECIDE ON WHETHER TO PROVIDE MILLIONS IN TAX INCENTIVES TO DUPONT. THE COMPANY ASKING FOR MORE THAN 9 AND A HALF MILLION DOLLARS OVER FIVE YEARS FROM THE STATE'S STRATEGIC FUND. THE STATE OFFERED THE MONEY AS INCENTIVE TO GET THE NEW DOW DUPONT AG-FOCUSED BUSINESS TO PUT ITS HEADQUARTERS IN DELAWARE.
DOW PRESIDENT EXPECTS INDUSTRY REVENUE TO CONTRACT:
SPEAKING OF DOW CHEMICAL--PRESIDENT TIM HASSINGER TELLING THE GLOBAL AGRICULTURE CONFERENCE--COMMODITY PRICES AND CURRENCY FLUCTUATIONS WILL CONTINUE TO HURT SALES TO FARMERS THIS YEAR. ACCORDING TO BLOOMBERG --DOW'S PRESIDENT SAYS INDUSTRY REVENUE MAY CONTRACT THREE TO FIVE PERCENT IN 2016.
FUTURE OF GLYPHOSATE:
SPEAKING OF SALES, THE E-U IS GATHERING EXPERTS FROM 28 MEMBER STATES TO HOLD A CLOSED DOOR MEETING ON THE FUTURE OF GLYPHOSATE. THE EUROPEAN COMMISSION IS CONSIDERING A PROPOSAL TO EXTEND THE WEED KILLER'S AUTHORIZATION FOR THE NEXT 15 YEARS. EARLY INDICATIONS ARE THAT IT WILL BE APPROVED.
CROP COMMENTS:
I'M BACK TODAY BUT MIKE HOFFMAN ISN'T--IN FOR HIM, METEOROLOGIST CINDI CLAWSON. SHE JOINS US WITH THIS MORNING'S CROP COMMENTS. CINDI.
GOOD MORNING, CLINTON. LET'S START OFF IN NORTHEAST NEBRASKA. MATT NELSON SAYS THIS IS HIS FIRST CALF OF THE SEASON. WEATHER HAS BEEN WARM IN HIS AREA WITH TEMPERATURES CLOSE TO RECORD HIGHS. SPRING MAY BE HERE!
TEASE:
WHEN WE COME BACK....JUST BECAUSE PRICES ARE LOW--DOESN'T MEAN THEY CAN'T GO LOWER. A WARNING AND SOME ACTIONABLE ADVICE FROM TOP THIRDS' MARK GOLD. AND WE'LL SEE WHAT SORT OF TRAINING TAKES PLACE IN TEXAS TO HELP EDUCATE THE THOUSANDS OF VISITORS TO A POPULAR LIVESTOCK SHOW ABOUT MODERN AGRICULTURE. 
CME:
IN AGRIBUSINESS--LETS SEE HOW MARKETS MOVED TO START THE WEEK. FOR THAT, WE HEAD TO THE FLOOR OF THE CME IN CHICAGO. MONDAY IN THE GRAIN MARKET HAS ALL THE GRAINS UP HIGHER. THAT'S CORN WHEAT AND SOYBEANS. IT'S REALLY LED BY THE SOYBEANS AND THE WHEAT. IT CERTAINLY LOOKS AS IF THE FUND MANAGERS ARE A LITTLE BIT VULNERABLE WITH ALL OF THEIR SHORTS IN THE MARKETS AND THE SHORT COVERING IS GIVING SOME RISE TO THE MARKET. EVEN THOUGH FUNDAMENTALLY IT DOESN'T LOOK THAT GOOD, THERE HAS BEEN ACREAGE NUMBERS THAT CAME OUT. I'M VIRGINIA MCGAFFEY.
AGRIBUSINESS:
MARK GOLD TOP THIRD OUR GUEST. MARK, LET'S TALK...THE MOOD AT COMMODITY CLASSIC IS A LITTLE BIT DIFFERENT THAN IT HAS BEEN IN THE RECENT YEARS AND WE KNOW THAT ALL OVER FARM COUNTRY. WHAT IS ON TOP OF MIND FOR YOU ON WHAT PEOPLE REALLY NEED TO BE CONCERNED ABOUT? >WELL, I THINK THE CONCERN IS I KNOW THE AMERICAN FARMER HAS A LOT OF GRAIN IN THE BIN AND THE POTENTIAL TO GROW A LOT OF GRAIN THIS YEAR. ALL RIGHT. THANKS, MARK. WE WILL BE BACK WITH MORE AGDAY IN JUST A MINUTE.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY. CINDI CLAWSON FILLING IN FOR MIKE HOFFMAN THIS WEEK. CINDI, IT LOOKS LIKE WE'RE GOING TO START OFF WITH RAIN SHOWERS BUILDING THIS WEEK. YES, IT'S GOING TO BE A FAIRLY WET WEEK AS WE HEAD THROUGH THE NATION'S MIDSECTION, ESPECIALLY IF YOU'RE OVER TOWARDS THE GULF COAST STATES.LET'S TAKE A LOOK AT THE MAPS.
REGIONAL WEATHER:
THAT'S A LOOK AT YOUR NATIONAL FORECAST. NOW LET'S CHECK ON SOME LOCAL CITIES. KENO, OREGON, RAIN AND SNOW SHOWERS EXPECTED FOR YOU TODAY WITH A HIGH OF 42 DEGREES. PLEASANTON, TEXAS,SHOWERS AND THUNDERSTORMS ESPECIALLY LATER ON WITH A HIGH OF 85 DEGREES. WITH WILLOW STREET, PENNSYLVANIA, MOSTLY SUNNY AND WARM WITH A HIGH OF 71.
