AgDay Daily Recap -Sept. 28, 2015

September 28, 2015 02:57 AM
 

TODAY ON AGDAY

Sept. 28,  2015

~~COMING UP TODAY ON AGDAY
LAST WEEK'S BUSY-NESS IN WASHINGTON...LEAVES
LAWMAKERS WITH PLENTY TO FOCUS ON IN THE WEEK
AHEAD.
INCLUDING NEW PARTNERSHIPS ON GAS EMMISSIONS.
IN AGRIBUSINESS....TAKING A LOOK AT THE FUTURE OF
BRAZIL...
I WOULD LOVE TO BRAZIL AS A LONG-TERM CAREER IF I WANTED TO BE IN AGRICULTURE
MACHINERY PETE SAYS EVEN CLASSIC IRON IS
BRINGING RECORD PRICES...
AND A MISSOURI MAN REBUILDS HIS HOME TOWN---IN
HOPES OF CREATING A NEW VISION FOR A TOWN PAST
ITS PRIME.
AGDAY-BROUGHT TO YOU BY THE DEPENDABLE, LONG
LASTING CHEVY SILVERADO.

GOOD MORNING I'M CLINTON GRIFFITHS. WITH PLENTY
OF POMP, PAGEANTRY AND POLITICS -IT WAS AN
INCREDIBLY BUSY WEEK IN THE NATION'S CAPITOL. NOW
IT'S BACK TO WORK IN WASHINGTON TO ADDRESS SOME
OF THE INITIATIVES SET FORTH.

POLITICAL POSTURING IS NOW UNDERWAY AS HOUSE
SPEAKER JOHN BOEHNER ANNOUNCING FRIDAY THAT
HE WILL STEP-DOWN FROM HIS POST AT THE END OF
OCTOBER.
THE WASHINGTON CONSULTANT FOR PROFARMER SAYS
BOEHNER HAS BEEN "FRIENDLY" TOWARDS
AGRICULTURE ISSUES. HOWEVER, BOEHNER UPSET
SOME LEADERS IN THE DAIRY INDUSTRY BECAUSE OF
HIS OPPOSITION TO SUPPLY-CONTROL MANAGEMENT
TO BOLSTER PRICES. 
HE BECAME SPEAKER IN 2010. BUT HE'S BEEN
CRITICIZED IN RECENT YEARS BY MEMBERS OF THE TEA
PARTY.

"I FEEL GOOD ABOUT WHAT I'VE DONE. I KNOW THAT I, EVERYDAY, I'VE
TRIED TO DO THE RIGHT THINGS FOR THE RIGHT REASONS, AND TRIED TO DO
THE RIGHT THING FOR THE COUNTRY."

BOEHNER'S NEWS CAME AS "OFFICIAL" WASHINGTON
HOSTED POPE FRANCIS ONE DAY EARLIER. DURING THE
HECTIC SCHEDULE, THE HOLY FATHER MET WITH
SPEAKER BOEHNER ON THURSDAY. THERE WAS NO
INDICATION OF BOEHNERS SURPRISE ANNOUNCEMENT.
.
AND THEN ON FRIDAY, WASHINGTON HOSTED CHINESE
PRESIDENT XI JIN-PING. THE CHINESE LEADER AND
PRESIDENT OBAMA ANNOUNCED THEY HAD REACHED
AN AGREEMENT DESIGNED TO COMBAT CYBER THEFT
WHICH HAS BEEN A GROWING CONTENTIOUS ISSUE
BETWEEN THE TWO SUPER POWERS.

THE LEADERS OF THE TWO COUNTRIES ALSO RELEASED
A JOINT STATEMENT ON CLIMATE.
THE COUNTRIES EXPECTED TO OUTLINE AN
INTERNATIONAL AGREEMENT ON CLIMATE CHANGE-WITH
EACH COUNTRY COMMITTING TO NEW MEASURES
FOR CURBING THEIR GREENHOUSE GAS EMISSIONS.
LAST MONTH I ISSUED OUR CLEAN POWER PLANT TO
HELP REDUCE CARBON EMISSIONS. TODAY I WANT TO
COMMEND CHINA FOR ANNOUNCING THAT IT WILL BEING
A NATIONAL MARKET BASED CAP AND TRADE SYSTEM
TO LIMIT EMISSIONS FROM SOME OF ITS LARGEST
SECTORS.

