AgDay Daily Recap -May 31, 2016

May 31, 2016 02:57 AM
 

TODAY ON AGDAY
MAY 31, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY - THE FIGHT OVER FOOD LABELING CONTINUES IN WASHINGTON--AS THE SECRETARY OF AG TAKES SIDES.  IN AGRIBUSINESS...A LOOK AT ETHANOL MARKETS FROM WHERE ELSE--THE INDY 500.BUT ETHANOL DEMAND HAS BEEN THE SHINNING SPOT IN THE ON THE CORN BALANCE SHEET AS OF LATE LOW PRICES AND HIGH PRODUCTION-- IS FORCING SOME NORTHEAST DAIRIES TO DUMP MILK. <"IT'S NOT TERRIBLE BUT THERE'S JUST WAY MORE MILK  THAN WE CAN HANDLE,">ITS OUR WEEKLY MILK REPORT. AND ROBOTICS MAKE PLENTY OF DOLLARS AND SENSE FOR SMALL MISSOURI MILKER.
GMO LABELING BATTLE CONTINUES, AG SECRETARY HOPING FOR MANDATORY BUT FLEXIBLE LAW:
GOOD MORNING I'M CLINTON GRIFFITHS.  IT'S JUST ONE MONTH UNTIL VERMONT'S FIRST IN THE NATION'S GMO LABELING LAW KICKS IN...AND WASHINGTON CONTINUES TO DEBATE THE BEST APPROACH TO A NATIONAL STANDARD. WHILE CONGRESS IS YET TO FIND A WORKABLE COMPROMISE, AG SECRETARY TOM VILSACK IS CALLING FOR A NATIONAL MANDATORY LABELING SYSTEM. HE SAYS QUOTE, "IF CONGRESS DOES ABSOLUTELY NOTHING WE HAVE IN ESSENCE, A DE FACTO LABELING SYSTEM IN THE COUNTY." VILSACK CITING RECENT ANNOUNCMENTS FROM MAJOR FOOD COMPANIES LIKE CAMPBELLS AND KELLOGG'S TO VOLUNTARILY START LABELING THEIR PRODUCTS. VILSACK IS CALLING FOR A MANDATORY BUT FLEXIBLE LABELING SYSTEM ADDING THAT A PATCHWORK OF STATE LAWS LEAVES TOO MUCH VARIABILITY. THE GROCERY MANUFACTURERS ASSOCIATION AGREES BUT IS CALLING FOR A VOLUNTARY SYSTEM THAT DOESN'T SINGLE OUT JUST ONE ATTRIBUTE OF FOOD.

USDA TO RELEASE MAY CROP PROGRESS:
USDA WILL RELEASE IT'S LAST CROP PROGRESS OF MAY  LATER TODAY. IT'S A DAY LATE DUE TO THE MEMORIAL HOLIDAY. FARMERS IN CENTRAL INDIANA HAD SOME SOLID DAYS TO PLANT AFTER SITTING ON THE SIDELINES FOR THE MAJORITY OF MAY. MOTHER NATURE KEPT FARMERS OUT OF THE FIELD FOR SEVERAL WEEKS, BUT ONCE THE WINDOW OPENED TO PLANT, THEY COVERED A LOT OF GROUND IN ONLY A FEW DAYS. THE RECENT PROGRESS IS A STARK DIFFERENCE FROM LAST WEEK'S USDA REPORT SHOWING INDIANA FARMERS WERE 15 POINTS BHEIND IN PLANTING CORN, AND TRAILING THE AVERAGE SOYBEAN PLANTING PACE BY ALMOST 20 POINTS.
STUDY FINDS THAT NITRATE IN WATER IS NOT FROM FERTILIZING FIELDS IN IOWA:
A NEW STUDY OUT OF UNIVERSITY OF IOWA SAYS NUTRIENT RUNOFF FROM CORN FIELDS ISN'T CAUSING INCREASED NITRATE LEVELS IN IOWA WATERS. RESEARCHERS EVALUATING WATER MONITORING RESULTS FROM MORE THAN 7 THOUSAND WATER SAMPLES COLLECTED BETWEEN 1999 AND 2014. THE TEAM COMPARED THOSE TO FERTILIZATION DATA FOR 700 FIELDS. THE STUDY CONCLUDES THAT WHILE FERTILIZER APPLICATION INCREASED 24 PERCENT IN THE RACOON RIVER WATERSHED, RIVER NITRATE LEVELS DID NOT INCREASE, AND EVEN DECREASED AT MOST WATERSHED LOCATIONS.
