AgDay Daily Recap - August 5, 2011

August 5, 2011 04:46 AM
 

TODAY ON AGDAY:
AUGUST 5, 2011

YIELD PREDICTIONS:
GOOD MORNING. AS THE DOG DAYS OF SUMMER BAKE AMERICAN FIELDS PREDICTIONS FOR THIS YEAR'S CROPS ARE STARTING TO EMERGE. NEXT WEEK THE USDA RELEASES IT'S LATEST SUPPLY DEMAND REPORT WHICH INCLUDES A PRODUCER SURVEY. THE TRADE WILL BE WATCHING CLOSELY FOR CUES TO 2011 YIELDS. PRIVATE FIRM ALLENDALE INCORPORATED RELEASED ITS OWN NUMBERS AHEAD OF THE REPORT. ON CORN IT'S PREDICTING LOWER PLANTED AND HARVESTED ACRES WITH A COMBINED YIELD COMING IN AT 155 BUSHELS PER ACRE AND A TOTAL OF 12.9 BILLION BUSHELS. INFORMA ECONOMICS IS ALSO DROPPING PREVIOUS PREDICTIONS DOWN TO 158 BUSHELS PER ACRE ON TOTAL PRODUCTION OF 13.4 BILLION BUSHELS. FOR SOYBEANS, ALLENDALE EXPECTS PRODUCTION OF 42 BUSHELS PER ACRE TOTALING 3.1 BILLION BUSHELS. INFORMA AGREES. IT’S PREDICTING YIELDS AT 42.5 BUSHELS PER ACRE AND JUST OVER 3.1 BILLION BUSHELS. I SPENT THE LAST COUPLE OF AT FARMFEST IN REDWOOD FALLS MINNESOTA. THAT'S IN THE SOUTHWEST PART OF THE STATE. PRODUCERS THERE SAY CROPS LOOK PRETTY GOOD BUT ARE STILL SKEPTICAL OF HITTING RECORD YIELDS.

FARM FEST:
ALSO ON HAND FRESH OFF HIS VOTES FOR THE DEBT CEILING IN WASHINGTON WAS MINNESOTA SENATOR AL FRANKEN. HE SPOKE TO ATTENDEES ABOUT THE IMPORTANCE OF AGRICULTURE AND THE CURRENT DEBATES GOING ON IN WASHINGTON. FRAKEN BELIEVES THE COMING BIPARTISAN SUPER COMMITTEE OF 12--TASKED FIND MORE BUDGET CUTS--WILL BE THE MOST LOBBIED GROUP IN HISTORY. HE SAYS ITS LIKELY AGRICULTURE WILL SEE REDUCTIONS.

FARM FEST FRANKEN:
FRANKEN SAYS HE'S NOT SURE HOW CUTS WILL BE MADE BUT IT'S LIKELY THE AG COMMITTEES WILL SIMPLY GET A BUDGET TO WORK WITH. HE ALSO THINKS ETHANOL WILL STRUGGLE TO FIND FUNDING FOR INFRASTRUCTURE.

CROPLAND VALUES:
ON THURSDAY THE AG DEPARTMENT RELEASED ITS ANNUAL REPORT ON THE VALUE OF FARMLAND. FARM REAL ESTATE- WHICH WOULD INCLUDE FARM BUILDINGS- ROSE NEARLY SEVEN PERCENT OVER LAST YEAR.  THE AVERAGE PRICE IS REACHING AN AVERAGE VALUE OF ABOUT 2,300 DOLLARS AN ACRE. BY REGION THE BIGGEST GAIN WAS SEEN IN THE CORNBELT, UP 16%. THERE WAS A 2% DECLINE IN THE SOUTHEAST. THE HIGHEST VALUES REMAIN IN THE NORTHEAST AT 4,700 DOLLARS. ON CROPLAND ALONE, THE VALUE INCREASED MORE THAN NINE PERCENT NATIONWIDE. THE STRONGEST INCREASE FOR ANY STATE WAS IOWA, UP 24%.

AG ECONOMY GROWTH:
AS THE U.S. ECONOMY REALS FROM A 500 POINT DROP IN THE DOW, A NEW STUDY OUT OF IOWA STATE SAYS AGRICULTURAL SCIENCES ARE DRIVING ECONOMIC GROWTH THROUGH THE MIDWEST. THE SURVEY LOOKS AT 12 MIDWEST STATES FROM NORTH DAKOTA TO OHIO. IT FOUND 45% ALL AG EXPORTS COME FROM THIS REGION AND ACCOUNT FOR 800,000 FARMS AND NEARLY 90,000 COMPANIES. TOGETHER ABOUT 2 AND HALF MILLION PEOPLE ARE EMPLOYED WITH AN ECONOMIC VALUE OF 125 BILLION. ON AVERAGE AG JOBS IN THE REGION PAY ABOUT 2,600 DOLLARS MORE THAN THE AVERAGE PAY AT OTHER PRIVATE SECTOR BUSINESSES.

