AgDay Daily Recap - June 21, 2011

June 21, 2011 06:02 AM
 

TODAY ON AGDAY:
JUNE 21, 2011

ROOK VILSACK FLOODING:
IT'S BEEN A DISASTEROUS YEAR FOR U.S. FARMERS WITH A RECORD NUMBER OF TORNADOES, DROUGHT IN THE SOUTH AND FLOODING ALONG THE MISSISSIPPI AND NOW THE MISSOURI RIVER. GOVERNMENT OFFICIALS INCLUDING AG SECRETARY TOM VILSACK TOURED FLOODED AREAS IN IOWA AND NEBRASKA LATE LAST WEEK TO LOOK AT THE RURAL COMMUNITIES AND FARMS ENGULFED WITH WATER THAT WILL LIKELY STAY AROUND FOR MORE THAN TWO MONTHS. AGDAY REGIONAL REPORTER MICHELLE ROOK TALKED TO FARMERS ABOUT THEIR CONCERNS WITH THE FLOOD AND WHAT ASSISTANCE IS AVAILABLE SINCE IT'S NOT LIKELY CONGRESS WILL APPROVE ANY ADDITIONAL DISASTER DOLLARS. DESPITE THE LOSS OF NEARLY A HALF MILLION ACRES OF CORN AND SOYBEANS BETWEEN IOWA AND NEBRASKA, VILSACK SAYS THEY'RE STILL EXPECTING RECORD CORN YIELDS THIS YEAR. HE SAYS WITH THE GOOD TO EXCELLENT RATING OF THE REST OF THE CROP IN THE U.S., HE BELIEVES THERE WILL BE ENOUGH CORN TO MEET ALL THE DEMAND-NEEDS INCLUDING ETHANOL AND EXPORTS. MONDAY'S CROP PROGRESS REPORT SHOWS 70% OF THE CROP IS CALLED GOOD TO EXCELLENT.

MAINSTREET INDEX:
RURAL BANKERS IN TEN MIDWEST AND PLAINS STATES WORRY THAT MISSOURI RIVER FLOODING WILL HURT THE REGION'S ECONOMY. CREIGHTON UNIVERSITY IN NEBRASKA CONDUCTS A MONTHLY "RURAL MAINSTREET" SURVEY FROM THE DAKOTAS TO MISSOURI. THE INDEX ROSE TO 56 FROM MAY'S 54.9, WHICH SUGGESTS THE ECONOMY WILL EXPAND. WHILE THE OVERALL SCORE SHOWS IMPROVEMENT IN THE ECONOMY, IT ALSO SHOWED NON-URBAN BANKERS FEEL THE FLOODING WILL HURT AGRICULTURE, BUSINESS AND TOURISM SECTORS.

BIRDS POINT LEVEE:
MEANWHILE DOWNSTREAM IN SOUTHEAST MISSOURI IT APPEARS THE CORPS OF ENGINEERS WILL RE-BUILD A BREECHED LEVEE THAT CAUSED FLOODING TO 130,000 ACRES OF FARMLAND. IT WAS MAY SECOND WHEN THE CORPS USED EXPLOSIVES TO BREECH THE LEVEE, INTENDED TO SPARE THE TOWN OF CAIRO, ILLINOIS. THREE SPOTS ON THE LEVEE THAT WERE DESTROYED WILL BE REBUILT. THE MISSOURI GOVERNOR'S OFFICE SAYS THAT WILL HELP SOME FARMERS STILL RE-PLANT SOME CROPS THIS YEAR.

