AgDay Daily Recap - June 5, 2018

June 5, 2018 02:57 AM
 
AgDay

TODAY ON AGDAY
JUNE 5, 2018

HEADLINES

NO DEAL - AS U.S. TRADE OFFICIALS ARRIVE HOME FROM CHINA."PEOPLE THINK IT'S JUST FARMERS THAT GET HURT. IT'S THE ENTIRE COMMUNITY, THE ENTIRE STATE,"THE CHINESE PUSH BACK ON BUYING FOR U.S. AG PRODUCTS.IN ANALYSIS - WHY THE WHEAT MARKET MAY HAVE LEGS... "THE REAL KEY IN WHEAT TODAY I THINK IS THE BLACK SEA"THAT'S AGRIBUSINESS. AN EARLY EXCLSUIVE SHOWS HOW THE LANDCAPE OF U-S DAIRY IS CHANGING. AND INNOVATION TO INCLUDE EVERYONE DURING NATIONAL DAIRY MONTH. AGDAY-BROUGHT TO YOU BY THE DEPENDABLE, LONG LASTING CHEVY SILVERADO.

CHINA TRADE TALKS
GOOD MORNING, I'M CLINTON GRIFFITHS. SOME OF THE ADMINISTRATION'S TOP TRADE OFFICIALS ARE BACK ON U-S SOIL AFTER TRAVELING TO CHINA TO DISCUSS THE FUTURE OF TRADE. BUT CHINESE OFFICIALS SHOWING STRONG RESISTANCE TO TAKING MORE U-S AGRICULTURAL GOODS UNTIL BROADER TRADE PAIN POINTS ARE PUT TO REST. U-S OFFICIALS, INCLUDING COMMERCE SECRETARY WILBUR ROSS AND CHIEF AG NEGOTIATORGREGG DOUD, WERE IN CHINA TO WORK OUT THE DETAILS OF CHINA'S PROMISE TO PURCHASE MORE AMERICAN FARM AND ENERGY PRODUCTS. HOWEVER, THOSE DETAILS REMAIN ON HOLD, AS CHINA SAYS IT WON'T BUY MORE GOODS AS LONG AS THE LOOMING 50 BILLION DOLLARS WORTH OF TARIFFS ARE STILL ON THE TABLE. THE PRESIDENT TWEETING MONDAY THAT FARMERS HAVEN'T BEEN DOINGWELL FOR 15 YEARS AND MEXICO, CANADA , CHINA AND OTHERS HAVE TREATED FARMERS UNFAIRLY. HE SAID, QUOTE, BY THE TIME I FINISH TRADE TALKS, THAT WILL CHANGE. BIG TRADE BARRIERS AGAINST U-S FARMERS AND OTHER BUSINESSES WILL FINALLY BE BROKEN. MASSIVE TRADE DEFICITS NO LONGER! - END QUOTEBUT SOYBEANGROWERS, PORK PRODUCERS AND CHEESE MAKERS WORRY BUSINESS WILL SUFFER FROM RETALIATION IF THE U-S MOVES FORWARD WITH TARIFFS."IT'S OUR SECOND LARGEST EXPORT MARKET (MEXICO) AND IT WILL REDUCE SALES, THERE'S NO QUESTION."IF THERE'S TARIFFS IMPOSED PEOPLE THINK IT'S JUST FARMERS THAT GET HURT. IT'S THE ENTIRE COMMUNITY, THE ENTIRE STATE, THE ENTIRE UPPER MIDWEST WHERE AGRICULTURE IS SO IMPORTANT. BECAUSE WE'RE NOT LIVING ALONE OUT ON THE FARM AND NOT SEEING ANYONE. WE ARE CONNECTED ECONOMICALLY TO OUR ENTIRE POPULATION UP HERE, AND SO - ARE WE GOING TO GET HURT? I HOPE NOT."NO MATTER THE OUTCOME, ECONOMISTS SAY THERE ARE CERTAIN PRODUCTS, LIKE FRUITS AND NUTS, THAT WILL CONTINUE TO ENTER CHINA. IT JUST MAY NOT BE A DIRECT PATH TO GET THERE. YOU'D BE SURPRISED A NUMBER OF THESE COMPANIES HAVE GREY CHANNELS THAT WILL GET INTO CERTAIN MARKETS EVEN IF EVEN SOMETHING WERE TO HAPPEN TO NAFTA EVEN IF SOMETHING WERE TO HAPPEN IN OUR TALKS WITH CHINA AND FOR WHATEVER REASON THAT WHOLE RELATIONSHIP YOU KNOW COMPLETELY FELL APART AND DETERIORATED, THERE'S A NUMBER OF GROWERS ON THE WEST COAST -FOR EXAMPLE IN THE INDUSTRY- WOULD SAY YOU KNOW THOSE COMMODITIES WILL EVENTUALLY GET TO WHERE THEY NEED TO GET TO IN CHINA. WALNUTS IT IS A PERFECT EXAMPLE ALMONDS, IS A GOOD EXAMPLE CITRUS IS A PERFECT EXAMPLE. CHINA'S EXPORTS GO DOWN, HONG KONG'S EXPORTS GO UP. AND THAT'S A RESULT OF THESE GREY CHANNELS WHERE THESE COMMODITIES ACTUALLY GET IN WHERE THEY ARE INTENDED TO GO TO, BUT THEY DON'T ALWAYS GET THERE IN A DIRECT CHANNEL, UNLIKE OTHER COMMODITIES LIKE CORN AND BEANS. 

