AgDay Daily Recap - January 28, 2011

January 28, 2011 04:42 AM
 

TODAY ON AGDAY:
JANUARY 28, 2011

COTTON HIGHER:
GOOD MORNING. IT SEEMS NEARLY EVERY WEEK WE START A SHOW WITH NEW HISTORIC NUMBERS. TODAY WE'RE DOING IT AGAIN FOR THE SECOND TIME IN A WEEK. COTTON CONTINUES TO MAKE HISTORY AS PRICES NEAR THE $1.70 MARK. THE MARCH 2011 CONTRACT CLOSED AT $1.6939...UP MORE THAN 2.5 DOLLARS ON THE DAY. THE CLOSE PUTS COTTON AT ITS HIGHEST POINT IN MORE THAN 140 YEARS. WEATHER RELATED PRODUCTION PROBLEMS STARTED THIS STEADY CLIMB IN 2010.
SINCE THEN THE PRICE HAS GONE UP NEARLY 90%. THE CURRENT RALLY BEGAN AFTER NEW DEMAND DATA REVEALED INCREASING BUYING FROM CHINA, THE WORLD'S LARGEST COTTON CONSUMER. I TALKED WITH A COTTON GROWER AT TOP PRODUCER SEMINAR IN CHICAGO WHO SAYS THESE RECORD PRICES HAVE HIM SHIFTING ACRES. HIGH COMMODITY PRICES ACROSS THE BOARD, MEANS COTTON IS COMPETEING FOR PLANTING ACRES. ACCORDING TO INFORMA ECONOMICS, COTTON IS EXPECTED TO GAIN 2.25 MILLION MORE ACRES THAN LAST YEAR.

CATTLE INVENTORY:
LIKE I SAID, COTTON ISN'T THE ONLY COMMODITY FINDING NEW HIGHS. CATTLE FUTURES HAVE ALSO BEEN TRADING AT RECORD LEVELS. THOSE NUMBERS COULD CLIMB HIGHER STILL, AFTER THE USDA RELEASES ITS CATTLE INVENTORY UPDATE THIS MORNING. THE SEMI-ANNUAL REPORT WILL PROVIDE A SNAP SHOT OF THE NUMBER OF CATTLE IN THE US. ALLENDALE INCORPORATED EXPECTS IT TO COUNT 92 POINT 4 MILLION HEAD. IF THAT HOLDS IT WILL BE THE SMALLEST HERD IN MORE THAN 50 YEARS. THE CALF CROP IS EXPECTED TO BE 35.4 MILLION HEAD...MAKING IT THE SMALLEST IN 60 YEARS. ALLENDALE EXPECTS LOWER CALF CROP NUMBERS TO CONTINUE FOR THE NEXT THREE YEARS. CATTLE FUTURES HAVE BEEN WEIGHED DOWN THIS WEEK DUE TO SLIGHTLY LOWER CASH PRICES AT THE SALE BARN. THE DOWNWARD TUG SENT SOME INVESTORS RUNNING...SHAKING THEIR CONFIDENCE IN THE MARKET TO GO HIGHER.  PEEL SAYS WITH CATTLE INVENTORIES LOW, PRICES FOR PRODUCERS AND EVENTUALLY SHOPPERS WILL REMAIN HIGH.

RR ALFALFA:
IN OTHER NEWS THIS MORNING, USDA ANNOUNCED LATE THURSDAY THAT FARMERS CAN RESUME PLANTING ROUND-UP READY ALFALFA. AS YOU MAY KNOW THE BIO-TECH CROP HAS BEEN AT THE CENTER OF LAWSUITS, REGULATORY ACTION AND VIGOROUS DEBATE. THE AGRICULTURE DEPARTMENT'S DECISION COMES JUST IN TIME FOR SPRING PLANTING. ORGANIC PRODUCERS HAVE ATTEMPTED TO CURTAIL THE USE OF THE MODIFIED CROP, FEARING IT WOULD CROSS-CONTAMINATE NON-GMO-ALFALFA. AG SECRETARY TOM VILSACK SAYS HIS DEPARTMENT WILL MAKE OTHER EFFORTS TO ENSURE THAT OTHER NON-MODIFIED ALFALFA SEEDS REMAIN PURE.

