AgDay Daily Recap - March 22, 2011

March 22, 2011 02:42 AM
 

TODAY ON AGDAY:
MARCH 22, 2011

CATTLE ON FEED
RISING CONSUMER DEMAND AND RECORD RETAIL PRICES KEPT CATTLE FEEDERS ON THE HOOK AND BEEF ON THE RAIL IN MARCH. THE LATEST CATTLE ON FEED REPORT SHOWS NUMBERS ARE UP FIVE PERCENT OVER THE SAME MONTH A YEAR AGO. THE USDA'S MONTHLY REPORT SHOWED NEARLY 11 AND HALF MILLION HEAD IN FEEDLOTS AS OF MARCH FIRST. HOWEVER, WITH CORN PRICES AT A 31 MONTH HIGH, FEBRUARY PLACEMENTS WERE DOWN ONE PERCENT OVER LAST YEAR. ACCORDING TO THE REPORT, ANALYSTS EXPECT PLACEMENTS TO REMAIN BELOW LAST YEAR'S LEVELS DUE TO HIGHER CORN AND FEEDER CATTLE PRICES. THOSE INCREASES ARE ERRODING PROFIT EXPECTATIONS. RETAIL PRICES HIT A RECORD 4 DOLLARS AND 28 CENTS A POUND, THAT PUSHED MARKETING OF FEBRUARY CATTLE UP FOUR PERCENT ON THE YEAR. PEEL DOES THINK PRODUCERS PLAN TO BEGIN REBUILDING THE SIZE OF THE NATIONAL CATTLE HERD...CURRENTLY AT A 50 YEAR LOW. CATTLE BUYERS AND TRADERS ARE ALREADY REPORTING PROBLEMS FINDING ENOUGH CALVES AND FEEDER CATTLE. AS MORE HEIFERS ARE RETAINED TO INCREASE HERD NUMBERS SUPPLIES ARE EXPECTED TO GET EVEN TIGHTER.

DDG CORN REPORTING
WHILE CATTLE FEEDERS WATCH CORN PRICES ERODE MARGINS, A GROUP OF GOVERNORS SAY THE USDA ISN'T GIVING ETHANOL ENOUGH CREDIT FOR THE BIPRODUCT HELPING FEED LIVESTOCK ALL OVER THE WORLD. A COALITION OF 34 GOVERNORS ARE ASKING USDA SECRETARY TOM VILSACK TO ADJUST ITS REPORTING OF CORN USED FOR ETHANOL. THE GROUP SAYS THE USDA REPORTS DON'T GIVE THE INDUSTRY ENOUGH CREDIT FOR DISTILLERS GRAINS, WHICH HAS BECOME AN IMPORTANT FEED SOURCE FOR LIVESTOCK. THEY SAY CORN USED FOR ETHANOL CURRENTLY REPORTS A GROSS USAGE NUMBER. THEY BELIEVE THE NUMBERS SHOULD ALSO INCLUDE A NET FIGURE...FOR EXAMPLE, IF 4 BILLION BUSHELS GO IN TO MAKE ETHANOL AND 3 BILLION BUSHELS COME OUT AS DDGS THE NET IS ONLY ONE BILLION BUSHELS. THE COALITION SAYS CURRENT REPORTS ONLY ADD TO SENSATIONALISM ABOUT ETHANOLS AFFECTS ON GLOBAL FOOD SHORTAGES AND PRICE INCREASES.

BIOFUEL BILL
BIOFUELS ARE ALSO STILL FINDING "SOME" SUPPORT IN WASHINGTON. A BILL CALLED THE SECURING AMERICA'S FUTURE WITH ENERGY AND SUSTAINABLE TECHNOLOGIES ACT HAS BEEN INTRODUCED IN THE SENATE. IT INCLUDES A FIVE YEAR EXTENSION OF THE BIODIESEL TAX CREDIT AND SHIFTS IT FROM A BLENDERS TO A PRODUCERS CREDIT. IT ALSO INCLUDES AN EXTENSTION OF THE ETHANOL TAX CREDIT AND CALLS FOR 25 PERCENT OF ELECTRICITY TO COME FROM RENEWABLE SOURCES BY THE YEAR 2025.

CROP WATCH
TODAY'S CROP COMMENTS SHOW SOME FARMERS ARE GETTING ANXIOUS TO GET FIELD WORK DONE. MIKE HOFFMAN HAS DETAILS IN CROP WATCH. GOOD MORNING MIKE. GOOD MORNING CLINTON. A GROWER FROM DAY COUNTY, SOUTH DAKOTA WROTE-INTO AGWEB. HE SAYS IT'S GOING TO BE A VERY WET SPRING. HE SAYS THERE'S STILL SNOW ON THE GROUND, BUT THE HILLTOPS ARE STARTING TO SHOW. HE'S HOPING TO BE IN THE FIELDS BY MID MAY.

