AgDay Daily Recap - May 2, 2011

May 2, 2011 10:23 AM
 

TODAY ON AGDAY:
MAY 2, 2011

WET FIELDS CHRIS HURT:
WHEN USDA RELEASES IT’S WEEKLY CROP PROGRESS REPORT THIS AFTERNOON, THERE SHOULD BE FEW SURPRISES WHEN IT COMES TO THE PLANTING SEASON. AFTER LAST WEEK'S WASHOUT THROUGHOUT MUCH OF THE CORN BELT AND THE DELTA REGIONS, FARMERS HAD NO CHOICE BUT TO SIT AND WAIT. AGRIBUSINESS DIRECTOR LINDSAY HILL DISCUSSED THE PLANTING DELAYS AND MARKET REACTION WITH PURDUE AG ECONOMIST CHRIS HURT. THANKS LINDSAY. MANY PLACES ALONG THE MISSISSIPPI RIVER ARE PREPARING TO DEAL WITH ALL OF THAT RAIN. BOTH MISSISSIPPI AND LOUISIANNA HAVE DECLARED STATES OF EMERGENCY. THE ARMY CORP OF ENGINEERS IS FORCASTING RIVER STAGES NOT SEEN SINCE THE CATASTROPHIC FLOODS IN 1927.

LEVEE BREAK:
IN MISSOURI A FEDERAL JUDGE SAYS YES TO A PLAN THAT WOULD BREAK A LEVEE ALONG THE MISSISSIPPI RIVER. THE STATE IS APPEALING THAT DECISION. THAT BREACH WOULD REDUCE PRESSURE ON THIS FLOOD WALL THAT PROTECTS KAY-ROW, ILLINOIS. IT'S ESTIMATED THE TWO MILE WIDE HOLE WOULD FLOOD ABOUT 130,000 ACRES OF FARM LAND.

UKRAINE GRAIN EXPORTS:
THANKS MIKE. THE UKRANIAN GOVERNMENT IS REOPENING EXPORT CHANNELS FOR THAT NATION'S GRAIN. STATE OFFICIALS SAY IT’S REMOVING EXPORT QUOTAS FOR CORN. REPRESENTATIVES SAY THE GRAIN MARKET WILL BE FREE AND OPEN AS DROUGHT PRESSURES EASE IN THE REGION. UKRAIN IMPOSED EXPORT QUOTAS FOR BARLEY WHEAT AND CORN LAST OCTOBER FOLLOWING RECORD DRY CONDITIONS. RUSSIA BANNED ALL EXPORTS. THAT CLAMP DOWN HELPED PUSH COMMODITIES TO THEIR CURRENT NEAR RECORD LEVELS.

POULTRY EXPORTS:
ALSO ON THE EXPORT SLATE, THE US POULTRY AND EGG EXPORT COUNCIL IS PRAISING 2010 EXPORT TOTALS--EVEN THOUGH THOSE NUMBERS WERE ACTUALLY LOWER THAN THE PREVIOUS YEAR.
THE GROUP SAYS POULTRY EXPORTS FOR THE YEAR WERE 3.7 MILLION METRIC TONS--DOWN ABOUT FOUR AND A HALF PERCENT FROM 2009.  BUT POULTRY PRODUCERS SAY THAT'S NOT TOO BAD CONSIDERING.  RUSSIA CLOSED THE DOOR ON U.S.POULTRY TREATED WITH CHOLRINE FOR THE FIRST EIGHT MONTHS OF 2010. CHINA ALSO FILED AN ANTI-DUMPING CASE AGAINST THE U.S. STOPPING ALMOST ALL CHICKEN SHIPMENTS TO THAT COUNTRY. THOSE ARE THE TWO BIGGEST MARKETS FOR U.S. POULTRY PRODUCTS. THE COUNCIL SAYS THE FACT EXPORTS FELL SO LITTLE IS TESTAMENT TO THE INDUSTRY'S RESILIENCE.

