AgDay Daily Recap -May 5, 2016

May 5, 2016 02:57 AM
 

TODAY ON AGDAY
MAY 5, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -NEW TRADE DATA RAISING QUESTIONS ABOUT  THE OVERALL ECONOMY. PLUS A CHECK ON WILDFIRE SEASON. IN AGRIBUSINESS...THE SPUTTERING CATTLE MARKET. WE NEED TO GET THE PRICES DOWN IN THE STORE, BECAUSE WE KNOW WHAT THE PRICE OF CATTLE ARE TRADING OUT IN THE COUNTRY AND IT'S NOT REFLECTING. CONSUMER'S LIKE THEIR BRANDED BEEF...DROVERS TV REPORTS. AND STRAP IN AND TAKE RIDE WITH THESE FAST FLYING DRONES. FROM ON FARM SCOUT TO SIX FIGURE SPORT--IT'S A CHALLENGE WITH LIFT.
U-S TRADE DEFECIT NARROWS:
GOOD MORNING I'M CLINTON GRIFFITHS. THE U-S TRADE DEFICIT NARROWING TO ITS LOWEST POINT IN 16 MONTHS THANKS TO THE LARGEST DROP IN IMPORTS IN SEVEN YEARS. NEW NUMBERS FROM THE COMMERCE DEPARTMENT SHOWING THE U-S TRADE DEFICIT IMPROVING TO 40 POINT 4 BILLION DOLLARS IN MARCH. THAT'S NEARLY A 14 PERCENT DROP IN JUST A MONTH. BUT THAT WAS OVERLOOKED BY A MASSIVE DROP IN IMPORTS. THE COMMERCE DEPARTMENT SAYS IMPORTS FELL BY 3 POINT 6 PERCENT. THAT'S THE LARGEST AMOUNT SINCE THE RECESSION IN EARLY 2009. THAT NEWS OVERSHADOWING THE FACT EXPORTS FELL, BUT JUST BY LESS THAN ONE PERCENT.
AG COMMODITIES SURPRISINGLY STRONG:
WHILE COMMODITIES AS A WHOLE SAW A CHALLENGED EXPORT ENVIRONMENT, AG COMMODITIES POSTED SURPISINGLY STRONG NUMBERS LAST WEEK WITH CORN EXPORTS SURGING TO A FOUR YEAR HIGH. IT'S AN ODD TIME OF YEAR OF US TO BE REALLY STRONG IN EXPORTS. THIS IS USUALLY THE TIME WHEN, YOU KNOW, BRAZIL AND ARGENTINA HARVEST IS GOING ON AND MOST OF THE EXPORT BUSINESS GETS SHIFTED DOWN THAT WAY. WELL, NOW WE'VE GOT A SITUATION WHERE THE BRAZIL CURRENCY MADE SOME NEW HIGHS THIS PAST WEEK. WE'VE GOT PRODUCTION ISSUES WITH THE BRAZIL SECOND CORN CROP, WITH THE ARGENTINA SOYBEAN CROP, AND OUR CORN AND SOYBEANS ARE LOOKING PRETTY ATTRACTIVE ON THE WORLD MARKET RIGHT NOW.MEANWHILE, OUR NEIGHBORS TO THE NORTH SHOWING A TRADE DEFICIT REACHIGN RECORD LEVELS. THAT'S AS CANADIAN EXPORTS FELL SHARPLY IN MARCH.
AVIAN FLU FOUND IN MISSOURI FLOCK:
 ANIMAL HEALTH AUTHORITIES ARE MONITORING THE MISSOURI POULTRY INDUSTRY AFTER A CASE OF LOW PATHOGENIC AVIAN FLU SHOWED-UP IN A COMMERCIAL TURKEY FLOCK. THE DISCOVERY WAS MADE LAST WEEK IN JASPER COUNTY, MISSOURI, NEAR THE CITY OF JOPLIN. TEST RESULTS CONFIRM IT WAS THE H-5-N-1 STRAIN. AND WHILE IT IS LOW-PATH, SUCH STRAINS CAN MUTATE INTO A HIGHLY PATHOGENIC -AND MORE DEADLY STRAIN.  THE MISSOURI DEPARTMENT OF AGRICULTURE SAYS IT PUT ITS "ACTION PLAN" IN PLACE AND QUARANTINED THE FARM.
