AgDay Daily Recap: December 8, 2010

December 8, 2010 02:08 AM
 

TODAY ON AGDAY:
DECEMBER 8, 2010

WASDE ALLENDALE FORECAST:
FARMERS AND MARKETERS ALIKE WILL BE WATCHING FRIDAY AS USDA RELEASES THE SUPPLY-DEMAND REPORT. THE DEMAND PICTURE, ESPECIALLY ON CORN, WILL GET A LOT OF ATTENTION ESPECIALLY SINCE GRAIN STOCKS ARE ALREADY UNDER A BILLION BUSHELS. ACCORDING TO OUR REPORTING PARTNERS AT AGWEB, THE DEMAND PICTURE COULD GET MORE BULLISH AFTER CHINA AND RUSSIA BOTH PURCHASED CORN FROM ARGENTINA IN RECENT WEEKS. THAT COULD LEAD TO ADDITIONAL GRAIN PURCHASES FROM THE U.S. AS WELL. MEANWHILE, ALLENDALE INCORPORATED RELEASED ITS PRE-REPORT FORECAST, SHOWING NO CHANGE IN THE U.S. ENDING STOCKS OF CORN. BUT THEIR ANALYSTS EXPECT A SMALLER AMOUNT OF SOY AND WHEAT IN U.S. CARRYOVER.

CHINA DEMAND:
ANOTHER FACTOR THAT CONTINUES TO IMPACT GRAIN MARKETS IS CHINA'S GROWING DEMAND FOR U.S. CORN AND SOYBEANS. AND AS AGRIBUSINESS DIRECTOR AL PELL FOUND OUT DURING THE 2010 MARKETING RALLY, THE DEMAND ALSO INCLUDES VEGETABLE OIL.  THE USDA REPORTS COME OUT FRIDAY MORNING AT 7:30 CENTRAL TIME.

SK FTA:
CALLING IT THE "MOST EXPANSIVE U.S. TRADE DEAL SINCE NAFTA", THE U.S. GRAINS COUNCIL CONGRATULATED THE WHITE HOUSE FOR REACHING A FREE-TRADE AGREEMENT WITH SOUTH KOREA. CONGRESS MUST STILL RATIFY THIS DEAL. THE GRAINS COUNCIL SAYS THE FTA WOULD BENEFIT U.S. PRODUCERS OF BARLEY, CORN, SORGHUM AND THEIR CO-PRODUCTS. THE NEW DEAL MEANS SUBSTANTIAL TARIFF DROPS ON U.S. AG IMPORTS INTO SOUTH KOREA.

TAX PROPOSITION:
THE DEAL THAT WOULD EXTEND THE PRESIDENT BUSH TAX CUTS FOR TWO YEARS WILL ALSO BENEFIT FAMILIES AND FARMERS WORRIED ABOUT THE ESTATE TAX. AS WE'VE BEEN REPORTING, HAD THOSE CUTS BEEN ALLOWED TO ELAPSE THE EXEMPTION LEVELS WOULD HAVE DROPPED TO A MILLION DOLLARS WITH A TAX RATE OF 55%. FARM GROUPS SAY THOSE LEVELS WOULD BE DIFFICULT ON FAMILIES TRYING TO PASS ALONG FARMS TO THE NEXT GENERATION. IF THE DEAL GETS APPROVED, IT WILL SET THE ESTATE TAX EXEMPTION AT FIVE MILLION DOLLARS FOR INDIVIDUALS AND TEN MILLION FOR COUPLES. THE TOP TAX RATE WOULD BE SET AT 35%.

MACHINERY MINUTE TITAN:
IN MACHINERY MINUTE, TITAN MACHINERY HAS ENTERED INTO AN AGREEMENT TO PURCHASE CERTAIN ASSETS OF NEBRASKA- EQUIPMENT DEALER 'FAIRBANKS INTERNATIONAL'. THE DEAL INCLUDES SIX DEALERSHIPS THAT ARE LOCATED ALONG INTERSTATE 80 IN NEBRASKA, STRETCHING FROM GRAND ISLAND TO NORTH PLATTE. THAT'S SOME OF THE MOST PRODUCTIVE LAND IN THE WESTERN CORN BELT. THE DEALERSHIPS SELL CASE-IH AND NEW HOLLAND BRANDS. TITAN IS BASED IN NORTH DAKOTA, BUT HAS HOLDINGS IN SEVEN STATES. THEY EXPECT TO CLOSE THE DEAL BEFORE THE END OF THE YEAR.

MACHINERY MINUTE EQUIPMENT SALES:
WORLDWIDE EQUIPMENT PRODUCTION VOLUMES WERE NOT CONSIDERED STELLAR THIS YEAR, BUT THEY ARE RUNNING AHEAD OF 2009. THAT'S ACCORDING TO THE ASSOCIATION OF EQUIPMENT MANUFACTURERS. AEM RECENTLY MET WITH THEIR COUNTER-PARTS FROM OTHER EQUIPMENT ASSOCIATIONS AROUND THE WORLD. THEY SAY PRODUCTION VOLUMES WILL END SLIGHTLY AHEAD OF LAST YEAR. AEM SAYS EUROPEAN MARKETS ARE STARTING TO REBOUND. AND IN THIS COUNTRY, AEM SAYS FARMERS ARE BUYING EQUIPMENT AS THEY'RE FEELING RATHER OPTIMISTIC RIGHT NOW WITH THE CURRENT COMMODITY PRICES.

