AgDay Daily Recap - March 14, 2011

March 14, 2011 02:42 AM
 

TODAY ON AGDAY:
MARCH 14, 2011

Japan Quake Impact
U-S COMMODITY MARKETS REACTED SHARPLY FRIDAY TO NEWS ABOUT JAPAN'S DEVASTATING EARTHQUAKE. TRADERS WERE TRYING TO GAUGE THE IMPACT ON EXPORT DEMAND AND POSSIBLE DISRUPTION TO SHIPMENTS, BOTH IN AND OUT OF JAPANESE PORTS.  USDA SAYS JAPAN IS THE THIRD LARGEST MARKET FOR U-S AGRICULTURAL PRODUCTS. THE AG DEPARTMENT SAYS THE VALUE OF U-S AG EXPORTS TO JAPAN EXCEEDS THE TOTAL VALUE TO ALL COUNTRIES IN THE EUROPEAN UNION.  IT'S A BIG BUYER OF A NUMBER OF AG COMMODITIES, INCLUDING BEEF, PORK, CORN, WHEAT AND SOYBEANS. IN 2010, JAPAN BOUGHT ONE-POINT-ONE-BILLION DOLLARS WORTH OF U-S SOY, ACCORDING TO THE AMERICAN SOYBEAN ASSOCIATION.
PRO FARMER EDITOR CHIP FLORY HAS MORE ON THE MARKET REACTION.

Vilsack Budget

AS POLICY MAKERS IN WASHINGTON DEBATE BUDGETS AND GOVERNMENT FUNDING, THE USDA SAYS ITS READY TO SHARE THE SACRIFICE.  AG SECRETARY TOM VILSACK TOLD THE SENATORS ITS PREPARED TO CUT AN ADDITIONAL 4 POINT 3 BILLION DOLLARS FROM ITS 2012 BUDGET.
THE COMMENTS CAME AS THE SECRETARY SPOKE TO THE SENATE APPROPRIATIONS SUBCOMMITTEE ON AGRICULTURE. VILSACK SAYS IT WOULD CUT THREE BILLION FROM ITS REGULAR BUDGET AND ANOTHER ONE POINT THREE FROM ITS DISCRETIONARY PROGRAMS.
THAT'S ON TOP OF THE FOUR BILLION THE DEPARTMENT SAVED LAST YEAR WHILE RENEGOTIATING CROP INSURANCE AGREEMENTS.  VILSACK SAYS THE MOST IMPORTANT THING IS THAT LAWMAKERS GIVE GOVERNMENT TIME TO MANAGE THESE CUTS.  VILSACK DID LAY OUT SPECIFICS.  HE SAYS THE CUTS WOULD INCLUDED ABOUT A HALF MILLION DOLLARS IN THE RURAL DEVELOPMENT BUDGET. IT ALSO INCLUDES REDUCTIONS IN WORKFORCE, THROUGH EFFICIENCIES, ATTRITION AND UTILIZING TEMPORARY WORKERS.  WHAT ELSE CAN WE EXPECT IN WASHINGTON THIS WEEK? PRO FARMER NEWS EDITOR ROGER BERNARD LOOKS AT THE WEEK AHEAD.

