AgDay Daily Recap -May 23, 2016

May 23, 2016 02:57 AM
 

TODAY ON AGDAY
MAY 23, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -THE SENATE MOVES AN AG APPROPRIATIONS BILL FORWARD INCLUDING A POTENTIAL FIX FOR FARM PAYMENTS. PLUS, CALIFORNIA RAINS HELP RAMP HYDROELECTRIC POWER BACK UP. IN AGRIBUSINESS...FOCUSING ON WHEAT MARKETS. WHEAT I MEAN HAS BASICALLY BEEN THE BUTT OF ALL JOKES FOR FIVE YEARS. PLUS MACHINERY PETE LOOKS AT 10 TO 15 YEAR OLD TRACTORS WITH LOW HOURS. AND THE FUTURE OF CONSTRUCTION ON MARS MAY NOT RELY ON MAN TO DO THE JOB.
SENATE APPROVES BILLION DOLLAR SPENDING BILL FOR USDA AND FDA:
GOOD MORNING I'M CLINTON GRIFFITHS. THE SENATE APPROPRIATIONS COMMITTEE APPROVING A 21 BILLION DOLLAR SPENDING BILL FOR USDA AND THE FDA FOR 2017. AND IT INCLUDES A FIX TO SOME SAFETY NET PAYEMENTS. INCLUDED IN THE LEGISLATION, AN ALTERNATIVE METHOD FOR USDA TO CALCULATE A FARMER'S SUBSIDY PAYMENT UNDER A-R-C. STARTING WITH A PILOT PROGRAM IT WOULD LET FARMERS IN CERTAIN COUNTIES GET A SUPPLEMENTAL PAYMENTS IF THE NEW CALCULATION WOULD PAY THEM MORE. AS WE RECENTLY REPORTED, REPORTS CONTINUE TO POUR IN OF WIDE COUNTY BY COUNTY DISCREPANCIES IN PAYMENTS UNDER ARC.
ANTIBIOTIC RESISTANCE RESEARCH FUNDED TOO:
 THE AMENDMENT WAS SPONSORED BY SENATOR JOHN HOEVEN OF NORTH DAKOTA. ALSO IN THE APPROPRIATIONS BILL, AN INCREASE IN FUNDING FOR RESEARCH OF ANTIBIOTIC RESISTANCE AT FARMS. IT DOES NOT BLOCK USDA FROM FINALIZING IT'S GIPSA RULES. AND IT REQUIRES GENETICALLY ENGINEERED SALMON BE LABELED.
MILK PRODUCTION HITS 16.8 BILLION POUNDS:
MILK PRODUCERS CONTINUE TO CHURN-OUT MORE MILK. USDA'S MONTHLY REPORT SHOWS TOTAL U-S MILK PRODUCTION HIT 16-POINT-EIGHT BILLION POUNDS. THAT'S BETTER THAN A PERCENT HIGHER THAN A YEAR AGO. PRODUCTION PER COW AVERAGED 19-HUNDRED-48 POUNDS. USDA SAYS THAT'S HIGHEST APRIL PRODUCTION SINCE THE REPORT BEGAN IN 2003. CALIFORNIA SAW A THREE PERCENT DROP IN PRODUCTION, WISCONSIN HAD A NEARLY FIVE PERCENT GAIN. AND NEW YORK BEAT-OUT IDAHO BY A NOSE FOR THIRD PLACE IN OVERALL PRODUCTION.
DAIRY SECTOR GROWS IN SOUTH DAKOTA:
MEANWHILE SOUTH DAKOTA'S DAIRY SECTOR CONTINUES TO GROW. THE DAIRY PRODUCTION REPORT SHOWS AN ELEVEN PERCENT INCREASE OVER 2015....WITH SOUTH DAKOTA FARMERS PRODUCING 210 MILLION POUNDS. THE STATE'S COW HERD HAS JUMPED SIGNIFICANTLY. IT GREW BY 11-THOUSAND HEAD FROM APRIL OF 2015. IT'S NOW 114-THOUSAND STRONG. SOUTH DAKOTA HAS BEEN AGGRESSIVE IN BUILDING ITS DAIRY SECTOR.