AGRONOMICS SEEKS TO IMPROVE GRAIN PRODUCTION:
IMPROVED AGRONOMICS HELPING TO DRIVE GLOBAL GRAIN PRODUCTION. THE INTERNATIONAL GRAINS COUNCIL SAYS IT EXPECTS HARVEST TO BE THE SECOND HIGHEST ON RECORD THIS YEAR. IT'S CALLING FOR 9 MILLION METRIC TONS OF GRAINS IN THE 2016-17 SEASON HELPING TO DRIVE STOCKS EVEN HIGHER. THAT GLUT OF GRAIN ALSO EXPECTED TO WEIGH ON PRICES THROUGH THE NEXT YEAR--ACCORDING TO THE COUNCIL REPORT.
CHINA STARTS TO SELL FROM MASSIVE GRAIN RESERVE:
SPEAKING OF GRAIN STOCKS, CHINA IS STARTING THE PROCESS OF SELLING IT'S MASSIVE PILES OF GRAIN. THE GRAINS RESERVE BODY AUCTIONING 2 MILLION TONS OF OLD CORN AND 200-THOUSAND TONES OF RICE LATE LAST WEEK. OFFICIALS ARE TRYING TO REDUCE AN OVERSUPPLY AND MAKE ROOM FOR NEW GRAIN BEFORE HARVEST BEGINS. CHINA ANNOUNCED EARLIER THIS YEAR, IT PLANS TO REVAMP ITS PRICING AND SUPPORT POLICIES. USDA SAYS CHINA COULD SEE LOSSES OF MORE THAN 10 BILLION DOLLARS--ON CORN ALONE--SINCE MUCH OF IT WAS BOUGHT WHEN PRICES WERE HIGHER AND THE QUALITY CONTINUES TO DETERIORATE.
SOYBEAN MEAL DRIVEN BY WEATHER CHALLENGES IN SOUTH AMERICA:
GLOBALLY THERE MAY BE MORE GRAIN IN THE WORKS, BUT RECENT WEATHER CHALLENGES IN SOUTH AMERICA CONTINUES TO DRIVE THE SOYBEAN MEAL MARKET. PRICES FOR CRUSHED SOYBEANS ARE UP 56 PERCENT THIS YEAR. THE SURGE A RESULT OF FLOODING IN ARGENTINA AND REDUCED EXPORTS FROM THE WORLD'S LARGEST MEAL SHIPPER. THAT HAS SOME LIVESTOCK FEEDERS SWITCHING FROM MEAL TO CORN --HELPING DRIVE CORN DEMAND. DDGS ARE ALSO GETTING IN ON THE ACTION AS MEAL PRICES RISE.
HURRICANE SEASON BEGINS:
JUNE FIRST MARKS THE BEGINNING OF THE 2016 HURRICANE SEASON. AND THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION IS PREDICTING A NEAR AVERAGE YEAR. LAST YEAR WAS BELOW AVERAGE WITH JUST 11 NAMED STORMS AND ONLY 2 HURRICANES. THE LAST MAJOR STRIKE TO THE U.S. MAINLAND WAS BACK IN 2005 WHEN HURRICANE WILMA RIPPED ACROSS FLORIDA. NOAA OFFICIALS ARE CALLING FOR 10 TO 16 NAMED STORMS WITH 4 TO 8 HAVING THE POTENTIAL TO BECOME HURRICANES.
CROP COMMENTS:
CINDI CLAWSON IS IN FOR MIKE HOFFMAN TO START THE WEEK. SHE HAS THIS MORNING'S CROP COMMENTS. THANKS, CLINTON. IT WAS A WET ONE FOR MANY FARMERS ACROSS THE U-S LAST WEEK.
OKLAHOMA WHEAT AND CANOLA FARMERS ARE WAITING FOR FIELDS TO DRY OUT ENOUGH TO HARVEST AFTER ALL THE RECENT RAIN. STORMS MID-WEEK LAST WEEK HIT SEVERAL NORTH CENTRAL OKLAHOMA COUNTIES, EVEN A TORNADO KNOCKING OUT POWER IN CARVER COUNTY. BUT HOPEFULLY THE 90 DEGREE TEMPERATURES WILL HELP FIELDS DRY OUT QUICKLY.