DT CHECKOFF
TO SHOW OUR COMMITMENT TO THE DAIRY INDUSTRY, WE'RE STARTING A NEW WEEKLY SEGMENT ON AGDAY THAT FOCUSES ON THE ISSUES FACING THOSE PRODUCERS. IT'S CALLED "DAIRY TODAY REPORT". WE'LL BE GETTING HELP FROM OUR REPORTING PARTNERS AT DAIRY TODAY MAGAZINE. TODAY'S TOP STORY INVOLVES CHANGES IN THE CHECKOFF PROGRAM. AFTER NINE YEARS OF DISCUSSION AND DEBATE, DAIRY *IMPORTERS* WILL NOW PAY SEVEN-AND-A-HALF CENTS PER HUNDREDWEIGHT TOWARDS THE DAIRY CHECKOFF. ACCORDING TO DAIRY TODAY, THE HOLD-UP WAS DUE TO ALASKA AND HAWAII DAIRY PRODUCERS NOT PAYING INTO THE PROGRAM. NOT REQUIRING THEM TO PAY , BUT CHARGING IMPORTERS THE FEE, WOULD NOT BE ALLOWED UNDER THE WORLD TRADE ORGANIZATION RULES. SO NOW, ALASKA AND HAWAII ARE PART OF THE CHECKOFF. ALSO AS A RESULT, IMPORTERS WILL NOW ALSO HAVE TWO SEATS ON THE NATIONAL DAIRY RESEARCH AND PROMOTION BOARD.

DT PRODUCTION
IN THE MONTHLY MILK PRODUCTION REPORT, USDA SAYS ESTIMATED U-S MILK PRODUCTION CLIMBED TWO PERCENT IN FEBRUARY COMPARED TO A YEAR AGO. CALIFORNIA WAS UP TWO-POINT-FOUR-PERCENT ON MILK, BUT COW NUMBERS WERE ACTUALLY DOWN EIGHT-THOUSAND. MILK PER COW WAS UP 50 POUNDS. WISCONSIN PRODUCTION WAS HIGHER A HALF PERCENT. ROUNDING-OUT THE REMAINDER OF THE TOP FIVE PRODUCERS - IDAHO MILK PRODUCTION GREW 3.4 PERCENT IN FEBRUARY. NEW YORK PRODUCTION WAS UP 3.8%. PENNSYLVANIA WAS DOWN TWO-TENTHS. THE LARGEST PERCENTAGE INCREASE IN MILK PRODUCTION CAME IN FLORIDA, UP 12-PERCENT.

ANALYSIS
COMMODITY MARKETS CONTINUE TO PICK THEIR WAY THROUGH DEMAND QUESTIONS AFTER THE JAPANESE DISASTER. BUT MIKE FLOREZ AND FARM BUSINESS DIRECTOR AL PELL...DISCUSS WHY THESE FALLING PRICES COULD BE TEMPORARY.

ITC: RENEWABLE CARBON
HOW OFTEN DO YOU HEAR A POLITICIAN OR A NEWS COMMENTATOR TALK ABOUT AMERICA'S DEPENDANCE ON FOREIGN OIL? WITH CRUDE OIL HOVERING OVER A HUNDRED DOLLARS A BARREL, IT'S EASY TO HAVE THE CONVERSATION THAT THE NATION NEEDS NEW SOURCES OF FUEL. AG-RESEARCHERS AT THE UNIVERSITY OF TENNESSEE ARE DEVELOPING WAYS OF CONVERTING RENEWABLE CARBON SOURCES FROM PLANTS INTO FUELS AND OTHER PRODUCTS. IN THIS REPORT FROM U-T, CHUCK DENNEY TAKES US TO A NEW LABORATORY WHERE THE RESEARCH TO CONVERT BIOMASS IS IN ITS EARLY STAGES.

STILL TO COME, TACO BELLS IS ASKING FOR A LAWSUIT ABOUT ITS BEEF TO BE DROPPED. AND US APPLE GROWERS ARE AGAINST GENETICALLY MODIFIED FRUIT FROM THE NORTH. COMING UP ON FOOD AND YOUR FAMILY.

FOOD & YOUR FAMILY: TACO BELL
IN FOOD AND YOUR FAMILY THIS MORNING WE HAVE A COUPLE OF UPDATES TO SHARE. TACO BELL SAYS IT WANTS A LAWSUIT DROPPED THAT'S QUESTIONING HOW BEEFY ITS BEEF IS. THIS IS HAPPENING IN CALIFORNIA. YOU'LL REMEMBER IN A JANUARY A FEDERAL CLASS ACTION LAWSUIT WAS FILED AGAINST TACO BELL FOR FALSE ADVERTISING. THE SUIT SAYS WHAT TACO BELL IS CALLING BEEF IS MOSTLY FILLER AND OTHER SUBSTANCES. TACO BELL QUICKLY TOOK OUT FULL PAGE ADS AND LAUNCHED AN ADVERTISTING CAMPAIGN PROCLAIMINGS ITS MEAT WAS 88 PERCENT BEEF. NOW IT WANTS THE LAW SUIT DROPPED DUE TO A LACK OF PROOF AND BECAUSE IT SAYS USDA REGULATIONS ON WHAT CAN BE CALLED BEEF DO NOT APPLY RESTAURANT MENUS.

FOOD & YOUR FAMILY: GMO APPLES
AND YOU MAY REMEMBER A STORY ABOUT CANADIAN FIRM O-KAN-A-GAN.
IT'S SEEKING APPROVAL FROM THE USDA FOR A GENETICALLY MODIFIED APPLE THAT DOESN'T TURN BROWN WHEN IT'S CUT OPEN. NOW THE U.S. APPLE ASSOCIATION IS VOTING AGAINST THE FRUIT. THE ASSOCIATION SAYS IT WILL ASK THE USDA NOT TO ALLOW THE GMO APPLES INTO THE US. THE ORGANIZATION CLAIMS ITS DECISION ISN'T BASED ON FEARS FOR HUMAN HEALTH. RATHER, IT'S CONCERNED NON-REGULATED STATUS FOR THE O-KAN-A-GAN FRUIT COULD HURT MARKETING EFFORTS AND SALES FROM THE U.S. APPLE INDUSTRY.

 

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