USFR Weekly Recap -April 29-30, 2017

April 29, 2017 03:30 AM
 
USFR_Logo

TODAY ON U.S. FARM REPORT
APRIL 29-30, 2017


HEADLINES
WELCOME TO U.S. FARM REPORT. I'M TYNE MORGAN,  AND HERE'S WHAT WE'RE WORKING ON FOR YOU OVER  THE NEXT 60 MINUTES. THERE'S A NEW AG SECRETARY IN TOWN. <YALL NEED TO KNOW I WAS A FARMER FIRST... AND HE'S READY TO ROLL UP HIS SLEEVES AND GET TO  WORK. THE NAFTA BATTLE HEATS UP, WITH DAIRY ON THE  FRONTLINES... < AND THIS HAS BEEN GOING ON FOR A HWIOE, AND WE'RE NOT GOING TO  PUT UP WITH IT> BUT AS TRADE WAR TALKS EASE, THE PRESIDENT SAYS  NAFTA RENEGOTIATIONS NEED TO BEGIN NOW. A MICHIGAN FARMER IS LAYING THE FOUNDATION FOR A  NEW VENTURE IN FARMING... <WE HAD ABOUT 3500 HEAD SPACE BEFORE. AND WE'LL HAVE 12,000  HEAD SPACE NOW. > AND IT'S ALL BECAUSE OF A MASSIVE PORK  PROCESSING PLANT IN MICHIGAN.  AND IN JOHN'S WORLD... HOW LONG BEFORE THE NEXT BOOM TIMES IN  AGRICULTURE? WELL, IT COUL DBE A WHILE.  <U.S. FARM REPORT - BROUGHT TO YOU BY THE DEPENDABLE, LONG  LASTING, CHEVY SILVERADO.>

NAFTA NEWS
NOW FOR THE MARKET RELATED NEWS, AFTER  THREATS OF WITHDRAWLING FROM NAFTA, THE U-S  REMAINS A PART OF THE TREATY, BUT URGING FOR A  SPEEDIER TIMELINE IN RENOGTIATING THE DEAL.  THE NAFTA BATTLE HEATED UP THIS WEEK AFTER THE  PRESIDENT THREATENED TO PULL OUT OF THE 20 YEAR  OLD TREATY. THE WHITE HOUSE RELEASING A STATEMENT  SAYING PRESIDENT TRUMP SPOKE WITH BOTH MEXICO'S PRESIDENT AND CANADA'S PRIME MINISTER, CALLING  THE CONVERSATION, QUOTE, PLEASANT AND  PRODUCTIVE. TEH PRESIDENT AGREED NOT TO TERMINATE NAFTA,  BUT INSTEAD, TO SWIFTY START ON RENEGOTIATION.   BUT JUST THE MENTION OF WITHDRAWLING FROM  NAFTA SET OFF A FLURRY OF STATEMENTS FROM AG  GROUPS. AMERICAN SOYBEAN ASSOCIATION SAYING, QUOTE, A  TERRIBLE IDEA... GOING ON TO SAY, QUOTE, IT WILL  ONLY MEAN A LONGER AND MORE DIFFICULT STRUGGLE  FOR FARMERS TO RECOVER IN THIS ECONOMY, END  QUOTE. <WE'D LIEK IT TO BE REGNOTIATED BUT TRAETE FAIRLY, I THINK THE  AGREEMETN WAS FAIR WHEN IT WAS ORGINIALLY ISSUED IT JUST HAS NOT  BEEN PUT IN PLACE AND HASN'T MONITORED AND SO THE PARTIES  INVOLVED HAVEN'T BEEN HONEST WTH WHAT THEY'RE ALLOWED TO DO> 