AS POPE FRANCIS TALKS CLIMATE CHANGE, NOTED
CATHOLIC INSTITUTION -THE UNIVERSITY OF NOTRE
DAME -IS TRYING TO REDUCE ITS CARBON FOOTPRINT.
THE UNIVERSITY PLANS TO STOP BURNING COAL AT ITS
POWER PLANT WITHIN FIVE YEARS. ACCORDING TO
NOTRE DAME, THAT WOULD CUT ITS FOOT-PRINT BY
MORE THAN HALF BY 2030.
EPA ADMINISTRATOR GINA MCCARTHY WAS ON CAMPUS
FRIDAY TO APPLAUDED NOTRE DAME'S CHANGE.
MCCARTHY CENTERED A ENVIRONMENTAL TALK
AROUND THE UNIVERSITY'S DECISION TO SCALE BACK
ITS USE OF COAL-FIRED POWER PLANTS ELECTRICITY.
DURING HER TIME AT NOTRE DAME, MCCARTHY SPOKE
ABOUT THE PROPOSED RENEWABLE FUEL STANDARDS
SET TO BECOME FINAL IN NOVEMBER.
EPA'S PROPOSALS ARE WELL BELOW THE VOLUMES
CONGRESS SET BACK IN 2007.
NOW THE EPA HAS UNTIL THE END OF NOVEMBER TO
FINALIZE THE STANDARDS.
MCCARTHY SAYS THE DETERMINATION IS BASED ON A
COMMENT PROCESS...
AS WELL AS WHAT THE GAS MIX LOOKS LIKE IN THE
FUTURE.

"WE'RE IN THE MIDDLE OF THE RULE MAKING PROCESS BUT I THINK YOU'LL
SEE THAT THERE'S MORE GAS BEING SOLD. THAT'S LIKELY TO CHANGE
THAT NUMBER AND WE'RE ALSO PAYING CLOSE ATTENTION TO THE
COMMENTS WE'VE RECEIVED. WE'RE GOING TO GET THIS RULE OUT. IT'S
IMPORTANT FOR '14, '15,16'17,"

WHEN ASKED ABOUT CELLULOSIC ETHANOL, MCCARTHY
SAYS THE EPA HAS DONE THE BEST ITS COULD WITH THE
STATUTE AS ITS BEEN DESIGNED.. SHE UNDERSTANDS
THERE NEEDS TO BE A LONG-TERM SIGNAL FOR
CELLULOSSIC.

THE CHINESE PRESIDENT'S TRIP ALSO INCLUDING
BUSINESS--CHINESE GRAIN BUYERS AGREEING TO
PURCHASE MORE THAN 5 BILLION DOLLARS WORTH OF
SOYBEANS...OR 13 MILLION METRIC TONS.
THE U.S. SHIPPED $24 BILLION WORTH OF
AGRICULTURAL PRODUCTS TO CHINA LAST YEAR.
SOY ACCOUNTING FOR $14 BILLION OF THAT TOTAL.

A BUSY WEEK IN WASHINGTON--INCLUDING A VISIT
FROM THE POPE.
POPE FRANCIS SITTING DOWN WITH SPEAKER BOEHNER
AND GIVING A FIRST EVER ADDRESS TO CONGRESS,
EVEN TOUCHING ON SOME KEY AGRICULTURE ISSUES.
THE POPE COVERING IMMIGRATION, CLIMATE AND BIO
TECHNOLOGY.
POPE FRANCES CALLING ON AMERICANS TO USE
TECHNOLOGY AND RESEARCH TO PROTECT CLIMATE.
LET'S TAKE A LOOK AT HARVEST COVERAGE FROM THE
WESTERN PORTION OF IOWA-ALL THE WAY TO THE
EAST.
MIKE HOFFMAN HAS AN UPDATE IN THIS MORNING'S
CROPWATCH. MIKE?

GOOD MORNING CLINTON

LET'S START OFF CROPWATCH IN WATERLOO, IOWA
BRENT JUDISCH SAYS HARVEST IS IN FULL SWING.
SOYBEANS ARE RUNNING AT A MOISTURE LEVEL OF 11
TO 12 PERCENT WITH EXCELLENT YIELDS THUS FAR.
CORN IS IN HIS AREA IS RUNNING BETWEEN 20 AND 24
PERCENT.
HE SAYS CORN CROP YIELDS ARE 10 TO 20 BUSHELS
ABOVE THE A-P-H.
ACCORDING TO USDA'S CROP PROGRESS REPORT, 79
PERCENT OF IOWA'S CORN IS RANKED GOOD TO
EXCELLENT.