CATTLE ON FEED:
CATTLE FUTURES CONTINUED THEIR STRONG SHOWING TUESDAY.
AUGUST FEEDER FUTURES AT THE CHICAGO BOARD OF TRADE ENDED THE DAY LIMIT UP, THREE DOLLARS PER HUNDRED AT $135.65.  THIS AFTER THE LATEST CATTLE ON FEED REPORT AND EXPORT DEMAND PROVE BULLISH FOR THE MARKET. THE CATTLE ON FEED NUMBERS FROM THE USDA SHOW AN 11% DROP IN PLACEMENTS INTO FEEDLOTS, YEAR OVER YEAR. THE REDUCTION WAS UNIFORM ACROSS ALL WEIGHTS. OUR PARTNERS AT PRO FARMER SAY THAT SIGNALS THE PLAIN'S CALF SUPPLY IS RUNNING LOW AFTER MONTHS OF AGRSSIVELY MOVING CATTLE OFF PASTURES DUE TO DROUGHT. MARKETINGS TO PACKERS ON THE OTHER HAND WERE MUCH BETTER THAN ANTICIPATED...ABOUT 107% OF LAST MAY.

DAIRY TODAY; COW HERD:
IN OUR DAIRY TODAY REPORT, USDA'S LATEST MILK PRODUCTION NUMBERS SHOW THAT THE U.S. DAIRY COW NUMBERS HAVE REBOUNDED BACK ABOVE 9.2 MILLION HEAD. OUR PARTNERS AT DAIRY TODAY SAY THE LAST TIME COW NUMBERS EXCEEDED THAT NUMBER WAS IN JULY 2009, IN THE MIDST OF THE GREAT DAIRY RECESSION. THE MAY REPORT SHOWS THE COW POPULATION IS 81,000 HIGHER THAN A YEAR AGO...MOST OF THAT GROWTH WAS OUT WEST. DAIRY TODAY SAYS THERE HAS BEEN A HERD REDUCTION IN MISSOURI, IOWA AND ILLINOIS. MAY MILK PRODUCTION CLIMBED 1.3% OVER YEAR-EARLIER LEVELS.

DAIRY TODAY; OUTLOOK:
MEANWHILE, THE ECONOMIC RESEARCH SERVICE WING OF USDA EXPECTS HERD EXPANSION WILL CONTINUE THIS YEAR, BUT WILL START TO TRAIL-OFF IN 2012. THE ECONOMISTS AT THE AG DEPARTMENT EXPECT IN 2012 THE HERD SIZE WILL DIP A FRACTION AS HIGHER FEED PRICES IMPACT PRODUCER RETURNS. THE CURRENT SEASON-AVERAGE CORN PRICE IS FORECAST AT 5.20 TO 5.50 A BUSHEL. IN 2011-12, THE FEED COST CLIMBS TO SIX TO SEVEN DOLLARS A BUSHEL. THE USDA FORECAST DOES REFLECT AN INCREASE FROM LAST MONTH'S PROJECTIONS.

DAIRY TODAY; PRICES:
THE USDA FORECAST ALSO SEES HIGH MILK PRICES FOR PRODUCERS THIS YEAR AND NEXT. THE DEPARTMENT ANTICIPATES A WEAK DOLLAR WILL HELP DAIRY EXPORTS REMAIN STRONG. FOR SPECIFICS ON THE PRICES, AND FOR THE VERY LATEST NEWS AFFECTING THE DAIRY INDUSTRY, CHECK OUT DAIRY TODAY DOT COM.

SMITHFIELD EARNINGS:
IN AGRIBUSINESS, FOOD GIANT, SMITHFIELD FOODS SAYS PORK IS HELPING THE COMPANY REGAIN SOME PROFITS. SALES INCREASED MORE THAN 200 MILLION DOLLARS IN ITS FISCAL 2011 FOURTH QUARTER THAT ENDED IN MAY. THE COMPANY SAYS ROBUST DEMAND FOR U.S. PORK AROUND THE WORLD, HIGH PORK AND PIG PRICES AND GRAIN HEDGES ARE HELPING COMPANY MARGINS. CEO AND PRESIDENT LARRY POPE SAYS MORE THAN TWO-THIRDS OF PROFITS WERE EARNED IN THE PORK BUSINESS SEGMENT OF SMITHFIELD. THE COMPANY REPORTS FOURTH-QUARTER INCOME TOTALED JUST UNDER 100 MILLION DOLLARS COMPARED TO A LOSS OF NEARLY FIVE MILLION DOLLARS LAST YEAR DURING THE QUARTER.