TEASE:
WHEN WE COME BACK WE'LL CHECK THE PULSE OF THE ETHANOL MARKET...AND WHAT IT MEANS FOR DEMAND IN 2016. AND LATER, WE'RE OFF TO THIS 60 HEAD DAIRY IN MISSOURI WHERE THE OWNERS HAVE A NEW HIRED HAND--A ROBOT IS DOING THE WORK EVEN WHEN THEY'RE NOT AROUND.
FROM THE FLOOR OF THE CME:
SOYBEANS WE DID SEE A CHOPPY RANGE TODAY. A LOT OF TRADERS HERE ON THE FLOOR TALKING THAT THE SHORT TERM PEAK IS IN PLACE. ALTHOUGH AS WE'RE CLOSING SHOP HERE TODAY, WE'RE SEEING PRICES ON A SLOW INCREASE BACK UP ON A JULY CONTRACT. THERE'S NO NEW NEWS FROM ARGENTINA AT ALL TO CHANGE WHAT'S GOING ON IN THIS MARKET. A LOT OF GUYS ARE SAYING IS IT OVER BOUGHT? IS THERE PROFIT TAKING GOING ON? ANOTHER THING TO LOOK AT TOO WITH THE SOYBEANS IS JAPAN IS SLOWING DOWN ON THEIR IMPORTS OF THE U.S. CROP. SWITCH OVER TO THE CORN REAL QUICK. OK, THERE'S BEEN A JUMP IN DEMAND. ONE REASON FOR THAT IS BRAZIL IS COMPLETELY OUT OF CORN TO SELL RIGHT NOW. THAT'S HELPING THE CORN PRICES. WE'RE SEEING A BREAK ABOVE THE 4.10, 4.11 RANGE. THE MID DAY SESSION IS HOLDING ABOVE THERE. THE DEMAND HAS BEEN STRONGER ON IT.  WE'RE LOOKING FOR PRICES TO STEADILY START CLIMBING UP IN THE CATTLE. THIS IS GARY KOZLOWSKI WITH FARR FINANCIAL.
AGRIBUSINESS:
IN AGRIBUSINESS LETS SEE HOW MARKETS FINISHED LAST WEEK SO WE KNOW WERE THINGS WILL START HERE ON THE LAST DAY OF MAY. PLENTY OF ETHANOL WAS BURNED AT THE INDIANAPOLIS MOTOR SPEEDWAY OVER THE WEEKEND. OUR OWN TYNE MORGAN IS AT THE VENUE THIS MORNING WITH A LITTLE DEEPER DIVE INTO WHERE ETHANOL MARKETS STAND IN 2016. ALL RIGHT, HERE NOW WITH TED SIEFIRED OF ZANER AG. WE ARE HERE AT THE INDIANAPOLIS 500 SPEEDWAY. ETHANOL IS THE PRIME SPOTLIGHT LAST WEEKEND. RFS, EPA CAME OUT WITHOUT THIS IS A STEP TOWARDS MORE AND MORE ETHANOL AND MORE ETHANOL DEMAND--IS IT ENOUGH?> YEAH.
NATIONAL WEATHER:
WELL, A LOT OF FOLKS HAD A LOT OF RAIN OVER THE LAST WEEK, ESPECIALLY IN THE NATION'S MID SECTION WHERE WE SAW A STALLED SYSTEM AND NUMEROUS DAYS OF SHOWERS AND THUNDERSTORMS AND SEVERE WEATHER. THAT'S ESPECIALLY AS YOU GET DOWN INTO TEXAS, A LOT OF RAIN IN PARTS OF KANSAS, AND EVEN INTO AND AROUND THE MEMPHIS AREA. THAT WAS THE LAST WEEK. HERE'S WHAT THE DROUGHT MONITOR IS SHOWING. THIS IS THE CURRENT MONITOR. YOU CAN SEE SOME DRYNESS IN THE SOUTHEAST UNITED STATES. STILL SOME DRYNESS IN THE SOUTHWEST. THINGS HAVE REALLY IMPROVED. THIS IS FOUR WEEKS AGO. WE HAD SOME DRYNESS IN THE MID-ATLANTIC STATES AND SOME IN THE PLAINS.
REGIONAL WEATHER:
THAT'S A LOOK AT YOUR FORECAST, NOW LET'S CHECK OUT THE WEATHER WHERE YOU LIVE. DEAR PARK, WASHINGTON, PARTLY TO MOSTLY SUNNY SKIES TODAY AND WARMER, THE HIGH TEMPERATURE IS 71 DEGREES. ALEXANDRIA, LOUISIANA, IS PARTLY CLOUDY WITH A HIGH AROUND 90 DEGREES.AND CHARLES CITY, VIRGINIA, A CHANCE FOR SHOWERS AND THUNDERSTORMS, WITH A HIGH OF 83.
