AgDay Daily Recap - December 22, 2010

December 22, 2010 02:27 AM
 

TODAY ON AGDAY:
DECEMBER 22, 2010

RECORD PRICES:
GOOD MORNING. COMMODITY MARKETS ARE PUTTING A STAMP ON 2010 AS A RECORD YEAR FOR PRICES. WHILE CORN, WHEAT, AND SOYBEANS HAVE ALL SEEN MAJOR INCREASES, IT'S COTTON AND BEEF THAT ARE BREAKING RECORDS. BOTH COMMODITIES SET NEW HIGHS TUESDAY ON SUPPLY CONCERNS. IN FEEDER CATTLE FUTURES THE MARCH CONTRACT HIT A $1.23 A POUND BEFORE BACKING OFF TO $1.228. THAT'S THE HIGHEST PRICE SINCE THE COMMODITY STARTED TRADING IN 1971. PULLING PRICES SKYWARD...A SHRINKING NATIONAL HERD. THE U.S. NOW HAS THE LOWEST CATTLE POPULATION SINCE THE 1950'S. YET AS DEMAND AND PRICES RISE...FEEDLOTS CONTINUE TO BUY MORE FEEDERS.  PURCHASES WERE UP 6% LAST MONTH. COTTON ALSO CONTINUES TO REACH NEW RECORDS. THE FIBER TRADED LIMIT UP FOR A THIRD STRAIGHT DAY TUESDAY, THE MARCH CONTRACT REACHING 159 AT THE USDA CHICAGO TERMINAL. AS WE TOLD YOU YESTERDAY, WORLD PRODUCTION PROBLEMS ARE BEHIND SURGE. CHINA'S LARGEST PRODUCING REGION EXPECTS OUTPUT TO BE 22% LOWER COMPARED TO A YEAR AGO DUE TO NATURAL DISASTERS. INDIA, THE U.S. AND NOW AUSTRAILIA ARE ALSO REPORTING WEATHER RELATED PRODUCTION ISSUES. ANALYSTS SAY IT WOULDN'T BE ABSURD TO SEE PRICES CONTINUE THEIR CLIMB. SOME EVEN PREDICT PRICES REACHING $1.75. MARK LANGE PRESIDENT AND CEO OF THE NATIONAL COTTON COUNCIL SAYS HE EXPECTS MARKETS TO REMAIN STRONG IN 2011. LANGE SAYS THAT DOESN'T MEAN PRODUCERS SHOULD EXPECT $1.50 COTTON. HE BELIEVES THE MARKET WILL LEARN FROM 2011 AND SORT MANY OF THE CURRENT ISSUES OUT. LANGE DOES HOWEVER, BELIEVE PRICES WILL REMAIN HIGHER...EVEN IF THEY AREN'T SETTING RECORDS.

SALES OUTLOOK:
IN MACHINERY MINUTE...THE ASSOCIATION OF EQUIPMENT MANUFACTURERS JUST RELEASED ITS BUSINESS OUTLOOK SURVEY FOR THE UPCOMING YEAR. . .AND IT LOOKS POSITIVE FOR TRACTOR MAKERS.  AG MACHINERY MANUFACTURERS EXPECT THIS YEAR WILL CLOSE OUT WITH 2.4% GROWTH FROM A YEAR AGO. LOOKING AHEAD TO 2011, THEY EXPECT A GAIN OF 3.7% IN HIGHER SALES. THEIR FORECAST SHOWS A 2-3 POINT GAIN FOR EACH OF THE NEXT THREE YEARS. THE SURVEY-BASED DATA SHOWS THAT DEMAND IS EXPECTED TO REMAIN IN THE "PLUS" COLUMN FOR MOST EQUIPMENT. AEM SAYS EQUIPMENT SALES ARE NOT BACK TO PRE-RECESSION LEVELS, BUT MANY CUSTOMERS ARE BUYING BECAUSE OF OPTIMISM DUE TO COMMODITY PRICES.

GHG EMISSION TOOLS:
IF YOU'RE WONDERING HOW TO MEASURE THE GREENHOUSE GAS EMISSIONS ON YOUR FARM, THERE'S A NEW, ENHANCED ON-LINE TOOL THAT CAN HELP. THE NATURAL RESOURCES CONSERVATION SERVICE AND COLORADO STATE UNIVERSITY COLLABORATED ON THE CONSERVATION TOOL. THE UPGRADED TOOL IS CALLED "COMET VR 2.0". THE ONLINE TOOL ESTIMATES CARBON SEQUESTRATION AND GREENHOUSE GAS EMISSIONS WHEN YOU START VARIOUS CONSERVATION PRACTICES FOR CROPLAND AND PASTURES. THE WEBSITE IS KINDA COMPLICATED TO SPELL-OUT, SO WE'LL JUST PUT A LINK ON OUR HOMEPAGE FOR YOUR EASE.

SARA LEE JOBS:
IN AGRIBUSINESS THIS MORNING, THERE'S SPECULATION THE WORLD'S LARGEST BEEF PACKER IS IN TALKS TO BUY SARA LEE. THE ILLINOIS BASED, FOOD COMPANY IS SAID TO BE DISCUSSING SELLING TO JBS FOR SOME 10 BILLION DOLALRS. SARA LEE SOLD ITS BAKERY BUSINESS TO A MEXICAN COMPANY IN NOVEMBER. IT STILL OWNS MANY CORE BRANDS LIKE JIMMY DEAN SAUSAGE AND BALL PARK FRANKS.