GRASSLANDS UPDATE, CANADIAN SOFTWOOD IMPORTS
THE LASTEST ROUND OF HEATED ARGUMENTS  STEMMING FROM THE DAIRY BATTLE IN WISCONSIN.  SOME DAIRY GROUPS BLAME FAILED NAFTA POLICY FOR  THE MASSIVE DAIRY DUMP  IMPACTING 75 PRODUCERS  ACROSS WISCONSIN.  GRASSLAND DAIRY SENDING OUT LETTERS ON APRIL  1ST, NOTIFYING 75 OF ITS CUSTOMERS THEY HAD 30  DAYS TO FIND A NEW HOME FOR THEIR MILK. BUT JUST DAYS FROM THAT DEALINE, A WISCONSIN  STATE OFFICIAL SAYS ROUGHTLY HALF OF THOSE  FARMS HAVE FOUND A  NEW BUYER. AND HE'S HOPEFUL  THE REMAINING WILL ALSO SECURE A NEW MARKET.  SAYING IT'S UNRELATED, ON MONDAY, THE COMMERCE  DEPARTMENT ANNOUNCING PLANS TO IMPOSE NEW  TARIFFS ON CANADIAN SOFTWOOD LUMBER IMPORTS. THE DEPARTMENT SAYS IT'S DETERMINED THAT  CANADA HAD BEEN IMPROPERLY SUBSIDIZING THE SALE  OF SOFTWOOD LUMBER PRODUCTS TO THE UNITED  STATES. THOSE TARIFFS COULD COST CANADIAN WOOD  COMPANIES MILLIONS OF DOLLARS AND THE NAITONAL ASSOCIATION OF HOME BUILDERS IN THE U-S SAYS IT  WILL HIKE HTE PRICE OF LUMBER USED IN BUILDING  NEW HOMES BY AN AVERAGE OF 6 PERCENT. 

CARGILL GETTING OUT OF CATTLE FEED
CARGILL IS GETTING OUT OF THE CATTLE FEEDING  BUSINESS.  WEDNESDAY THE COMPANY ANNOUNCED ITS SELLING  ITS BEEF CATTLE FEEDYARDS IN BOTH KANSAS KANSAS  AND COLARADO TO GREEN PLAINS, WHICH IS BASED IN  OMAHA. GREEN PLAINS IS ALSO AN ETHANOL PRODUCER, BUT  DOES HAVE FEEDYARDS IN BOTH KANSAS AND TEXAS. UNDER THE AGREEMENT, GREEN PLAINS WILL SUPPLY  CATTLE TO CARGILL. AND THE REPORTS SAY CARGILL EMPLOYEES WILL BE  OFFERED JOBS WITH GREEN PLAINS. 

CATTLE, HOG PRICES
LIVE CATTLE PRICES REACHING THE HIGHEST LEVEL IN  A YEAR, MAINLY FROM SHORT COVERING AND STRONG  CASH CATTLE PRICES. THE APRIL LIVE CATTLE CONTRACT EXPIRED ON FRIDAY.  A TESTAMENT TO STRONG DEMAND, USDA SHOWED  TIGHTER THAN EXPECTED FROZEN BEEF SUPPLIES.  USDA POITNING TO A 38 MILLION POUND DROP IN U-S  FROZEN BEEF STOCKS IN MARCH, OR ABOUT 8  PERCENT. THAT'S TEH LARGEST ONE MONTH DECLINE  ON RECORD.  IT'S A SIMILAR STORY IN PORK, WITH MARCH PORK  BELLY STOCKS HITTING THE TIGHTEST ON RECORD .  WHILE SUPPLIES EDGED UP SLIGHTLY FROM FEBRUARY,  THE STORAGE NUMBERS ARE STILL DOWN 68 PERCENT  FROM LAST YEAR.  OVERALL, USDA SAYS FROZEN PORK SUPPLIES  DROPPED 3 PERCENT FROM LAST MONTH

COTTON PRICES
COTTON PRICES TOPPING 80 CENTS THIS WEEK, MUCH  OF THAT FROM STRONGER DEMAND.  AT THE CURRENT PACE, SHIPMENTS THIS MARKETING  YEAR COULD EXCEED CURRENT USDA ESTIMATES.

