AgDay Daily Recap - June 13, 2011

June 13, 2011 04:24 AM
 

TODAY ON AGDAY:
JUNE 13, 2011

8 DOLLAR CORN:
HELLO EVERYONE. CORN FUTURES DANCED ABOVE EIGHT DOLLARS FRIDAY BEFORE SETTLING BACK DOWN BELOW THAT MARK. JULY FUTURES CAME WITHIN A QUARTER-CENTER OF EIGHT DOLLARS. OUR REPORTING PARTNERS AT PRO FARMER NEWSLETTER SAY THERE WAS A TWO-STAGE PRICE SURGE LAST WEEK. PART ONE WAS IN ANTICIPATION OF A BULLISH SUPPLY AND DEMAND REPORT. PHASE TWO WAS REACTION. THE MARKET SAW USDA LOWER NEW CROP STOCKS. PLUS, THE DEPARTMENT ALSO LOWERED THE AMOUNT OF ACRES PLANTED TO CORN BY 1.5 MILLION ACRES. MARKET ANALYSTS SAY THAT SURPRISED THE MARKET. . . AND TRADERS RESPONDED. PFITZNMAIER BELIEVES USDA WILL NEED TO RE-SURVEY PRODUCERS ON THEIR ACREAGE, BECAUSE THERE ARE JUST TOO MANY UNCERTAINTIES THIS PLANTING SEASON. LATER IN ANALYSIS, WE'LL HEAR MORE FROM PFITZNMAIER, AND GET HIS VIEW ON THE CATTLE MARKET.

HOG CATTLE FUTURES:
CONCERN OVER HIGHER CORN PRICES SENT LIVESTOCK FUTURES CLIMBING LAST WEEK. BOTH CATTLE AND HOGS ADDED TO CONTRACT PRICES. THE INDUSTRY IS CONCERNED HIGHER COST CORN WILL DISCOURAGE PRODUCERS FROM MAINTAINING OR EXPANDING HERDS.  THE NATIONAL CATTLE HERD IS ALREADY AT A FIFTY YEAR LOW. HIGHER FEED COSTS MAY FORCE PRODUCERS TO SELL LIGHTER ANIMALS TO MEATPACKERS --AND PACKERS COULD DO THE SAME. THE RESULT IS LESS MEAT ON GROCERY SHELVES AND CONTINUED HIGHER PRICES AT THE COUNTER.

WORLD PORK ISSUES:
HIGHER CORN PRICES AND FEED COSTS WERE A BIG CONCERN FOR PRODUCERS AT THIS YEAR'S WORLD PORK EXPO. THAT EVENT WRAPPED UP LAST WEEK IN DES MOINES IOWA. ABOUT 20,000 PEOPLE SHOWED UP FOR THIS YEAR'S EVENT AT THE IOWA STATE FAIRGROUNDS. ON THE TIP OF EVERYONE'S TONGUE WAS THE CRUSH HIGHER PRICES ARE PUTTING ON PRODUCERS MARGINS. LOWER CONSUMER DEMAND AND HIGHER COSTS HAVE MANY LOOKING FOR WIGGLE ROOM. AT THE EXPO, FEED EFFICIENCY, TECHNOLOGY AND QUALITY GENETICS WERE OF INTEREST TO ATTENDEES AS THEY SEARCH FOR ANSWERS TO A POTENTIAL FEED CRISIS. WHILE INPUTS ARE TIGHTENING MARGINS, U.S. PRODUCERS CONTINUE TO LEAD THE WORLD IN EFFIENCY. THE EXPO HAD VISITORS FROM MORE THAN 30 COUNTRIES IN ATTENDENCE DOING BUSINESS AND LEARNING ABOUT THE AMERICAN SYSTEM OF PRODUCTION. AND I HOPE YOU JOIN US THIS FRIDAY MORNING FOR A SPECIAL EDITION OF AGDAY FROM THE WORLD PORK EXPO. WE TALKED TO KEY LEADERS AND PRODUCERS ABOUT THE CHALLENGES AND OPPORTUNITIES FACING THE INDUSTRY. AGDAY AT THE WORLD PORK EXPO - THIS FRIDAY.

PORK BEEF EXPORTS:
FREE TRADE AGREEMENTS AND EXPORTS WERE ALSO UNDER MUCH DISCUSSION. THE LATEST EXPORT NUMBERS FROM THE US MEAT EXPORT FEDERATION SHOWS CONTINUED STRONG SALES IN APRIL, ALTHOUGH SLIGHTLY LESS THAN MARCH. APRIL PORK EXPORTS HIT 181,000 METRIC TONS WORTH 487 MILLION DOLLARS. THAT'S UP 16% IN VOLUME AND MORE THAN 20% IN VALUE OVER LAST YEAR. JAPAN CONTINUES TO BE THE LEADING VALUE MARKET FOR U.S. EXPORTS, BUT SOUTH KOREA--WHERE FOOT AND MOUTH HAS DECIMATED THE PORK INDUSTRY--SAW DEMAND RISE NEARLY 250% OVER LAST YEAR. BEEF EXPORTS TO KOREA WHERE ALSO UP--ABOUT 150%. IT'S NOW THE SECOND LEADING VALUE MARKET FOR U.S. BEEF--TRAILING ONLY MEXICO.

