AgDay Daily Recap -May 13, 2016

May 13, 2016 02:57 AM
 

TODAY ON AGDAY
MAY 13, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -THE FEDERAL RESERVE RELEASES A FRESH LOOK AT A STRUGGLING FARM ECONOMY. IS MONSANTO FOR SALE? NEW REPORTS SPECULATE ON POSSIBLE BUYERS. IN THE PROFARMER PROFIT BRIEFING...FOLLOWING UP ON USDA'S LATEST REPORTS. HUGE BULLISH REPORT HERE ATTITUDE CHANGER LIKE YOU MENTIONED NOW ITS CAN WE SUSTAIN THESE PRICE LEVELS. A GREAT AMERICAN BARN WITH OLD WORLD HERITAGE. AND A BOVINE BEAUTY PAGEANT IN INDIA HOPES TO HELP BUILD GENETIC IMPROVEMENTS FOR LOCAL HERDS.
FEDERAL RESERVE BANKS RELEASE QUARTERLY SURVEYS:
GOOD MORNING I'M CLINTON GRIFFITHS. LOW FARM INCOMES, TIGHT CREDIT CONDITIONS, AND SHRIVELING FARMLAND VALUES - THAT'S THE COMMON THEME FOR THE FEDERAL RESERVE BANKS IN THE NATION'S MID-SECTION. CHICAGO, KANSAS CITY AND ST. LOUIS FEDS ALL RELEASING THEIR QUARTERLY SURVEYS ON THE FARM ECONOMY. STARTING IN THE CHICAGO DISTRICT - WHICH COVERS THE PRIMARY CORN GROWING REGION - AGRICULTURAL LAND VALUES FELL 4 PERCENT FROM A YEAR AGO IN THE FIRST QUARTER OF 2016. THE FED SAYS THIS IS THE LARGEST YEAR- OVER-YEAR DECLINE SINCE THE THIRD QUARTER OF 2009. MEANWHILE CASH RENTAL RATES FOR FARMLAND IN THE CHICAGO DISTRICT FELL A SUBSTANTIAL 10 PERCENT FOR 2016 RELATIVE TO 2015. THIS IS THE LARGEST DIP SINCE 1987.
FARMLAND VALUES PLUNGE IN ST. LOUIS DISTRICT:
IN THE ST. LOUIS DISTRICT - COVERING THE SOUTHERN CORN BELT AND MID-SOUTH - BANKERS REPORTED QUALITY FARMLAND VALUES PLUNGED AN AVERAGE SIX-AND-A-HALF PERCENT FROM YEAR-AGO LEVELS. THE ST LOUIS OFFICE SAYS THAT'S THE STEEPEST QUARTERLY DROP IN THE HISTORY OF THE SURVEY. MEANWHILE, RANCHLAND REMAINED STEADY. CASH RENTS FOR QUALITY FARMLAND FELL MORE THAN SEVEN PERCENT. RANCHLAND IS DOWN ABOUT TWO PERCENT FROM A YEAR AGO.
CASH RENTS DROP IN KANSAS CITY DISTRICT:
IN THE KANSAS CITY DISTRICT - CASH RENTS DROPPED TEN PERCENT FROM A YEAR EARLIER. THE FED OFFICE SAYS THE SHARP DROP IS THE LARGEST ANNUAL DECLINE IN RANCHLAND CASH RENTS SINCE THE FALL OF 2009. THE LOSS CORRESPONDS WITH A 30-PERCENT DROP IN FEEDER CATTLE PRICES. FARM AND RANCHLAND VALUES IN THAT DISTRICT ALSO DROPPED BUT NOT AS SEVERLY. THERE IS ONE OUTLIER HOWEVER.
IRRIGATED AND RANCHLAND VALUES SAW DOUBLE DIGIT INCREASE IN MOUNTAIN STATES:
 IRRIGATED AND RANCHLAND VALUES SAW DOUBLE DIGIT INCREASES IN THE MOUNTAIN STATES OF THAT DISTRICT. THERE'S ONE CONSISTENT MESSAGE FROM ALL THREE DISTRICTS - REPAYMENT RATES FOR NON-REAL-ESTATE FARM LOANS ARE MUCH WEAKER THAN A YEAR AGO. AND EXTENSIONS OF THESE LOANS ARE MUCH HIGHER.
EDITOR OF DAIRY HERD MANAGEMENT JIM DICKRELL SAYS FOR THE DAIRY INDUSTRY CREDIT CHALLENGES ARE ON THE HORIZON. WE'RE SEEING A RUNUP IN FEED PRICES NOW AS WELL. AND SO EVENTUALY CASH FLOWS WILL START TO DRY UP AND WE'LL SEE MORE CULLING AND FARMS GOING OUT OF BUSINESS AND WE'RE STARTING TO SEE THAT IN SOME AREAS SUCH AS CALIFORNIA. A MAJORITY OF THE BANKERS WHO RESPONDED EXPECT GOOD QUALITY FARMLAND VALUES TO DECREASE DURING THE SECOND QUARTER OF THIS YEAR.
MONSANTO STOCK JUMPS:
 MONSANTO'S STOCK SEEING A JUMP THURSDAY AMID RUMORS OF A POSSIBLE OR SALE OR MERGER. BOTH BASF AND BAYER BEING TOUTED AS POTENTIAL INTERESTED PARTIES. STREET-INSDER DOT COM REPORTING THAT BASF IS WORKING WITH INVESTMENT BANKS ON A PLAN. WHILE BLOOMBERG REPORTS BAYER AG IS EXPLORING A POTENTIAL BID THEMSELVES. THAT REPORT PUTS MONSANTO'S MARKET VALUE AT 40 BILLION DOLLARS.
JBS GOES TO IRELAND:
ALSO ON THE BUSINESS FRONT, BRAZILIAN BASED MEAT PACKER JBS S-A SAYS IT PLANS TO SPIN OFF IT'S INTERNATIONAL BUSINESSES INTO A NEW COMPANY BASED IN IRELAND AND LISTED ON THE NEW YORK STOCK EXCHANGE.
JBS SUFFERS FOURTH QUARTER LOSSES:
THAT FOLLOWED THE CURRENT COMPANY'S FIRST QUARTER EARNINGS.  IT ANNOUNCED A 795 MILLION DOLLAR NET LOSS IN THE QUARTER. THE WORLD'S LARGEST BEEF PROCESSOR SAYS IT'S BOTTOM LINE FELT THE IMPACTS OF LOSSES IN IT'S HEDGING OR MARKETING AND FALLING REVENUES IN NORTH AMERICA AND AUSTRIALIAN CATTLE BUSINESSES. ON THE FLIP SIDE, JBS USA PORK SAW A NEAR 65 PERCENT INCREASE IN IT'S NET REVENUE IN THE QUARTER.
IOWA SENATOR PROPOSES BILL THAT TO BAN MEATPACKERS FROM OWNING LIVESTOCK:
IN WASHINGTON, IOWA SENATOR CHUCK GRASSLEY PROPOSING TO TAKE ON MEAT PACKERS. A NEW BILL--S 29-11-- WOULD BAN MOST MEATPACKING COMPANIES FROM OWNING THE LIVESTOCK THEY PROCESS. GRASSLEY SAYS HE HOPES THE MOVE WOULD REVERSE THE TREND OF CONSOLIDATION IN THE INDUSTRY....ADDING THAT THE MARKET CONTINUES TO BECOME LESS COMPETITIVE. HIS BILL INCLUDES EXEMPTIONS FOR FARMER COOPERATIVES WHERE MEMBERS OWN, FEED OR CONTROL THE LIVESTOCK, AND MEAT PACKERS THAT ARE TOO SMALL TO BE COVERED BY THE AG DEPARTMENT'S MANDATORY PRICE REPORTING PROGRAM.