DROUGHT MONITOR:
THE LATEST DROUGHT MONITOR SHOWS WIDE-SPREAD ONE-CATEGORY IMPROVEMENT ACROSS NORTHERN CALIFORNIA. THE AG DEPARTMENT SAYS CONDITIONS HAVE STEADILY IMPROVED SINCE THE BEGINNING OF THE WATER "YEAR" WHICH BEGAN OCTOBER FIRST.  IT MAY NOT SOUND LIKE MUCH BUT FIVE PERCENT OF CALIFORNIA IS NOW FREE FROM ANY LEVEL OF DROUGHT.  THAT'S THE LEAST AMOUNT OF DROUGHT IN THE STATE SINCE MARCH 2013. THE CALIFORNIA DEPARTMENT OF WATER RESOURCES SAYS SPRING RAINS AND ABOVE AVERAGE SNOWPACK -COURTESY OF A STRONG EL NINO -HAVE IMPROVED RESERVOIR STORAGE LEVELS. IN MOST CASES THEY ARE NOW ABOVE HISTORICAL AVERAGE, THOSE LAKES ARE LOCATED IN THE NORTHERN PART OF THE STATE, STILL, 42-PERCENT OF THE STATE IS IN EXTREME OR EXCEPTIONAL DROUGHT. AND UNFORTUNATLY THE PRIMARY AG REGIONS OF THE STATE FALL INTO THAT AREA. PRECIPITATION IN SOUTHERN CALIFORNIA HAVE BEEN BELOW NORMAL SINCE
CONSERVATION ORDER LIFTED:
THE BEGINNING OF THE WATER YEAR. AS AGDAY FIRST REPORTED LAST WEEK THE IMPROVING SITUATION PROMPTED THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD TO LIFT LAST YEAR'S STATEWIDE CONSERVATION ORDER. NOW, LOCAL WATER DISTRICTS CAN SET THEIR OWN CONSERVATION TARGETS.
HYDROELECTRIC POWER DROPS WITH LESS WATER:
THE IMPROVING DROUGHT PICTURE IN CALIFORNIA MEANS HYDROPOWER USAGE IS RAMPING-UP... BUT ONLY SLIGHTLY. THE U-S ENERGY INFORMATION ADMINISTRATION SAYS DROUGHT LED TO SIGNIFICANT DECLINES IN HYDROELECTRIC GENERATION THROUGHOUT THE PACIFIC NORTHWEST. THE E-I-A SAYS WATER-POWERED ELECTRICITY DROPPED FROM 177 MILLION MEGAWATT HOURS IN 2011...TO 120 MILLION MEGAWATT HOURS IN 2015. BUT DROUGHT ISN'T THE ONLY REASON FOR THE ECLINE. THE ENERGY ANALYSTS SAY MOST OF THE HYDRO-WATER WAS REPLACED BY NATURAL-GAS FIRED GENERATORS. JUST NINE PERCENT OF CALIFORNIA'S ELECTRICITY NOW COMES FROM HDRYOELECTRIC DAMS.
CROP COMMENTS:
HOW WAS YOUR WEEKEND? DID YOU MAKE ANY PROGRESS IN THE FIELDS, OR ARE YOU ALL IN? HERE'S MIKE HOFFMAN WITH CROP COMMENTS. GOOD MORNING CLINTON. GOOD MORNING CLINTON. WHEN USDA'S CROP PROGRESS REPORT COMES OUT LATER TODAY, WE'LL SEE IF FARMERS IN THE MIDWEST WERE ABLE TO TAKE ADVANTAGE OF THE DECENT WEATHER LAST WEEK. FARMERS IN THE EASTERN CORN BELT HAVE BEEN RUNNING BEHIND THIS SPRING.
TEASE:
WINTER WHEAT HARVEST IS APPROACHING IN THE SOUTHERN PLAINS. SO HOW ARE MARKETS SHAPING-UP? WE'LL FOCUS ON WHEAT COMING UP IN AGRIBUSINESS. AND LATER MACHINERY PETE. A SIXTEEN YEAR OLD TRACTOR THAT SOLD FOR OVER FIFTEEN THOUSAND MORE THAN IT WENT FOR BRAND NEW STICK AROUND FOLKS I'LL TELL YOU ABOUT IT, AND ARE YOU AN EARLY ADOPTER OF TECHNOLOGY ON YOUR FARM? HOW WOULD YOU LIKE TO HIRE ONE OF THESE AS A FIELD-HAND? HUMANOIDS-IN-SPACE...LATER ON AGDAY.
