AgDay Daily Recap - January 13, 2011

January 13, 2011 03:23 AM
 

TODAY ON AGDAY:
JANUARY 13, 2011

USDA REPORTS:
GOOD MORNING. THE WAITING IS OVER AND THE MARKETS ARE A BUZZ AFTER THE USDA RELEASED A FLURRY OF REPORTS WEDNESDAY. U.S. STOCKS OF CORN ARE NOW FORCAST HIT THEIR LOWEST LEVELS SINCE 1995. THESE NUMBERS SENT COMMODITY PRICES SURGING NEARLY 25 CENTS FOR CORN ALMOST A DOLLAR IN SOYBEANS. LET’S GET TO THE NUMBERS. PRODUCTION TOTALS FOR 2010 WERE REVISED DOWN FOR CORN AND SOYBEANS. THAT LOWERED CORN CARRYOVER BY 745 MILLION BUSHELS...DOWN 87 MILLION FROM THE DECEMBER REPORT.  THE SMALLES NUMBER SINCE 1995. SOYBEAN CARRYOUT WAS ALSO LOWER THAN THE USDA DECEMBER ESTIMATE...COMING IN AT 140 MILLION BUSHELS DOWN FROM 165 A MONTH EARLIER. THE USDA ALSO LOWERED ITS EXPECTATIONS FOR GLOBAL STOCKS OF CORN, SOYBEANS AND COTTON. PRO FARMER EDITOR CHIP FLORY HAS MORE.

WINTER WHEAT SEEDINGS:
WHEAT ALSO FOUND ITSELF FRONT AND CENTER WITH THIS ROUND OF REPORTS. THE USDA PROJECTS U.S. CARRYOVER OF WHEAT TO HIT 818 MILLION BUSHELS. THAT'S 40 MILLION BUSHELS LOWER THAN LAST MONTH'S PROJECTION. WINTER WHEAT SEEDINGS CAME IN AT NEARLY 41 MILLION ACRES...UP ABOUT 3.5 MILLION ACRES OVER LAST YEAR. WHEAT EXPERTS IN THE PLAINS SAY THE TRUE STORY ON PLANTED WHEAT ACRES WILL ARRIVE IN THE SPRING. GLOBAL WHEAT CARRYOVER WAS RAISED TO NEARLY 178 MILLION METRIC TONS...STILL 20 MILLION METRIC TONS LOWER THAN LAST YEAR. THE USDA EXPECTS WHEAT CONSUMPTION TO FALL BY MORE THAN A MILLION TONS THIS YEAR..MOSTLY DUE TO FEWER PEOPLE FEEDING IT TO LIVESTOCK.

DENVER STOCK SHOW:
CATTLE ON WHEAT MAY GET A LITTLE LONELY THIS WEEK AS THE NATIONAL WESTERN STOCK SHOW CONTINUES IN DENVER COLORADO.  PARTICIPANTS COME FROM ACROSS THE COUNTRY TO BE PART OF THE SHOW. THE ANNUAL EVENT IS NOW IN ITS 105TH YEAR. EVERY THING FROM CATTLE AND HORSE SHOWS, TO PROFESSIONAL RODEO TAKES PLACE ON THE 100 ACRE SHOW GROUNDS IN NORTH DENVER. ORGANIZERS SAY MORE THAN 15,000 HEAD OF LIVESTOCK WILL BE ON HAND AND READY FOR COMPETITION. EVEN AFTER A CENTURY, PEOPLE STILL TURN OUT IN DROVES...ATTENDENCE IS EXPECTED TO BE AROUND 650,000 DURING THE 16 DAY EVENT. THE NATIONAL WESTERN STOCK SHOW HAS BECOME A LONG STANDING TRADITION IN ITS HOST CITY. THE STOCK SHOW IS ALSO COLORADO'S LARGEST TRADESHOW. THE EVENT RUNS THROUGH JANUARY 23RD. TOMORROW WE'LL TAKE A LOOK AT THE STOCKSHOW THROUGH A PHOTOGRAPHER'S LENS.

CARGIL EARNINGS:
IN AGRIBUSINESS THIS MORNING FOOD GIANT CARGILL REPORTS HIGHER EARNINGS IN ITS SECOND QUARTER. THE WORLD'S LARGEST COMMODITIES TRADER SAYS PROFITS TRIPLED. NET INCOME ROSE TO NEAR 1.5 BILLION UP FROM LESS THAN 500 MILLION LAST YEAR. CARGILL SAYS RISING COMMODITY PRICES AND SOLID PERFORMANCE FROM ITS OTHER BUSINESSES ARE DRIVING THE INCREASE.