ANALYSIS:
MIKE FLOREZ

4H STORM DONATIONS:
IN TIMES OF WEATHER DISASTERS, THE NATIONAL 4-H COUNCIL SAYS COUNT ON 4-H'ERS AND THE EXTENSION. BUT THEY NEED YOUR HELP TO FULFILL THEIR MISSION. THE NATIONAL 4-H COUNCIL IS HELPING TO CLEAN-UP IN SEVERAL TORNADO-RAVAGED AREAS, LIKE JOPLIN MISSOURI. CLUBS ARE ALSO HELPING IN STORM-RAVAGED ALABAMA AND TENNESSEE. THE 4-H COUNCIL LAUNCHED AN ONLINE AND MOBILE FUNDRAISING CAMPAIGN TO SUPPORT THE VOLUNTEERS. NOW THROUGH JUNE 30, TEN DOLLAR DONATIONS CAN BE SENT BY TEXTING THE WORD "CLOVER" TO 50555 TO SUPPORT THE CLEAN-UP EFFORTS. 4-H SAYS ALL FUNDS WILL BE DISTRIBUTED EQUALLY AMONG THE STATES. GO TO WWW.4H.ORG FOR MORE INFORMATION.

IN THE COUNTRY; OKLAHOMA BBQ:
BAR-B-QUE COOKING COMPETITIONS ARE POPPING UP ALL OVER THE COUNTRY. BUT, WHEN A JUDGE DECLARES SOMEONE THE RIB CHAMPION OR THE BRISKET KING--HOW DO THEY KNOW WHAT'S GOOD? TO FIND OUT, DAVE DEKEN OF OKLAHOMA STATE'S SUNUP, RECENTLY WENT THROUGH BBQ JUDGE TRAINING AT OSU'S FOOD AND AGRICULTURAL PROCESSING CENTER. HE INVITES US ALONG. THANKS DAVE. NOW THAT'S A JOB TO HAVE. STICK AROUND MORE FOOD ON FOOD AND YOUR FAMILY AFTER THE BREAK.

GARDENING BLOOM:
GARDENING SEASON IS IN FULL SWING AND MORE AMERICANS ARE GETTING THEIR HANDS DIRTY. IN FOOD AND YOUR FAMILY THIS MORNING, A TOUGH ECONOMY THE LAST COUPLE OF YEARS IS PUSHING MORE PEOPLE GROW THEIR OWN FOOD. ACCORDING TO THE NATIONAL GARDENING ASSOCIATION 43 MILLION AMERICAN'S GREW THEIR OWN FOOD IN 2009...THAT'S UP ABOUT 20 PERCENT FROM THE PREVIOUS YEAR--WHICH WAS ABOUT THE TIME THE ECONOMY TOOK A TURN FOR THE WORSE. SPENDING ON FOOD GARDENING ALSO JUMPED ABOUT 20 PERCENT IN 2009 AND HELD STEADY LAST YEAR. THE GARDENING ASSOCIATION SAYS THERE'S A DIRECT CONNECTION TO THE STRUGGLING ECONOMY, AND HIGHER FOOD PRICES PUSHING THE TREND. THE "LOCAL FOOD" MOVEMENT IS ALSO IMPACTING THE INCREASING NUMBER OF HOME GARDENERS.

SUNFLOWER OIL:
AND FROM THE SUNFLOWER FIELD TO YOUR TABLE, DOW AGRO-SCIENCES SAYS IT'S CREATED THE FIRST SATURATED FAT FREE OMEGA-9 SUNFLOWER OIL. IT COMES FROM THE COMPANY'S OWN PLANTS DEVELOPED THROUGH TRADITIONAL PLANT BREEDING. THE OIL HAS ZERO TRANS FATS AND IS HIGH IN HEART HEALTHY MONO-UNSATURATED FATS. THE SUNFLOWER OIL MAY BE ABLE TO HELP FOOD MANUFACTURES ELIMINATE SATURATED FAT FROM THEIR PRODUCTS, SIMPLY BY SWITCHING TO A HEALTHIER OIL. DOW SAYS THE OIL WILL START APPEARING IN FOODS AND ON LABELS WITHIN THE NEXT TWO YEARS.

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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