WEATHER
THOSE ARE THE HEADLINES...METEOROLOGIST MIKE  HOFFMAN JOINS US NOW WITH WEATHER... MIKE, WE  REALLY COOLED OFF ACROSS THE COUNTRY.  THANKS TYNE NO DOUBT ABOUT THAT IS GOING TO STAY THAT WAY AT LEAST IN THE MIDDLE OF THE COUNTRY FOR MUCH OF THIS COMING WEEK. THE DROUGHT MONITOR HAS CHANGED DRASTICALLY. THIS IS THE CURRENT ONE OF FLORIDA STILL LOOKING AT A BAD CENTRAL AND SOUTHERN PLACE PORTIONS. BUT LOOK WHAT IT LOOKED LIKE FOUR WEEKS AGO. AND AS WE WENT THROUGH THE LAST FOUR WEEKS WE'VE JUST BEEN SLOWLY EATING AWAY AT THE EDGES OF THIS OTHER AREA OF DRY WEATHER AND YOU CAN SEE IN THE SOUTHEAST WE HAVE OH IT 'S CRUNCHED IT DOWN INTO GEORGIA ALABAMA AND THERE 'S ONLY ONE AREA OF EXTREME DROUGHT. NO EXCEPTIONAL DROUGHT SO IT 'S VERY UNUSUAL FOR THE LOWER FORTY EIGHT LEST THE WORD DAY BY DAY THEN AS WE HEAD THROUGH THIS WEEK HERE 'S MONDAY A WET SYSTEM MOVING THROUGH THE UPPER GREAT LAKES INTO THE NORTHEAST. THIS WILL HAVE ALREADY COME THROUGH THE MIDDLE OF THE COUNTRY. SOME OF YOU FOLKS  I KNOW IN THE MISSOURI VALLEY CENTRAL MISSISSIPPI VALLEY COULDVE ALREADY GOTTEN TEN TO TWELVE INCHES OF RAIN. SO THAT 'S JUST AN AMAZING SITUATION IN THIS STORM SYSTEM. MOVING NORTHEAST COOL ALL THE WAY DOWN IN A TEXAS DRY AND MILD IN THE SOUTHWEST AS WE HEAD TOWARD WEDNESDAY THEN ANOTHER SYSTEM THIS IS STILL FAIRLY WEAK BUT IT DOES START TO PICK UP SOME GULF MOISTURE SO SOUTHERN MISSISSIPPI VALLEY TO BE GETTING SOME DECENT RAINS BY WEDNESDAY LINGERING FRONT IN THE NORTHEAST OTHERWISE CHILLIER AIR COMING IN AND BY FRIDAY THAT STORM SYSTEM AFTER GOING THROUGH THE SOUTHEAST IS MOVING UP THE MID ATLANTIC AND INTO THE NORTH EAST WAS SOME HEAVY RAINS THERE COLDER AIR COMING IN BEHIND IT BUT MOST OF THE MIDDLE OF THE COUNTRY ON FRIDAY WILL BE DRY WE'LL CHECK YOUR LONGER RANGE FORECAST IN OUR NEXT HALF HOUR

TEASE
THANKS, MIKE. FROM TRADE TALKS TO IMPRESSIVE  DEMAND FOR MEATS, WE'LL COVER IT ALL DURING OUR  MARKETING DISCUSSION. TOMMY GRISAFFI AND BRIAN  SPLITT JOIN ME NEXT.  <U-S FARM REPORT BROUGHT TO YOU BY THE BV  SERIES ROUNDBALER FROM KUBOTA. FOR EARTH, FOR  LIFE>

