AgDay Daily Recap - February 16, 2011

February 16, 2011 02:47 AM
 

TODAY ON AGDAY:
FEBRUARY 16, 2011

CORN & CATTTLE ROOK:
U.S. CORN ENDING STOCKS ARE AT THEIR LOWEST LEVEL IN NEARLY 50 YEARS. ACCORDING TO THE FEBRUARY USDA SUPPLY AND DEMAND REPORT CARRYOUT WAS LOWERED DOWN TO 675 MILLION BUSHELS… IN LARGE PART DUE TO PROJECTIONS FOR INCREASED CORN USE FOR ETHANOL PRODUCTION. THOSE FIGURES HAVE PUSHED CORN PRICES TO RECORD LEVELS AND THEY MAY STAY THERE FOR AWHILE. AGDAY'S MICHELLE ROOK LOOKS AT HOW THAT IS LEADING TO A RENEWED PUSH FOR A CHANGE IN ETHANOL POLICY. SHE TALKED TO CATTLEMEN AT THE RECENT NCBA CONVENTION ABOUT THEIR TAKE ON THE FEED VERSES FUEL DEBATE. WHETHER IT'S CORN FOR FEED OR FOOD, THE DEBATE COULD RATCHET-UP IF WEATHER PROBLEMS CAUSE CORN YIELDS TO FALL BELOW TREND LINE. SHORTAGES COULD PRESSURE LAWMAKERS TO REVISIT THE CURRENT ETHANOL POLICY.

LIVESTOCK PRODUCTION:
AND MORE OF THAT CORN WILL GO TO FEED ANIMALS IF THE USDA'S LATEST PROJECTIONS HOLD TRUE. THE DEPARTMENT'S LONG VIEW AT THE LIVESTOCK INDUSTRY HAS IT PREDICTING GROWTH OVER THE NEXT FEW YEARS. IT BASES THOSE PREDICTIONS ON ASSUMPTIONS THAT CURRENT GOVERNMENT POLICIES, TRADE AGREEMENTS, WEATHER AND THE ECONOMY WILL REMAIN PRETTY MUCH THE SAME. U.S. RED MEAT AND POULTRY PRODUCTION IS FORECAST TO FALL IN 2012 ALONG WITH PER PERSON MEAT CONSUMPTION. BUT THANKS TO STRONG EXPORTS AND HIGHER PRICES, PRODUCERS WILL START EXPANDING AFTER THAT.  BEEF AND PORK PRODUCTION IS EXPECTED TO RISE IN 2013 AND GROW THROUGH THE REST OF THE DECADE.

DAIRY PRODUCTION:
LIVESTOCK NUMBERS AREN'T THE ONLY THING EXPECTED TO RISE.  USDA ALSO EXPECTS MILK PRODUCTION TO INCREASE OVER THE NEXT TEN YEARS. ACCORDING TO IS PROJECTIONS U.S. MILK PRODUCTION WILL RISE NEARLY 16% BY THE YEAR 2020. AT THE SAME TIME THE NUMBER OF COWS IS EXPECTED TO DECLINE BY ROUGHLY 300,000 HEAD. THE USDA PREDICTS MILK PRICES WILL GO FROM CURRENT LEVELS TO MORE THAN 18 AND HALF OVER THE NEXT TEN YEARS. IT WASN'T UNTIL RECENTLY THAT PRICES FOR MILK AND MILK PRODUCTS STARTED TO IMPROVE. THESE HIGHER MILK COME AT THE SAME TIME FEED COSTS ARE RISING.  AS I MENTIONED THE USDA PREDICTION MODEL IS BASED ON A STEADY WORLD ECONOMY.

