USFR Weekly Recap - January 31-February 1, 2015, 2014, 2015, 2015

January 31, 2015 03:30 AM
 

TODAY ON USFR
JANUARY 31-FEBRUARY 1, 2015

HEADLINES:
WELCOME TO U.S. FARM REPORT. I'M TYNE MORGAN, AND HERE'S WHAT WE'RE WORKING ON FOR YOU THIS WEEKEND...IT'S DRY IN CALIFORNIA. BUT IS DROUGHT THE ONLY REASON FARMERS HAVE NO WATER? WE HAVE A COMPLETE LOOK AT HOW THE DROUGHT IS IMPACTING THE NATION'S FOOD SUPPLY. THE NEW CALIFORNIA EGG LAW ISN'T ALL BAD... BUT EVEN THEN, WE'LL SHOW YOU HOW MUCH THE PRICE OF EGGS HAS JUMPED, AND IN JOHN'S WORLD, "HOW CAN STRONG BE WRONG WHEN IT'S THE DOLLAR?
ALLENDALE PRICE:
NOW FOR THE HEADLINES, AS PRICE PREDICTIONS ROLL OUT FOR THE YEAR, ONE FIRM THINKS THE SITUATION LOOKS MUCH WORSE FOR SOYBEANS THIS YEAR.
FARM BILL PAYMENTS:
THOSE FALLING CROP PRICES COULD TRIGGER MORE FARM BILL PAYMENTS.ACCORDING TO POLITICO, THE CONGRESSIONAL BUDGET OFFICE UPDATED ITS BASELIEN THIS WEEK, SHOWING ANNUAL PAYMENTS TO FARMERS COULD AVERAGE 4 POITN 8 BILLION DOLLARS OVER THE NEXT 10 YEARS. THAT'S A 50 PERCENT SPIKE OVER WHAT THE OFFICE PREDICTED A YEAR AGO.
CAT EARNINGS:
MEANWHILE, THE LOWER COMMODITY PRICES ARE EATING INTO CATERPILLAR'S SALES.
THE COMPANY FORECASTING A TOUGHER BUSINESS ENVIRONMENT EXPECTING REVENUE TO FALL TO 50 BILLION DOLLARS…THAT WOULD BE A 9 PERCENT DROP FROM THIS PAST YEAR.
UKRAINE WHEAT:
GRAIN TRADERS IN UKRAINE SIGNED AN AGREEMENT CONTROLLING EXPORTS OF WHEAT USED TO MAKE FLOUR. THIS COMES AS THE COUNTRY GRAPPLES WITH PRESERVING FOOD SUPPLIES IN A WORSENING CONFLICT WITH RUSSIA. EXPORTS WILL BE LIMITED TO 900-THOUSAND METRIC TONS OF MILLING WHEAT IN THE FIRST QUARTER. ANOTHER 300-THOUSAND WILL BE SHIPPED IN THE SECOND QUARTER. THE AGREEMENT SAYS THOSE FIGURES COULD CHANGE DEPENDING ON CROP CONDITIONS.
FEDERAL RESERVE:
THE FEDERAL RESERVE SAYS ITS STAYING THE COURSE ON CURRENT INTEREST RATES.
DURING A MEETING WEDNESDAY, THE RESERVE SAID ITS KEEPIGN OPITION OPENING, SIGNALING IT WOULDNT' RAISE SHORT-TERM RATES ANY EARLIER THAN JUNE.
SINGAPORE DOLLAR:
AFTER EASING MONETARY POLICY IN SINGAPORE, THEIR CURRENCY FELL TO THE WEAKEST POINT SINCE 2010 AGAINST THE U-S DOLLAR.SINGAPORE CUT THE INFLATION FORECAST FOR 2015, FORECASTING PRICES MAY FALL BY HALF A PERCENT.
CHINA CORN STOCKS:
CORN STOCKPILES IN CHINA ARE EXPECTED TO CLIMB THIS YEAR TO A RECORD AMOUNT. THAT'S AS BEIJING'S EFFORTS TO STIUMLATE DEMAND AND SALES AREN'T WORKING.
OFFICIALS ARE OFFERING A TEAX REBATE FOR CORN STARCH EXPORTS, BUT NOT MANY ARE BITING AT THE OFFER.  BUYERS ARE OPTING FOR CHEAPER SUBSTITUTES, SUCH AS DDG'S.     
 PORT DISPUTE:
MAJOR FARM GROUPS ARE NOW GETTING INVOLVED IN THE WEST COAST PORT LABOR DISPUTE. PRESSURING BOTH SIDES TO GET A DEAL DONE SOME PROGRESS WAS MADE THIS WEEK AS SHIPPERS AND UNION DOCK WORKERS HAVE REACHED A TENTATIVE AGREEMENT ON WHAT MIGHT SEEM LIKE AN ODD ROADBLOCK. IT'S OVER THE MAINTENANCE OF CHASSIS USED TO HAUL CARGO CONTAINERS. CURRENTLY, LEASING COMPANIES CONTROL THAT CONTRACT, AND THEY DON'T HAVE A RELATIONSHIP WITH THE LONGSHOREMEN'S UNION.