RUSSIA SANCTIONS
IN PLACES LIKE RUSSIA, TRADE RESTRICTIONS AND SANCTIONS CONTINUE TO IMPACT FOOD PRODUCTION.FOUR YEARS AGO, WESTERN FOOD FROM THE U.S. AND EUROPEAN UNION, WAS BANNED FOLLOWING SANCTIONS AGAINST RUSSIA FOR IT'S ANNEXATION OF THE CRIMEAN PENINSULA. AND WHILE IT CAUSED ISSUES EARLY ON,LOCALLY PRODUCED MEAT, CHEESE AND FISH IS FLOURISHING. "SINCE THE SANCTIONS THERE'S BEEN A LOT MORE FOCUS ON LOCAL FOOD. SINCE WE COULDN'T IMPORT MEAT OR CHEESE ANYMORE, AND MEAT FROM CERTAIN COUNTRIES BECAME PROHIBITIVELY EXPENSIVE AND ONLY AFFORDABLE TO REALLY RICH PEOPLE, A LOT OF FARMS THAT ALREADY WERE IN PLACE IN RUSSIA STARTED DEVELOPING MUCH FASTER AND STARTED PRODUCING MUCH BETTER-QUALITY PRODUCT."THE GOVERNMENT ALSO PLEDGING TO ENCOURAGE DOMESTIC PRODUCTION, AND OFFERING LOANS AND SUBSIDIES FOR THE AGRICULTURAL SECTOR.RUSSIA CONTINUES TO BE ONE OF THE WORLD'S LARGEST GRAIN EXPORTERS. IT'S ALSO BECOME A MAJOR SUPPLIER OF MEAT TO WORLD MARKETS.

NO MORE MONSANTO NAME
AGRICULTURE IS JUST DAYS AWAY FROM A MAJOR CHANGE IN ITS AGRIBUSINESS SECTOR. THAT'S AS BAYER PLANS TO CLOSE IT'S PURCHASE OF MONSANTO COMPANY THIS WEEK, DOING AWAY WITH THE MONSANTO NAME.IT'S A 63 BILLION DOLLAR DEAL THAT'S BEEN IN THE WORKS FOR SEVERAL YEARS. BUT NOW BAYER SAYING IT PLANS TO OFFICIALLY BUY MONSANTO AND CLOSE THE TRANSACTION ON THURSDAY. WHILE THE NEW COMPANY WILL BE KNOWN AS BAYER AG, THE MERGER ISN'T COMPLETE UNTIL THE BIG DIVESTITURES HAPPEN. MOST OF THOSE PROPERTIES ARE BEING SOLD TO B-A-S-F.LEADERS FROM BOTH BAYER AND MONSANTO SAY WHILE THE FINANCIAL TRANSACTION IS TAKING PLACE THIS WEEK, THE TWO COMPANIES WILL CONTINUE TO OPERATE INDEPENDENTLY FOR AN INTERIM PERIOD. BAYER SAYING LAST WEEK THAT ALL THE SPIN-OFFS AND AND ONCE THE ASSETS ARE SOLD TO B-A-S-F, THEN BAYER AND MONSANTO WILL BEGIN TO INTEGRATE.

