AgDay Daily Recap -May 19, 2016

May 19, 2016 02:57 AM
 

TODAY ON AGDAY
MAY 19, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -MORE MERGER TALK FROM THE AG INDUSTRY-THIS TIME A MAJOR GRAIN HANDLER IS THE TARGET. THE EPA RELEASES NEW RENEWABLE FUEL MANDATES. IN AGRIBUSINESS....A LOOK AT THE INPUTS MARKET. AND FERTILIZER PRICES HAVE GIVEN SOME GUYS SOME REAL OPPORTUNITIES. CATTLE FEEDERS SEE BALANCES SHEETS TURN BLACK. AND SHARING A MEAL CAN BE AN EFFECTIVE WAY TO SHARE ABOUT LIFE ON THE FARM.
ANDERSONS REJECTS BID:
GOOD MORNING I'M CLINTON GRIFFITHS. A DOWN ECONOMY HAS PROVEN RIPE FOR CONSOLIDATION IN THE AGRICULTURAL INDUSTRY...AS ANOTHER MAJOR GRAIN BUYER AND HANDLER FACES DOWN A TAKEOVER BID FROM THE OUTSIDE. INDEPENDENT GRAIN TRADER THE ANDERSONS' ANNOUNCING IT'S REJECTING A ONE BILLION DOLLAR OFFER FROM AN INVESTMENT COMPANY CALLED H-C-2. IN A STATEMENT THE ANDERSONS' BOARD OF DIRECTORS SAYS THEY'VE ACTUALLY REJECTED TWO OFFERS...ONE IN JANUARY AND ONE IN MARCH. ANDERSONS IS ONE OF THE FEW REMAINING INDEPENDENT GRAIN TRADERS LEFT IN NORTH AMERICA. THE CHAIRMAN, MIKE ANDERSON SAYS HC2'S PROPOSALS IGNORES THEIR VALUE AND PROSPECTS AS A STANDALONE ENTITY ADDING IT'S JUST AN OPPORTUNISTIC ATTEMPT TO BUY THE COMPANY AT A LOW POINT IN THE INDUSTRY CYCLE.
MEGA MERGERS RECENT TREND:
THIS IS JUST ANOTHER IN A LINE OF MEGA MERGERS AND CORPORATE SALES RECENTLY. JUST LAST WEEK, NEW REPORTS INDICATED BOTH BAYER AND BASF WERE LOOKING AT THE POSSIBILITY OF BUYING MONSANTO. DOW DUPONT ALSO ANNOUCING PLANS TO JOIN FORCES EARLIER THIS YEAR. JOHN DEERE ACQUIRED PRECISION PLANTING. AND CHEM CHINA IS PULLING TOGETHER FUNDING AFTER AN AGREEMENT TO PURCHASE SYNGENTA. CREIGHTON UNIVERSITY IS OUT WITH ITS 'MID-AMERICA BUSINESS CONDITIONS INDEX' FOR APRIL. THE NEWS IS NOT PROMISING IN THE NATION'S HEARTLAND. THIS REPORT REPRESENTS A NINE-STATE REGION STRETCHING FROM ARKANSAS TO NORTH DAKOTA. STUDY AUTHOR DR. ERNIE GOSS SAYS THE REGION'S OVERALL INDEX DECLINED, BUT REMAINED ABOVE THE GROWTH NEUTRAL POINT OF FIFTY.
MANUFACTURING  JOBS SUFFER LOSSES THE EMPLOYMENT GAUGE SANK BELOW GROWTH NEUTRAL. OVER THE PAST YEAR, THE REGION'S MANUFACTURING SECTOR LOST ABOUT TWO PERCENT OF JOBS. EVERY STATE IN THE REGION, EXCEPT FOR MINNESOTA, LOST MANUFACTURING JOBS OVER THE PAST YEAR. NORTH DAKOTA AND OKLAHOMA ACCRUING THE LARGEST PERCENTAGE LOSSES DUE TO EASING DEMAND IN THE ENERGY SECTOR. GRAIN FARMERS THROUGHOUT THE MIDWEST ARE SUFFERING THROUGH A THIRD STRAIGHT YEAR OF LOSSES. GRAIN PRICES FALL SHORT OF STABILIZING NET INCOMES. A UNIVERSITY OF ILLINOIS STUDY SUGGESTS THE CASH PRICE OF CORN NEEDS TO BE FOUR DOLLARS-20 CENTS A BUSHEL, SOYBEANS TEN-20 A BUSHEL TO BE 'STABLE'. FOR THIS STUDY, RESEARCHERS BASED IT ON 60-THOUSAND DOLLARS 'ON' AND 'OFF' FARM INCOME....ON A 15-HUNDRED ACRE FARM.