FARMLAND VALUES KC:
AS FARM INCOMES BOOM AND DEMAND FOR FARMLAND REMAINS ROBUST, FARMLAND VALUES SOARED IN MUCH OF THE PLAINS STATES. THE FEDERAL RESERVE BANK OF KANSAS CITY RELEASED ITS QUARTERLY LAND-VALUES REPORT. THAT DISTRICT REPRESENTS ALL OR PART OF SEVEN STATES, FROM WESTERN MISSOURI TO WYOMING.  COMPARED TO THE FOURTH QUARTER OF LAST YEAR, THE VALUE OF IRRIGATED FARMLAND JUMPED NEARLY 15%. NONIRRIGATED WAS UP ALMOST 13%. RANCHLAND VALUES ROSE JUST OVER 9%. KANSAS NON-IRRIGATED SAW THE BIGGEST GAIN - NEARLY 20%. THE COMPLETE SURVEY IS AVAILABLE AT WWW.KANSASCITYFED.ORG .

TITAN PRICES:
IN AGRIBUSINESS TITAN TIRE CORPORATION IS RAISING PRICES. THE COMPANY SAYS THE UP TO 8% INCREASE HELPS OFFSET RISING RAW MATERIAL, ENERGY AND TRANSPORTATION COSTS. THE PRICE HIKE INCLUDES ALL TITAN AND GOODYEAR BRANDED FARM OR CONSTRUCTION TIRES. THE HIGHER COST IS SLATED TO BEGIN APRIL FIRST.

ANALYSIS:
GREG DOUD

IN THE COUNTRY; STRAWBERRIES:
IF YOUR TRAVELS TAKE YOU THROUGH THE SOUTHERN UNITED STATES, BE SURE TO KEEP YOUR EYES OPEN FOR FRESH STRAWBERRIES. WHEN MARCH ROLLS AROUND, IT'S BERRY-PICKING TIME. FOR GROWERS IN FLORIDA AND LOUISIANA, IT'S BEEN A PRETTY ROUGH WINTER. UNSEASONABLY COLD TEMPS HAVE TAKEN THEIR TOLL. IN THIS REPORT PROVIDED BY THE LSU AGCENTER, TOBIE BLANCHARD GIVES US A STATUS CHECK ON THE LOUISIANA STRAWBERRY CROP. THANKS TOBIE.
STILL TO COME EATING FISH IS GAINING POPULARITY AROUND THE WORLD. FOOD AND YOUR FAMILY IS NEXT.

FISH CONSUMPTION:
IN FOOD AND YOUR FAMILY THIS MORNING IT APPEARS MORE PEOPLE ARE ENJOYING THE FRUIT OF THE SEA. FISH CONSUMPTION HIT AN ALL TIME HIGH ACCORDING TO THE UN'S FOOD AND AGRICULTURE ORGANIZATION. THAT FAO SAYS GLOBAL FISH CONSUMPTION SUPPLIES MORE THAN 3 BILLION PEOPLE WITH 15% OR MORE OF THEIR ANIMAL PROTEIN INTAKE. AQUACULTURE IS ALSO ABOUT TO SURPASS CAPTURE FISHERIES AS THE MAIN SOURCE OF FISH. CHINA-- THE WORLD'S TOP FISH PRODUCER-- SUPPLIES NEARLY 33 MILLION TONS FROM AQUACULTURE

BETTER SOUP:
AND FINALLY THIS MORNING, GENERAL MILLS HAS WON THE RIGHT TO CLAIM ITS SOUPS ARE "NOW EVEN BETTER." IT GOT THE THUMBS UP FROM THE NATIONAL ADVERTISING DIVISION AT THE BETTER BUSINESS BUREAU. GENERAL MILLS MADE THE BETTER SOUP CLAIM AFTER REFORMULATING ITS PROGRESSO LIGHT SOUPS. CAMPBELLS SOUP FOUGHT BACK ARGUEING THE CLAIM IS VAGUE. BOTH COMPANIES HAVE SPENT THE LAST COUPLE OF YEARS IN WHAT THE INDUSTRY HAS TERMED 'SOUP WARS'. THE NAD SAYS GENERAL MILLS PROVIDED ENOUGH EVIDENCE TO SUPPORT ITS NOW EVEN BETTER SLOGAN.

CONTACT PAGE:
AS ALWAYS WE'D LOVE TO HEAR FROM YOU! CONTACT US AT 800-792-4329. SEND AN EMAIL TO INFO@AGDAY.COM . OR FIND US ON FACEBOOK AT WWW.FACEBOOK.COM/AGDAY .
 

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