CROP PROGRESS
USDA RELEASING AN UPDATED CROP PROGRESS REPORT FOR THE WEEK. CORN PLANTINGIS ALL BUT WRAPPED UP. AT 97 PERCENT ITS AHEAD OF THE 5 YEAR AVERAGE (95%).MICHIGAN (80%) AND PENNSYLVANIA (75%) ARE STILL BEHIND...BUT MAKING PROGRESS.NATIONALLY THE CORN IS RATED 78 PERCENT GOOD TO EXCELLENT.THAT'S A TICK LOWER THAN LAST WEEK (79%).THE IOWA AND ILLINOIS CROPS ARE BOTH AT 81 PERCENT GOOD TO EXCELLENT.ZACH BAILEY/XENIA, ILWE'VE REALLY HAD SOME PRIME GROWING CONDITIONS FOR CORN AND BEANS WE'VECAUGHT SOME TIMELY RAINS AND THAT'S JUST TODAY WE WERE ABLE TO CATCH ANOTHER .50" OF RAIN. SO THINGS ARE LOOKING ABSOLUTELY GREAT SO IF THINGS CONTINUES ITS SHAPING UP TO BE A GREAT YEAR. SOYBEANS ARE NOW 87 PERCENT PLANTED --12 POINTS AHEAD OF THE FIVE YEAR AVERAGE (75%).COTTON IS BACK ON PACE WITH THREE QUARTERS OF THE CROP NOW PLANTED. (76%)HOWEVER WHAT'S IN THE FIELD IS STRUGGLING. ONLY 42 PERCENT OF THE CROP IS RATED GOOD TO EXCELLENT. AND WINTER WHEAT HARVEST IS NOW ROLLING.5% PERCENT HAS BEEN CUT.TEXAS IS ABOUT A THIRD DONE (35%).

CROP COMMENTS
CINDI CLAWSON IS BACK IN  THE STUDIO TODAY. SHE JOINS US NOW FOR CROP COMMENTS. GOOD MORNING, CLINTON. WE'RE STARTING OFF IN FLAGG, TEXAS THIS MORNING, AN AREA SUFFERING FROM A MAJOR DROUGHT. JUSTIN DAMRON SAYS THE CORN NEEDS SOME RAIN BUT THIS CORN IS GROWING NICELY DESPITE THE LACK OF MOISTURE. THAT'S NOT THE CASE EVERYWHERE. HE SAYS THE DRYLAND CROPS ARE NONEXISTENT AND A LOT OF IRRIGATED CROPS FELL BEHIND DURING LAST WEEK'S 105 DEGREE TEMPERATURES.THE AREA DID RECEIVE .2 INCHES OF RAIN SUNDAY NIGHT. AND MATT NELSON OVER IN BURT COUNTY, NEBRASKA SENDING US THIS PICTURE OF HIM SIDE DRESSING SOME CORN BEFORE THE RAIN ARRIVES. MATT SAYS THE CORN IS GROWING WELL IN THE HEAT BUT THE AREA IS IN NEED OF EVEN MORE RAIN. THE U.S. DROUGHT MONITOR SHOWS NEARLY 82 PERCENT OF NEBRASKA IS DROUGHT FREE. THE AREA EXPERIENCING  DRYNESS IS IN THE SOUTHEAST PORTION.WELL AS WE TAKE A LOOK AT HOW WINDS ARE GOING TO BE SHAPING UP TODAY HERE'S A LOOK AT YOUR WINDSPEED FORECAST. A LOT OF IT STARTING OFF ON THE BREEZY SIDE ESPECIALLY OVER TOWARDS THE EASTERN HALF OF THE GREAT LAKES BUT AS WE PUT THIS INTO MOTION WE'RE GOING TO SEE THOSE WINDS PICKING UP IN THE SOUTHWEST. THAT IS NOT GOOD NEWS FOR HOW DRY IT IS OUT THERE FOR WILDFIRES AND THE LIKE. SO AS WE HEAD INTO TONIGHT WE'LL SEE SOME WINDY CONDITIONS IN THE UPPER MIDWEST IN THROUGH THE DAY ON WEDNESDAY WE'LL SEE THOSE WINDS PICKING UP IN THE NATION'S MIDSECTION AND ONCE AGAIN IN THE FOUR CORNERS REGION. WELL IT'S A LOT MORE IN YOUR FORECAST COMING UP LATER ON IN THE SHOW. BUT NOW HERE ARE SOME HOMETOWN. TEMPS

