AgDay Daily Recap - November 1, 2010

November 1, 2010 05:28 AM
 

TODAY ON AGDAY:
NOVEMBER 1, 2010

CHINA REJECTS CORN:
IS IT A TRADE DISPUTE OR IS IT POLITICS? CHINA REJECTED A LOAD OF U.S. CORN LAST WEEK. THE COUNTRY SAYS IT CONTAINED AN UN-APPROVED GENETICALLY MODIFIED STRAIN. ACCORDING TO A REPORT FROM REUTERS NEWS SERVICE, THE CARGO OF 50-60,000 TONNES WAS SHIPPED TO A PORT IN SOUTHERN CHINA. REUTERS SAYS THE CORN HAS BEEN SITTING ON THE SHIP SINCE SEPTEMBER, BUT THE ALLEGED PROBLEM WAS ONLY DETECTED IN OCTOBER. AS WE'VE REPORTING HERE ON AGDAY, CHINA HAS INCREASED ITS PURCHASES OF U.S. CORN OVER THE PAST THREE MONTHS. AGDAY ANALYSTS SAY THE REASON FOR THE INCREASE IS TWO-FOLD. CHINA HAS A POOR CORN CROP THIS YEAR. ALSO, MORE CORN IS NEEDED TO FEED CHINA'S GROWING LIVESTOCK SECTOR. WITH IMPROVING PERSONAL INCOMES, CHINA'S RESIDENTS ARE EATING MORE MEAT. BUT BILL BIEDERMANN FROM ALLENDALE INCORPORATED SAYS CHINA'S DECISION TO BLOCK THE SHIPMENT MAYBE MORE ABOUT POLITICS AND LESS ABOUT SCIENCE.

BIEDERMANN REAX:
CHINA HAS LONG USED ITS TOUGH RULES ON GMOS TO KEEP U.S. CORN OUT OF ITS MARKET, BUT STRUGGLING TO KEEP UP WITH DEMAND, IT GAVE ITS FIRST SAFETY APPROVAL TO A GMO STRAIN OF CORN LATE LAST YEAR.

CWT EXPORTS:
MEMBERS OF COOPERATIVES WORKING TOGETHER VOTED TO FOCUS ITS MISSION ON BUILDING DAIRY EXPORT MARKETS AFTER 2010. THAT MEANS THE ORGANIZATION, WHICH STARTED IN 2003, WILL STOP FUNDING ANY HERD RETIREMENT PROGRAMS. WE'VE FOLLOWED THOSE BUY-OUTS CLOSELY OVER THE PAST TWO YEARS. IN AN EFFORT TO IMPROVE DAIRY PRICES, CWT WOULD PERIODICALLY BUY HERDS FROM MEMBERS TO REDUCE THE NATION'S DAIRY HERD. ACCORDING TO CWT, IT HELD ITS 10TH AND FINAL RETIREMENT THIS PAST SUMMER. CWT SAYS IT WILL NOW FOCUS ON HELPING TO GET U.S. DAIRY PRODUCTS IN FOREIGN MARKETS. THEY ALSO VOTED TO TAKE THE REMAINING FUNDS NOT ALLOCATED SO FAR IN 2010, AND SHIFT THOSE TO THE EXPORT ASSISTANCE PROGRAM IN 2011.

CHICKEN EXPORTS:
MEANWHILE, U.S. CHICKEN EXPORTS SUFFERED A 20% PLUNGE IN AUGUST. THAT'S ACCORDING TO NEW INFORMATION FROM THE NATIONAL CHICKEN COUNCIL. THE NCC SAYS EXPORTS WERE 261,000 METRIC TONS IN AUGUST 2010. A YEAR EARLIER, IT WAS 324,000 METRIC TONS. THE CHICKEN COUNCIL SAYS RUSSIA'S BAN ON U.S. POULTRY, BECAUSE OF THE USE OF CHLORINE-PRODUCTS TO DISINFECT THE PROCESSED BIRDS, WAS A BIG REASON IN THE DROP. FOR THE YEAR, THE U.S. CHICKEN INDUSTRY SAW A DECLINE OF 11%. DESPITE THOSE LOSSES, THE ORGANIZATION SAYS THE TOP FIVE MARKETS ACTUALLY REGISTERED POSITIVE GAINS.

STATE BY STATE:
HERE ARE SOME OTHER FARM-NEWS HEADLINES STATE BY STATE. IN WISCONSIN, CNH WILL RESUME PRODUCTION AT ITS RACINE FACILITIES THIS MORNING. THE TRACTOR PLANT, TRAINING CENTER AND PARTS FACILITY WERE HIT BY A TORNADO LAST TUESDAY, CAUSING SIGNIFICANT DAMAGE. THE COMPANY SAYS IT'S WORKING "AROUND THE CLOCK" TO RESTORE FULL PRODUCTION AS SOON AS POSSIBLE. 640 PEOPLE WORK AT THIS SITE IN WISCONSIN. ACCORDING TO A COMPANY NEWS RELEASE, THE WEATHER-PROBLEMS AT THIS PLANT WILL HAVE AN IMPACT AT ITS MANUFACTURING PLANTS IN GRAND ISLAND, NEBRASKA AND FARGO, NORTH DAKOTA. BUT THEY EXPECT THE INTERRUPTION TO BE LIMITED. IN WYOMING, THE STATE IS PLANNING TO TEST UP TO 3,000 CATTLE IN NORTHERN COUNTIES FOR BRUCELLOSIS. THE TESTING BEGAN AFTER PRELIMINARY TESTS INDICATED THE DISEASE WAS FOUND IN THREE COWS IN A PARK COUNTY HERD. THE STATE VETERINARIAN SAYS THE COWS WERE BEING OFFERED FOR SALE AT A LIVESTOCK MARKET WHEN THEY WERE FOUND POSSIBLY TO HAVE BRUCELLOSIS. ADDITIONAL LAB WORK IS BEING DONE TO CONFIRM THE INITIAL RESULTS.