POTASH:
IN AGRIBUSINESS, POTASH-CORP DOUBLED ITS PROFITS THIS PAST QUARTER, EVEN THOUGH IT SPENT MILLIONS OF DOLLARS FENDING-OFF A BID FROM AN AUSTRALIAN COMPANY. THE COMPANY SAYS EARNINGS JUMPED TO 482-MILLION DOLLARS IN THE LAST THREE MONTHS OF THE YEAR. THE COMPANY SAID THE RISE IN PROFITS REFLECTS THE RISE IN CROP PRICES TO "RECORD, OR NEAR RECORD" LEVELS. THE WORLD'S LARGEST FERTILIZER MAKER SAYS THOSE PRICES HAVE MOTIVATED FARMERS TO INCREASE PRODUCTION THROUGH IMPROVED YIELDS. IT SPENT 73-MILLION TO FIGHT-OFF BHP BILLITON WHICH ATTEMPTED TO BUY THE CANADIAN FIRM.

ANALYSIS:
BILL BIEDERMAN

TPOY TEXAS:
IN THE OPEN SPACES OF THE TEXAS PANHANDLE MANY FARMERS RELY ON PIVOT IRRIGATION FOR BIG YIELDS. BIG YIELDS AND BIG SPACES DESCRIBE OUR THIRD FINALISTS FOR TOP PRODUCER OF THE YEAR.  LONESTAR FAMILY FARMS COVERS 24,000 ACRES NEAR SUNRAY TEXAS.  DESPITE SOME TOUGH TIMES, THIS FAMILY IS BUILDING A CUTTING EDGE BUSINESS WHILE PLANNING FOR THE FUTURE. NOW THAT YOU'VE SEEN ALL THREE FINALISTS, IT’S TIME TO ANNOUNCE A WINNER. ON THURSDAY EVENING AT THE TOP PRODUCER SEMINAR HELD IN CHICAGO, THIS YEAR'S SELECTION WAS REVEALED. CONGRATULATIONS TO JIM KLINE AND KLINE FAMILY FARMS, 2011 TOP PRODUCER OF THE YEAR. ON WEDNESDAY, WE TOOK YOU TO KLINE'S OPERATION IN NORTHEAST INDIANA WHERE HE TAKES NO-TILL AND STRIP TILL PRACTICE TO A NEW LEVEL. AS THE WINNER, KLINE WINS A HOST OF PRIZES INCLUDING THE USE OF A CHALLENGER TRACTOR. OF COURSE, JIM WILL BE PROFILED IN TOP PRODUCER MAGAZINE. CONGRATULATIONS TO ALL THREE FINALISTS. THREE GREAT OPERATIONS AND THREE GREAT FAMILIES. STILL TO COME, FOOD AND YOUR FAMILY, BUT FIRST LEE RUBIN AND RUBES FRIDAY FUNNIES.

SNACKS ASTHMA:
KIDS WHO SNACK TOO MUCH MIGHT PUT THEMSELVES AT RISK FOR BREATHING PROBLEMS. DETAILS IN FOOD AND YOUR FAMILY. NEW RESEARCH SUGGESTS THAT CHILDREN WHO CONSUME SALTY SNACKS MORE THAN THREE TIMES A WEEK ARE ALMOST SIX TIMES MORE LIKELY TO HAVE ASTHMA SYMPTOMS. IN A STUDY PUBLISHED IN THE JOURNAL OF THE AMERICAN DIETETIC ASSOCIATION, RESEARCHERS SAY SALTY FOODS CAN INCREASE THE RISK OF BRONCHIAL HYPER-RESPONSIVENESS AND WHEEZING SYMPTOMS IN CHILDREN. THE AUTHORS ALSO SAY ASTHMA WAS EVEN MORE PROMINENT IN CHILDREN WHO WATCHED TV OR PLAYED VIDEO GAMES MORE THAN TWO HOURS PER DAY.

PEANUT BUTTER:
WHEN THE ECONOMY TOOK A TUMBLE, IT APPEARS FOLKS STOCKED THEIR PANTRY WITH PEANUT BUTTER. ACCORDING TO AMERICAN PEANUT COUNCIL, PEANUT USE IS UP 12% FROM A YEAR AGO. SOME OF THE PEANUTS WERE TURNED INTO PEANUT BUTTER. FOR BUDGET-SENSITIVE FAMILIES, IT'S A LOW-COST WAY TO GET PROTEIN IN THE DIET. DURING THE RECENT GEORGIA PEANUT FARM SHOW, AGRIBUSINESS DIRECTOR AL PELL TALKED WITH A SPOKESMAN OF THE TRADE GROUP WHO SAYS DEMAND GOES BEYOND THE JAR ON THE SHELF. SPEARMAN SAYS CANDY-MAKERS HAVE ALSO INCREASED THEIR USE OF THE RAW PRODUCT IN THEIR SNACKS.

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

 

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