PED VIRUS TRACED TO CHINA IMPORTS:
OUR REPORTING PARTNERS AT THE PORK NETWORK SAY NEW RESEARCH IS HELPING TO CLARIFY HOW AND WHERE THE P-E- D-VIRUS MADE ITS WAY TO U.S. HERDS. ACCORDING TO PIPESTONE APPLIED RESEARCH, ITS BEEN ABLE TO TRACE THE INITIAL SOURCE OF PEDV TO INPUTS FROM CHINA. RESEARCHER SAYS THEY'VE BEEN ABLE TO PROVE THE VIRUS LIKELY HITCHED A RIDE ON CARGOS OF IMPORTED INGREDIENTS.
TEXAS EXPLOSION STILL UNDER INVESTIGATION:
FEDERAL AGENTS ARE ADDING FINANCIAL INCENTIVES TO FIND THE PERSON RESPONSIBLE FOR A TEXAS EXPLOSION THAT KILLED 12 FIREFIGHTERS. THE BUREAU OF ALCOHOL, TOBACCO AND FIREARMS IS NOW OFFERING A 50-THOUSAND DOLLAR REWARD TO FIND OUT WHO INTENTIONALLY SET A FIRE AT A FERTILZER WAREHOUSE IN THE TOWN OF WEST, TEXAS THREE YEARS AGO. THAT FIRE LED TO A MASSIVE EXPLOSION THAT KILLED A TOTAL OF 15 PEOPLE, INJURED 300 OTHERS, AND DESTROYED 500 HOMES. THE A-T-F RULED OUT ALL ACCIDENTAL AND NATURAL CAUSES OF THE FIRE. THEY SAY IT WAS INTENTIONALLY SET.
ROUSSEFF FACES TRIAL TO FIGHT SENATE:
BRAZILIAN PRESIDENT DILMA ROUSSEFF VOWING TO FIGHT ON FOLLOWING A SENATE VOTE TO PUT HER ON TRIAL FOR BREAKING BUDGET LAWS. THE ACCUSATIONS PART OF A GROWING CORRUPTION SCANDAL..IN THE COUNTRY MIRED IN POLITICAL TURMOIL AND A RISING RECESSION. THE VOTE FOLLOWING SOME 20 HOURS OF DELIBERATION. IN LIEU OF WHAT COULD BE A SIX MONTH TRIAL, ROUSSEFF WILL BE REPLACED BY VICE PRESIDENT MICHEL TEMER.
CROP COMMENTS:
MIKE HOFFMAN JOINS US WITH TODAY'S CROP COMMENTS, MIKE. GOOD MORNING CLINTON.
THE WEEKLY CROP PROGRESS REPORT FROM MONDAY SHOWS SOME OHIO FARMERS ARE BEHIND IN THEIR PLANTING. CORN PLANTING ONLY INCREASED BY THREE POINTS FROM THE PREVIOUS WEEK.  THAT'S NOT MUCH FOR THIS TIME OF YEAR.BUT ONE FARMER IN MORGAN COUNTY, OHIO IS HAVING SOME SUCCESS. HE SAYS THE CORN HE PLANTED ON APRIL 25TH IS AT THE V-THREE STAGE.  BUT IT NEEDS TO DRY-UP BEFORE HE CAN SPRAY. MORGAN COUNTY IS DOWN IN THE SOUTHEAST CORNER OF THE STATE.
TEASE:
WHEN WE COME BACK THE PROFARMER PROFIT BRIEIFING IS TALKING ABOUT THIS WEEK'S EXPLOSIVE USDA GRAIN REPORT AND HOW IT COULD IMPACT MARKETS IN THE MONTHS AHEAD. WE VISIT A GREAT AMERICAN BARN WHICH SHOWCASES ITS GERMAN HERITAGE. PLUS, IT'S RED-CARPET TREATMENT FOR COWS IN INDIA....AS THE COUNTRY TRIES TO BUILD ITS DOMESTIC HERD. DETAILS WHEN WE HEAD IN THE COUNTRY!
PROFARMER:

IN AGRIBUSINESS IT WAS A MIXED DAY IN MARKETS. LETS SEE WHERE THINGS ENDED UP FROM THE FLOOR OF THE CME.
ALRIGHT, USDA DELIVERED KIND OF A BOMB SHELL IN THE FIRST LOOK OF HTE 2016 17 MARKETING YEAR FOR THE SOYBEANS. AND IT DIDN'T COME ON TEH SUPPLY SIDE. WE GOT THE PLANTED ACREAS NUMBERS THAT WE EXPECTED. IT DIDN'T END WHERE IT DID COME WAS ON TEH DEMAND SIDE. MUCH BIGGER USAGE ESTIMATES THAN WHAT WE ANTICPATED. MOST PEOPLE ANTICIPATED GOING INTO THIS REPRT. THE END RESULT, BRIAN, IS A 305 MILLION BUSHEL CARRYOVER PROJECTIONS FOR USDA AT THE END OF HTE NEXT MARKETING YEAR. GOING INTO THE REPORT, THE SPREAD OF TRADE EXPECTAITONS WAS FROM 290 UP TO 500 MILLION BUSHELS. WHEN YOU GET A SRPEAD THAT WIDE AND YOU COME IN CLOSE TO BOTTOM END OF IT, IT'S GOT TO CHANGE ATTITUDES. IT DOES AND 100 MILLIO BUSHELS LESS THAT AVERAGE GUESS. I MEAN HUGE HUGEH BULLISH REPORT. ATTITUDE CHANGER NOW IT'S CAN WE SUSUTAIN THESE PRICE LEVELS B/C I THINK THE BIGGEST THING AND YOU MENTIONED IT THE INCREASE IN USE THEY HAVE YEAR OVER YEAR HERE 175 MILLION BUSHELS MORE ON THE USAGE SIDE, CAN WE SUSTAIN THAT USAGE PACE WITH THESE PRICES. WITH I THINK USDA WOULD SAY NO, THE PRICE RANGE THAT THEY PUT OUT THERE WAS WHAT 8.35 UP TO 9.85. ALRIGH TFOR BRIAN GRETE AND ALL EDITORS IN CEDAR, FALLS IOWA, I'M CHIP FLORY.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY. MIKE HOFFMAN HERE. MMIKE AS WE KIDN OF WRAP UP THE WEEK, WE'RE SEEING, WHAT ARE THESE FRONTS GOING TO DO AS WE HEAD INTO THE WEEKEND. MORE MOISTURE FOR SOME AREAS. OKAY. CORN BELT JUST CAN'T SEEM TO GET OUT OF THIS IN MANY PLACES AND THAT IS SOME VERY COLD AIR BEHIND THAT SECOND COLD FRONT. IN FACT IT'S SNOWING ALMOST DOWN TO CANADAIAN BORDER BELIVE IT OR NOT. AND AS WE PUT HTE MAPS INTO MOTION, THAT SECOND FRONT WILL MOVE QUICKLY SOUTHEASTWARD TOWARD CHICAGO DOWN INTO KANSAS AND AGAIN VERY COLD AIR FOR THIS TIME OF HTE YEAR BEHIND THAT SECOND FRONT.
REGIONAL WEATHER:
NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST, SPOKANE WASHINGONG MOSTLY SUNNY RATHER WARM HIGH OF 76 DEGREES. WACO TEXAS PARTYLY SUNNY, WARM AND HUMID HIGH UP TO 86. AND FINALLY ROCHESTER NEW YORK, BREEZY AND COOL OCCASIONAL RAIN, HIGH TEMP OF 65.
TEASE:
UP NEXT A GREAT AMERICAN BARN WITH OLD WORLD INFLUENCES.  AND LATER, THESE CATTLE IN INDIA ARE HEADED FOR THE SHOWRING. SEE HOW HERDSMEN ARE SHOWING OFF THEIR BEST GENETICS LATER AS WE WALK IN THE COUNTRY.
GREAT AMERICAN BARNS:
LIKE MANY BARNS IN THIS COUNTRY, THE STYLE IS BASED ON CONCEPTS BROUGHT OVER TO THE "NEW COUNTRY". AL PELL HAS DETAILS IN TODAY'S GREAT AMERICAN BARN.  TODAY'S GREAT AMERICAN BARN SHOWCASES A PENNSYLVANIA DUTCH-STYLE BARN IN NORTHERN INDIANA. THE "SCHWENK" BARN IS LOCATED IN ROCHESTER INDIANA. BUILT IN 1871 THIS STYLE WAS BROUGHT TO THE U-S COUNTRY BY GERMAN IMMIGRANTS. THE BARN IS 82'-BY-40' WITH A LEAN-TO HOG SHED ADDED ON THE NORTH END. HAND-HEWN OAK BEAMS ARE PINNED TOGETHER, AND SOME FLOOR BOARDS ARE 30-INCHES WIDE.
TEASE:
NEXT WE HEAD TO THE SHOWRING. . . IN INDIA!
BOVINE BEAUTY PAGENT:
THE SHOW-RING IN INDIA SURE LOOKS A LOT DIFFERENT THAN WHAT I'M USED TO HERE IN THE U-S. HUNDREDS OF COWS AND BULLS WALKED THE RAMP IN A NORTH INDIAN TOWN IN A BOVINE BEAUTY PAGEANT. THE CATTLE DISPLAYED THEIR INDIVIDUALITY ON THE RAMP.  SOME SASHAYED WITH CASUAL GRACE, WHILE OTHERS DUG IN THEIR HOOVES AND HAD TO BE PULLED AND PRODDED BY THEIR OWNERS TO WALK FOR THE JUDGES. ONLY INDIGENOUS BREEDS WERE ALLOWED TO TAKE PART BECAUSE THE GOVERNMENT IS TRYING TO POPULARIZE LOCAL BREEDS.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.
PROMO:
I'M CLINTON GRIFFITHS. MONDAY ON AGDAY - MACHINERY PETE WILL OFFER HIS UNIQUE INSIGHT INTO THE USED EQUIPMENT MARKET. PLUS, HOW MUCH WOULD IT COST THE NATION'S ECONOMY IF WEEDS WENT UN-CHECKED IN YOUR FIELDS? THE TALLY MAY SURPRISE YOU. WATCH US WEEKDAYS HERE ON AGDAY.

 

 

 

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