ROUNDTABLE 1
WELCOME BACK WELL. THIS WE GET ON THE MARKETING ROUND TABLE. WE HAVE BRIAN 'S SPLIT AND TOMMY GRISAFI.  LET 'S START OFF BY TALKING ABOUT PLANTING A ME DOMINE THIS WEEK AND LOOKING AT THESE FORECASTS WERE EXPECTING A DELUGE OF RAIN TO MOVE ACROSS THE COUNTRY. EVEN SOME SNOW IN THE PLAINS AND IT 'S JUST GET A LOT COOLER. A LOT WENT WITH THIS WEEKEND???? IT 'S A LOT. IT 'S A CHALLENGE IF YOU READ SOCIAL MEDIA YOU THINK THE WORLD WAS ENDING. WE'RE IN AN ENVIRONMENT AND THE PRICE WHICH IS GOING DOWN. ON THE WAY HERE, I NOTICED SOME PEOPLE DOING WORK. DO I WORK OUT SOME CUSTOMERS WE HAVE ACTUALLY QUIT PLANTING AS THEY WERE SO FEARFUL THEY WERE GOING TO PLANT CORN SEED INTO A COLD WET GROUND. AND THEN IT WOULD SIT THERE FOR A FEW WEEKS. SO I THINK PEOPLE WILL BE SURPRISED WHEN THEY SEE THE PLANTING PROGRESS NEXT WEEK HOW HOW MUCH WORK WAS DONE LAST WEEK.  SO YOU DON'T THINK THAT POSSIBLY THIS HEAVY RAIN AND MORE TALK OF MULTIPLE INCHES RIGHT IN THE MAIN PART OF THE CORN BELT BUT IT COULD HELP A 'S HAVE A LITTLE POP OF PRICE HERE???? IT MIGHT SUPPORT THINGS A LITTLE BIT BUT I THINK WHEN YOU TRY TO LOOK AT IT, AND I THINK IF WE'RE LESS THAN FIFTY PERCENT PLANTED LET 'S SAY BY MAY TENTH MAY FIFTEENTH, AND I THINK THE FUND MANAGERS MIGHT THINK THAT THERE COULD BE A DRAG ON THE YIELD. PRIOR TO THAT I DON'T KNOW THAT MUCH CONCERN FROM THEM TO MANAGED MONEY. TOMMY EVEN RIGHT NOW YOU MENTION PLANTING CORN PLANTING SEVENTEEN PERCENT THAT 'S THAT 'S ELEVEN POINTS BEHIND LAST YEAR BUT REALLY NOT LAGGING THE FIVE YEAR AVERAGE BY MUCH BUT SELLING IN PLANTING ARE PRETTY MUCH RIGHT ON TRACK RIGHT NOW THEY WERE PRETTY CLOSE SO YOU DON'T HAVE ANY CONCERNS WITH LATE PLANTING IST EITHER???? NO NOT AT ALL. AND AS IT AS A TRADER AND A SPECULATOR, SEVERAL TIMES MY CAREER I'D BET AGAINST THE AMERICAN FARMER AND EVERY TIME I DID IT I LOST. SO I HAVE YET TO WIN. YOU MAY SEE THE MARKET GO UP BUT THEN IT LOSES IT ALL IN A FEW DAYS. AND SO I HAVE YET TO PROFIT FROM BETTING THAT THE AMERICAN FARMER WON'T GET THE CROP PLANTED. THE SAME TIME WE LOOK AT THIS DRAUGHT MONITOR WERE A RECORD LOW SIX PERCENT OF THE COUNTRY IS SUFFERING FROM SOME TYPE OF DROUGHT. I MEAN WE JUST DID NOT HAVE A LOT OF DRYNESS OUT THERE. A LITTLE BIT DIFFERENT SITUATION THIS YEAR THAN IN MORE THAN LAST YEAR BRIAN?? RIGHT WE DON'T HAVE THAT NARRATIVE OF THE IMPENDING DROUGHT THAT 'S SUPPOSED TO HAPPEN. NOW WE HAVE THE LOWEST AMOUNT OF DROUGHT AND THE COUNTRY ON RECORD SINCE WE STARTED KEEPING RECORDS IN TWO THOUSAND AS FAR AS THAT GOES.  AND THAT 'S GONNA BE ONE MORE PIECE OF THE BEARISH PIE. BUT THAT DOESN'T MEAN THAT SOMETHING CAN'T HAPPEN DURING THE SUMMER GROWING SEASON. AND YOU KNOW IF WE'VE LEARNED ANYTHING FROM THE FUTURES MARKETS AS A STUDENT OF THE MARKET THINGS CHANGE AND THEY CAN CHANGE RATHER RAPIDLY. NOT ONLY DID WE HAVE THAT UNDERLINED ROUTE FACTOR LAST YEAR, BUT WE ALSO RECEIVED SUPPORT BY STRONG PRICES DURING THE SAFRINHA CORN CROP DOWN IN SOUTH AMERICA 'S SEEN THAT THAT WAS REALLY SUFFERING