TURKEYS DEPOPULATED AS PRECAUTION:
THE 39-THOUSAND TURKEYS WERE DE-POPULATED. REUTERS NEWS SAYS THE BIRDS WERE A WEEK AWAY FROM GOING TO SLAUGHTER. THE STATE DEPT OF AG SAYS ALL COMMERCIAL FLOCKS WITHIN A TEN KILOMETER RADIUS TESTED NEGATIVE.
INDIANA LIFTS AVIAN FLU QUARANTINE:
MEANWHILE, NEARLY FOUR MONTHS AFTER HIGH PATH AVIAN FLU STRUCK A TURKEY FARM IN SOUTHERN INDIANA, THE STATE HAS NOW LIFTED ITS FINAL QUARANTINE. THE INDIANA BOARD OF ANIMAL HEALTH SAYS THE STATE RECEIVED AN AVIANFLU-FREE STATUS. IT'S BEEN 90 DAYS WITHOUT A NEW CASE OF THE POULTRY DISEASE. BACK IN JANUARY, A FARM IN DUBOIS COUNTY TESTED POSTIVE FOR THE H-7-N-8 STRAIN. WITHIN 24 HOURS, NINE MORE FARMS TESTED POSITIVE. IN ALL, 415THOUSAND COMMERCIAL BIRDS WERE DEPOPULATED IN INDIANA.
BOVINE TB:
ON THE LIVESTOCK FRONT, INDIANA OFFICIALS SAY A BEEF CATTLE HERD IN SOUTHEASTERN INDIANA WILL BE DESTROYED AFTER THE DISEASE WAS FOUND IN SIX STEERS AT A PENNSYLVANIA SLAUGHTERHOUSE. BOVINE TB IS AN INFECTIOUS DISEASE THAT PRIMARILY AFFECTS CATTLE BUT CAN BE SPREAD BETWEEN DIFFERENT MAMMALS.  THE BOARD DID NOT IDENTIFY THE LOCATION OF THE HERD.
DROUGHT CONDITIONS SPUR FIRES IN ALBERTA:
A MASSIVE WILDFIRE IN NORTHEAST ALBERTA PROVINCE IN CANADA FORCED THE EVACUATION OF 80-THOUSAND PEOPLE. AND IT HIGHLIGHTS THE SERIOUS DROUGHT CONDITIONS PROVINCIAL FARMERS FACE UP THERE AS THEY HEAD INTO PLANTING SEASON. RESIDENTS IN THE CITY OF FORT MCMURRAY, ALBERTA WERE ORDERED TO LEAVE AS AN OUT-OF-CONTROL WILDIFRE CHARGED TOWARDS THE CITY.
ALBERTA GOVERNMENT DECLARES DISASTER:
WHOLE NEIGHBORHOODS HAVE BEEN DESTROYED, UNSEASONABLY HOT TEMPERATURES COMBINED WITH DRY CONDITIONS HAVE TRANSFORMED THE FORESTED AREA IN MUCH OF ALBERTA INTO A TINDER BOX. NEARLY THREE QUARTERS OF THE PROVINCE IS UNDER SOME LEVEL OF DROUGHT. FARMERS IN ALBERTA HAD A TOUGH GROWING SEASON LAST YEAR. THE ALBERTA GOVERNMENT DECLARED AN AGRICULTURAL DISASTER TO COVER LOSSES INCURRED BY HEAT AND DRY WEATHER IN THE EARLY PART OF THE GROWING SEASON. WHILE THERE WAS SOME LATE SEASON RAINS CROP YIELDS WERE WELL BELOW AVERAGE.