PITCH TO MIKE:
THAT'S IT FOR NEWS...METEOROLOGIST MIKE HOFFMAN JOINS US NOW WITH WEATHER...MIKE, I SAW MANY OF OUR VIEWERS POSTING ABOUT 70 DEGREE TEMPERATURES THIS WEEK. IS IT SPRING OR WINTER?
JOHN’S WORLD PITCH:
WE JUST TALKED TO OUR ANALYSTS ABOUT THE STRONG U-S DOLLAR. BUT WHAT'S JOHN'S TAKE? HE'S HERE WITH IT NOW.
JOHN’S WORLD:
AS MANY OF OUR ANALYSTS HAVE NOTED THERE ARE MANY HEADWINDS FOR COMMODITY PRICES RIGHT NOW. WE HAD HUGE CROPS IN 2014; THE GLOBAL ECONOMY IS SLIPPING; INTERNATIONAL TRADE IS ALWAYS A TARGET FOR POLITICAL INTERESTS - JUST TO NAME A FEW. BUT PERHAPS THE MOST SURPRISING IS THE UNEXPECTED STRENGTH OF THE DOLLAR. NERVOUS SAVERS AROUND THE WORLD AND HERE AT HOME WANT TO HOLD THEIR WEALTH IN DOLLARS - NOT EUROS OR YUAN OR EVEN SWISS FRANCS. THE DOLLAR HAS BEEN TRENDING UP STRONGLY FOR SIX MONTHS. THE PECULIAR LANGUAGE OF FOREIGN EXCHANGE CAN BE A PROBLEM. A STRONG DOLLAR SOUNDS MORE PATRIOTIC THAN A WEAK ONE, AFTER ALL. BUT AS ONE OUT OF EVERY THREE ACRES IS NOW EXPORTED, THE RISE OF THE DOLLAR IS NOT HELPFUL FOR BUSINESSES LIKE AGRICULTURE THAT NOW MAKE MUCH OF OUR PROFIT FROM OVERSEAS.  MEANWHILE, THE PRODUCTS WE BUY FROM OUTSIDERS ARE LESS EXPENSIVE - WHO DOESN'T LIKE CHEAP OIL AND ELECTRONICS? LIVING IN THE GLOBAL ECONOMIC BRIGHT SPOT - WHICH THE U-S NOW IS - TURNS OUT TO BE A MIXED BAG FOR MANY AMERICANS, INCLUDING MOST FARMERS. IT MAY BE AS THE WORLD GETS MORE DEEPLY INTERLINKED THROUGH INTERNATIONAL COMMERCE, WE WILL DISCOVER THAT JUST LIKE WITHIN OUR BORDERS, WE WON'T PROSPER AS WELL IF OTHERS ARE NOT. WHILE THERE WILL ALWAYS IS DIFFERENT ECONOMIC STORIES IN DIFFERENT NATIONS, WHEN THERE IS A WIDE DIFFERENCE BETWEEN LOSERS AND WINNERS, NEITHER DOES AS WELL AS THEY COULD. THE BEST THING FOR AMERICAN GROWERS AND THE U-S, FOR THAT MATTER, IS NOT TO BE RACING AHEAD OF THE REST ECONOMICALLY, BUT IN THE FRONT OF AN ADVANCING GLOBAL PACK. TO QUOTE THE GREAT CANADIAN PHILOSPHER RED GREEN, WE REALLY ARE ALL IN THIS TOGETHER.
TAG & CLOSE:
THANKS SO MUCH, JOHN.STILL TO COME, HOW IS THE CALIFORNIA DROUGHT IMPACTING SUSHI CONSUMPTION. OUR FARM JOURNAL REPORT IS COMING UP NEXT.
HEADLINES:
WE HAVE MUCH MORE AHEAD THS WEEKEND ON U-S FARM REPORT. DROUGHT WATCH- WHAT'S THE REAL REASON CALIFORNIA FARMERS DON'T HAVE ENOUGH IRRIGATION. IN OUR FARM JOURNAL REPORT, SOME SAY IT'S NOT JUST BECAUSE OF THE DROUGHT ANY RELIEF? AS DROUGHT POPS UP IN SOME KEY GROWING AREAS, MIKE HOFFMAN TELLS US IF RAIN IS ON THE WAY.  BAXTER BLACK HAS A FUNNY STORY ABOUT CAR-POOLING THE COWBOY WAY.
AND IN CUSTOMER SUPPORT, JOHN ANSWERS ONE CRITIC'S COMMENT ABOUT WHAT HE CALLS, THE "CORN BILL."
FOOD SAFETY BILL:
THERE'S OFTEN CONFUSION AROUND FOOD SAFETY AS TO WHICH FEDERAL AGENCY HAS JURISDICTION. BUT A BILL INTRODUCED THIS WEEK COULD CHANGE THAT. SENATOR DICK DURBIN OF ILLINOIS INTRODUCING THE SAFE FOOD ACT OF 2015…IT WOULD ESTABLISH A SINGLE FOOD SAFETY ADMINISTRATION. DOING SO WOULD CONSOLIDATE THE FOOD SAFETY FUNCTIONS CONDUCTED BY THE FDA AND USDA INTO ONE AGENCY.
CALI EGG PRICES:
GROCERY SHOPPERS IN CALIFORNIA ARE EXPERIENCING STICKER SHOCK ON EGGS. THAT'S BECAUSE THE PRICE JUMPED 2 DOLLARS A DOZEN THIS YEAR. SOME ARE SAYING THIS STEMS FROM THE NEW CALIFORNIA EGG LAW IMPLEMENTED AT THE START OF THE YEAR, WHICH REQUIRES LAYING HENS TO HAVE MORE ROOM.BUT CALIFORNIA FARM BUREAU PRESIDENT PAUL WENGER SAYS THAT'S NOT THE ONLY REASON. HE TOLD US SOME PRODUCERS WHO DIDN'T WANT TO FORK UP THE MONEY TO TRANSITION TO DIFFERENT HOUSING DID LEAVE THE BUSINESS, BUT IT'S ALSO ATTRACTING FARMERS.
CARGILL HOUSING:
ONE OF THE LARGEST PORK PRODUCERS IN THE COUNTRY SAYS THE PLAN TO CONVERT TO GROUP HOUSING IS HAPPENING EARLIER THAN EXPECTED. ORGINALLY, CARGILL ANNOUNCED ITS FARMS WOULD MAKE THE CONVERSION AT COMPANY OWNED FARMS BY DECEMBER 31 OF THIS YEAR. BUT CARGILL SAYS IT HAPPENED 11 MONTHS EARLY. THE COMPANY SAYS IT MADE THE DECISIONTO MOVE AWAY FROM SOW GESTATION STALLS AFTER LISTING TO THE MARKETPLACE IN RECENT YEARS.  CONTRACT FARMS HAVE A GOAL TO HAVE 100 PERCENT GROUP HOUSING BY DECEMBER 31 OF 2017.
DROUGHT MONITOR:
THE LATEST DROUGHT MONITOR SHOWS WHAT MANY OF US SEE AS A GOOD THING THIS WINTER-- THERE'S A LOT LESS SNOW PACK. BUT FOR FARMERS, THIS COULD MEAN DRIER CONDITIONS COME SPRING. TAKE A LOOK AT THIS- THAT YELLOW SWATH THROUGH MISSOURI, IOWA, ILLINOIS AND UP INTO WISCONSIN JUST POPPED UP THIS WEEK. DROUGHT IS ALSO EXPANDING IN THE SOUTHWEST, DIXIE AND UPPER MIDWEST.
WEATHER PITCH:
THAT'S IT FOR NEWS...METEOROLOGIST MIKE HOFFMAN IS NOW HERE WITH WEATHER.
MIKE, WE JUST SHOWED THE DROUGHT MONITOR AND HOW DRY AREAS ARE STARTING TO POP UP IN THE MIDWEST ANY RELIEF IN THE NEXT 30 DAYS?
TRACTOR TALES:
WELCOME BACK! AL, WHERE ARE WE OFF TO THIS WEEK FOR TRACTOR TALES?. TYNE, WE'RE HEADING TO SOUTHEASTERN MINNESOTA FOR A CLASSIC INTERNATIONALBUILT IN 1970, THIS 826 IS AMONG FRIENDS AT THE FLEECE FAMILY FARM. IN FACT THIS TRACTOR HAS SEEN VERY LITTLE WORK OVER THE YEARS, STILL SPORTING ITS ORIGINAL PAINT JOB.
CHURCH SALUTE:
TODAY'S COUNTRY CHURCH SALUTE GOES TO THE FRIONA UNITED METHODIST CHURCH OF FRIONA, TEXAS. ORGANIZED IN NOVEMBER 1914, THE CONGREGATION JUST CELEBRATED 100 YEARS THIS FALL.THE CURRENT CHURCH HOLDS TWO BELLS IN THE BELL TOWER, AS WELL AS STAINED GLASS WINDOWS IN TEH SANCTUARY. AND BEING 454 MEMBER STRONG TODAY, THE CONGREGATION SAYS IT'S BEENA BLESSING TO SERVE THEIR SMALL TOWN FOR SO MANY YEARS. OUR THANKS TO BILL WHITE 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.

 

 

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