OVER IN THE WESTERN PART OF THE HAWKEYE STATE,
SOME FARMERS HAVE YET TO GET MOVING.
ONE PRODUCER SAYS HE'S RECEIVED 8 INCHES OF RAIN
WITHIN A WEEK'S TIME.
THAT'S NOT WHAT THE AREA NEEDED IN ORDER TO DRYDOWN.

ON THE DROUGHT MONITOR YOU CAN SEE THE VERY DRY CONDITIONS CONTINUING OUT WEST OBVIOUSLY AND VERY DRY POCKET IN PARTS OF THE SOUTHERN PLAINS ESPECIALLY EASTERN TEXAS PARTS OF LOUISIANA AND MISSISSIPPI WE'LL BE BACK WITH YOUR FORECAST IN A FEW MINUTES

IN NEBRASKA, CARGILL SAYS IT PLANS TO INVEST $111
MILLION TO CONVERT A COLUMBUS BEEF PLANT.
CARGILL PLANS TO TURN THE GROUND BEEF FACILITY
INTO TO A COOKED MEATS OPERATION AND RELOCATE
THE GROUND BEEF PRODUCTION TO EXISTING
FACILITIES IN BUTLER, WISCONSIN AND FORT WORTH,
TEXAS.
AROUND 80 OF THE 250 JOBS AT THE NEBRASKA PLANT
WILL BE ELIMINATED.

MEANWHILE, USDA SAYS RED MEAT PRODUCTION IS UP
2 PERCENT THIS YEAR.
ALTHOUGH NOT BECAUSE OF BEEF...PRODUCTION OFF 4
PERCENT ON THE YEAR.
SLAUGHTER NUMBERS ARE DOWN 3 PERCENT.
HOG PROCESSING CLIMBING 13 PERCENT ON THE YEAR
WITH TOTAL MEAT PRODUCT UP 11 PERCENT.

UP NEXT WE'RE HEADED TO THE AGRIBUSINESS DESK
TO DISCUSS THE MARKET SITUATION AND HOW GLOBAL
TURBULANCE IS IMPACTING PRICES HERE AT HOME.

PLUS, MACHINERY PETE IS HERE.


"THREE SATURDAYS IN SEPTEMBER, THREE AMAZING
AUCTION PRICES ON CLASSIC RED TRACTORS. STICK
AROUND AND WE'LL TALK ABOUT IT. "

PLUS WE'LL HEAD IN THE COUNTRY TO THE MISSOURI
OZARKS WHERE ONE MAN'S DREAM TO REVISIT HIS
BOYHOOD TOWN HAS COME TO LIFE.


<AGDAY -BROUGHT TO YOU BY STRATEGO YIELD
FUNGICIDE FROM BAYER. OFFICIAL FUNGICIDE OF THE
YIELD BUMP. STRATEGO YIELD-HEALTHY FIELDS..
HIGHER YIELDS.>

*********************************************************
IN AGRIBUSINESS SOME BIG BUYS AND SOME BIG
MOVES IN COMMODITIES FRIDAY.
LETS SEE HOW MARKETS CLOSED FROM THE FLOOR OF
THE CME.

HELLO, AGRICULTURE PRICES HIGHER ON FRIDAY'S
TRADE AND HIGHER ON THE WEEK. IT LOOKS LIKE WE
HAD CORN UP ABOUT 6 ON THE DAY AND 10 ON THE
WEEK. BEANS ARE UP 20 CENTS AND UP OVER THAT ON
THE WEEK. THAT'S UP 20 22 ON THE WEEK. THIS PAST
WEEK WE SAW CHINA BUYING BEANS. AND WE ALSO
SAW ABOUT HALF OF THAT. I THINK WENT TO CHINA. WE
ALSO SAW CHINA ANNOUNCE A SALES OF BEANS OF
ABOUT 13 MILLION METRIC TONS WHEN THEY WERE
VISITING IOWA HERE THIS PAST WEEK. LIVESTOCK
PRICES ARE UP. ON FRIDAY WE HAD HOGS MARGINALLY
HIGHER BUT CATTLE LIMIT BID ACROSS THE BOARD. OF
COURSE THIS IS AFTER THE DOWN LIMIT MOVE HERE
THIS PAST WEEK. WHEN WE LOOK AT OCTOBER CATTLE,
DESPITE BEING UP 300 POINTS ON FRIDAY. THEY'RE
STILL DOWN ON 230 POINTS FOR THE WEEK. WE STILL
HAVE CATTLE AT RECORD WEIGHTS IN HERE. USUALLY
EXPECTING A PEAK OF WEIGHTS AT THIS POINT AND
THE YEAR AND A DECLINE OF WEIGHTS WITH THE END
OF THE YEAR. SO WE'LL WATCH THAT WITH SUPPORT.
I'M FRANK LESH, FUTURE PATH TRADING HERE AT THE
CME GROUP.