TEASE
THE WHEAT MARKET SEEING A DOUBLE-DIGIT DIP IN THE RED MONDAY. WE DISCUSS HOW THE WORLD'S NUMBER ONE WHEAT EXPORTER PLAYS A ROLE IN ANALYSIS. AND JUNE IS NATIONAL DAIRY MONTH - WE SHOW YOU WHAT THE INDUSTRY IS DOING TO MAKE SURE EVERYONE IS INCLUDED - EVEN THOSE WHO HAVE A HARD TIME DIGESTING MILK.

JOHN DEERE SUES PRECISION
JOHN DEERE IS SUING PRECISION PLANTING AND AGCO, OVER CLAIMS OF PATENT INFRINGEMENT. FILED IN THE U-S DISTRICT COUR IN DELAWARE, DEERE IS ALLEGING THAT PRECISION INFRINGED ON 12 OF ITS PATENTS, INCLUDING V-SET SEED MEETERS AND SPEEDTUBE PRODUCTS. THAT TECHNOLOGY ALLOWS SEED TO BE PLACED ACCURATELY, AND UNIFORMLY WITH EVEN CROP EMERGENCE. IN THE LAWSUIT, DEERE CLAIMS THE COMPANY HAS SUFFERED DAMAGES AS A RESULT OF THE INFRINGEMENT, AS WILL CONTINUE TO SUFFER DAMANGES AS LONG AS IT CONTINUES. THE AMOUNT JOHN DEERE IS SEEKING FROM THE LAWSUIT IS UNSPECIFIED IN COURT DOCUMENTS. AGCO BOUGHT PRECISION IN SEPTEMBER OF LAST YEAR. 