FARM PAYMENT REFORM:
A NEW BILL IS HEADED THROUGH THE SENATE THAT WOULD MAKE CHANGES TO FARM COMMODITY PROGRAM PAYMENTS. IF PASSED IT WOULD LOWER THE AMOUNT OF SUBSIDIES FARMERS COULD RECEIVE.  CALLED THE RURAL AMERICA PRESERVATION ACT OF 2011, THE BILL LOWERS THE PER FARM CAP ON FARM COMMODITY PAYMENTS. IT’S SPONSORED BY CHUCK GRASSLEY OF IOWA AND TIM JOHNSON OF SOUTH DAKOTA. THE DIRECT PAYMENT CAP WOULD GO FROM 40,000 PER INDIVIDUAL TO 20,000. COUNTER CYCLICAL PAYMENTS WOULD DROP FROM 65,000 TO 30. THE BILL ALSO SEEKS TO CLARIFY ELIGIBILITY--AND SHARPEN THE FOCUS ON WHO'S GETTING THE MONEY. THE HOPE IS TO BETTER TARGET WORKING FARMERS.

CME MOVING:
IN AGRIBUSINESS THE CHICAGO MERCANTILE EXCHANGE IS THREATENING TO LEAVE ITS BIRTH PLACE BEHIND. THE COMMODITY TRADE GROUP SAYS A RECENT HIKE IN CORPORATE TAXES MAY FORCE THE BUSINESS OUT OF ILLINOIS. GOVERNOR PAT QUINN RAISED THE CORPORATE TAX RATE FOR THE STATE 46% CME SAYS THE INCREASE WILL COST THEM 50 MILLION DOLLARS A YEAR AND THE EXECUTIVE CHAIRMAN IS SAYING THEY'LL DO WHAT'S BEST FOR SHAREHOLDERS EVEN IF THAT MEANS LOOKING OPPORTUNITIES OUTSIDE OF THE WINDY CITY. THE CHICAGO MERCHANTILE EXCHANGE WAS FOUNDED BACK IN 1848. EQUIPMENT MAKER CATEPILLER HAS ALSO EXPRESSED CONCERN ABOUT THE TAX HIKE IN RECENT MONTHS.

ANALYSIS:
TOMM PFITZNMAIER

IN THE COUNTRY; RIVER CLEANUP:
BEFORE GRADUATING FROM HIGH SCHOOL, MANY SCHOOLS REQUIRE THEIR SENIORS TO TAKE PART IN A COMMUNITY SERVICE PROJECT. IN DELAWARE COUNTY, IOWA ONE SCHOOL OFFERED ITS STUDENTS TO THE STATE DEPARTMENT OF NATURAL RESOURCES. THEIR JOB? TO CLEAN-UP A RIVER AND ITS BANKS. IN THIS REPORT FROM IOWA DNR, JOE WILKINSON SAYS THE TEENAGERS REMOVED TONS OF DEBRIS AND EARNED THE GRATITUDE OF THE COMMUNITY. OTHER CREWS FROM THE HIGH SCHOOL SPREAD-OUT THRU THE COMMUNITY. THEY WERE PLANTING TREES AND CLEANING UP TRASH. GOOD FOR THEM! UP NEXT, HOW MUCH VITAMIN "D" DO WE REALLY NEED? SCIENTISTS HOPE TO FIGURE IT OUT. DETAILS IN FOOD AND YOUR FAMILY.

RAISE A KID COSTS:
HOW MUST DOES IT COST TO RAISE YOUR CHILD? A NEW STUDY SAYS IT'S GETTING MORE EXPENSIVE, DETAILS IN FOOD AND YOUR FAMILY. FOR THE PAST 50 YEARS, USDA HAS RELEASED A REPORT ON HOW MUCH IT WOULD COST PARENTS TO RAISE A CHILD FROM NEWBORN THRU THEIR 17TH BIRTHDAY. HERE ARE SOME OF THE FINDINGS. IT SHOWS A MIDDLE INCOME FAMILY WITH A CHILD BORN IN 2010 CAN EXPECT TO SPEND - ON AVERAGE – 227,000 DOLLARS FOR FOOD SHELTER, AND OTHER NECESSITIES. THAT'S UP 2% FROM THE PREVIOUS YEAR. USDA'S CENTER FOR NUTRITION POLICY SAYS EXPENSES FOR TRANSPORTATION, CHILD CARE, EDUCATION, AND HEALTH CARE SAW THE LARGEST PERCENTAGE INCREASES RELATED TO CHILD REARING FROM 2009. THIS REPORT IS USED BY COURTS AND STATE GOVERNMENTS TO DETERMINE CHILD SUPPORT AND FOSTER CARE PAYMENTS.

VITAMIN D:
GOOD VITAMIN-D LEVELS HAVE BEEN LINKED TO EVERYTHING FROM BUILDING STRONGER BONES TO LOWERING YOUR RISK OF CANCER. SO, IT SHOULD COME AS NO SURPRISE THAT SALES OF VITAMIN D HAVE SHOT-UP 90%, ACCORDING TO INDUSTRY OFFICIALS. BUT IS VITAMIN D REALLY A SUPER SUPPLEMENT? TO FIND OUT, THE INSTITUTE OF MEDICINE LAUNCHED A MASSIVE STUDY. CLARK POWELL HAS DETAILS IN THIS REPORT FROM JAMES CANCER HOSPITAL AT OHIO STATE. THE RECOMMENDATIONS CAME OUT IN DECEMBER, SO THIS IS THE FIRST SUMMER SEASON THEY'VE BEEN IN EFFECT. EXPERTS SAY TOO MUCH VITAMIN-D - - MORE THAN 10,000 UNITS A DAY - - CAN CAUSE LIVER AND TISSUE DAMAGE. AS FOR CALCIUM, THEY RECOMMEND BETWEEN 1,000 AND 1,300 MILLIGRAMS A DAY.

CONTACT PAGE:
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