USFR Weekly Recap - February 28, 2015, 2014, 2015, 2015

February 28, 2015 03:30 AM
 

TODAY ON USFR
FEBRUARY 28-MARCH 1, 2015

HEADLINES:
WELCOME TO THIS SPECIAL EDITION U.S. FARM REPORT FROM COMMODITY CLASSIC IN PHOENIX, ARIZONA. I'M TYNE MORGAN, AND HERE'S WHAT WE'RE WORKING ON FOR YOU THIS WEEKEND. TRADE BULLS... WE SIT DOWN WITH EACH ASSOCIATION CEO TO TALK ABOUT WHAT TRADE OPPORTUNITIES ARE ON THE HORIZON…NCGA 7:24-7:34: WE KNOW THAT 95% OF THE WORLD'S POPULATION IS OUTSIDE OF OUR BORDERS. AND THAT IS A TREMENDOUS OPPORTUNITY FOR THE PROTEIN IN THE UNITED STATES. "FROM COMPLICATED RELATIONSHIPS TO ONES PRIME FOR GROWTH, WE'LL COVER IT ALL. BUT IS TRADE ENOUGH? WE ASK OUR ANALYSTS IF THE POSSIBLE TRADE DEALS COULD PUSH GRAIN PRICES HIGHER, AND JOHN IS TAKE A BREAK FROM THE FARM. IT'S PART 2 OF HIS CUSTOMER SUPPORT ON NATIONAL DEBT, HE'LL HAVE IT ALL FROM RIGHT HERE IN PHOENIX.
BRAZIL PROTEST:
NOW FOR THE NEWS THAT MOVED THE MARKETS THIS WEEK, AS FARMERS IN BRAZIL PREPARE TO HARVEST WHAT SOME THINK IS A RECORD CROP... THERE'S ONE PROBLEM. FARMERS ARE HAVING TROUBLE FINDING ENOUGH FUEL TO RUN THEIR EQUIPMENT.
PNW DEAL:
A RECENT LABOR DISPUTE CAUSED QUITE THE MESS IN THE PACIFIC NORTHWEST. AND EVEN THOUGH WE HAVE A TEMPORARY DEAL AT THE PORTS, WE'RE STILL DEALING WITH A BACKLOG OF PRODUCTS. SHIPPING DISRUPTIONS PUSHED MORE PORK AND BEEF INTO FROZEN STORAGE THAN ANTICIPATED DURING JANUARY.  THAT'S WHAT COLD STORAGE REPORT SHOWS. AS OF JANUARY 31 FROZEN PORK STOCKS TOTALLED 596 MILLION POUNDS. THAT'S NEARLY 19-PERCENT HIGHER THAN DECEMBER. JANUARY BEEF STOCKS CAME IN AT 490-MILLION POUNDS. THAT'S AN ELEVEN PERCENT JUMP.
RICE:
CHINA IS RAMPING UP ITS APPETITE FOR U-S RICE. ACCORDING TO USDA, RICE EXPORTS ARE EXPECTED TO SET A NEW RECORD THIS YEAR, BEATING LAST YEAR'S LEVELS BY 200 THOUSAND METRIC TONS. IF CHINA KEEPS IMPORTIN GAT THIS PACE, WE'LL SET A RECORD FOR THE FOURTH CONSECUTIVE YEAR. IT REALLY KICKED OFF IN 2012, CHINA'S IMPORTS SURGED TO 7 TIMES THE AVERAGE OF THE PREVIOUS 5 YEARS.
INTEREST RATES:
MEANWHILE, THE FED SAYS CURRENT INTEREST RATES COULD HOLD STEADY FOR THE REMAINDER OF THE YEAR.THE FEDERAL RESERVE ANNOUNCED THEY WOULDN'T RAISE INTEREST RATES BEFORE THIS SUMMER. THE STOCK MARKET RESPONDED POSTIVELY, ON NEWS THE FED WOUDN'T MOVE TOO AGGRESSIVELY IN BUMPING THE SHORT-TERM INTEREST RATES.
TEASE ONE:
THANKS, MIKE. WE HAVE A SPECIAL MARKETING ROUNDTABLE THIS WEEK FROM RIGHT HERE AT COMMODITY CLASSIC. THE LINEUP IS MARK GOLD, CHIP NELLINGER AND CHIP FLORY. THAT HAPPENS RIGHT AFTER THE BREAK.
HEADLINES:
WELCOME BACK TO THIS SPECIAL EDITION OF U-SF FARM REPORT FROM COMMODITY CLASSIC IN PHOENIX ARIZONA. WE HAVE MUCH MORE AHEAD. TRADE TALK. MAJOR COMMODITY ORGANIZATIONS CEO TELL ME WHAT POSSIBLE DEALS ARE ON TEH TABLE, AND WHICH ONES COULD BOOST GRAIN PRICES. IN CUSTOMER SUPPORT, JOHN'S TAKE ON THE NATIONAL DEBT ISN'T OVER. HE HAS PART TWO THIS WEEK. AND AS JOHN AND I ARE TOURISTS IN PHOENIX, IT'S ONLY FITTING BAXTER BLACK HAS A HUMOROUS STORY ABOUT AN OUTSIDER.
FARM BILL CUTS:
NOW FOR THE HEADLINES, AG GROUPS ARE STEPPING UP THEIR EFFORTS TO SAVE THE FARM BILL FROM POSSIBLE CUTS. THIS COMES AS THE PRESIDENT IS LOOKING AT HIS BUDGET, LOOKING AT FARM PROGRAMS AS A POSSIBLE AREA TO TRIM.
