AgDay Daily Recap -October 12, 2012

October 12, 2012 05:57 AM

OCTOBER 12, 2012


Good morning I’m Clinton Griffiths. Corn prices were sharply higher as the AG Department tweaks its crop numbers.


There were mixed market signals from Thursday’s crop and grain supply reports.


Of the big corn states - there was 12 bushel decline in Illinois and a three bushel decline is Nebraska. From Septembers estimate. Iowa and Indiana yields remained steady from last month. And there was a 12 bushel improvement in Minnesota.


As far as the supply-demand tables. USDA pegs 2012-13 corn ending stocks to fall to 619 million bushels, the smallest since 1995. USDA also lowered corn export projections by 100-million bushels, based on slow sales and strong competition from brazil.


A short crop and higher grain prices are stretching livestock margins razor thin. In California, Zacky Farms a large poultry producer is filing for chapter 11 bankruptcy. The Fresno based Farm Cites soaring feed costs as a reason for its financial struggles. Zacky spends nearly 2 million dollars a week on feed.


The National Corn Growers Association also commented on the RFS waiver Wednesday.

NCGA says granting a waiver at this point is premature. It said from its news service, "harvest is still underway, a complete count of the 2012 corn crop is unavailable and that information is needed for an informed decision."


Cold to the north and hail to the south - both are causing late season problems. Details in cropwatch.


The 2012 drought may take a big swipe out of the nation’s AG exports. The U.S. Chief Agricultural Negotiator, says he expects farm export to drop between one and two billion dollars this year. Last year the U.S. exported 137 billion dollar’s worth of AG products.


In agribusiness...tractor sales continue to steadily climb. The association of equipment manufacturer's just rolled out its monthly flash report. It says sales of all tractors in the U.S. are up by nearly 10-thousand units compared to 2011. Tractors 100 horse power and less are up 7% on the year, 100 plus tractors are up 13%. Combine sales which have been down this year, were up about 8 percent this month, compared to September of last year.


We continue our coverage of the USDA reports in this week's Profarmer profit briefing. Profarmer Editor Chip Flory and Senior Market Analyst Brian Grete join us from the Profarmer studios to look at the data. If you subscribe to the Profarmer newsletter, here's what you can expect when the latest edition comes out today. The team will further analyze the big jump in the soybean crop and see how it shakes-out against increased demand estimates. Also on closer inspection - the smaller carryover in the 2012-13 corn crop. And El Nino fades to neutral... Is La Nina coming back?


There may have a little less mud this year, but dust has plentiful. Either way it's job security for one boot specialist in Oklahoma. Austin Moore with Oklahoma State’s Sunup television program introduces us to a woman making a living while keeping those calf skins looking good.



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