AND THAT ADDED FUEL TO THE TO THE BULLISH STORY. SO IT JUST SEEMS LIKE WE'RE IN A LOT DIFFERENT SITUATION RIGHT NOW TOMMY. IT FEELS LIKE THAT. AS WE SPOKE I TALKED TO BRIAN BASTING LAST NIGHT AND HE KNOWS THE SOUTH AMERICAN NUMBERS A LOT BETTER, SO ALL AMERICA 'S FOLKS SEEN WHAT 'S GOING ON IN OUR BACKYARD IN OUR NEIGHBORS INAND WHAT WE'RE SEEING YOU'RE FORGETTING THAT THEY JUST GREW A HUGE CROP IN SOUTH AMERICA. AND OUR VERY REASON THE RALLY MARKETS LAST YEAR 'S YOU SAID WAS SET UP A CROP PRODUCTION FAILURE HAPPENED IN SEVERAL WAYS. SO THE AMERICAN FARMER IT 'S STARTING TO FORGET THAT THEY'RE GROWING A RECORD CROP IN SOUTH AMERICA. SO THEY TRIED TO RUN THAT CROP THEY COULDN'T DO IT MENTALLY. SO NOW THEY'RE TRYING TO RUIN OUR CROP WHERE IT 'S REALLY THE THING WE SHOULD BE TALKING ABOUT IS THE WORLD 'S DEALING WITH A LOT OF BUSHELS OF WHAT 'S THE PLAN. AND THOSE BUSHELS CONTINUE TO GROW. I MEAN JUST WHEN WE THINK THE SOUTH AMERICAN CROP CANNOT GET ANY BIGGER BRAIN WE COME OUT. WE SEE NEW A NEW FORECAST ON THAT CROP THAT THAT 'S EVEN LARGER THAN WHAT WE EXPECTED RIGHT NOW. THE SOYBEAN CROP CONTINUE TO GROW AND I THINK ON THE BACK END OF THEIR PRODUCTION SEASON, WE PROBABLY ADDED MAYBE FIVE TO SEVEN MILLION TONS OF SOYBEANS. NOW THAT MIGHT LONG TERM END UP BEING TOO MUCH WE'LL SEE HOW THINGS PAN OUT OVER THE NEXT SEVERAL MONTHS. BUT IN ALL THIS IS GOING TO LEAD TO WHERE THE FUNDS ARE SHORT, THEY'RE GOING TO ADD TO SHORTS, WE'RE GONNA HAVE NEAR RECORD OR RECORD SHORT POSITIONS GOING IN THE GROWING SEASON. SO I STILL THINK THAT THAT LEAVES A GOOD SETUP FOR WHAT WE'VE SEEN THE LAST SEVERAL YEARS WHICH IS A VERY QUICK AND VERY SHORT LIVED RALLY. BUT STILL AN OPPORTUNITY TO USE. DO THINK THERE WILL STILL BE AN OPPORTUNITY? YOU MENTION THAT OF THE FUNDS AND HOW THE RECORD SHORT WHAT SHOULD PRODUCERS PLAN B RIGHT NOW? I MEAN WE JUST CONTINUE TO HAVE THIS BEARISH NEWS PILED ON THESE GRAINS AND CORN THE SOYBEAN MARKET WHAT CAN YOU DO WITH THIS?? WE HAVE TO ASK YOURSELF WHERE YOU ARE IN YOUR OWN PERSONAL MARKETING CYCLE. DO YOU HAVE A LOT OF SIXTEEN CROP? IF YOU'RE STILL TALKING ABOUT FIFTEEN CROP AND A FOURTEEN WHEAT, YOU MIGHT HAVE A PROBLEM. IF ALL YOU'RE SIXTEEN CROPS MOVE YOU COULD SEE A SCENARIO WHERE YOU MIGHT WANNA HAVE SOME OWNERSHIP OF THAT TO SOME CALLS. MOST OF THE PEOPLE WERE DEALING WITH STILL HAVE A LOT OF PHYSICAL BUSHELS THEY OWN. SO MY BIGGEST FEAR IS SEEN A HUGE SECOND HARVEST IN JULY WHERE WE KNOW THAT SOUTH AMERICA NOW GREW A BIG CROP, THE AMERICAN FARMER TRIED TO HOARD GRAIN AS LONG AS THEY COULD, CATCH THAT CARRY, THEY NOW HAVE TO SELL THAT MARKET TO MAKE ROOM FOR THE NEW CROP TO ME THAT 'S RIG AT WHAT PRICE THAT HAPPENS WE WILL HAVE ANOTHER HARVEST HERE THIS SUMMER. OR EVEN TALKS OF NASSER MOVE THAT MOVING THE MARKETS PLUS WE SAW SOME IMPRESSIVE ACTION IN THE CATTLE MARKET THIS WEEK WE'LL TALK ABOUT ALL OF THAT WHEN WE COME BACK ON U S FARM REPORT <VISIT FARM JOURNAL PRO.COM. TRUSTED ANALYSIS,  PROFESSIONAL INSIGHT. FARM JOURNAL PRO.COM>