AGRIBUSINESS
HERE AT THE AGRIBUSINESS DESK WE HAVE MARK FIEGHT WITH INTERNATIONAL AGRIBUSINESS GROUP MARK AS WE TALK ABOUT THE WHEAT MARKET AND I KNOW HARVEST IS IN FULL SWING IN THE SOUTHERN U.S. BUT THERE ARE SOME THINGS HAPPENING GLOBALLY THAT ARE WORTH OUR ATTENTION. I THINK DOMESTICALLY YOU'RE NOT GOING TO CHANGE THE SOUTHERN DIEHARD RED CROP AT ALL AT THIS POINT AND THAT MARKET'S ALL ABOUT WHAT HAPPENS IN THE SPRING WHEAT IN THE DAKOTAS AND CANADA AND ACTUALLY THAT WEATHER IS STARTING TO LOOK A LITTLE BETTER. SO THE REAL KEY IN WHEAT TODAY I THINK IS THE BLACK SEA AND YOU'VE GOT RUSSIA THAT A YEAR AGO WITH 85 MILLION TONS OF PRODUCTION JUST A HUGE HAMMER ON THE WHEAT MARKET WORLD WHEAT MARKET ALL YEAR. NOW WE'RE THINKING THAT THAT CROPS IN THE LOW 70S AND PROBABLY SHRINKING THAT AREA IT WAS ALSO ONE WHERE USDA PINPOINTED AN 11 MILLION TONNE INCREASE IN CORN. RECORD CORN CROP OUT OF THE SU IN THEIR BALANCE SHEET FOR 18 19 THAT GOT US TO 160 A VERY TIGHT CARRY OUT WHICH I THINK IS A STRETCH WHERE OUR NUMBERS THAT WE RUN ARE 150 MILLION TONS WORLD CARRY OUT AND THAT'S AT A POINT WHERE YOU START HAVING TO FEED MORE WHEAT IN EUROPE AND THE BLACK SEA IS SHUT OUT EUROPE OUT OF THE TRADE PARTICULARLY FRANCE OUT OF MUCH OF THE WORLD TRADE THERE ARE GOING TO BE A BIGGER PART OF THAT. WE SAW THEM AT TIEF MARKET BLOW UP EARLY THIS WEEK THAT THAT PULLED THE U.S. MARKET. SO I THINK WE HAVE TO FOCUS ON THAT NOT JUST DOMESTICALLY. YEAH. DO YOU THINK THERE'S ENOUGH HAPPENING ENOUGH MOMENTUM THERE TO DRAG PRICES WITH IT. WELL I THINK THERE IS AND I THINK IT'S CRITICAL AT THIS STAGE THE NEXT THREE WEEKS ARE CRITICAL FOR THAT OR FOR THE RUSSIAN WHEAT CROP. THERE'S A LITTLE BIT OF RAIN THERE'S ENOUGH TO KIND OF KEEP THE CROP ALIVE TO MAKE IT THRIVE. NOT QUITE SO IT'S RIGHT ON THE EDGE AND I THINK WE'VE ALREADY SEEN THE MARKET RESPOND AND WE'RE AT RELATIVELY HIGH LEVELS BECAUSE OF SOME OF THE PROBLEMS WE'VE HAD IN THE U.S. AND IN EUROPE. NOW CAN WE TAKE IT TO THE NEXT LEVEL. THAT'S THAT'S UP TO MOTHER NATURE. YOU KNOW ONE ONE RUN OF THE MAPS ARE GOING TO CHANGE A LOT OF PEOPLE'S FORTUNES HERE. OK. WELL WE'LL KEEP AN EYE ON. APPRECIATE IT MARK THANKS FOR BRINGING IT TO OUR ATTENTION. WE'LL BE BACK MORE I JUST MINUTE.