IRRIGATED CROPS:
IN THE SOUTHERN U.S. STATES CONTINUE TO DEAL WITH HISTORIC HEAT.  HEAT ADVISORIES HAVE BEEN POSTED FOR 15 STATES AND LITTLE ROCK HIT A RECORD OF 114 DEGREES. KANSAS SAYS ITS BEEN THE FIFTH HOTTEST JULY ON RECORD. IN THE BOILING HEAT EVEN IRRIGATION CAN'T KEEP UP. ACCORDING TO REPORTS AT KCBD TV, PRODUCERS IN LAMB COUNTY TEXAS SAY THE LUCK HAS RUN OUT FOR COTTON. FARMERS SAY THEY'VE OVER SPENT TRYING TO PUMP LIFE BACK INTO FIELDS. NOW, EVEN THAT WATER ISN'T ENOUGH...PRODUCERS ARE SIMPLY GIVING UP AND SHUTTING OFF THE PUMPS. CORN PRODUCERS IN PARTS OF TEXAS, OKLAHOMA AND KANSAS ARE DOING THE SAME.

LOUISIANA HYPOXIA:
IN OTHER NEWS - DESPITE THE RECORD FLOODING THIS SPRING AND SUMMER ALONG THE MISSISSIPPI RIVER, THE HYPOXIA AREA AT THE MOUTH OF THE RIVER IS NOT AS LARGE AS SOME SCIENTISTS EXPECTED. A TEAM OF RESEARCHERS FROM LOUISIANA STATE MONITOR THE SO-CALLED "DEAD ZONE" WHERE THE MISSISSIPPI DUMPS INTO THE GULF OF MEXICO. THEY SAY IT'S LARGER THAN AVERAGE, BUT BELOW THE SIZE THEY EXPECTED IT TO GET BECAUSE OF WIDESPREAD FLOODING. HYPOXIA IS CAUSED BY NUTRIENT OVERLOAD. IT CAUSES OVERGROWTH OF SOME PLANT LIFE WHICH REDUCES OXYGEN LEVELS IN THE WATER. THE ZONE MEASURED AT 6,700 SQUARE MILES.

BRAZIL GM CROPS:
A NEW STUDY OUT OF BRAZIL SAYS THAT COUNTRY CONTINUES ITS ADOPTION OF GM CROPS. THE LATEST NUMBERS BY CELERES SHOWS MORE THAN 80% OF SOYBEANS, 65% OF CORN AND 40% OF COTTON IS PLANTED USING GM SEEDS. THEY EXPECT THOSE NUMBERS TO BE EVEN HIGHER NEXT YEAR AS NEW, BETTER ADAPTED VARIETIES FIND THEIR WAY TO THE BRAZILIAN MARKET.

KRAFT FOODS:
IN AGRIBUSINESS, FOOD GIANT KRAFT FOODS SAYS IT WILL SPLIT INTO TWO COMPANIES - ONE FOCUSED ON SNACKS AND THE OTHER ON GROCERIES. THE SNACK PORTION OF THE KRAFT BUSINESS IS REPORTED 32 BILLION DOLLARS IN REVENUE. THEIR PRODUCT LINES INCLUDE CADBURY CHOCOLATES AND TRIDENT GUM. MEANWHILE THE GROCERY DIVISION - WHICH INCLUDES CHEESE AND DAIRY PRODUCTS - HAD REVENUES OF 16 BILLION DOLLARS. THOSE ICONIC PRODUCTS INCLUDE KRAFT MACARONI AND CHEESE, OSCAR MAYER MEATS, MAXWELL HOUSE COFFEE AND JELL-O. KRAFT SAYS THE MOVE WILL ALLOW EACH ENTITY TO FOCUS ON ITS CORE PRODUCTS. THE CREATION OF THE TWO COMPANIES WILL TAKE SOME TIME TO FACILITATE, BUT KRAFT EXPECTS THE DEAL TO BE DONE BY THE END OF 2012.