CATTLE RANCHERS FORCED TO SELLOFF STOCK DUE TO DROUGHT:
 FOR CATTLE RANCHERS, THE DROUGHT FORCED SOME PRODUCERS TO SELLOFF THEIR STOCK BECAUSE THE LACK OF RAIN MADE IT IMPOSSIBLE TO PROVIDE  ENOUGH GRASS TO FEED LARGER HERDS.
U-S ANTICIPATES MILDER FIRE SEASON:
 BACK IN THE STATES, U-S FOREST SERVICE CHIEF TOM TIDWELL SAYS THE 2016 FIRE SEASON ISN'T EXPECTED TO BE AS BAD AS 2015. LAST YEAR A RECORD 16-THOUSAND SQUARE MILES OF NATIONAL FOREST BURNED NATIONWIDE. BUT TIDWELL SAID WEDNESDAY SOME PARTS OF THE COUNTRY ARE DRIED-OUT HEADING INTO SUMMER AND COULD FACE BIG FIRES. AND IN SOME CASES, WE'VE ALREADY SEEN THEM. THAT WILDFIRE THAT TIDWELL MENTIONED BURNED NEARLY A HALF MILLION ACRES IN KANSAS AND OKLAHOMA.
CROP COMMENTS:
THE NEW U-S DROUGHT MONITOR COMES OUT THIS MORNING. WE'LL SEE IF SOME OF THOSE PROBLEM AREAS GOT ANY RELIEF. MEANWHILE, THE MIDWEST CONTINUES TO SIT UNDER A BUBBLE OF WET AND COOL CONDITIONS. MIKE HOFFMAN HAS DETAILS IN CROP COMMENTS. GOOD MORNING CLINTON. BETSY JIBBEN IS ON THE ROAD AGAIN THIS WEEK TRAVELING THE I-80 CORRIDOR ON HER PLANTING TOUR. ON WEDNESDAY SHE WAS IN DEFIANCE, OHIO.
TEASE:
JUST AHEAD TOMMY GRISAFI IS HERE. HE'LL LOOK AT THE CURRENT CATTLE MARKETS. "HEY, THIS IS AMERICA, WHO DOESN'T LIKE STEAK?"AND SPEAKING OF STEAK...DO CONSUMERS PUT MUCH VALUE INTO BRANDED BEEF? GREG HENDERSON FROM DROVERS T-V HAS ANSWERS.  AND WHILE YOU MAY BE GETTING MORE FAMILIAR WITH DRONES CRUISING OVER FARM-LAND, WAIT UNTIL YOU SEE THE PATH SOME RACING DRONES WILL TAKE.
FROM THE FLOOR OF THE CME:
IN AGRIBUSINESS, A MIXED DAY IN BOTH THE GRAIN AND LIVESTOCK PITS ON WEDNESDAY. LET'S HEAD NOW TO THE C-M-E FLOOR.  I THINK REALLY YOU'RE SEEING HERE NOW IS AN OVERALL TIME TO SELL. I THINK IT'S NOT TIME TO ULTIMATELY SELL LIKE WE'RE NOT GOING PANIC AND GET OUT HERE BUT I THINK THIS IS THE TIME TO START AS WE TALKED ABOUT GETTING EMPTYING THOSE BINS OUT, GET RID OF THAT SURPLUS THAT WE'VE BEEN BEEN HOLDING AND WAITING FOR THESE RALLIES. HERE'S WHERE YOU WANT TO TAKE PROFIT WE'VE BEEN WAITING FOR. REMEMBER WE'VE BEEN UP SINCE THE MID EIGHTS IN SOYBEANS IN THE MID TENS. I MEAN YOU DON'T GET THAT MANY RALLIES LIKE THAT GIVE YOU THE OPPORTUNITY TO GET OUT. THIS IS TODD BUBBA HORWITZ FROM BUBBA TRADING DOT COM COMING TO YOU FROM THE CME GROUP FLOOR IN CHICAGO.