TEASE:
WHEN WE COME BACK, A LOOK AT DAIRY PRICES AND AN OUTLOOK FOR WHEN PRODUCTION AND MARKETS COULD TURN AROUND. AND LATER, EVEN IN A DOWN YEAR, THIS MISSOURI FARMER SAYS NEW ROBOTIC TECHNOLOGY IS PAYING FOR ITSELF--AND HE'S ONLY MILKING 60 COWS. THAT STORY ON IN THE COUNTRY.
MILK MAGAZINE: OVERSUPPLY MAKES MILK PRICES FALL:
FROM FARM JOURNAL'S MILK MAGAZINE, THE DAIRY INDUSTRY GETTING SET FOR LOOKS TO BE A ROUGH SUMMER ON THE PRICES FRONT. <"THE YOGURT BOOM HERE THE LAST DECADE HAS BEEN GREAT FOR SOAKING UP OUR MILK. OF COURSE WE HAVE A PROBLEM WITH THEM MOVING PRODUCTION OUT OF STATE. NOW WE HAVE TOO MUCH MILK IN NEW YORK, AND NOW WE'RE DUMPING IT.">
DAIRY PRODUCERS IN NEW YORK AREN'T THE ONLY ONES FEELING THE PAIN OF FALLING MILK PRICES. AND PRODUCERS' FIRST LINE OF DEFENSE IN COPING WITH LOWER PRICES IS PRODUCING MORE MILK. THAT'S CONTRIBUTING TO THE OVERSUPPLY SITUATION KEEPING A WET BLANKET ON PRICES, AS WELL AS THE SURPLUS OF INVENTORIES. WITH CHEESE INVENTORIES ARE AT A RECORD HIGH ANALYSTS SAY--SHORT TERM, THERE'S NO RELIEF IS IN SIGHT. NORTH SAYS THE ONLY STATE WHERE WE ARE SEEING MILK PRODUCTION DECLINE IS CALIFORNIA.
SOME DAIRY FARMS STILL PROSPER:
WHILE IT'S SETTING UP TO BE A TOUGH YEAR IN THE DAIRY INDUSTRY, NOT ALL OPERATIONS ARE STANDING STILL. YOU MAY REMEMBER THE BROOKS FARM IN WAUPACA WISCONSIN. THEY WERE A FINALIST FOR TOP PRODUCER OF THE YEAR. OWNER RON BROOKS SAYS EVEN IN A DOWN MARKET THEY'RE GROWING THE HERD--AND PAVING THE WAY FOR HIS DAUGHTER ZOE TO BE SUCCESSFUL IN THE FUTURE.
TEASE:
UP NEXTONE  DAIRY PRODUCER IS SHOWING ROBOTICS ARE A BIG HELP ON THE FARM-EVEN ON A SMALL OPERATION.
IN THE COUNTRY:
A TOUGH MARKET FOR DAIRY PRODUCERS HAS MOST KEEPING A CLOSE EYE ON WHERE THEY PUT THEIR MONEY. BUT WE FOUND ONE SMALL FARM IN MISSOURI THAT'S MADE A BIG INVESTMENT IN ROBOTIC TECHNOLOGY AND IS STILL STAYING IN THE BLACK. STEVE GRANT WITH KY-3 HAS THE STORY.
AT MARGOLD FARM, THE COWS ARE ALWAYS COMING HOME. EVEN WHEN MARLANE WILLIAMS IS NOT HOME:
I'M THE ONLY ONE HERE. DON'T HAVE FAMILIY, NO HUSBANDS, NO CHILDREN TO HELP. OR HIRED HELP.
JUST 60 COWS:  FROM SARCOXIE MISSOURI, STEVE GRANT, KY3 NEWS.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.
FOR CINDI CLAWSON AND ALL OF US AT AGDAY, HAVE A GREAT DAY.
PROMO:
I'M CLINTON GRIFFTHS. WEDNESDAY ON AGDAY, WE'LL HAVE AN UPDATE ON CROP PROGESS DURING THE START OF A NEW MONTH. NEW SPOT-ON MARKET ANALYSIS YOU NEED TO KNOW. AND WE'RE TRACKING YOUR FARM FORECAST. WATCH US WEEKDAYS ON AGDAY.

 

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