WEATHER
WELCOME BACK TO AGDAY HERE WITH CINDY CLAWSON LOOKING AT THE WEATHER MAP AND SYDNEY MULTIPLE FRONTS ON THE MAP TODAY. YEAH HERE THERE HAVE BEEN THE PAST COUPLE OF WEEKS THE MAPS HAVE BEEN PRETTY MUDDLED WITH VARIOUS FRONTS. WE'RE GOING TO SEE MORE ACTIVE WEATHER ESPECIALLY IN THE EASTERN PART OF THE COUNTRY AS WE HEAD THROUGH THE REST OF THIS WEEK. LET'S TAKE A LOOK. AS WE START OFF LOOKING UP TOWARDS THE GREAT LAKES AREA WE DO HAVE A FRONT THAT'S GOING TO BE COOLING THINGS DOWN ONCE AGAIN AS WE HEAD THROUGH THE DAY STARTING OFF WITH A LITTLE RAIN THERE. WE'VE GOT A STATIONARY FRONT ACROSS FLORIDA INTO PARTS OF THE CENTRAL AND WESTERN GULF COAST STATES LOOK FOR SOME SHOWERS AND THUNDERSTORMS THERE. HIGH PRESSURE KIND OF KEEPING THINGS DRY IN THE MIDDLE AND INTO THE FOUR CORNERS REGION A LITTLE BIT OF MOISTURE IN THE NORTHWEST AS A WEAKENING FRONT APPROACHES THE PACIFIC NORTHWEST MOVING INTO THIS EVENING LOW PRESSURE MOVES ON OFF TO THE EAST. ANOTHER HIGH MOVING INTO THE GREAT LAKES AREA WE'RE GOING TO START TO PICK UP SOME MOISTURE THOUGH AS WE GET INTO TUESDAY NIGHT AND WEDNESDAY INTO THE UPPER MIDWEST. WE'RE GOING TO CONTINUE WITH THE CHANCES FOR SOME SHOWERS AND THUNDERSTORMS COME ALONG THAT STATIONARY FRONT IN THE SOUTHEAST. HIGH PRESSURE SETTLES IN NICER DAY FOR THE EASTERN CORN BELT ON WEDNESDAY WE'RE SEEING FAIRLY DRY CONDITIONS IN MUCH OF THE PLAINS STATES AND ESPECIALLY THE WESTERN PARTS OF THE PLAINS REALLY NEED SOME OF THAT RAIN. WE MAY START SEEING SOME OF THAT PICKING UP AS WE GET INTO THE LATTER PART OF WEDNESDAY. HERE IS A LOOK AT YOUR PRECIPITATION ESTIMATE THE PAST 24 HOURS IT'S BEEN FAIRLY DRY ACROSS MOST OF THE COUNTRY. THE TAIL END OF THAT STATIONARY FRONT HAS BEEN PRODUCING SOME SHOWERS AND THUNDERSTORMS IN PARTS OF EASTERN TEXAS AND INTO LOUISIANA AS WELL THE NORTHEASTERN QUADRANT OF THE COUNTRY HAS BEEN GETTING SOME SHOWERS AND SOME THUNDERSTORMS TINY BIT OFF IN THE NORTHWEST AS WE FINISH OFF THE NEXT 24 HOURS IT'S REALLY GOING TO BE THAT STATIONARY FRONT WITH A LOT MORE MOISTURE AVAILABLE DOWN IN THE GULF COAST STATES AND WE'LL SEE SOME SHOWERS AND THUNDERSTORMS IN THE NORTHEAST BUT FAIRLY VERY SPOTTY STUFF ALONG THE REST OF THE NORTHERN PART OF THE COUNTRY. STILL VERY HOT IN THE SOUTHERN PLAINS WE'RE LOOKING AT 90S EVEN INTO TRIPLE DIGITS. BUT LOOK HOW MUCH COOLER IT IS IN THE PACIFIC NORTHWEST AND INTO THE NORTHEAST YOU CAN REALLY SEE WHERE THAT RIDGE IS BUILT INTO THE NATION'S MIDSECTION WHERE WE'RE SEEING 90S ALL THE WAY UP INTO PARTS OF NORTH DAKOTA. THEN AS WE HEAD INTO THE OVERNIGHT HOURS WE'RE GOING TO SEE THOSE TEMPERATURES DIPPING DOWN INTO THE 40S IN SOME LOCATIONS IN THE NORTHEAST STILL REALLY MILD OVERNIGHT LOW TEMPERATURES RIGHT UNDER THAT RIDGE IN THE CENTRAL PART OF THE COUNTRY HEADING INTO TOMORROW. WE COOLED DOWN A LITTLE BIT ON THE NORTHERN STRETCHES OF THE PLAINS BUT STILL PRETTY HOT AS WE SEE A LOT OF 90S MAYBE EVEN SOME TRIPLE DIGITS ESPECIALLY IN SOUTHWESTERN TEXAS TAKING A LOOK AT THAT JET STREAM YOU CAN SEE THAT RIDGE RIGHT UP HERE IN THE NATION'S MIDSECTION A COUPLE OF TROUGHS IN THE NORTHEAST AND INTO THE NORTHWEST. THE RIDGE WILL KIND OF BUILD A LITTLE BIT AND FLATTEN OUT ON THE TOPIC. NOTICE HOW EVERYBODY GETS WARMER BY THE END OF THE WEEK ESPECIALLY AS WE GET INTO MONDAY. LOOK AT HOW HIGH THAT RIDGE GETS UP INTO CANADA. THAT IS GOING TO BE SOME PRETTY BIG HEAT AS WE GET INTO NEXT WEEK. THAT'S A LOOK AT YOUR NATIONAL FORECAST. NOW LET'S CHECK ON THE WEATHER WHERE YOU LIVE. MOUNTAINEER NEW MEXICO SUNNY AND WARM FOR YOU TODAY WITH A HIGH OF 89 DEGREES. HEADING OVER TO COTTON VALLEY LOUISIANA. SHOWERS AND THUNDERSTORMS WITH A HIGH OF 86 AND DUE WEST SOUTH CAROLINA PLENTY OF SUNSHINE WITH A HIGH OF 82

