AgDay Daily Recap - February 10, 2011

February 10, 2011 04:17 AM
 

TODAY ON AGDAY:
FEBRUARY 10, 2011

WASDE REPORT:
USDA MADE A BIGGER THAN EXPECTED CUT TO U.S. CORN ENDING STOCKS, HITTING LEVELS NOT SEEN IN 15 YEARS. THAT'S THE TOP STORY THIS MORNING FROM USDA'S FEBRUARY SUPPLY-DEMAND REPORT. AS A RESULT, MARCH CORN CLOSED JUST UNDER SEVEN DOLLARS. USDA LOWERED ITS CORN CARRYOVER PROJECTION ANOTHER 70 MILLION BUSHEL FROM LAST MONTH, DROPPING IT TO A VERY TIGHT 675 MILLION BUSHELS. OUR PARTNERS AT PROFARMER NEWSLETTER SAY FOR COMPARISON, LAST YEARS CARRYOUT WAS 1.7 BILLION BUSHELS. USDA MADE NO CHANGES TO THE SUPPLY SIDE OF THE BALANCE SHEET. ON THE USAGE SIDE, USDA UPPED FOOD, SEED AND INDUSTRIAL USE. OF THAT INCREASE, 50 MILLION BUSHELS WENT TO ETHANOL PRODUCTION, WHICH IS NOW PROJECTED AT JUST UNDER FIVE BILLION BUSHELS. PRO FARMER SENIOR MARKET ANALYST BRIAN GRETE SAYS THE WORD "RATION" IS STILL IN THE CONVERSATION.

OTHERS:
THANKS BRIAN. USDA LEFT SOYBEAN CARRYOVER UNCHANGED FROM JANUARY AT 140 MILLION BUSHELS, WHICH MEANS THE PROJECTION CAME IN 5 MILLION BUSHELS ABOVE THE AVERAGE PRE-REPORT GUESS. USDA ALSO LEFT ITS WHEAT CARRYOVER PROJECTION AT 818 MILLION, WHICH IS 8 MILLION BUSHELS ABOVE THE AVERAGE PRE-REPORT TRADE GUESS. USDA'S COTTON CARRYOVER PROJECTION WAS UNCHANGED FROM LAST MONTH AT ONE-POINT NINE MILLION BALES.

SPECIAL EDITION PROMO:
WITH THE ETHANOL INDUSTRY CONTINUING TO SOAK UP BUSHELS OF CORN, LIVESTOCK PRODUCERS ARE VOICING OPPOSITION. LAST WEEK AT THE 2011 CATTLE INDUSTRY CONVENTION, THE NATIONAL CATTLEMEN'S BEEF ASSOICATION SAYS ITS CONCERNS OVER HIGHER CORN PRICES AND ETHANOL SUBSIDIES. THIS ISN'T THE ONLY ISSUE THE CATTLEMEN AND WOMEN ARE DEALING WITH THIS YEAR. COMING UP THIS FRIDAY, JOIN US FOR A SPECIAL EDITION OF AGDAY FOCUSING ON THE 2011 CATTLE INDUSTRY CONVENTION AND NCBA TRADE SHOW FROM DENVER COLORADO.

KOREA FMD:
IN OTHER NEWS, USDA'S FOREIGN AG SERVICE SAYS KOREA'S OUTBREAK OF FOOT-AND-MOUTH DISEASE WILL RESULT IN GREATER DEMAND FOR U.S. PORK PRODUCTS, BUT LESS DEMAND FOR U.S. CORN INTO NEXT YEAR.  SO FAR, TEN MILLION SWINE AND THREE MILLION HEAD OF CATTLE HAVE BEEN DESTROYED. FAS SAYS PORK IMPORTS TO THE COUNTRY COULD GO UP AS MUCH AS 40% OVER A YEAR-AGO. BUT THE DROP IN KOREA'S SWINE HERD HAS ALREADY RESULTED IN A MILLION-TON REDUCTION IN THIS YEAR'S CORN IMPORT ESTIMATE.

AG SECRETARY TRADE:
MEANWHILE, THE NATIONAL PORK PRODUCERS COUNCIL SAYS THE U.S. CONTINUES TO LOSE MARKET SHARE EVERY DAY THE SOUTH KOREA FREE-TRADE AGREEMENT IS NOT SIGNED. ON TUESDAY, A GROUP OF EIGHT FORMER SECRETARIES OF AGRICULTURE SENT A LETTER TO CONGRESS URGING LAWMAKERS TO RATIFY THE FTA. THE LIST INCLUDED SECRETARIES WHO SERVED REPUBLICAN AND DEMOCRATIC PRESIDENTS FROM JIMMY CARTER TO GEORGE W. BUSH. IN THEIR LETTER, THE SECRETARIES SAID ONLY 14-MILLION DOLLARS OF U.S. AG GOODS ENTER KOREA DUTY-FREE RIGHT NOW. WITH THE FTA, IT WOULD INCREASE TO THREE BILLION DOLLARS.

DOWNER CATTLE:
PROMPTED BY PETITIONS FROM TWO ANIMAL ACTIVIST GROUPS, THE FOOD SAFETY AND INSPECTION SERVICE SAYS IT IS ASKING FOR PUBLIC COMMENTS ON ISSUES SURROUNDING THE SLAUGHTER OF DOWNED OR NON-AMBULATORY LIVESTOCK. THE PETITIONS COME FROM THE HUMANE SOCIETY OF THE U-S AND FARM SANCTUARY. HSUS ASKED USDA TO REVOKE AN EXEMPTION THAT ALLOWS DOWNER CATTLE TO BE SLAUGHTERED FOR HUMAN CONSUMPTION IF THEY ARE SET-ASIDE AND LATER BECOME AMBULATORY. THE ANIMAL RIGHTS GROUP SAYS THE EXEMPTION GIVES COMPANIES THE INCENTIVE TO PUSH THESE NON-AMBULATORY VEAL CALVES TO BE AMBULATORY SO THEY COULD BE SLAUGHTERED. FARM SANCTUARY'S PETITION IS BROADER IN SCOPE, TO INCLUDE ALL LIVESTOCK SPECIES. FSIS SAYS BEFORE IT INITIATES RULEMAKING, IT WILL SOLICIT PUBLIC INPUT. THE DEADLINE IS APRIL 8TH.