GRAY WOLF:
A GROUP OF LIVESTOCK ORGANIZATIONS ARE PUSHING CONGRESS TO REMOVE THE GRAY WOLF FROM THE ENDANGERED SPECIES ACT. THE NATIONAL CATTLEMEN'S BEEF ASSOCIATION AND THE AMERICAN SHEEP INDUSTRY ASSOCIATION WERE JOINED BY 12 STATE LIVESTOCK PRODUCER GROUPS IN THIS REQUEST. IN THEIR LETTER, THE GROUPS SAY THE GOVERNMENT SHOULD END WHAT THEY CALL "UNWARRANTED FEDERAL PROTECTION. THEY SAY SINCE THE GRAY WOLF WAS PLACED ON THE PROTECTED LIST, POPULATIONS IN THE NORTHERN ROCKY MOUNTAINS AND WESTERN GREAT LAKES HAVE EXCEEDED THE GOVERNMENTS LEVELS.

AGWEB POLL:
IN LAST WEEK'S POLL QUESTION ON AGWEB, THE EDITORS ASKED, “HAS CORN REACHED ITS TIOP PRICE YET?” ABOUT 40% SAID NO, THEY THINK IT'LL HIT $6.25. ANOTHER 30% OF YOU THINK IT'LL CLIMB TO $6.50 BEFORE RETREATING. AND ABOUT ANOTHER 30% THINK CORN WILL HIT $7.00. HERE'S OUR BRAND NEW AGWEB POLL QUESTION FOR THIS WEEK. IT INVOLVES SOME OF YOUR INPUTS. "HAVE YOU MADE YOUR SEED DECISIONS FOR 2011?" YES, NO, OR SOMEWHAT. GO LINE TO www.agweb.com AND SCROLL DOWN THE RIGHT HAND SIDE OF YOUR SCREEN. THERE, YOU CAN CLICK ON OUR UN-SCIENTIFIC POLL. WE'LL HAVE THE RESULTS NEXT WEEK.

MARKETING RALLY:
IN AGRIBUSINESS, I'D LIKE TO PERSONALLY INVITE YOU TO TAKE PART IN THE 2010 MARKETING RALLY. IT TAKES PLACE ONE MONTH FROM TODAY.
WE'VE ASSEMBLED 16 OF THE TOP GRAIN MARKETERS IN THE COUNTRY TO GIVE FARMERS VITAL INFORMATION THEY NEED TO MAKE MARKETING DECISIONS. MANY OF THEM YOU SEE EVERYDAY ON AGDAY, INCLUDING TODAY'S GUEST BILL BIEDERMANN. REGISTRATION IS NOW OPEN. GO TO WWW.MARKETINGRALLY.COM TO LEARN MORE.

ANALYSIS:
BILL BIEDERMANN

IN THE COUNTRY; IOWA PHEASANTS:
AS IOWA'S PHEASANT SEASON GETS UNDERWAY, HUNTERS MAY BE A LITTLE DISAPPOINTED. THE STATE DNR SAYS PHEASANT POPULATIONS ARE DOWN. AND WITH FEWER BIRDS, THAT COULD MEAN FEWER HUNTERS SPENDING DOLLARS AT RESTAURANTS AND SPORTING GOOD STORES. IN THIS REPORT FROM THE IOWA DNR, JOE WILKINSON TELLS US WHAT IT'LL TAKE TO SEE A REBOUND IN PHEASANT HUNTING.

STEAK CHOICES:
WHEN IT COMES TO A HEARTY STEAK, WHAT'S THE IMPORTANT THING CONSUMERS LOOK FOR? DETAILS IN FOOD AND YOUR FAMILY. RESEARCHERS FROM MISSISSIPPI STATE UNIVERSITY WANTED TO FIND OUT THE VARIETY OF FACTORS AMERICANS CONSIDER WHEN CHOOSING A STEAK. THE SCIENTISTS DISPLAYED THREE DIFFERENT CUTS - - JUST LIKE THE CUTS YOU WOULD FIND AT THE MEAT COUNTER AT YOUR SUPERMARKET. THEY WANTED PEOPLE TO CHOOSE BETWEEN A NEW YORK STRIP, RIBEYE AND TOP SIRLOIN. PARTICIPANTS WERE TOLD THAT EVERY STEAK, REGARDLESS OF THICKNESS, ALL WEIGHED EXACTLY THE SAME AND THEIR CHOICES SHOULD BE BASED ON PRICE, COLOR, MARBLE, TEXTURE AND THICKNESS. WHAT MOST PARTICIPANTS DID NOT REALIZE, HOWEVER, WAS THAT EVERY STEAK WAS CUT FROM THE SAME QUALITY OF CARCASS, WHICH WAS LOW CHOICE. AS IT TURNS OUT, THE CONSUMERS CHOSE MARBLING OVER THICKNESS IN SELECTING A STEAK.  THE MSU RESEARCHERS SAID THE CONSUMERS THEY TESTED ARE WILLING TO PAY MORE FOR COLOR AND MARBLING, BUT NOT THICKNESS.

 


 

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