TEASE
STILL TO COME, IS CANADA SIGNALING ITS LOOSENING THE LEASH ON ITS DOMESTIC PRODUCTION? PLUS, WHY ONE ECONOMIST SAYS THE LANDSCAPE FOR U-S DAIRY IS CHANGING.  AND LATER, A MILK QUINCHING CONSUMERS THIRST FOR  MORE DIGESTABLE DAIRY. THAT'S AS WE HEAD IN THE COUNTRY. 

DAIRY REPORT
IN OUR DAIRY REPORT, NAFTA NEGOTIATORS HAVEN'T GIVEN UP ON REACHING A DEAL, BUT FRESH TARIFFS AND PRESSURE FROM WASHINGTON IS MAKING FOR CHALLENGING NEGOTIATIONS.AS WE MENTIONED, LAST WEEK PRESIDENT TRUMP ANNOUNCING PLANS TO MOVE FORWARD WITH TARIFFSON ALUMINUM AND STEEL FOR BOTH CANADA AND MEXICO.THE NEWS THROWING A WRENCH IN CURRENT NAFTA RENEGOTIATIONS. CANADA'S PRIME MINISTER JUSTIN TRUDEU SAYING OVER THE WEEKEND, CANADA WOULD CONSIDER MORE DAIRY ACCESS BUT SAYS DISCUSSIONS HAVE STALLED BECAUSE OF THE U.S.' INSISTENCE ON A FIVE-YEAR SUNSET CLAUSE AND OTHER TOPICS.PRESIDENT TRUMP MEANWHILE, CONTINUING TO RAISE THE PROSPECT OF SEPARATE TRADE DEALS WITH CANADA AND MEXICO, ARGUING THAT THEY ARE "TWO VERY DIFFERENT COUNTRIES."AS TARIFF TALKS REMAIN, FARMER MAC SAYS GLOBAL DEMAND FOR DAIRY IS AT "HEALTHY" LEVELS, THAT INCLUDES WITH MAJOR MARKETS LIKE CHINA AND MEXICO. IN AN EARLY EXCLUSIVE FROM FARMER MAC'S THE FEED, DEMAND FOR U-S DAIRY REBOUNED IN FOREIGN MARKETS. THAT'S AS WORLD PRICES HAVE CAUGHT UP OR EVEN EXCEEDED U-S PRICES IN EARLY 2018. THE VOLUME OF U-S DAIRY EXPORTS SET A NEW MONTHLY RECORD IN MARCH, WITH CHINA'S BUYS UP 18 PERCENT AND EXPORTS TO MEXICO SURGING 20 PERCENT. WHILE FARMER MAC ANTICIPATES THE COMPETITIVENESS OF U-S DAIRY PRODUCTS TO SUPPORT MILK PRICES IN THE MONTHS AHEAD, CURT COVNGTON OF FARMER MAC SAYS THE U-S DAIRY INDUSTRY IS DIVIDED. THIS DAIRY SECTOR AND THIS DAIRY INDUSTRY HAS BECOME VERY BIFURCATED. YOU HAVE THE VERY HIGH EFFICIENT CONSOLIDATED OPERATORS WHO DO A MARVELOUS JOB OF CONTROLLING THEIR EXPENSES MARKETING. THEY HAVE ALL OF THEIR COSTS YOU KNOW IN A MANAGEABLE FORMAT THAT THEY CAN KEEP GREAT THAT THAT THAT THEY JUST HAVE EXCELLENT BOOKKEEPING. YOU'VE GOT THE ONES ON THE OTHER END THAT ARE SMALLER DAIRIES THAT HAVE VERY LITTLE DEBT MAY HAVE A BOUTIQUE OPERATION WHERE THEY'RE BOTTLING THEIR OWN MILK OR THEY MAY HAVE A SPECIAL CONTRACT WITH LOCAL PRODUCERS. AND SO THEY CONTINUE TO THRIVE BECAUSE THEY'VE GOT A NICHE MARKET. COVINGTON SAYS MILK PRICES SHOULD REMAIN STRONG THROUGH THE END OF THE YEAR. BUT THE TWO WILDCARDS ARE TRADE DISRUPTIONS ADN A STRONG U-S DOLLAR. 

