AgDay Daily Recap - July 19, 2011

July 19, 2011 05:09 AM
 

TODAY ON AGDAY:
JULY 19, 2011

HEAT MOVES IN:
GOOD MORNING EVERYBODY. IT'S GOOD TO BE BACK. I WAS IN NEW MEXICO AND TEXAS AND SAW FIRST HAND HOW INTENSE THE DROUGHT HAS BECOME IN THE SOUTHWEST. AND NOW, THE HEAT WAVE IS GRIPPING THE CENTRAL U.S. HEAT ADVISORIES AND WARNINGS ARE IN PLACE IN 17 STATES FROM TEXAS TO MICHIGAN. TEMPERATURES AND HUMIDITY COMBINE TO MAKE BEING OUTSIDE UNCOMFORTABLE...AND IN SOME CASES DANGEROUS. CATTLE PRODUCERS SHOULD BE ON ALERT. THE WEATHER CONDITIONS CAN LEAD TO SIGNIFICANT HEAT STRESS IN CATTLE. ACCORDING TO ANIMAL SCIENCE SPECIALISTS AT SOUTH DAKOTA STATE, CATTLE IN FEEDLOTS ARE GENERALLY THE MOST IMPACTED IN HIGH HEAT CONDITIONS. PRODUCERS ARE REMINDED TO PROVIDE SHADE WHEN POSSIBLE. THEY ALSO NEED TO PRIVDED EXTRA WATER IN SUPPLEMENTAL TANKS. IT'S ALSO RECOMMENDED TO AVOID MOVING OR HAULING ANIMALS IN HOT WEATHER.

CROPWATCH:
MEANWHILE, WE'LL BE WATCHING THE USDA CROP PROGRESS REPORT NEXT WEEK AS IT'LL REFLECT THIS WEEK'S WEATHER. FOR NOW, 66% OF THE CORN CROP IS CALLED GOOD TO EXCELLENT. THAT'S A THREE POINT DIP FROM LAST WEEK. 80% OF THE IOWA CROP AND 82% OF THE NEBRASKA CROP RANK THAT HIGH. SOYBEAN CONDITION RATING IS ALSO DOWN. USDA'S REPORT PUTS 64% OF THE CROP IN THE GOOD TO EXCELLENT CATEGORIES. THAT'S A TWO POINT SLIDE FROM THE PREVIOUS WEEK. AS FAR AS PROGRESS, 40% HAS REACHED THE BLOOMING STAGE. IT HAD A 19 POINT JUMP FROM LAST WEEK, BUT LAGS THE FIVE YEAR AVERAGE BY TWELVE PONITS. LOOKING AT COTTON, JUST 28% OF THE CROP IS RATED GOOD TO EXCELLENT. A THIRD OF THE CROP IS CALLED FAIR. AND 40% IS POOR TO VERY POOR. ABOUT A THIRD OF THE CROP IS SETTING BOLLS...THAT'S A BIT BEHIND THE AVERAGE PACE.

ARKANSAS WHEAT HARVEST:
68% OF THE WINTER WHEAT HARVEST IS DONE. IT'S JUST GETTING UNDERWAY IN THE PACIFIC NORTHWEST. IN ARKANSAS, HARVEST HAS WRAPPED-UP, AND NOT WITHOUT SOME BIG CHALLENGES. THAT'S ESPECIALLY TRUE FOR GROWERS WHO WERE HIT BY THE FLOODING EARLIER THIS SPRING. KEN MOORE HAS DETAILS IN THIS REPORT FROM THE ARKANSAS FARM BUREAU.

DAIRY TODAY; PRICES:
OUR DAIRY TODAY REPORT BEGINS WITH A LOOK AT THE TIGHTENING OF THE SPREAD IN FARM-TO-RETAIL MILK PRICES. ACCORDING TO ANALYSIS FROM PENN-STATE UNIVERSITY, THE SPREAD BETWEEN FARM AND RETAIL MILK PRICES SHOWS IT HAS NARROWED OVER THE LAST TWO YEARS. JIM DUNN - AN AG ECONOMIST WITH PENN STATE - CONDUCTED THE RESEARCH. IN 2009, WHEN FARM PRICES FOR FLUID MILKED CRASHED, THE SPREAD BETWEEN FARM AND RETAIL WAS TWO-DOLLARS-40-CENTS A GALLON. TODAY, THAT SPREAD HAS SHRUNK TO ABOUT TWO BUNKS. DUNN SAYS THIS DATA SHOWS THAT RETAIL PRICES DO FALL WITH FARM PRICES, AS WELL AS RISE. SINCE 2000, RETAIL MILK PRICES HAVE CLIMBED 31%.