ROUNDTABLE 2
WELCOME BACK WELL IF YOU WATCHED THE NEWS EARLIER IN THE SHOW WE HEARD A LOT OF TALK ABOUT NAFTA AND THREATENS TO PULL OUT OF NAFTA. BUT YOU KNOW NOW WE'RE PLANNING ON RENEGOTIATING THAT. EVEN THE TALK OF POINT OUT OF NAFTA HAD AN IMPACT ON OUR WORK IT 'S BRIAN. ALMOST IMMEDIATELY. I DON'T KNOW WHAT THE EVENTUAL OUTCOME IS GOING TO BE WHETHER IT CAN BE RENEGOTIATED WHETHER THEY PULL OUT OF NAFTA. BUT WHAT I DO KNOW IS THAT THE MARKET WAS FEELING GOOD. WE WERE RALLYING CORN. AND WHEN THE NEWS OF NAFTA HIT, YOU COMBINE THAT WITH ALL OF A DRIER FORECAST, THE PRICE OF CORN DROPS 10 CENTS IN A COUPLE DAYS. SO IF THERE 'S ONE THING I'VE REALIZED IS THAT NAFTA AND ANY COMMUNICATIONS FROM THE ADMINISTRATION REGARDING STUFF LIKE THIS IS GOING TO MOVE THE MARKET. AND IF YOU DON'T WANT TO HAVE THAT, YOUR CROP AT RISK, THEN YOU NEED TO HAVE SOME PROTECTION UNDER IT. AND WHEN HE SUGGESTED THIS POINT?? THERE 'S OPTIONS YOU CAN HAVE THAT HER THIRTY DAYS OUT. THEY SHOULD BE RELATIVELY CHEAP. AN AT THE MONEY OPTION MIGHT BE FIVE OR SIX CENTS JUST TO HAVE SOMETHING HERE FOR THE NEXT THIRTY DAYS I THINK THAT 'S A HORRIBLE THING TO DO.  IT'S A DIFFERENT STORY IN LIVESTOCK WITH A LOOK AT THE CATTLE PRICES THIS WEEK JUST SEEN SOME IMPRESSIVE GAINS FRIDAY WE WERE LOWER AND THEN WE TURNED HIGHER ALL OF A SUDDEN. REALLY WHAT CAUSED THAT SWITCH ON FRIDAY IN THE IN THE CATTLE FUTURES??? THE CASH MARKET WHICH IS WHAT RULES ANY, YOU KNOW NOBODY SELLS THEIR CATTLE. I BEEN TO LASALLE STREET A LOT OF TIMES I'VE NEVER SEEN A GUY MANY ANIMALS WALKING DOWN THE STREET OR FARMERS DELIVERING GRAIN. SO THE CASH MARKET WENT BID. AND THERE WAS A BIG ANNOUNCEMENT THIS AFTERNOON JUST WHILE WE WERE DRIVING HERE THAT THEY WOULD PAY A HIGHER PRICE THAN MOST THOUGHT YOU KNOW THEN THE DAY BEFORE. SO THE CASH MARKET'S ABSOLUTELY ON FIRE. AND THERE 'S DIFFERENT REASONS FOR THAT AND BRIAN BROUGHT UP SOME WEIGHTS. AND THAT 'S JUST DIFFERENT THINGS. FOR HIS BAT IS A SCENARIO LOOKED WHEN WE'RE TRADING NINETY FIVE CENT FATS FEW MONTHS AGO, THEY'RE GOING LIMIT UP LIMIT UP AND IT 'S AMAZING HOW PEOPLE ARE HAVING A HARD TIME MANAGING THE RISK. IN WHAT WOULD SHOULD BE A DREAM MARKET YOU KNOW SOMETHING YOU LONG GOING UP. BRIAN ARE THERE ANY SIGNS THAT THIS MARKET WILL CONTINUE TO GO HIGHER WHEN YOU LOOK ATTHE JUNE CONTRACT IS THAT TELLING US THAT THIS MARKET IS TOPPING OUT???WELL WE HAVE SOME CASH COMMITMENTS HIGHER THAN WHERE THE FUTURES ARE TRADING RIGHT NOW. AND THE ELECTRONICA CATTLE MARKET HAD TRADED ONE TWENTY FIVE FOR DELIVERY SEVENTEEN OF THIRTY DAYS OUT IN THE FED CATTLE CHANGE EARLY IN THE WEEK. LIKE YOU'RE SAYING WE