RURAL MAINSTREET:
AS FARMERS ADJUST THEIR BALANCE SHEETS, LOOKING AT LOWER NET FARM INCOME, THEY ARE ALSO RETHINKING MAKING BIG EQUIPMENT PURCHAES.  AND THERE'S ANOTHER GRIM FORECAST FOR THE MACHINERY SECTOR AS CREIGHTON UNIVERSITY ECONOMIST ERNIE GOSS IS OUT WITH HIS MONTHLY MAINSTREET INDEX. IT GAUGES THE ECONOMIC HEALTH OF RURAL AMERICA AND BASED ON SURVEYS WITH BANKERS FROM SMALL BANKS IN THE MIDWEST AND GREAT PLAINS. IT SHOWS FEBRUARY FARM-EQUIPMENT SALES INDEX PLUMMETED TO 19-POINT-FIVE FROM 29-POINT-FIVE IN JANUARY. THE INDEX HAS BEEN BELOW GROWTH NEUTRAL FOR 19 STRAIGHT MONTHS. FARMERS HAVE BECOME VERY CAUTIOUS REGARDING EQUIPMENT BUYING.
KEYSTONE:
KEYSTONE X-L PIPELINE RAN INTO A STRICT ROADBLOCK THIS WEEK. AS EXPECTED, THE PRESIDENT VETOED THE MEASURE THAT WOULD GIVE THE FINAL OKAY TO THE PIPELINE. ACCORDING TO THE ASSOCIATED PRESS, SENATE AND HOUSE WERE BOTH JUST SHORT OF GATHERING ENOUGH VOTES TO OVERRIDE THE PRESIDENT'S VETO.
WEATHER PITCH:
THAT'S IT FOR NEWS...METEOROLOGIST MIKE HOFFMAN JOINS US NOW WITH THE NATIONAL FORECAST. MIKE, I THINK MOST OF THE COUNTRY IS READY FOR A WARMUP. SO, WHAT'S IN STORE THE NEXT MONTH…
TRADE FARM JOURNAL REPORT:
TRADE IS THE BACKBONE OF MANY OF OUR COMMODITY SECTORS. IT'S WHAT DRIVES PRICES AND KEEPS THE U-S ECONOMY ALIVE. THE RECENT LABOR DISPUTE IN THE PACIFIC NORTHWEST PORTS BROUGHT THAT TO LIGHT. THE NATIONAL ASSOCIATION OF MANUFACTUERS WARNED A COMPLETE SHUTDOWN WOULD COST THE U-S ECONOMY 2 BILLION DOLLARS A DAY. TRADE CAN CARRY PRICES, BUT CAN ALSO TRIGGER THE BEARS. IN THIS FARM JOURNARL REPORT, WE SEE WHY TRADE IS PROVIDING OPTIMISIM IN OUR CURRENT BEARISH MARKET SITUATION.
CUSTOMER SUPPORT:
JOHN... ONE QUESTION... YOU TOOK TWO WEEKS TO ANSWER. IT MUST BE A PRETTY BIG TOPIC.
TEASE:
THANKS, JOHN. WELL, MANY OF US OUR ALSO ENJOYING THE SIGHTS OF PHOENIX AS TOURISTS. SPEAKING OF OUTSIDERS, BAXTER BLACK HAS A FUNNY STORY WHEN WE COME BACK.
BAXTER BLACK:
WALKING AROUND PHOENIX THIS WEEK, IT'S VERY APPARENT MOST OF US ARE JUST SIMPLY VISITING, TOURING THE SITES. SO, BAXTER BLACK'S HUMOR FITS RIGHT IN... A TRIBUTE TO TOURISTS…
TRACTOR TALES:
WELCOME BACK TO TRACTOR TALES. THIS WEEK WE'VE GOT A CLASSIC DEERE FROM RIGHT HERE IN ARIZONA. "THIS 1957 JOHN DEERE 720 WAS A WORKHORSE IN IT'S DAY. OWNER JERRY GEIGER BOUGHT THIS TRACTOR BECAUSE IT REMINDED HIM OF HIS FARMING DAYS IN NORTHERN MICHIGAN."
CHURCH SALUTE:
TODAY'S COUNTRY CHURCH SALUTE GOES TO BOSTON CHAPEL CHRISTIAN CHURCH IN GIRARD, ILLINOIS. IT'S A SMALL COUNTRY CHURCH BUT ITS MEMBERSHIP DRAWS FROM MORE THAN 10 NEIGHBORING TOWNS. ORGANIZED IN 1873, AN ACRE OF LAND WAS PURCHASED FOR JUST 50 DOLLARS, AND THAT'S WHERE THEY BUILT THE CHURCH. THIS CHURCH TRULY HAS RURAL TIES-- IN THE 1930S A FARMER DONATED A LOAD OF CORN AND THAT WAS USED TO HELP FINANCE THE ADDITIONAL OF THE BASEMENT AND OTHER FEATURES. OUR THANKS TO JANET BOSTON STIEREN FOR SHARING THEIR STORY…
GOODBYE:
FOR JOHN, AL AND MIKE, I'M TYNE MORGAN. THANK YOU FOR WATCHING U-S FARM REPORT. BE SURE TO JOIN US RIGHT HERE AGAIN NEXT WEEK, AS WE WORK TO BUILD ON OUR TRADITION. HAVE A GREAT WEEKEND, EVERYONE.

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