AgDay Daily Recap - March10, 2011

March 10, 2011 01:42 AM
 

TODAY ON AGDAY:
MARCH 10, 2011

Korea Free Trade Agreement
SENATORS ARE WARNING THAT CONGRESS WILL NOT MOVE ON A PENDING FREE TRADE AGREEMENT WITH SOUTH KOREA UNLESS THE ADMINISTRATION ALSO COMPLETES TRADE DEALS WITH COLOMBIA AND PANAMA. THIS AFTER, U-S TRADE REPRESENTATIVE RON KIRK WENT BEFORE THE SENATE FINANCE COMMITTEE ON WEDNESDAY, SAYING IT'S TIME TO MOVE FORWARD WITH THE F-T-A WITH KOREA. BUT LAWMAKERS ON BOTH SIDES SAY AGREEMENTS WITH ALL THREE COUNTRIES MUST BE RATIFED, NOT JUST KOREA. TRADE REP KIRK SAYS THERE ARE STILL SOME UN-RESOLVED LABOR ISSUES IN COLOMBIA.

UTAH'S ORRIN HATCH, THE TOP REPUBLICAN ON THE PANEL, ACCUSED THE ADMINISTRATION OF "A LACK OF POLITICAL WILL" IN NOT PRESENTING ALL THREE COUNTRIES TO CONGRESS FOR RATIFICATION. COMMITTEE CHAIRMAN, DEMOCRAT MAX BAUCUS, AGREED THAT THE THREE AGREEMENTS MUST MOVE TOGETHER IN ORDER TO PASS. IOWA SENATOR CHUCK GRASSLEY ECHOES THOSE CONCERNS.

FTA Impact on US AG
USDA SAYS ABOUT 60 PERCENT OF U-S AG PRODUCTS SENT TO SOUTH KOREA WOULD IMMEDIATELY BE DUTY FREE. THAT INCLUDES CORN, WHEAT, SOYBEANS, COTTON AND WINE. DUTIES ON PRODUCTS SUCH AS BEEF AND PORK WOULD DECLINE OVER TIME. AT COMMODITY CLASSIC, WE TALKED WITH STEVE WELLMAN FROM THE AMERICAN SOYBEAN ASSOCIATION. HE SAYS GETTING THE DEAL DONE WILL HELP SOYBEAN'S NUMBER ONE CUSTOMER - - U-S LIVESTOCK PRODUCERS.

BY 2016, PORK PRODUCERS WOULD SEE 90 PERCENT OF THEIR PRODUCTS SENT TO THE COUNTRY DUTY FREE. BEEF PRODUCTS SEE A MORE PHASED-IN APPROACH OVER THE NEXT 15 YEARS. ACCORDING TO DATA FROM USDA, THE F-T-A WOULD EXPAND U-S FARM EXPORTS TO SOUTH KOREA BY ONE-POINT-EIGHT BILLION DOLLARS. THE AG DEPARTMENT SAYS THE ECONOMIC OUTPUT WOULD GROW MORE UNDER THIS ONE DEAL THAN THE LAST NINE TRADE AGREEMENTS COMBINED. U-S AG EXCPORTS TO KOREA TOTALLED FIVE BILLION DOLLARS LAST YEAR, MAKING THAT COUNTRY THE FIFTH LARGEST EXPORT MARKET FOR U-S FARM PRODUCTS.

Ethanol Tax Credits
ETHANOL SUBSIDIES REMAIN UNDER FIRE. ON WEDNESDAY SENATORS TOM COBURN OF OKLAHOMA AND BEN CARDIN OF MARYLAND CALLED FOR THE IMMEDIATE ELIMINATION OF THE VOLUMETRIC ETHANOL EXCISE TAX CREDIT - OR VEE-TEK. COBURN CALLED THE 45-CENT PER GALLON CREDIT "BAD ECONOMIC POLICY".

Supply Demand report
THE MARKET WILL BE WATCHING THIS MORNING WHEN USDA RELEASES ITS MARCH SUPPLY-DEMAND FIGURES ON KEY GRAINS. IN PARTICULAR, TRADERS WILL BE WATCHING CORN CARRYOVER NUMBERS, WHICH IS SITTING AT HISTORICALLY LOW LEVELS. THOSE LOW LEVELS HAVE PLAYED A ROLE IN THE SURGING PRICES. BOB UTTERBACK OF UTTERBACK MARKETING SAYS BOTH CORN AND SOYBEANS CLOSED DOWN WEDNESDAY IN ANTICIPATION OF THIS MORNING'S REPORT. THE REPORT WILL COME-OUT AT SEVEN-30 CENTRAL TIME...EIGHT-30 EASTERN. YOU'LL BE ABLE TO SEE DATA RIGHT AFTER ITS RELEASE ON AGWEB-DOT-COM.