CHINA CORN IMPORT:
AND THE U.S. GRAINS COUNCIL SAYS IT EXPECTS ANOTHER BIG YEAR FOR EXPORTS. IT FORCASTS NEW RECORDS IN CHINA AS THAT COUNTRY CONTINUES TO BUY HIGH VOLUMES OF U.S. CORN. THE COUNCIL EXPECTS CHINA TO IMPORT AROUND 7.4 MILLION TONS OF U.S. CORN IN 2011. THAT'S FIVE TIMES HIGHER THAN THIS YEAR. NEW REPORTS ANTICIPATE CHINA WILL BYPASS JAPAN AS THE LARGEST U.S. CUSTOMER...BUYING NEARLY 25 MILLION TONS BY THE YEAR 2015.

ANALYSIS:
RICHARD BROCK

IN THE COUNTRY; CHRISTMAS CAROLERS:
WITH RADIO STATIONS PROGRAMMED TO NON-STOP CHRISTMAS MUSIC, AND EVERY STORE PLAYING THOSE HOLIDAY FAVORITES AS WELL, THERE'S REALLY NO SHORTAGE OF THE SOUNDS OF THE SEASON. BUT CAN ANY OF THOSE COMPARE TO GOOD OLE-FASHIONED CHRISTMAS CAROLERS? THESE DAYS IT'S GETTING HARDER AND HARDER TO FIND STROLLING YULETIDE SINGERS, BUT NOT IF YOU LIVE IN AMIDON, NORTH DAKOTA? OUR GOOD FRIEND CLIFF NAYLOR FROM KFYR-TV SAYS EVERYONE IN TOWN IS SERENADED INTO A FESTIVE SPIRIT BY THE STUDENTS WHO ATTEND THE ONE ROOM SCHOOL.

CHRISTMAS SPECIAL:
THANKS CLIFF. IT'S NICE TO SEE THE TRUE CHRISTMAS SPIRIT ALIVE AND WELL IN THE HEARTLAND OF AMERICA. WE'LL BE BRINGING YOU MORE HEART-WARMING STORIES THAT REPRESENT THE TRUE SPIRIT OF THE SEASON THIS FRIDAY. ONE OF OUR FEATURES TAKES US TO CENTRAL INDIANA WHERE THE DULL FAMILY HAS BEEN GROWING CHRISTMAS TREES FOR 25 YEARS. ON ONE SPECIAL WEEKEND THEY BRING IN SOME BIG, BEAUTIFUL DOGS TO HELP MAKE THE TREE-CUTTING EXPERIENCE EVEN MORE ENJOYABLE. THE "NEWFIES" ACTUALLY HELP BRING THE TREES FROM THE FOREST. BUT THERE'S MUCH MORE TO THIS STORY THAN THEIR WORK IN THE SNOW. WE HOPE YOU JOIN US THIS FRIDAY MORNING, AS WE CELEBRATE CHRISTMAS IN THE COUNTRY. IT'S A PROGRAM WE THINK THE ENTIRE FAMILY CAN ENJOY...TOGETHER. STILL TO COME ON AGDAY, MANY AMERICANS GIVE THE GIFT OF FRUIT THIS HOLIDAY SEASON. WE'LL TAKE A TRIP SOUTH TO LOUISIANNA WHERE CITRUS GROWERS ARE HAPPY TO SIMPLY SURVIVE IN 2010.

CITRUS CHRISTMAS:
IN FOOD AND YOUR FAMILY FLORIDA CITRUS GROWERS ARE IN HYPERDRIVE TO FULFILL HOLIDAY CITRUS ORDERS. ACCORDING TO THE FLORIDA GIFT FRUIT SHIPPERS ASSOCIATION, THIS IS THE PEAK TIME OF YEAR FOR GROWERS. PICKED FRUIT GETS PLACED IN BASKETS AND SHIPPED AS PRESENTS ACROSS THE U.S. IN 2009 A SLOW ECONOMY REDUCED THE NUMBER OF BASKETS SENT BY 5%. THIS YEAR SOME PACKERS PREDICT ANOTHER FIVE PERCENT DROP. HOWEVER, THE SHIPPERS ASSOCIATION SAYS HOLD ON...IT'S STILL EARLY. THEY EXPECT A FLURRY OF ORDERS THIS LAST WEEK BEFORE CHRISTMAS.

LOUISIANA CITRUS:
AND IN LOUISIANA, A STATE NOT KNOWN FOR ITS CITRUS...GROWERS ARE HANGING ON. LSU AGCENTER'S TOBIE BLANCHARD TELLS US THE CITRUS INDUSTRY IS SURVIVING DESPITE HURRICANES AND FREEZES.

CONTACT PAGE:
WE KNOW YOU AND YOUR FAMILY WILL BE SOLVING THE WORLD'S PROBLEMS THIS HOLIDAY SEASON. WHY NOT THROW AGDAY INTO THE MIDDLE OF THOSE FAMILY DISCUSSIONS. GIVE US A CALL, SEND US AN EMAIL OR POST A COMMENT ON OUR FACEBOOK PAGE AT WWW.FACEBOOK.COM/AGDAY .
 

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