 E-P-A RELEASES AMOUNT OF BIOFUEL TO BE BLENDED IN NATION’S GASOLINE:
E-P-A RELEASING DETAILS ON HOW MANY GALLONS OF BIOFUEL MUST BE BLENDED INTO THE NATION'S GASOLINE AND DIESEL SUPPLIES IN 2017. THE AGENCY PROPOSES A TOTAL RENEWABLE FUEL OF VOLUME OF 18-POINT EIGHT BILLION GALLONS. THAT'S ABOUT 700 MILLION GALLONS MORE THIS YEAR. MOST OF THAT FUEL -14-POINT-EIGHT BILLION GALLONS -IS FROM CORN-BASED ETHANOL. WHILE THAT AMOUNT IS HIGHER THAN PREVIOUS YEARS, IT'S STILL BELOW INTENDED TARGETS SET BY CONGRESS. AN UPDATE TO A STORY WE REPORTED YESTERDAY.
SOUTH CAROLINA HOUSE SHOOTS DOWN GOVERNOR’S VETO AGAINST FLOOD RECOVERY PACKAGE:
THE SOUTH CAROLINA HOUSE VOTING TO OVERRIDE GOVERNOR NIKKI HALEY'S VETO OF A FARMER AID PACKAGE. BY A VOTE OF 112 TO 2 THE HOUSE REBUKING THE GOVERNOR'S WISHES AND PASSING A 40 MILLION DOLLARS IN STATE AID FOR FARMERS IMPACTED BY LAST YEAR'S MASSIVE FLOODING. THE REGION SAW MORE THAN 2 FEET OF RAIN IN THREE DAYS LAST OCTOBER.
CROP COMMENTS:
LET'S TURN TO MIKE HOFFMAN FOR THIS MORNING'S FIRST LOOK AT FARM COUNTRY WEATHER. MIKE. GOOD MORNING CLINTON. AT LEAST FOUR CALIFORNIA COUNTIES ARE SEEKING FEDERAL DISASTER DECLARATIONS DUE TO CROP DAMAGE CAUSED BY SPRING STORMS. GROWERS IN BUTTE, GLENN, SUTTER AND YUBA COUNTIES REPORTED CROP DAMAGE. THOSE COUNTIES ARE IN THE NORTHERN PART OF THE STATE. OTHER COUNTIES ARE STILL ASSESSING DAMAGE TO CHERRY AND PEACH TREES. TO QUALIFY FOR FED DISASTER, AT LEAST 30-PERCENT OF A CROP MUST HAVE BEEN LOST. IN THE KEYSTONE STATE -A CROP REPORTER IN ADAMS COUNTY, PENNSYLVANIA SAYS PRODUCERS ARE GETTING ANXIOUS TO GET THEIR CORN AND SOYBEANS IN THE GROUND AS THE FINAL PLANT DATES ARE APPROACHING AND NOT A LOT OF CORN IN THE GROUND YET IN THAT COUNTY.
TEASE:
WHEN WE COME BACK, WE'LL TAKE A LOOK AT THE INPUTS MARKET AND WHAT TO EXPECT SEASONALLY BETWEEN NOW AND FALL. PLUS -FIND OUT HOW SHARING A MEAL WITH STRANGERS CAN CREATE SOME IMPORTANT RELATIONSHIPS FOR FARMERS. DETAILS AS WE HEAD IN THE COUNTRY TO TEXAS.
FROM THE FLOOR OF THE CME:
IN AGRIBUSINESS STOCKS FIND A FOOTING BUT COMMODITIES ARE MIXED IN WEDNESDAY TRADE. LETS GET THE DETAILS FROM OUR FRIENDS OVER AT THE CME IN CHICAGO. WEDNESDAY'S GRAIN SAW A PRETTY INTERESTING MARKET I HAVE TO SAY THAT I'M REALLY IMPRESSED BY THE STRENGTH THAT WERE SHOWN BY BEANS BUT UP WE HAD A RALLY OVERNIGHT ON A BIG SELL OFF IN THE MORNING AND NOW YOU'RE GETTING BACK HERE UNCHANGED THAT THING IS IS VERY IMPRESSIVE FROM A SOYBEAN POINT OF VIEW I THINK CORN LOOKED GOOD UP OVER FOUR DOLLARS. TO BE A LOT OF THIS MOVEMENT THE LAST COUPLE OF DAYS AND MORE BASED ON THE OUTSIDE ACTIVE IN THE ACTUAL FUNDAMENTALS OF SUPPLY AND DEMAND THROUGH WHAT'S GOING ON IN THE GRAINS HERE. THAT'S THE WAY I SEE IT THIS IS TODD BUBBA HORWITZ COMING TO YOU FROM THE FLOOR OF THE CME IN CHICAGO. 