STEEL PRICES:
AND THE WALL STREET JOURNAL REPORTS STEEL PRICES ARE EXPECTED TO RISE IN 2011. HIGHER COSTS FOR INPUTS AND REBOUNDING DEMAND ARE THE MAIN CULPRITS. GLOBAL STEEL DEMAND IS EXPECTED TO BE 6% HIGHER THIS YEAR. STEEL IS A MAJOR COMPONENT IN MANY AREAS OF THE AGRICULTURE INDUSTRY.

ANALYSIS:
WE CONTINUE OUR COVERAGE FROM AG CONNECT EXPO WITH A LOOK AT HOW TODAY'S REPORTS AND THE EXPECTED LOWER ENDING GRAIN STOCKS ARE AFFECTING WORLD FOOD PRICES. AL PELL CAUGHT UP WITH JIIM BOWER FOR THIS MORNING'S ANALYSIS.

IN THE COUNTRY; CALIFORNIA STRAWBERRY:
THERE AREN'T A LOT OF CROPS IN THE GROUND THIS TIME OF YEAR..BUT IN CALIFORNIA PRODUCTION IS RUNNING AT FULL SPEED. THE GOLDEN STATE IS ABOUT THE ONLY STATE THAT PRODUCES STRAWBERRIES YEAR ROUND. WHILE THERE ARE MORE THAN 600 VARIETIES ONLY A HANDFUL ARE IN PRODUCTION THERE. CALIFORNIA COUNTRY TV'S TRACY SELLERS INTRODUCES US TO ONE GROWER MAKING HIS MARK IN THE SWEET BUSINESS OF STRAWBERRIES. THANKS TRACY. TRACY SAYS DAREN HELPED DEVELOP A NEW VARIETY OF STRAWBERRY WITH RESEARCHERS AT U.C. DAVIS. STICK AROUND FOOD AND YOUR FAMILY IS NEXT.

SOY FOOD DEMAND:
IN FOOD AND YOUR FAMILY THIS MORNING, A NEW REPORT SAYS THE DEMAND FOR SOY BASED FOODS IS GROWING. IT SAYS THE GLOBAL SOY MARKET COULD BE WORTH MORE THAN 42 BILLION DOLLARS IN THE NEXT FOUR YEARS. THIS COMES FROM GLOBAL INDUSTRY ANALYSTS...A MARKET RESEARCH GROUP. PRODUCTS LIKE WHOLE SOY FOODS, SOY MILK AND TOFU MAKE UP THE BIGGEST PORTION OF SALES. BUT THE INGREDIENT SECTOR LIKE SOY PROTEIN, CEREAL BARS AND SOY SUPPLEMENTS ARE GROWING FAST. THE U.S. IS THE SECOND LARGEST SOY FOODS MARKET BEHIND THE ASIA-PACIFIC REGION.

CALIFORNIA FOOD STAMPS:
AND AS WE'VE REPORTED HERE ON AGDAY THERE ARE A RECORD NUMBER OF AMERICANS USING THE USDA'S SUPPLEMENTAL NUTRITION ASSISTANCE PROGAM....FORMERLY KNOWN AS FOOD STAMPS. THE LATEST DATA SHOWS MORE THAN 43 MILLION PEOPLE ARE NOW ENROLLED. IN CALIFORNIA ONE COUNTY IS PROPOSING TO LET A SELECT GROUP USERS TAKE THEIR FOOD DOLLARS TO LOCAL RESTAURANTS.  THIS IS IN SAN DIEGO COUNTY. COUNTY RESTAURANTS WOULD BE ABLE TO ACCEPT THE ELECTRONIC EQUIVALENT OF FOOD STAMPS...BUT ONLY FROM, SENIORS, THE DISABLED OR THE HOMELESS. IT’S ALREADY BEEN APPROVED BY A BOARD OF ADVISORS...BUT STILL HAS MORE RED TAPE TO GET THROUGH. SIMILAR PROGRAMS CURRENTLY EXIST IN ARIZONA, FLORIDA AND MICHIGAN.

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

 

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