TEASE
WHEN WE COME BACK, WE'LL CONTINUE IN THE DAIRY AISLE, AND A TYPE OF MILK GAINING POPULARITY

IN THE COUNTRY
JUNE MARKS NATIONAL DAIRY MONTH. AND WHILE THOSE IN THE INDUSTRY ARE TOASTING TO THE HEALTH AND BENEFITS OF COW'S MILK, SOME IN THE INDUSTRY ARE CELEBRATING INNOVATION, INCLUDING HELP FOR INDIVIDUALS WHO HAVE A HARD TIME DIGESTING DAIRY.IT LOOKS AND TASTES JUST LIKE TRADITIONAL MILK , BUT THIS MILK LACKS A SPECIFIC PROTEIN.IT'S CALLED A-2 MILK AND IT'S SHOWING UP IN SUPERMARKETS ACROSS THE GLOBE. MOST COWS PRODUCE MILK THAT CONTAINS BOTH A1AND A2PROTEINS. BUT SOME COWS NATURALLY PRODUCE MILK WITHOUT THE A1PROTEIN. AND IT'S THAT PROTEIN THAT SOME CLAIM CAUSES BLOATING AND OTHER SYMPTOMS FOR CERTAIN PEOPLE. BUT SOME SCIENTISTS ARE NOT CONVINCED. AT SYRACUSE UNIVERSITY, BIOLOGY PROFESSOR MARGARET VOSS SAID THERE IS NOT ENOUGH EVIDENCE TO DRAW CONCLUSIONS. "THERE MAY BE INDIVIDUALS THAT PRODUCE ENZYMES THAT CANNOT DIGEST A1 MILK, SO IT IS PLAUSIBLE. BUT IN TERMS OF THE SCIENCE RIGHT NOW, THE LEVEL OF THE SCIENCE IS JUST NOT WHERE IT NEEDS TO BE. WE JUST DON'T HAVE THOSE CLINICAL TRIALS."HOWEVER, MOMENTUM IS GAINING, AS THE  SO CALLED A2 MILK IS SHOWING UP IN SUPERMARKET COOLERS AND NOW PRODUCERS HOPE CONSUMERS WILL PAY AN EXTRA $1 OR MORE A HALF-GALLON FOR A2."IT CONTAINS ONLY A2 PROTEIN IN THE MILK, WHICH MAKES IT EASIER TO DIGEST."THE RIPLEY FAMILY FARM IN UPSTATE NEW YORK RETAILS ITS MILK LOCALLY. BUT INTERNATIONAL COMPANIES ARE ALSO INVOLVED. NESTLE RECENTLY LAUNCHED AN A2INFANT FORMULA IN CHINA.AND THE AUSTRALIA-BASED A2MILK COMPANY IS PUSHING TO EXPAND ITS U.S. PRESENCE INTO THE LUCRATIVE NORTHEAST MARKET.

CLOSE
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR CINDI CLAWSON, AND ALL OF US HERE AT AGDAY. I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.

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