AGRIBUSINESS:
HERE AT THE AGRIBUSINESS DESK WE HAVE DAVIS MICHAELSEN. HE'S THE EDITOR OF THE INPUTS MONITOR PRO FARMER. LET'S TALK ABOUT MORE ON FERTILIZER PRICES SINCE IT'S THAT TIME OF YEAR WHEN MOST OF THE CORN IS IN AND WE'RE TRYING TO WRAP THINGS UP. ABSOLUTELY WE SEEN CORN PROGRESS COME A LONG ROLE NICELY HERE AND FERTILIZER PRICES HAVE GIVEN SOME GUYS SOME REAL OPPORTUNITIES. THROUGH THE WINTER TIME WE'RE WATCHING REALLY CLOSELY WHAT NITROGEN PRICES WE'RE GOING TO DO BECAUSE THAT'S THE MAIN CONCERN FOR FARMERS. AND THAT DEMAND FOR THAT IS A CERTAINTY YEAR OVER YEAR AND SO SO WE WE MAKE SURE AND KEEP GOOD FOCUS ON THE NITROGEN SIDE, YEAH AND HOW WERE THOSE PRICES AS WE STARTED THE YEAR WHERE ARE WE AT NOW. WELL WE SAW NITROGEN PRICES BOTTOM IN LATE FEBRUARY, EARLY MARCH AND INITIALLY LOOK LIKE THEY'RE REALLY GONNA TAKE OFF ON US. BUT THEY KIND OF LEVELED OFF. AND THEN EVEN THIS WEEK IN OUR FERTILIZER PRICE SURVEY WE NOTICED THAT PRICES HAVE STARTED TO FALL BACK JUST A LITTLE BIT AGAIN.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY WITH METEOROLOGIST MIKE HOFFMAN. WE'RE LOOKING AT THIS STORM SYSTEM OVER TEXAS IT'S PUTDOWN A SIGNIFICANT RAIN AS LOT OF MOISTURE IN IT STILL IS GOING TO PUT OUT A FAIR AMOUNT MORE. I SUPPOSE THE GOOD NEWS IN ALL OF THIS IS THE AREAS HAVE BEEN GETTING THE RAIN START TO DRY OUT. OF COURSE IF YOU LIVE IN TEXAS THAT ISN'T NECESSARILY GOOD NEWS BUT THE REASON THEY SAID THAT IS HIGH PRESSURE'S GOING TO FINALLY DRY OUT SOME AREAS THAT HAVE BEEN GETTING RAIN FOR QUITE SOME TIME.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL FOR SPRINGER NEW MEXICO MILD WITH SHOWER POSSIBLE HIGH OF SIXTY SEVEN DEGREES. WAUSAU, WISCONSIN MOSTLY SUNNY AND DOWNRIGHT GORGEOUS. HIGH AROUND SEVENTY. SALISBURY MARYLAND BECOMING PARTLY SUNNY BUT REMAINING ON THE MILD SIDE HIGH AROUND SIXTY SEVEN DEGREES.
TEASE:
CATTLE FEEDERS FINALLY THE PAGE ON THEIR BALANCE SHEETS. WE'VE GOT THE LATEST PROFIT TRACKER UP NEXT IN OUR DROVERS TV REPORT. PLUS -THIS IS MORE THAN JUST A DINNER BREAK. IT'S AN OPPORTUNITY TO EDUCATE CONSUMERS ABOUT THE ROLE OF AMERICAN FARMERS IN PUTTING FOOD ON THE TABLE.
DROVERS, CATTLE PROFITS NO LONGER SCREAMING RED:
IN NEWS FROM OUR PARTNERS AT DROVERS TV....IT'S TAKEN MORE THAN 18 MONTHS BUT CATTLE FEEDERS FINALLY TURNING BALANCE SHEETS FROM RED TO BLACK. THE STERLING BEEF PROFIT TRACKER SAYS FEEDYARD PROFITS ROSE TO 150 DOLLARS ON EVERY ANIMAL SHIPPED.