TEASE:
WHEN WE COME BACK....NEW CENSUS NUMBERS ON IMMIGRATION. PLUS, WHEN THOUSANDS OF VISITORS "COME A' CALLIN", IT'S A GREAT OPPORTUNITY TO TALK ABOUT AG. WE'LL SHOW YOU HOW IT'S DONE IN TEXAS...LATER ON IN THE COUNTRY.
FIGHTING ANIMAL CRUELTY WITH TRAINING FROM HSUS:
THE HUMAN SOCIETY OF THE UNITED STATES IS TRAINING MORE THAN 700 LAW ENFORCEMENT PERSONNEL IN OKLAHOMA ON HOW TO INVESTIGATE AND HANDLE ANIMAL CRUELTY CASES.
ACCORDING TO MEATINGPLACE--HSUS HAS OFFERED THE FREE TRAINING FORYEARS. ASKED IF THE TRAINING EXTENDS TO FARM ANIMALS, AN HSUS REPRESENTATIVE SAID THE TRAINING "TEACHES OFFICERS HOW TO INVESTIGATE ANIMAL CRIMES FROM NEGLECT, ANIMAL FIGHTING, PUPPY MILLS, AND OTHER TYPES OF ABUSE,"
MEETING ON IMMIGRATION TO TAKE PLACE IN ANIMAS:
A NEW LOOK AT U.S. CENSUS DATA BY THE CENTER FOR IMMIGRATION STUDIES FOUND THAT THERE ARE CURRENTLY A RECORD 61 MILLION IMMIGRANTS IN THE U.S. AND ABOUT THREE FOURTH OF THOSE ARE LEGAL IMMIGRANTS--THE REMAINING NEARLY 16 MILLION ARE BELIEVED TO BE UNDOCUMENTED. A STEADY OF STREAM OF IMMIGRANTS IN THE SOUTHWEST IS RAISING CONCERNS FOR RANCHERS THERE --MANY ARE CONCERNED ABOUT SAFETY. THE CATTLE GROWERS ASSOCIATIONS IN BOTH NEW MEXICO AND ARIZONA ARE HOSTING A MEETING THIS WEEK IN THE TOWN OF ANIMAS TO TALK WITH ELECTED OFFICIALS – INCLUDING PLEAS FOR MORE BOOTS ON THE GROUND.
MEAT EXPORTS UP, VALUE DOWN:
IN THIS NEW YEAR, RED MEAT EXPORTS ARE OFF TO A GOOD START -AT LEAST IN HOW MUCH WE'RE SHIPPING. THE U-S MEAT EXPORT FEDERATION SAYS JANUARY EXPORTS OF U-S BEEF AND PORK ARE MODESTLY HIGHER IN VOLUME THAN A YEAR AGO. BUT EXPORT VALUE SLIPPED FOR BOTH PRODUCTS. THE AMOUNT OF PRODUCT IN BEEF ROSE THREE PERCENT. BUT IT'S DOWN 13PERCENT IN VALUE.
SOME IN OREGON WANT TO BAN AERIAL APPLICATION OF HERBICIDES:
 EXECUTIVES AT OREGON-BASED HERB PROCESSOR WANTS THE STATE TO BAN AERIAL APPLICATION OF HERBICIDES. MOUNTAIN ROSE HERBS" TURNS ORGANICALLY GROWN HERBS AND SPICES INTO TEAS AND HOLISTIC MEDICINES.
TEASE:
NEXT, WE VISIT ONE OF THE BIGGEST LIVESTOCK SHOWS IN THE COUNTRY -AND SEE HOW TEXAS FARMERS AND RANCHERS SHARE THEIR KNOWLEDGE WITH THOSE WHO DON'T KNOW MUCH ABOUT MODERN AGRICULTURE.
IN THE COUNTRY:
THE 2016 HOUSTON LIVESTOCK SHOW AND RODEO IS NOW UNDERWAY. DURING IT'S THREE WEEK RUN, MORE THAN TWO MILLION PEOPLE PASS THROUGH THE GATES. ON ANY GIVEN DAY, 75-THOUSAND PEOPLE WILL TAKE-IN THE EXHIBITS AND COMPETITIONS. AND THAT'S A BIG OPPORTUNITY TO CONNECT WITH PEOPLE WHO DON'T HAVE A LOT OF KNOWLEDGE OF HOW MODERN FARMS AND RANCHES WORK. IN THIS REPORT FROM THE TEXAS FARM BUREAU, CURT LANK'-UH-STIR SHOWS US HOW TEXAS PRODUCERS SHARE THEIR KNOWLEDGE WITH VISITORS.
CLOSING:
THE HOUSTON LIVESTOCK SHOW AND RODEO RUNS THROUGH MARCH 20TH. THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.FOR BETSY JIBBEN AND CINDI CLAWSON, I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
I'M CLINTON GRIFFITHS. WEDNESDAY ON AGDAY. WITH GRAIN PRICES WHERE THEY ARE RIGHT NOW, WHAT SHOULD FARMERS BE DOING WITH THEIR MARKETING PLAN IN ADVANCE OF SPRING PLANTING? ORIGINAL ANALYSIS AND GRAIN MARKET ADVICE - WATCH US WEEKDAYS ON AGDAY.
 

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