DAIRY TODAY; PETERSON:
MINNESOTA CONGRESSMAN COLLIN PETERSON IS EXPECTED TO FORMALLY INTRODUCE LEGISLATION IN THE NEXT COUPLE OF WEEKS THAT COULD ALTER DAIRY POLICY IN THIS COUNTRY. PETERSON - WHO IS THE RANKING MEMBER OF THE HOUSE AG COMMITTEE - SAYS DAIRY POLICY NEEDS TO BETTER REFLECT CURRENT ECONOMICS. PETERSON'S PROPOSAL IS SIMILAR TO ONE PROPOSED BY THE NATIONAL MILK PRODUCER FEDERATION. PART OF THE PLAN WOULD INCLUDE A DAIRY MARKET STABILIZATION PROGRAM. IT WOULD IMPOSE LIMITS ON US MILK PRODUCTION DURING LOW MARGIN PERIODS. THIS IS DESIGNED TO ALERT PRODUCERS TO MARKET IMBALANCES THAT DENT MARGINS AND PROMPT THEM TO ADJUST MILK PRODUCTION ACCORDINGLY. PETERSON SAYS THE CURRENT PROGRAMS - LIKE THE MILK INCOME LOSS CONTRACT PROGRAM - HAS FAILED TO PROVIDE DAIRY PRODUCERS WITH AN ADEQUATE SAFETY NET. THE INTERNATIONAL DAIRY FOODS ASSOCIATION - WHICH REPRESENTS PROCESSORS - SAID THE PROPOSALS WOULD "CLEARLY WOULD TAKE THE DAIRY INDUSTRY IN THE WRONG DIRECTION" AND DAMAGE U.S. EXPORTS. TO KEEP UP TO DATE WITH THE DAIRY INDUSTRY, INCLUDING PRODUCTION AND POLICY ISSUES, CHECK OUT WWW.DAIRYTODAY.COM.

CME PORK BELLIES:
IN AGRIBUSINESS THE CHICAGO MERCANTILE EXCHANGE IS NO LONGER OFFERING PORK BELLY FUTURES AND OPTIONS. ACCORDING TO THE CME GROUP, BELLIES HAVE BEEN REMOVED DUE TO A LACK OF TRADING VOLUME WITH THE DECISION REACHED AFTER DISCUSSION WITH INDUSTRY PARTICIPANTS. NO WORD IF THIS MOVE IS PERMANENT.
PORK BELLY FUTURES STARTED TRADING IN 1961.

VALMONT:
NEBRASKA-BASED VALMONT INDUSTRIES IS REPORTING A SOLID SECOND QUARTER...MUCH OF THAT IS DUE TO THE DEMAND FOR FARM IRRIGATION SYSTEMS. VALMONT MAKES THE VALLEY BRAND CENTER PIVOT SYSTEMS. THE COMPANY SAYS ITS SALES INCREASED 64% OVER 2010. VALMONT SAYS THE DEMAND WAS BROAD-BASED IN NORTH AMERICA AND THEIR INTERATIONAL MARKETS. THE HIGHER GRAIN PRICES WE'VE WITNESSED THIS YEAR, SOME FARMERS ARE INVESTING IN MECHANIZED IRRIGATION SYTEMS.

ANALYSIS:
GREG WAGNER

IN THE COUNTRY; IRAQ DAIRY INDUSTRY:
AS WE'VE REPORTED ON SEVERAL OCCASIONS, AMERICAN AGRICULTURE IS PLAYING A KEY ROLE IN HELPING PEOPLE IN WAR-TORN IRAQ AND AFGHANISTAN. BOTH OF THOSE COUNTRIES RELY HEAVILY ON FARMING AS A WAY OF LIFE. THE U.S. MILITARY OFTEN USES NATIONAL GUARD OUTFITS FROM OUR COUNTRY TO HELP FARMERS IN THOSE COUNTRIES IMPROVE THEIR PRODUCTION SKILLS AND PUT MORE FOOD ON THE TABLE. BUT DON'T FORGET, CIVILIANS ARE ALSO STEPPING-UP TO HELP.  KENT FADDIS FROM THE UNIVERSITY OF MISSOURI HAS THE STORY OF A LIVESTOCK SPECIALIST WHO TOOK HER SKILLS OVERSEAS. WENDY SAYS THERE WERE SOME SCARY MOMENTS IN IRAQ. ROCKETS HIT AROUND THE U-S BASE WHERE SHE WS STAYING. SHE ALSO SAYS HER MILITARY ESCORT TOOK SNIPER FIRE, BUT NO ONE WAS INJURED. WE'RE CERTAINLY GLAD TO HEAR THAT. FOOD AND YOUR FAMILY IS NEXT.

CAMPBELL’S SOUP SALT:
THE LABEL IS FAMILIAR...BUT IT APPEARS CUSTOMERS COULD NOT GET USE TO A DIFFERENT RECIPE INSIDE THE CAN. DETAILS IN FOOD AND YOUR FAMILY. WHILE MOST MAJOR FOOD MAKERS HAVE BEEN REMOVING SODIUM FROM THEIR FOOD PRODUCTS, IT APPEARS CAMPBELLS MAY BE GOING THE OTHER WAY. ACCORDING TO WWW.FOODNAVIGATOR.COM, CAMPBELLS SAID LAST WEEK DURING AN INVESTOR MEETING THAT IT WOULD ADD SALT BACK INTO MANY OF ITS RECIPES. THIS IS IN REPONSE TO "LUKE-WARM" SALES. THE BIG SOUP MAKER HAS SEEN ITS CORE SOUP SALES SLIDE IN RECENT YEARS. LIKE MANY COMPANIES, IT LOWERED SODIUM LEVELS. BUT INCOMING CEO DENISE MORRISON SAYS SODIUM REDUCTIONS HAVE GONE TOO FAR, THE COMPANY SAYS IT WILL STILL OFFER SOME REDUCED SODIUM SOUPS IN THEIR PRODUCT LINES.

CONTACT PAGE:
HEY, LET US KNOW WHAT YOU THINK ABOUT CAMPBELLS REVERTING BACK TO ITS OLD RECIPE. WILL IT HELP OR HURT? DROP ME AN EMAIL. THE ADDRESS IS INBOX@AGDAY.COM. YOU CAN ALSO SEND COMMENTS ON OUR FACEBOOK PAGE.
 

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