AVERAGE PRICE FOR THE WEEK:
CASH PRICES FOR THE WEEK AVERAGING 133 PER HUNDRED WHICH IS MORE THAN 10 DOLLARS ABOVE BREAKEVENS. PACKERS ALSO MAKING MONEY ALTHOUGH A BIT LESS THAN A MONTH AGO. THE GRAIN PRICES ARE A LITTLE BETTER THAN THEY WERE AT THE ENDO F 2014. NOT A LOT. THE BIGGEST THING IS THAT FEEDER CATTLE PRICES HAVE COME DOWN AGAIN THE PRICE OF FEEDER CATTLE REPRESENT 75 TO 76 PERCENT OF THE COST OF THE FEEDING CATTLE 41:06 THOSE BREAKEVENS HAVE COME DOWN AROUND 40 DOLLARS PER HUNDRED WEIGHT. SO WHEN CATTLE WERE LOSING THE MOST THEY WERE BREAKING EVEN AT 156 FOR FED CATTLE AND WE KNOW WE NEVER APPROACHED THOSE LEVELS. > FOR COW CALF PRODUCERS, STERLING MARKETING 2016 AVERAGE PROFIT MARGIN IS NOW 177 DOLLARS PER COW. IN 2014 THEY WERE MORE THAN 500 DOLLARS PER HEAD. SUMMER PASTURE IS ON IT'S WAY TO CATTLEMEN ACROSS THE COUNTRY BUT MANY FORAGE PRODUCERS ARE STRUGGLING THIS SPRING.
ALFALFA TROUBLE IN COLUMBIA:
IN THE NORTHWEST, ALFALFA GROWERS ALONG THE COLUMBIA BASIN SAY WARM WEATHER IS PUSHING THE CROP ALONG TOO FAST. MANY PLANTS ARE MATURING EARLY CAUSING STEMS TO GROW RATHER THAN LEAVES. ADDED TO THE ALREADY LARGE SUPPLIES --WHICH USDA PUTS STOCKS 16 PERCENT HIGHER THAN A YEAR AGO, AND PRICES ARE SLUMPING. USDA SAYS SUPREME ALFALFA IS SELLING FOR 185 PER TON THIS MONTH. BACK ACROSS THE LOWER 48, TALL FESCUE IS A COOL SEASON GRASS THAT'S THE FORAGE BASE FOR GRAZING ANIMALS IN THE SOUTHEAST. AND WHILE IT GROWS WELL, FESCUE HAS A FUNGAL PARTNER, AN ENDOPHYTE THAT HELPS THE PLANT TOLERATE HARSH WEATHER---BUT IT PRODUCES CHEMICALS WHICH CAN BE TOXIC TO LIVESTOCK AND INSECTS AS WELL.
UNIVERSITY OF KENTUCKY RESEARCHING TO FIND WAYS TO MAKE GRASS ADAPT TO CLIMATE CHANGE:
RESEARCH AT THE UNIVERSITY OF KENTUCKY IS LOOKING AT THE POTENTIAL OF A CHANGING CLIMATE AND THE EFFECT THAT MAY HAVE ON THE ENDOPHYTE AND ITS ABILITY TO ADAPT. THE RESEARCHERS SAY KENTUCKY COULD EXPERIENCE INCREASED TEMPERATURES AND RAIN FALL OVER THE NEXT FIFTY YEARS. TO SIMULATE THAT INCREASE, HEAT LAMPS WERE PLACED OVER THE TALL FESCUE PLOTS AND MORE WATER APPLIED. "
RESEARCH HAS CREATED GRASS THAT CAN LIVE WITH OR WITHOUT:
THROUGH RESEARCH AND DEVELOPMENT, THERE ARE NOW NEW VARIETIES OF TALL FESCUE PASTURE GRASS THAT ARE ENDOPHYTE FREE OR ENDOPHYTE FRIENDLY AND ARE RECOMMENDED WHEN PLANTING NEW PASTURES OR RENOVATING OLDER ONES.
TEASE:
NEXT, FIND OUT HOW SHARING A MEAL CAN HELP FARMERS AND CONSUMERS CONNECT AT THE DINNER TABLE.
IN THE COUNTRY:
FARMERS AND RANCHERS ARE TAKING TIME TO CONNECT WITH CONSUMERS AND BUILD RELATIONSHIPS. ORGANIZERS HOPE IT'S A RECIPE FOR SUCCESS. IN THIS REPORT PROVIDED BY THE TEXAS FARM BUREAU. ED WOLFF TALKS ABOUT THE IMPORTANCE OF SHARING A MEAL.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR MIKE HOFFMAN, AND ALL OF US AT AGDAY. I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
I'M CLINTON GRIFFITHS. FRIDAY ON AGDAY - JUST HOW IMPORTANT TO THE U-S AG ECONOMY IS DEMAND FROM ASIA? PROFARMER'S CHIP FLORY WEIGHS IN.  MIKE HOFFMAN LOOKS AHEAD TO THE WEEKEND IN WEATHER.  AND WE HAVE A GREAT AMERICAN BARN. WATCH US WEEKDAYS ON AGDAY.

 

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