Wheat Exports
AFTER A BUMPY WEEK, COMMODITY MARKETS WILL LOOK TO STABILIZE THROUGH THE REST OF THE MONTH.  LAST WEEK'S SUPPLY DEMAND REPORT WAS RELATIVELY NEUTRAL FOR ALL GRAINS EXCEPT WHEAT.  THE MAJOR CHANGE OVER FEBRUARY WAS THE DROP IN PROJECTED U.S. WHEAT EXPORTS. PART OF THE REASON LIES IN CHINA.  THE USDA DID NOT CHANGE CHINA'S WHEAT PRODUCTION NUMBERS DESPITE REPORTS OF DRYNESS IN MANY AREAS.  IT ALSO INCREASED WHEAT NUMBERS OUT OF AUSTRAILIA. THAT PUSHED GLOBAL WHEAT ENDING STOCKS TO 182 MILLION METRIC TONS, UP NEARLY 3 PERCENT.  U.S. WHEAT GROUPS SAY THERE ARE STILL QUESTIONS WHETHER RUSSIA WILL BE OUT OF THE DROUGHT THAT CAUSED THIS RECENT SPIKE IN PRICES.  SCHIEBER SAYS THE QUALITY OF THE U.S. CROP REMAINS TO BE SEEN.
DROUGHT IN PART OF THE TEXAS, KANSAS, COLORADO AND NEBRASKA MAY SEVERELY IMPACT U.S. YIELDS IN 2011.


Crop Watch
LET'S GET YOUR FIRST LOOK AT FARM COUNTRY WEATHER THIS WEEK. FOR THAT, LET'S TURN TO MIKE HOFFMAN. GOOD MORNING MIKE.  GOOD MORNING CLINTON. WE DON'T REPORT MUCH FROM ARIZONA. BUT THAT'S WHERE CROP WATCH BEGINS THIS MORNING. THE "NASS" OFFICE SAYS COTTON PLANTING IS UNDERWAY IN THE WESTERN PART OF THE STATE. ALFALFA CONDITION IS MOSTLY POOR TO FAIR. MOVING ALONG ON THIS MONDAY MORNING, WE'LL HEAR FROM SCOTT STEWART FROM STEWART-PETERSON ABOUT PROTECTING AGAINST BOTH THE UPSIDE AND DOWNSIDE OF MARKETS.  PLUS, WE'LL TELL YOU ABOUT A REAL RISK FACING ONE OF THE MOST POPULAR FRUITS ON YOUR BREAKFAST TABLE.  AND WE'LL SEE HOW INNOVATIONS IN HOOP-HOUSES CAN PUT FRESH PRODUCE ON YOUR TABLE JUST ABOUT ALL-WINTER LONG...EVEN WHEN SNOW IS ON THE GROUND.

Equipment sales
N AGRIBUSINESS THE ASSOCIATION OF EQUIPMENT MANUFACTURERS RELEASED ITS MONTHLY FLASH REPORT FRIDAY.  ITS SHOWS EQUIPMENT SALES CONTINUE TO BE STRONG ESPECIALLY FOR COMBINES.  ACCORDING TO THE REPORT SALES OF ALL TRACTORS IN THE U.S. DURING FEBRUARY WERE UP MORE THAN SIX AND HALF PERCENT OVER LAST YEAR.  TWO-WHEEL-DRIVE SMALLER TRACTORS BETWEEN FORTY AND 100 HORSE POWER INCREASED NEARLY 17 PERCENT.
WHILE SALES OF FOUR WHEEL DRIVE TRACTORS, THOSE OVER 100 HORSES WENT UP MORE THAN 30 PERCENT.  THE BIG WINNER CONTINUES TO BE COMBINE MANUFACTURERS.
COMBINE SALES WERE UP MORE THAN 42 PERCENT FOR THE MONTH AND NEARLY 50 PERCENT YEAR OVER YEAR.

Analysis
WHILE EQUIPMENT SALES APPEAR TO BE STEADILY STRONG, COMMODITY MARKETS GOT A SHAKE LAST WEEK.  GRAIN PRICES DROPPED ACROSS THE BOARD.  I SPOKE WITH SCOTT STEWART OF STEWART PETERSON AT THE RECENT COMMODITY CLASSIC GATHERING IN FLORIDA.  HE SAYS EXPECT VOLATILITY.