JOHN DEERE SECOND QUARTER EARNINGS DOWN:
JOHN DEERE ROLLING OUT IT'S SECOND QUARTER EARNINGS. IT SHOWS SALES DOWN 9 PERCENT AND EARNINGS WERE OFF 30 PERCENT. LEADERSHIP SAYS THE PERFORMANCE IS REFLECTIVE OF THE CONTINUED DOWNTURN IN THE GLOBAL FARM ECONOMY.
FROM THE FLOOR OF THE CME:
LETS SEE HOW COMMODITIES FARED LAST WEEK FROM THE FLOOR OF THE CME IN CHICAGO. WE'VE HAD VERY STRONG SOYMEAL DEMAND THROUGHOUT THE WEEK CAUSED BY ARGENTINA. THEY'RE NOT ABLE TO GET THEIR CROPS INTO THE PORTS QUICK ENOUGH. SO WHAT'S THAT'S DOING IS BRINGING THE DEMAND UP HERE ON U.S. CROP. THE SPECULATORS AND FUND TRADERS GETTING BACK IN. JUST AS AN EXAMPLE TODAY WE SAW A 24 POINT RANGE ON THE SOYBEANS. AND WE'RE LOOKING FOR THEM TO CONTINUE ON A SLOW RANGE UP. SWITCHING TO CORN RIGHT NOW, WE'VE HAD VERY BEARISH WEATHER REPORTS. EVERYBODY WAS QUITE CONCERNED ABOUT LA NINA AND THE 60 DAY REPORT THAT JUST CAME OUT LAST NIGHT IS STARTING TO EASE SOME OF THAT. AND OF COURSE WITH THE HOLIDAY WEEKEND COMING IN, WE'LL PROBABLY SEE VERY LIGHT VOLUME TRADING. GARY KOZLOWSKI WITH FARR FINANCIAL COMING TO YOU FROM THE CME.
AGRIBUSINESS:
OUR GUEST HERE AT THE AGRIBUINESS DESK TODAY IS KEVIN DULING KD INVESTORS. KEVIN LET'S TALK ABOUT THE WHEAT MARKET. YOU'RE LOCATED IN THE PACIFIC NORTHWEST A LOT OF WHEAT GROWN UP THERE. THE CROP LOOKS PRETTY GOOD. THE BEST IT'S LOOKED IN THREE YEARS OR FOUR YEARS. THE DRY SPOTS HAVE GOTTEN SMALLER STILL A COUPLE TROUBLE SPOTS WHEN AS A WHOLE WE WILL FINALLY BE IN THE AVERAGE BETTOR CATEGORY. WHAT YOU THINK ABOUT THE WHEAT MARKET RIGHT NOW. YOU KNOW CORN AND SOYBEAN HAVE BEEN A PRETTY BRIGHT PRETTY EXTRAORDINARY BUT WHAT ABOUT WHEAT. WHEAT HAS BEEN BEEN BASICALLY THE BUTT OF ALL JOKES FOR FIVE YEARS AND IT'S NOBODY WANTS TO RAISE IT.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY ON THIS MONDAY MORNING. MIKE HOFFMAN HERE  LOOKING AT RAINFALL LAST WEEK WE CAN SEE SOME PLACES GOT AN AWFUL LOT. YEA ESPECIALLY GULFCOAST STATES. AS YOU CAN SEE NOW LATE IN THE WEEK WE DID SEE A LITTLE BIT ACROSS THE MIDDLE OF THE COUNTRY, IN THE MIDDLE MISSISSIPPI VALLEY. BUT ZOOMING IN YOU CAN SEE FROM A WEEK AGO SATURDAY THROUGH THIS PAST FRIDAY EASTERN AND SOUTHEASTERN TEXAS, ALL THE WAY OVER TO FLORIDA SOME AREAS IF YOU LOOK FOR THE PURPLE SPOTS THOSE ARE EIGHT INCHES PLUS ESTIMATED FROM RADAR.