Tennessee Planting
MEANWHILE, TENNESSEE FARMERS ARE ANXIOUS TO GET INTO THEIR FIELDS. THE BIG QUESTION - - WHAT WILL THEY PLANT? THERE'S SOME INDICATION THAT IT COULD BE A BIG YEAR FOR SOYBEANS. YET, COTTON IS ALSO SET TO MAKE A BIG COMEBACK. CHUCK DENNEY HAS DETAILS IN THIS REPORT FROM THE UNIVERSITY OF TENNESSEE.


Fuel Costs:
IN AGRIBUSINESS UNREST IN THE MIDDLE EAST HAS DRIVEN OIL AND GASOLINE PRICES HIGHER AND HAS PROMPTED THE U.S. ENERGY INFORMATION AGENCY TO RAISE THEIR 2011 FORECASTS AS WELL. NOTING CURRENT PRICES ARE THE HIGHEST SINCE 2008, EIA SAID THEY HAVE NOW RAISED THEIR FORECAST FOR THE AVERAGE COST OF CRUDE OIL TO REFINERS TO 105 A BARREL IN 2011, 14-DOLLARS HIGHER THAN THEIR PRIOR OUTLOOK. FOR GASOLINE, EIA SAID THEY ARE NOW FORECASTING THE RETAIL PRICE OF REGULAR-GRADE MOTOR GASOLINE TO AVERAGE THREE-56 PER GALLON IN 2011. THAT'S 77 CENTS PER GALLON HIGHER THAN THE 2010 AVERAGE AND ABOUT 40 CENTS ABOVE EIA'S PREVIOUS FORECAST. EIA SAYS WITH THE SIGNIFICANT UNCERTAINTY SURROUNDING THE FORECAST, THERE'S A25-PERCENT PROBABILITY THAT THE NATIONAL MONTHLY AVERAGE RETAIL PRICE FOR REGULAR GASOLINE COULD EXCEED FOUR-DOLLARS PER GALLON DURING SUMMER 2011.

Analysis with Mark Gold, Top Third Ag Marketing
ON THE AGWEB POLL QUESTION THIS WEEK, THE EDITORS ASKED WHEN WILL THIS MARKET SEE EIGHT DOLLAR CORN - MARCH, JUNE, SEPTEMBER, OR NEVER! THERE'S BEEN A HUGE RESPONSE TO THAT POLL. WHILE AT COMMODITY CLASSIC LAST WEEK, I TALKED WITH MARK GOLD FROM TOP THIRD AG MARKETING ABOUT THE QUESTION.

In the Country
Budget Related Conservation Cuts
AS CONGRESS BATTLES OVER BUDGET CUTS, CONSERVATION GROUPS ARE WORRIED ABOUT WHAT WILL END-UP GETTING CUT. ONE PROGRAM IN PARTICULAR IS THE NORTH AMERICAN WETLANDS CONSERVATION ACT - - OR NAWCA {NOCK-UH}.LAST YEAR, IT COST THE GOVERNMENT 47 MILLION DOLLARS. ACCORDING TO CONSERVATION GROUPS IN NORTH DAKOTA, NAWCA HAS HELPED FUND IMPROVEMENTS ON MORE THAN A MILLION ACRES OF WETLANDS THAT ATTRACT MIGRATORY GAME BIRDS AND WILDLIFE. RETHA COLCLASURE FROM AFFILIATE KFYR LOOKS AT THE PROGRAM AT RISK.

Food and your Family
Soybeans in Afghanistan
NOW IN ITS SECOND DECADE OF OPERATION, THE "WISHH" PROGRAM IS WORKING TO IMPROVE THE LIVES OF FARMERS IN AFGHANISTAN. DETAILS IN FOOD AND YOUR FAMILY. “WISHH" STANDS FOR WORLD INITIATIVE FOR SOY IN HUMAN HEALTH. IT'S A PROGRAM OF THE AMERICAN SOYBEAN ASSOCIATION. IT'S INTENDED TO BRING THE BENEFITS OF U-S SOY PROTEIN INTO DEVELOPING COUNTRIES, LIKE AFGHANISTAN. FARMERS IN THAT WAR-TORN COUNTRY TYPICALLY GROW JUST ENOUGH FOOD TO FEED HIS FAMILY. THE AVERAGE FARMER FARMS LESS THAN A HALF AN ACRE AND IT'S DONE BY HAND. WISHH IS WORKING WITH FARMERS TO HELP THEM DEVELOP A CASH CROP, SO THEY CAN MOVE BEYOND THE POVERTY ASSOCIATED WITH "SUBSISTENT" FARMING. AS PART OF THE PROGRAM, WISHH SIGNED AN AGREEMENT WITH TWO PARTNERS TO CONSTRUCT AND OPERATE A SOYBEAN CRUSHING PLANT IN KABUL. THIS WILL GIVE AFGHANI FARMERS A MARKET TO SELL THEIR SOY CROP. TO LEARN MORE ABOUT THEIR EFFORTS IN AFGHANISTAN AND OTHER DEVELOPING NATIONS, GO TO W-I-S-H-H-DOT-ORG.
www.wishh.org
 

 

 

 

 

 

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