AGRIBUSINESS:
TOMMY GRISAFI, ADVANCED TRADING OUR GUEST HERE TODAY. LET'S TALK ABOUT THE CATTLE MARKET, LIVESTOCK MARKET, CATTLE IN PARTICULAR HAVE HAD A ROUGH COUPLE OF WEEKS HERE.> IT HAS BEEN VERY HARD TO WATCH. FOR MY FRIENDS IN THE CATTLE INDUSTRY, MY HEART GOES OUT TO YOU. YOU KNOW, YOU GO TO THE STORE THE RETAIL PRICE OF BEEF IS STILL VERY HIGH, BUT YOU ARE NOT MAKING THAT MONEY. SO SOMEONE IS CUTTING A FAT HOG BETWEEN THE COUNTER WHERE YOU ARE BUYING THE BEEF AND OUR CUSTOMERS WHO ARE GROWING IT AND RAISING IT. THE NUMBERS AREN'T MAKING SENSE RIGHT NOW. A LOT OF THINGS HAVE CHANGED.
TEASE:
WHY HASN'T WHEAT FOLLOWED SOYBEAN TO THE UPSIDE? WE'LL TALK ABOUT IT IN THE PROFARMER PROFIT BRIEFING FRIDAY ON AGDAY.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY. HERE WITH METEOROLOGIST MIKE HOFFMAN. MIKE, WE'VE BEEN WATCHING THIS COOLD DOWN IN THE MIDDLE OF THE COUNTRY. LOOKS LIKE WE'RE YOU KNOW WHEN THE GULF TODAY. HE REALLY DOES I WILL SAY THIS STORM SYSTEM MOVING SO SLOW THAT A LOT OF PLACES ARE NOT GETTING FROST THAT HAD POTENTIAL SO THAT'S SOME GOOD NEWS RIGHT BEHIND THIS SYSTEM. NOW I'M SURE THERE ARE FEW AREAS GETTING SOME PATCHY FROST IN THE WESTERN GREAT LAKES THIS MORNING THAT THAT'S PROBABLY ABOUT IT.
REGIONAL WEATHER:
THAT'S LOOK ACROSS THE COUNTRY NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL FOR POCATELLO IDAHO TODAY A MIXTURE OF SUN AND CLOUDS AND WARM HIGH OF EIGHTY TWO. IN ENID, OKLAHOMA PLENTY OF SUNSHINE AND PLEASANT HIGH OF SEVENTY SEVEN AND AKRON OHIO CLOUDY WITH A SHOWER OR TWO HIGH SIXTY ONE.
TEASE:
THANKS MIKE. WHEN YOU GOT GROCERY SHOPPING, DO YOU LOOK FOR SPECIFIC BRANDS AT THE MEAT COUNTER? AND LATER...TIGHTEN-UP YOUR HELMET AND PUT-ON YOUR GOGGLES. WE'LL TAKE YOU FOR A VIRTUAL RIDE THROUGH A CRAZY DRONE ZONE.

PROFIT TRACKER:
MOST ANALYSTS EXPECTED FEEDYARDS TO BE NEAR BREAK-EVEN BY THE TIME THE CALENDAR TURNED TO MAY. WELL MAY IS HERE AND THE UNDERPERFORMING CASH FED CATTLE MARKET HAS KEPT FEEDYARDS STRUGGLING. IN NEWS FROM OUR PARTNERS AT DROVERS.... THE LATEST STERLING BEEF PROFIT TRACKER--SHOWING LAST WEEK CLOSEOUTS IN THE RED...FEEDYARDS STILL LOSING 75 DOLLARS PER HEAD. THE USDA 5 AREA CASH PRICES CLOSING NEAR 124--A FEW DOLLARS LOWER THAN THE PREVIOUS WEEK. AMERICAN CONSUMERS LIKE THEIR "BRANDED BEEF" AT THE GROCERY STORE. 98 PERCENT OF ALL BEEF SOLD AT RETAIL IS BRANDED,,,,EITHER WITH A STORE OR SUPPLIER BRAND..