ANALYSIS INTRO:
AS WE MENTIONED EARLIER, FARMERS AREN'T THE ONLY ONE'S WATCHING CORN PRICES. LIVESTOCK PRODUCERS ARE KEEPING A CLOSE EYE ON FUTURES PRICES AS WELL. AS MICHELLE ROOK FOUND OUT LAST WEEK AT THE 2011 CATTLE INDUSTRY CONVENTION, HIGHER PRICES MAY MEAN HAVING A CONVERSATION AT THE BANK.

ANALYSIS:
MICHELLE ROOK

IN THE COUNTRY; CHOCOLATE CLASS:
THIS MORNING WE'RE HEADED BACK TO CLASS FOR CHOCOLATE 101. THAT'S RIGHT, THERE'S ACTUALLY A COLLEGE COURSE WHERE STUDENTS CAN LEARN ABOUT THE HEALTH BENEFITS OF CHOCOLATE. SINCE WE'RE JUST A COUPLE OF DAYS AWAY FROM VALENTINES DAY, AND CHOCOLATE HAPPENS TO BE A VERY POPULAR GIFT, WE THOUGHT WE'D ENROLL IN THE COURSE. HERE'S CHUCK DENNEY FROM THE UNIVERSITY OF TENNESSEE. ACCORDING TO THE NATIONAL CONFECTIONERS ASSOCIATION, MORE THAN 36 MILLION HEART-SHAPED BOXES OF CHOCOLATE WILL BE SOLD FOR VALENTINE'S DAY. IT'S THE FOURTH BIGGEST HOLIDAY OF THE YEAR FOR CANDY PURCHASES AFTER HALLOWEEN, EASTER AND CHRISTMAS. AND A MAJORITY OF AMERICAN MEN SAY THEY'D RATHER RECEIVE CHOCOLATE THAN FLOWERS ON VALENTINE'S DAY, ESPECIALLY THOSE OVER THE AGE OF 50. ENJOY THE SWEETS! IF YOU HAVE ROOM...FOOD AND YOUR FAMILY IS NEXT.

DIET AND IQ:
IF YOU WANT TO HAVE SMARTER KIDS, GET RID OF THE SNACKS AND ADD SOME FARM-FRESH PRODUCE TO THE TABLE. DETAILS IN THIS MORNING'S FOOD AND YOUR FAMILY. NEW RESEARCH SUGGESTS THAT A DIET HIGH IN FATS, SUGARS, AND PROCESSED FOODS IN EARLY CHILDHOOD MAY RESULT IN LOWER IQ SCORES. LIKEWISE, A DIET RICH IN HEALTHY FOODS PACKED WITH VITAMINS AND NUTRIENTS MAY WORK IN REVERSE, THAT'S ACCORDING TO A REPORT FOUND ON WWW.FOODNAVIGATOR.COM . THE STUDY WAS CONDUCTED BY A UNIVERSITY IN THE UK. THE STUDY REPORTS AN ASSOCIATION BETWEEN DIETARY PATTERNS IN EARLY CHILDHOOD, AND GENERAL INTELLIGENCE ASSESSED AT EIGHT AND A HALF YEARS OF AGE. THE RESULTS OF THE STUDY SUGGEST THAT THE EATING HABITS IN EARLY CHILDHOOD - PARTICULARLY UP UNTIL THE AGE OF THREE - MAY PLAY A ROLE IN SHAPING THE DEVELOPMENT OF THE BRAIN, AND COULD AFFECT BEHAVIOR, LEARNING PERFORMANCE AND I-Q IN LATER LIFE.

MN OBESITY LAW:
MEANWHILE IN MINNESOTA, A STATE LAWMAKER SAYS IF YOU'RE OBESE, BLAME YOURSELF...NOT A RESTAURANT. REPUBLICAN DEAN URDAHL HAS INTRODUCED LEGISLATION THAT WOULD BAN PEOPLE FROM SUING RESTAURANTS FOR THEIR WEIGHT PROBLEMS. IT'S CALLED THE PERSONAL RESPONSIBILITY IN FOOD CONSUMPTION ACT. URDAHL SAYS HIS BILL WOULD SHIELD RESTAURANTS, FARMERS AND OTHERS IN THE FOOD BUSINESS FROM FRIVOLOUS LITIGATION. THE LAWMAKER HAS ATTEMPTED SEVERAL TIMES SINCE 2004 TO PASS THE SAME LAW, BUT HAS FAILED. NOW WITH REPUBLICANS CONTROLLING BOTH HOUSES IN MINNESOTA, HE FEELS THE LAW HAS A CHANCE TO PASS. WHAT DO YOU THINK ABOUT THIS PROPOSED MINNESOTA LAW? SHOULD RESTAURANTS AND FARMERS BE PROTECTED FROM LAWSUITS ASSOCIATED WITH OBESITY? SEND YOUR COMMENTS TO THE AGDAY INBOX. THAT ADDRESS IS INBOX@AGDAY.COM . YOU CAN ALSO SUBMIT SOME COMMENTS ON THE FACEBOOK PAGE. WE'LL SHARE SOME OF YOUR COMMENTS NEXT WEEK.
 

 

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