Hoop Houses-ITC
BUT FIRST WE TRAVEL TO MISSOURI WHERE FARMERS ARE GROWING YEAR-ROUND. HOOP HOUSE PRODUCTION. NEXT ON AGDAY.  FOR GROWERS IN THE NORTHERN TIER OF STATES FINDING A WAY TO EXTEND THE GROWING SEASON HAS BEEN A CHALLENGE.  TODAY, THANKS TO INOVATIONS IN EQUIPMENT AND GREENHOUSES FARMERS ARE PRODUCING FRESH PRODUCE NEARLY YEAR ROUND.  KENT FADDIS WITH THE UNIVERSITY OF MISSOURI EXTENSION HAS MORE ON THE PRACTICE OF UNDERCOVER FARMING.  THANKS KENT.  STILL TO COME ON AGDAY, MCDONALDS MAKES A MAJOR COMMITMENT TO SUSTAINABLE AGRICULTURE. THAT STORY AND PROTECTING THE BANANA CROP NEXT ON FOOD AND YOUR FAMILY. THANKS KENT.
STILL TO COME ON AGDAY, MCDONALDS MAKES A MAJOR COMMITMENT TO SUSTAINABLE AGRICULTURE. THAT STORY AND PROTECTING THE BANANA CROP NEXT ON FOOD AND YOUR FAMILY.

Food and your Family-McDonald’s sustainability
IN FOOD AND YOUR FAMILY THIS MORNING WE START IN THE WARM GLOW OF THE GLODEN ARCHES.  MCDONALDS SAYS ITS COMMITTING ITSELF TO SUSTAINABLE LAND MANAGEMENT VIA ITS PRODUCT SOURCES.  IT WILL REQUIRE SUPPLIERS USE ONLY RAW AGRICULTURAL MATERIALS FOR FOOD AND PACKAGING THAT COMES FROM SUSTAINABLY-MANAGED LAND.  SO WHAT DOES THAT MEANS?  MCDONALDS SAYS IT BELIEVES IN BUILDING SUPPLY FROM RESOURCES THAT CAN CARRY ALL OF US INTO THE FUTURE.  THE COMPANY IS INITIALLY FOCUSING ON FIVE RAW MATERIALS, BEEF, POULTRY, COFFEE, PALM OIL AND PACKAGING.  IT CAME UP WITH THE FIVE PRODUCT FOCUS AFTER ANALYSIS IT DID IN COLLABORATION WITH THE WORLD WILDLIFE FUND.
MCDONALDS SAYS IT'S SUSTAINABILITY MOVEMENT WILL BE EVALUATED BY AN EXTERNAL THIRD PARTY.

ITC:Banana Disease
KEEPING BANANAS ON YOUR BREAKFAST CEREAL OR IN YOUR KID'S LUNCHBOX MAY VERY WELL DEPEND ON KEEPING A VERY DANGEROUS DISEASE OUT OF THE WESTERN HEMISPHERE. A STRAIN OF PANAMA DISEASE, CALLED TROPICAL RACE FOUR - OR T-R-FOUR - HAS ALREADY RAVAGED BANANA CROPS IN SOUTHEAST ASIA AND AUSTRALIA. NOW UNIVERSITY OF FLORIDA RESEARCHERS SAY IT COULD EVENTUALLY DO THE SAME TO U-S AND SOUTH AMERICAN CROPS.
THE MOST POPULAR BANANAS WITH CONSUMERS CALLED CAVENDISH BANANAS HAVE GROWN IN POPULARITY BECAUSE THEY RESISTED EARLIER STRAINS OF PANAMA DISEASE.  BANANAS HAVE BECOME ONE OF AMERICA'S MOST POPULAR FRUITS AND CAVENDISH BANANAS MAKE UP NINETY-NINE PERCENT OF THOSE CONSUMED IN THE U-S. THE U-S IMPORTS MORE THAN FOUR MILLION TONS EACH YEAR, MOSTLY FROM SOUTH AMERICA. EXPERTS SAY FOOD SAFETY OFFICIALS MUST KEEP A CLOSER WATCH ON THE PATHOGEN.

 

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close