 RESEARCH SHOWS CONSUMERS POSITIVELY INFLUENCED BY BRAND:
RESEARCH SHOWS BRANDING AND LABELING CAN INFLUENCE CONSUMERS DECISIONS EVEN BEFORE HAVING FIRST HAND EXPERIENCE WITH THE PRODUCT. DROVERS T-V REPORTS, NEW RESEARCH BY MEAT SCIENTISTS AT KANSAS STATE SEEMS TO SHOW THAT NAME BRAND MAKES A DIFFERENCE AT THE MEAT CASE. GREG HENDERSON SAYS "ACCORDING TO THE KANSAS STATE RESEARCH, CONSUMERS RATED STEAK AND GROUND BEEF PRODUCTS HIGHER FOR FLAVOR, TEXTURE, JUICINESS, TENDERNESS AND OVERALL LIKING WHEN THE PACKAGING INCLUDED THE TERMS CERTIFIED ANGUS BEEF , ANGUS OR USDA PRIME. NO IMPROVEMENT WAS FOUND IN THE SAME CONSUMERS RATED STEAK AND GROUND BEEF WHEN IT INCLUDED THE TERMS USDA CHOICE OR USDA SELECT."
FARMERS WHO ENGAGE WITH CONSUMERS DO BETTER BUSINESS:
USDA SAYS THE DIRECT TO CONSUMER TREND MAY BENEFIT FARMS LONG TERM. THE NUMBER OF FARMS SELLING FROM ROADSIDE STANDS, FARMERS'S MARKETS, PICK-YOUR-OWN OR CSA'S JUMPED 24 PERCENT FROM 2002 TO 2012. THE ECONOMIC RESEARCH SERVICE FOUND THAT FARMS ENGAGING DIRECTLY TO CONSUMERS WERE MORE LIKELY TO STAY IN BUSINESS THAN THOSE SELLING IN TRADITIONAL CHANNELS. THE DATA COMES FROM THE 2012 CENSUS OF AGRICULTURE.
TEASE:
WHILE WE'VE SEEN SOME PRETTY SPECTACULAR FARM VIEWS FROM DRONES ON THIS SHOW, WAIT UNTIL YOU SEE SOME OF THE ACTION-PACKED VIEWS IN THENEW DARING SPORT OF DRONE RACING. IN THE COUNTRY IS NEXT.
IN THE COUNTRY:
THE USE OF UNMANNED AERIAL VEHICLES -OR DRONES -IS BECOMING MORE  COMMON ON FARMS. THE TECHNOLOGY ALLOWS PRODUCERS TO SCOUT FIELDS FOR DISEASE OR WEEDS. AND SOMETIMES, IT'S JUST FUN TO GET A BIRDS-EYE VIEW OF YOUR FARM. BUT NOW THERE'S A NEW HIGH-TECH SPORT THAT'S REALLY TAKING OFF WORLDWIDE. IT'S DRONE RACING. AND IT'S NOT IN SOME OPEN FIELD, BUT AN ENCLOSED TRACK WITH OBSTACLES.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.  FOR MIKE HOFFMAN, I'M CLINTON GRIFFITHS. HAVE A GREAT DAY. HIGH STRENGTH STEEL FOR HIGH STRENGTH DEPENDABILITY, THE CHEVY SILVERADO IS THE OFFICIAL NEWS GATHERING VEHICLE OF AGDAY TELEVISION.
PROMO:
I'M CLINTON GRIFFITHS -FRIDAY ON AGDAY -WE'LL MEET A NEW MEXICO DAIRY  PRODUCER FINDING SUCCESS IN THE ORGANIC SECTOR. PROFARMER JOINS US WITH THEIR PROFIT BRIEFING. AND A GREAT AMERICAN BARN FROM ONE OF AMERICA'S GREAT TOURIST DESTINATIONS. WATCH US WEEKDAYS ON AGDAY.

 

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