SUGAR LAWSUIT:
IN AGRIBUSINESS SOME OF THE NATION'S LEADING SUGAR MANUFACTURERS HAVE FILED A SUIT TO STOP CORN PROCESSORS FROM MARKETING HIGH-FRUCTOSE CORN SYRUP AS A "NATURAL" PRODUCT EQUIVALENT TO REAL SUGAR. THOSE FILING THE SUIT ARE SEEKING AN INJUNCTION TO END THE CAMPAIGN AND DAMAGES CLAIMING THE CORN SUGAR BRANDING CAMPAIGN CONSTITUTES FALSE ADVERTISING. THE PROCESSORS CAMPAIGN WAS LAUNCHED AS A WAY TO THWART DECLINING SALES OF HIGH-FRUCTOSE CORN SYRUP. THE CORN REFINING INDUSTRY HAS PREVIOUSLY PETITIONED THE FDA FOR APPROVAL TO SUBSTITUTE "CORN SUGAR" FOR HIGH-FRUCTOSE CORN SYRUP ON INGREDIENT LABELS, BUT HAVE YET TO RECEIVE A RESPONSE.

POTASH:
POTASH CORP LIFTED ITS FORECAST FOR FULL-YEAR EARNINGS, AND TRUMPETED ITS LONGER-TERM PROSPECTS, AFTER A 65% JUMP IN FIRST-QUARTER EARNINGS. IT SAYS WORLD DEMAND FOR POTASH "APPROACHED RECORD TERRITORY". THE WORLD'S BIGGEST FERTILIZER GROUP IS RAISING ITS FORECAST FOR EARNINGS IN 2011.

ANALYSIS:
DUSTIN JOHNSON

IN THE COUNTRY; BEEF CHECKOFF:
THE ULTIMATE GOAL FOR THE BEEF CHECKOFF PROGRAM IS TO BUILD BEEF DEMAND. PAID ADVERTISING IS ONE WAY TO DO SO. WHEN SNOW WAS STILL ON THE GROUND, THE FOLKS AT THE CHECKOFF VISITED A BEEF PRODUCER IN WEST-CENTRAL IOWA. THE FAMILY TOLD BRIAN BAXTER HOW THE ADVERTISING CAMPAIGN HAS IMPACTED THEIR FARM.
THANKS BRIAN. STILL TO COME, HOW CONSUMERS ARE STRETCHING THEIR SPENDING DOLLAR AT THE GROCERY STORE. PLUS, WHAT DO YOU THINK ABOUT THE CONSERVATION RESERVE PROGRAM? IT'S ALWAYS A HOT TOPIC. AL PELL HAS DETAILS FROM THE AGDAY INBOX.

CONSUMER SAVINGS:
IN FOOD AND YOUR FAMILY, RESULTS OF A NEW POLL RELEASED BY THE CENTER FOR FOOD INTEGRITY INDICATES CONSUMERS ARE COPING WITH THE RISING COST OF FOOD BY CHANGING THEIR SHOPPING BEHAVIORS.  FOR EXAMPLE, 37% OF THE RESPONDENTS ARE CLIPPING COUPONS AND 32% ARE BUYING FEWER NAME BRAND ITEMS. 17% SAY THEY ARE NOW SHOPPING AT DISCOUNT OR WAREHOUSE STORES IN AN EFFORT TO HOLD DOWN FOOD COSTS. LAST WEEK, USDA KEPT ITS ESTIMATE FOR FOOD PRICE INCREASES AT 3%, BUT THEY INCREASED SOME ITEMS - LIKE RED MEAT - BY 7-8%.

CONTACT PAGE:
IF YOU HAVE SOMETHING TO SAY, ASK OR EXPRESS LET MYSELF OR AL KNOW. CALL US AT 800-792-4329. SEND AN EMAIL TO INBOX@AGDAY.COM . AND WHY DON'T YOU JOIN THE GROWING NUMBER OF FRIENDS WE HAVE ON OUR FACEBOOK PAGE! WWW.FACEBOOK.COM/AGDAY .

 

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