TODAY ON AGDAY
JANUARY 13, 2012
Good morning. As the markets open this morning, we'll be watching to see if they bounce back from yesterday's plummet. Some grain prices closed limit down Thursday after the Ag Department shocked the market with a much bigger supply of corn.
USDA projected corn ending stocks at 846 million bushels, 2 million bushels lower than its estimate last month, but 13% higher than what traders were expecting. Soybean ending stocks at 275 million bushels were 18% higher than traders had been expecting.
PRO FARMER REAX:
Let's turn now to Pro Farmer Managing Editor Brian Grete for his insight to the report, Brian.
CROP PRODUCTION CORN:
USDA also released its final production figures for 2011. Corn for grain production is estimated at 12.4 billion bushels, that's 1% below 2010. The average yield is 147.2 bushels an acre. That's a half bushel higher than the November estimate, but more than five bushels lower than 2010's average yield.
CROP PRODUCTION SOY:
USDA also increased the soybean average yield from its November estimate by .2 of a bushel to 41.5 bushels. It's still two bushels lower than 2010. Soybean production in 2011 totaled just over three billion bushels, down 8% from 2010.
CROP PRODUCTION WHEAT:
USDA also lowered last year’s wheat production figures. The Ag Department puts all-wheat production at two billion bushels, down 9% with the average yield at 43.7 bushels to the acre.
WINTER WHEAT SEEDLINGS:
In its winter wheat seedlings report, USDA pegs the crop at just under 42 million acres, up 3% from last year and 12% higher than 2010 seedlings. The Ag Department says more acres were seeded this year due to higher prices and an acreage rebound in Kansas, Oklahoma, and Texas where dry conditions had limited 2011 planted acres. The winter wheat crop condition at the end of November was rated 52% good to excellent compared with 47% the previous year.
Even though USDA lowered U.S. wheat production figures, there's still a huge supply of wheat globally. The supply-demand report showed global wheat ending stocks at 210 million metric tons. According to Ohio State University Ag Economist Matt Roberts, that's a record. And it'll hold wheat prices in check.
All cotton production is estimated at 15.7 million bales. That's down 1% from last month and down 13% from 2010. All told U.S. yields are estimated at 772 pounds per acre, down 40 pounds from last year. Harvested area clocked in at 9.75 million acres. Also down 1% from December and nearly 10% less than last year.
RICE AND SORGHUM:
Grain sorghum production in 2011 is estimated at 214 million bushels, down 13% from the November 1 forecast and 38% below 2010. Rice production in 2011 is estimated at 185 million CWT, down 2% from the previous forecast and 24%below 2010.
In Agribusiness grain prices weren't the only thing affected by Thursday’s USDA report.
Fertilizer companies watched stock prices fall as well. Shares at Potash Corp--the world's largest fertilizer maker, dropped by 3.5%. Mosaic and CF Industries fell by nearly 4%. Traders say the more attractive grain prices look the more likely farmers are to spend money on inputs.
IN THE COUNTRY; STOCK SHOW FASHION:
The National Western Stock Show continues in Denver, Colorado. And while it draws exhibitors and cattle people from across the country, it also draws its share of city folk.
You know the ones...the people trying a little too hard to fit in. Anne Herbst from the Denver Post talked with some fashion experts about dressing for show at the stock show.
Thanks Anne...can't wait to see your hat. Still to come, a young Wisconsin dairyman gets a visit from his favorite NFL team. Food and Your Family is straight ahead.
NFL PLAY 60:
This week we wrapped up college football and this weekend the race toward the Superbowl continues. Over the past four years the NFL, the National Dairy Council and the Wisconsin Milk Marketing Board have partnered on a project called Fuel Up to Play 60...a program encouraging youngsters to spend an hour playing every day. As the Wisconsin Dairy News shows us, one lucky kid got a little inspiration from a player in his home state.
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