ADM:
AG GIANT, ARCHER DANIELS MIDLAND SAYS IT'S BUYING ANOTHER GRAIN ELEVATOR AND FEED COMPANY IN IOWA. ADM SAYS IT WILL ACQUIRE ENGLISH RIVER PELLETS IN SOUTHEAST IOWA. THEY SAY MOVE WILL HELP SOURCE SOYBEANS AND CORN FOR PROCESSING PLANTS IN QUINCY ILLINOIS AND CEDAR RAPIDS. THIS COMES ON HEALS OF NEWS THAT ADM, WORLD'S LARGEST GRAIN PROCESSOR, SAW AN UNEXPECTED 15% DROP IN PROFITS DURING ITS FISCAL FOURTH QUARTER. HIGHER CORN PRICES AND RISING TAX EXPENSES WEIGHED DOWN ADM BALANCE SHEETS.

ANALYSIS:
GARY WILHELMI

IN THE COUNTRY; GROTTO:
MANY OF OUR VIEWERS MAY REMEMBER GETTING SUMMONED TO CHURCH BY THE SOUND OF BELLS. THAT SOUND STILL RESONATES ACROSS THE NORTH DAKOTA PRAIRIE, EVEN THOUGH SOME OF THE CHURCHES NO LONGER EXIST. ABOUT 20 YEARS AGO, A FARM FAMILY - THE VETTERS - BUILT A GROTTO ON THEIR LAND IN EMMONS COUNTY, NORTH DAKOTA. THEY COLLECTED AN ASSORTMENT OF BELLS FROM OLD, ABANDONED CHURCHES. CLIFF NAYLOR FROM AFFILIATE KFYR SAYS PARISHONERS STILL ANSWER THE CALL TO WORSHIP. THANKS CLIFF. UP NEXT, A NATIONWIDE RECALL INVOLVING SOME GROUND TURKEY. WE'LL HAVE DETAILS IN FOOD AND YOUR FAMILY.

SALMONELLA SCARE:
IN FOOD AND YOUR FAMILY CARGILL IS RECALLING 36-MILLION POUNDS OF GROUND TURKEY. FEDERAL HEALTH OFFICIALS BELIEVE THE PRODUCT MAYBE TO BLAME FOR THE DEATH OF A CALIFORNIA MAN. USDA AND THE CDC ARE INVESTIGATING A MULTI-STATE OUTBREAK OF SALMONELLA 'HEIDELBERG' INFECTIONS. IN ADDITION TO THE DEATH IN CALIFORNIA, 77 PEOPLE IN 26 STATES HAVE GOTTEN ILL FROM THE CONTAMINATION. THOUGHT PRODUCED BY CARGILL, THE TURKEY IS SOLD UNDER VARIOUIS NAMES. THE CDC SAYS THIS PARTICULAR STRAIN IS RESISTANT TO MANY OF THE USUAL DRUGS USED TO FIGHT IT.

BLUEBERRIES DIRTY DOZEN:
WE HAVE AN UPDATE THIS MORNING ON A STORY WE FIRST TOLD YOU ABOUT IN JUNE. A LIBERAL WATCHDOG GROUP - CALLED THE ENVIRONMENTAL WORKING GROUP - RELEASED ITS ANNUAL LIST OF FRUITS AND VEGETABLES PEOPLE SHOULD AVOID BECAUSE THEY'RE TREATED WITH PESTICIDES. THE GROUP CALLS IT THEIR "DIRTY DOZEN". IT WAS CRITICAL OF APPLES AND BLUEBERRIES. NOW RESEARCHERS AT THE UNIVERSITY OF CALIFORNIA AT DAVIS IS CHALLENGING THE GROUP'S CONCLUSIONS, ESPECIALLY WHEN IT COMES TO BLUEBERRIES.
FOOD SCIENTISTS AT UC-DAVIS SAY INCLUDING BLUEBERRIES TO THE LIST IS NOT JUSTIFIED. IT SAYS EWG'S METHODOLOGY DOES NOT FOLLOW ANY ESTABLISHED SCIENTIFIC PROCEDURES. THE STUDY AUTHORS SAY THE METHODS USED BY EWG IS NOT SUFFICIENT TO ALLOW ANY MEANINGFUL RANKING AMONG COMMODITIES. THE UNIVERSITY'S STUDY WAS PUBLISHED IN THE "JOURNAL OF TOXICOLOGY"

CONTACT PAGE:
WE'D LOVE TO HEAR FROM YOU! CONTACT US AT 800-792-4329. OR DROP AN EMAIL TO INBOX@AGDAY.COM. YOU CAN ALSO CHECK US OUT ON SOME OF THAT NEW TECHNOLOGY, AT WWW.FACEBOOK.COM/AGDAY.
 

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