HERE AT THE AGRIBUSINESS DESK, JIM BOWER WITH
BOWER TRADING. JIM LET'S TALK ABOUT BRAZIL. THAT'S
A COUNTRY THAT HAS BECOME A MAJOR COMPETITOR
SOME WITH THE GLOBAL MARKET. THEY'VE ALSO HAD
THEIR FAIR SHARE OF UPS AND DOWNS OVER THE LAST
COUPLE OF YEARS. WELL IT'S A HIGH GROWTH
ORIENTATED, YOUNG PERSON'S COUNTRY. IT HAS
TREMENDOUS NATURAL RESOURCES AND IT HAS
WATER. IT HAS SUNSHINE. IT ESSENTIALLY HAS NO
WINTER. BUT AGAIN IF I WERE A YOUNG MAN, WHICH I'M
NOT. I WOULD LOVE TO BRAZIL AS A LONG-TERM
CAREER IF I WANTED TO BE IN AGRICULTURE. I STILL
THINK THEY'RE A TREMENDOUS LONG-TERM
OPPORTUNITIES THERE. SOME GROWTH SPURTS.
THEY'VE HAD SOME THINGS DIFFICULTY WITH IN
GOVERNMENTAL CORRUPTION AND CHANGE IN
LEADERSHIP. IT'S KIND OF A MAJOR SET BACK WITH
AGRICULTURAL PRICES IN GENERAL. BUT AGAIN, WHEN
YOU STEP BACK AND LOOK AT IT WITH A LONG-TERM
STANDPOINT. THERE'S SO MUCH THAT CAN BE DONE IN
THE NEXT 20 TO 30 YEARS. IF YOU HAVE A MINDSET
THAT CAN HANDLE SOME QUIET TIMES FOR AWHILE. I
REALLY THINK THE GROWTH PATTERN IS STILL THERE.
WE TALKED A LOT ABOUT THE BRICKS AND THE BRICK
COUNTRIES WHICH INCLUDE: RUSSIA, CHINA, BRAZIL,
INDIA OVER THE NEXT YEARS OR SO. ARE THEY STILL A
CORE OF GROWTH FOR THE WORLD ECONOMY. WELL I
THINK THE UNITED STATES IS STILL THE LOCOMOTIVE
FOLLOWED BY CHINA AND THEY FOLLOW IN BEHIND
THAT. OBVIOUSLY THERE ARE ALL KINDS OF
SITUATIONS. THAT WOULD TAKE DAYS TO TALK WHAT'S
RIGHT AND WRONG. THERE ARE THE PROCESS OF
GROWTH AND HOW THE WORLD IS CHANGING. AGAIN, I
THINK THE INTERNET AND THE WAY TRANSACTED WITH
LIGHTENING SPEED AROUND THE WORLD, I THINK
THINGS ARE CHANGING. MY BASIS WOULD BE TO STICK
MORE TO BRAZIL THAN RUSSIA. I FEEL MORE
COMFORTABLE WITH THAT. I ALMOST WEN TO BRAZIL
WHEN I WAS MUCH YOUNGER. WE ARE GOING TO START
A COMPANY. AND UNFORTUNATELY, I DIDN'T GET TO DO
THAT OPPORTUNITY. BUT MY LIFE WOULD HAVE BEEN
MUCH DIFFERENT THAN IT IS NOW. BUT I DON'T THINK
IT'S OVER. I THINK IF YOU'RE LONG TERM AND YOU'RE
SELECTIVE. THERE ARE COMPANIES WHERE YOU
WOULD WANT TO INVEST LONG TERM AS LONG AS YOU
UNDERSTAND THE RISK OF WHAT YOU'RE DOING.
ALRIGHT. SO, IT'S STILL PLENTY OF UPWARD
MOMENTUM. I WISH I WAS YOUNGER. I THINK A LOT OF
PEOPLE FEEL THAT WAY. THANKS FOR BEING HERE. WE
APPRECIATE YOUR TIME. WE WILL BE BACK WITH MORE
AGDAY IN A MOMENT.

(FOR A FREE TWO WEEK TRIAL TO JIM'S DAILY GLOBAL
MARKET LETTER, CALL BOWER TRADING TOLL FREE AT 1800-
533-8045)

 

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