AgDay Daily Recap - February 10, 2012

February 10, 2012 03:39 AM
 

TODAY ON AGDAY
FEBRUARY 10, 2012

SUPPLY DEMAND:
The February USDA reports are not typically big market makers. And Thursdays was no exception. The Ag Department focused on South America weather problems. USDA projected a dip in domestic corn supplies by 50-million-bushels due to an increase in exports. U.S. corn ending stocks came in at 801 million bushels.

SO AM CORN:
USDA cut Argentina’s corn production to 22 million metric tons. That's a four million metric ton dip due to high temps and extensive dryness during pollination. Brazil’s corn production was unchanged.

SO AM SOYBEAN:
As far as soybeans, Argentina’s crop is projected at 48 million tons, down 2.5 million. Brazil soybean production is forecast at 72 million tons, down two million due to lower projected yields. Again, the dry weather is to blame.

MATT ROBERTS EXPORTS:
There is also a smaller crop in neighboring Paraguay. Those three countries are large exporters of soybeans. So what impact will the smaller South American crop have on U.S. exports?

WHEAT STOX:
According to our analysts, about the only real surprise came in wheat. U.S. wheat ending stocks for 2011-12 are projected lower this month. Boosted by stronger-than-expected sales, USDA raised exports by 25 million bushels. Projected exports of soft red winter and white wheat are up on strong demand from Mexico and South Korea.

BRIAN GRETE REAX:
Another supply-demand report will come-out next month. However, the big report traders are waiting for is the March 20th prospective plantings report.

FLOOD TO FIRE:
Thanks Clinton. The La Nina pattern driving most of that wild weather last year, actually set up in the fall of 2010. It brought with it record setting results - many of which had not been touched since U.S. weather records began in the 1800's. So far in 2012, we've had the winter that wasn't and our climate experts say shaking out of this La Nina pattern may take some time. Climatologists say one of the reason we keep having these frequent, extreme, weather events is partly due to warming temperatures in the north pacific. Any chance of that going away? There's always a chance, but the climatologists tell us it's been there for at least ten years. Thanks Tyne. Nice job this week. Very interesting.

ANALYSIS:
Bob Utterback

IN THE COUNTRY; TRACKING NORTHERN PIKE:
In spite of the ice, winter can actually provide pretty good fishing. One prize catch is the northern pike. The predator fish is found throughout the upper tier of states. In Iowa, the Department of Natural Resources is working to get it established along the Mississippi river. Joe Wilkinson from the Iowa DNR, shows us how they're tracking these special fish. Thanks Joe. Food and Your Family is next.

SOUP CONSUMPTION:
In Food and Your Family it appears a growing number of restaurant goers are pushing aside fries and opting for soup or salad. According to food industry research firm Tech-nomic, consumers are seeking lighter, healthier and more affordable options. Tech-nomic found 61% of consumers are now choosing soup when ordering from the menu.
That's up from 52% two years ago. Meanwhile, going green--with salad-- for an appetizer or meal had an even larger bump. Almost half ordered salads either every time or most of the time compared to 34% just a couple years ago.

FOOD PRICES:
Food prices may be higher when you make your way to the grocery store, and not just in the U.S. According to the United Nations Food and Agriculture Organization, global food prices were up 1.9% in January contributing to the biggest gain in 11 months. The rising cost of oilseeds, dairy and grains are behind the price gain. According to the organization, higher food prices are also driving up living costs in china.
 

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