ANALYSIS:
BRIAN BASTING

AGWEB POLL:
THANKS MIKE...A QUICK REMINDER. WE HOPE YOU TAKE PART IN OUR WEEKLY AGWEB POLL. THE QUESTION THIS WEEK - - "WHAT IS THE TOP AGRICULTURE STORY OF 2010?" WAS IT EPA'S DECISION TO ALLOW E15... USDA'S GIPSA RULING... DECLINING USDA CORN CROP PROJECTIONS...OR WAS IT SOMETHING ELSE? GO TO www.agweb.com TO CAST YOUR VOTE.

CORN STOVE TEASE:
COMING UP THURSDAY ON AGDAY, WE'LL TAKE YOU INSIDE THIS OLD THEATER IN ILLINOIS. MANY SMALL-TOWNS MAY HAVE A SIMILAR SHOW-PLACE. UNFORTUNATELY, THEY'RE USUALLY RUNDOWN. BUT THIS ONE HAS NEW LIFE. AND YOU MAY BE SURPRISED TO FIND OUT HOW AMERICAN FARMERS ARE HELPING ITS REJUVENATION. JOIN US FOR THAT STORY ON THURSDAY.

IN THE COUNTRY; CALIFORNIA RICE:
IN CALIFORNIA'S GOLDEN SUNSHINE IT’S EASY TO LUMP THAT STATE'S AGRICULTURAL OUTPUTS INTO A FEW HIGH PROFILE ITEMS. WE KNOW PRODUCTS LIKE GRAPES, WINE, DAIRY, CITRUS AND VEGETABLES COME FROM THE STATE. BUT DID YOU KNOW RICE IS ALSO A MAJOR COMMODITY THERE. CALIFORNIA COUNTRY TV'S TRACY SELLERS TAKES US OFF THE COAST TO SACRAMENTO FOR AN ALTERNATIVE WAVE OF GRAIN. THAT WAS TRACY SELLERS REPORTING. ACCORDING TO TRACY, PRETTY MUCH ALL SUSHI MADE IN THE U.S. USES CALIFORNIA RICE.
STICK AROUND WE'VE GOT MORE FOOD TO FOCUS ON WITH FOOD AND YOUR FAMILY WHEN AGDAY RETURNS

FOOD STAMPS:
NEW NUMBERS FROM THE USDA SHOWS AMERICAN'S ARE STILL STRUGGLING TO FEED THEMSELVES. IN TODAY'S FOOD AND YOUR FAMILY THE LATEST DATA SHOW'S MORE THAN 40 MILLION AMERICAN'S ARE NOW USING THE SUPPLEMENTAL NUTRITION PROGRAM OR SNAP. IN SEPTEMBER THAT NUMBER WENT UP BY MORE THAN A HALF MILLION PEOPLE IN ONLY A MONTH'S TIME. OVERALL THE NUMBER OF PEOPLE NEEDING FEDERAL FOOD ASSISTANCE IS UP BY MORE THAN 5 MILLION OR ABOUT 15 PERCENT IN 2010. WITH MORE PEOPLE NEEDING HELP, COSTS ARE ALSO ON THE RISE. THE MONTHLY BILL HAS REACHED 5.7 BILLION DOLLARS...WITH TOTAL COSTS FOR THE YEAR HOVERING AROUND 65 BILLION. THAT'S NEARLY DOUBLE WHAT IT WAS JUST TWO YEARS AGO.  LEADER'S AT THE USDA SAY HIGH UNEMPLOYMENT IS DRIVING THIS RECORD DEMAND.

CRASH DIETING:
FROM NOT ENOUGH TO EAT TO TOO MUCH. HOLIDAY FOODS ARE FILLING TABLES AROUND THE COUNTRY WHICH MEANS ITS NEVER TOO EARLY TO START THINKING ABOUT THOSE NEW YEAR HEALTHY HABITS. FOR MANY THAT MEANS DIETING. NEW RESEARCH FROM THE UNIVERSITY OF PENNSYLVANIA SAYS IT'S A GOOD IDEA TO EASE INTO THOSE CHANGES.  IN STUDIES OF MICE, RESEARCHERS FOUND THAT REPEATED CRASH DIETING MAKES THE BRAIN MORE SUSCEPTIBLE TO STRESS. THEY ALSO FOUND IT LEADS TO BINGE EATING OF HIGH FAT FOODS.

CONTACT PAGE:
WE'D LOVE TO HEAR FROM YOU! CONTACT US AT 800-792-4329. OR DROP AN EMAIL TO INFO@AGDAY.COM . YOU CAN ALSO CHECK US OUT ON SOME OF THAT NEW TECHNOLOGY, AT WWW.FACEBOOK.COM/AGDAY .
 

 

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