REGIONAL WEATHER:
THAT'S A LOOK CROSS COUNTRY NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. WE HEAD TO LONGVIEW WASHINGTON FIRST OF ALL VARIABLY CLOUDY A COUPLE OF SHOWERS HIGH TEMPERATURE OF SIXTY TWO DEGREES. ABILENE TEXAS WARM AND HUMID A STRONG AFTERNOON THUNDERSTORMS POSSIBLE HIGH OF EIGHTY EIGHT. AND MEMPHIS TENNESSEE PARTLY TO MOSTLY SUNNY, WARM AND RATHER HUMID HIGH OF EIGHTY FOUR.
TEASE:
GREG PETERSON --ALSO KNOWN AS MACHINERY PETE IS HERE NEXT WITH A LOOK AT THE HIGH DEMAND FOR LOW USED HOUR TRACTORS IN THE 10-15 YEAR AGE RANGE. AND LATER THESE ROBOTS MAY PAVE THE WAY FOR HUMAN ADVANCEMENT..BUT NOT HERE ON EARTH...THESE ARE BEING BUILT FOR THE RED PLANET OF MARS.
MACHINERY PETE:
WHEN IT COMES TO CLASSIC CARS, COLLECTORS ARE OFTEN WILLING TO PAY MORE THAN THE ORIGINAL LIST PRICE. OF COURSE, DIFFERENT FACTORS HELP SOMEONE DETERMINE THEIR VALUE. THE SAME HOLDS TRUE FOR SOME TRACTORS -AS MACHINERY PETE POINTS OUT. THE DEMAND FOR TEN TO FIFTEEN YEAR OLD TRACTORS WITH SUPER LOW HOURS FOLKS IT'S THROUGH THE ROOF HERE'S AN EXAMPLE JUST LAST WEEK FROM WESTERN SOUTH DAKOTA HERE IS A PICTURE OF THE TWO THOUSAND MODEL DEERE SEVENTY SEVEN TEN WITH ONLY THREE HUNDRED EIGHTY SEVEN HOURS ON IT AND AS LEON FRONT DOZER BLADE NOW THE OWNER PAID EIGHTY SEVEN THOUSAND SIX HUNDRED FOR THIS RIG BACK IN TWO THOUSAND AND HE SOLD IT LAST WEEK WITH THE HELP OF HIS LOCAL DEALER FOR ONE HUNDRED THREE THOUSAND DOLLARS NOW I'M SEEING SIMILAR THINGS ON THE AUCTION MARKET THE LAST COUPLE YEARS AND IF WE JUST STAY WITH THE EXAMPLE OF THE DEERE TEN SERIES HERE'S A PICTURE OF AN 0'THREE SEVENTY EIGHT TEN WITH EIGHT HUNDRED NINE HOURS ON IT SOLD ON A OLD RETIREMENT AUCTION IN NORTHWEST WISCONSIN.
TEASE:
ALRIGHT WHEN WE COME BACK, THE FUTURE MAY BELONG TO ROBOTS...AND IF NASA HAS THEIR WAY...THAT MAY INCLUDES MARS. DETAILS WHEN WE RETURN.
IN THE COUNTRY:
FROM AUTONOMOUS TRACTORS, TO ROBOTIC MILKERS--TECHNOLOGY IS FINDING IT'S WAY INTO AMERICAN AGRICULTURE. NOW NASA IS HOPING TO TAKE SOME OF THAT TECHNOLOGY OUT OF THIS WORLD. FOUR SISTER ROBOTS COULD BE PIONEERS IN THE COLONIZATION OF MARS, BUT FIRST THE 2-MILLION-DOLLAR ROBOTS ARE FINDING NEW HOMES ON EARTH. THE A-P'S DAVID MARTIN HAS THE STORY..... MEET VAL -NASA'S IRON MAN. STANDING 6 FEET TALL AND WEIGHING IN AT 300
POUNDS – THE SPACE AGENCY HOPES THIS HUMANOID ROBOT CAN LAY THE GROUNDWORK FOR A MISSION ONCE THOUGHT IMPOSSIBLE.
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. TUESDAY ON AGDAY MEANS THE LATEST DAIRY NEWS FROM FARM JOURNAL'S MILK TEAM. AND AS THE MARKET TRANSITIONS FROM THE SPRING RALLY TO SUMMER WHERE WILL GRAIN PRICES GO? AND WE'RE CHECKING CROP CONDITIONS....ALL THAT - TUESDAY ON AGDAY.

 

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