HEARD SOME NEWS ON THE WAY OUT HERE THAT THE CASH MIGHT BE EVEN HIGHER THAN THAT. UNTIL THE CASH MARKET CALMS DOWN, IT 'S HARD TO IMAGINE THAT THE MARKET 'S GOING TO TOP. BUT FROM AN OPEN INTEREST PERSPECTIVE, YOU HAVE CATTLE IN JUNE HAS ONE FOURTH THE OPEN INTEREST OF WHAT JULY CORN HAS. YET FROM THE FUND POSITION, IT SIMILAR SIZE. SO I THINK I I WOULD SAY IS BE VERY CAREFUL BECAUSE IF THE FUND MONEY WANTS OUT OF THIS MARKET THE DOOR IS NOT BIG ENOUGH. AND WHY DO WEIGHTS CONCERNING THIS POINT I YOU KNOW???? WEIGHTS HAVE BEEN RUNNING BELOW THE LAST SEVERAL YEARS. THAT 'S PART OF A BULLISH STORY RIGHT NOW. BUT TO LOOK AT THAT 'S SEASONALLY THE WEIGHTS WILL BE BOTTOMING OUT PROBABLY IN LATE MAY EARLY JUNE. AND IF THAT 'S THE CASE THAT COULD BE ALSO HELP ADD TO THE TIMING OF MAY BE REACHING A HIGH SOMETIME HERE IN THE NEXT MONTH OR SO. TOMMY YOU MENTION PRODUCERS ARE HAVING A HARD TIME MANAGING THIS RISK. WHAT ADVICE WOULD YOU GIVE GIVE TO THEM IN THE CURRENT CONDITIONS THAT WE'RE SEEING RIGHT NOW ON THIS CATTLE MARKET??? THE BIGGEST SHORT SIGHTEDNESS OF ANY MARKET THAT STARTS TO GO UP WHEN YOU DIDN'T THINK IT GO UP IS THAT SHAME ON YOU THAT YOU THOUGHT YOU KNEW WHERE MARKETS ARE GOING RIGHT. AND SO OVER TIME IN HISTORY WHAT MESSES PEOPLE UP, PRODUCERS ARE USED TO A DOWN MARKET IT SEEMS THROUGHOUT YOUR WHOLE LIFE YOU'RE DEALING WITH LOW PRICES. WHERE I'VE SEEN PEOPLE GET HURT AND EXPERTS GET IT WRONG IS IN THESE BIG UP MARKETS.  WHETHER IT BE THE BIG UP MARKET THE BEANS THAT NOBODY KNEW WAS GOING HAPPEN OR WHAT HAPPENED IN THE CATTLE LAST WEEK. SO WE LIKE OPTIONS THEY'RE NOT FOR EVERYONE. I KNOW CATTLE GUYS LIKE FUTURES. THEY DON'T FEEL LIKE THEY GETING THEIR MONEY OUT THE OPTIONS. BUT TELL YOU WHAT YOU GET YOUR MONEY AT THE FUTURES. IF YOU SAW FUTURE AT ONE TWENTY FIVE IN THE FAT CATTLE AND FEEDER CATTLE IN THERE THERE AT FORTY FIVE YOU YOU REALLY LOST TWENTY DOLLARS. OF THE ARCTIC FOR TEXT SO PEOPLE FEEL LIKE TO GET A TRUE HEAD WITH THE OPTIONS AND WHEN YOU DO THE FUTURES, YOU HAVE UNLIMITED MARGIN CALLS AND IT BECOMES VERY SCARY.  BRIAN, REAL QUICK WHAT 'S THE BIGGEST RISK IN THIS CATTLE MARKET???? I THINK IT 'S THE SIZE OF THE THE FUND POSITION RIGHT NOW IN JUST THE YOU KNOW COMPARED THE FONT SIZE OF THE OPEN INTEREST IN THE MARKET. AND IT 'S NOT LIKE CORN WHICH IS EXTREMELY LIQUID SELL HUNDRED FIFTY THOUSAND CONTRACTS A MOVE THAT MARKET A LOT MORE. ALL RIGHT WELL IT 'S ALREADY TIME TO GET THEIR CLOSING THOUGHTS LET 'S TAKE A BREAK IN THE WAY BACK ON U S FARM REPORT

MARKETS NOW
WELCOME BACK WELL IT 'S TIME NOW TO GET A CLOSING THOUGHTS BRIAN LETS START WITH YOU JUST KEEPING AN EYE ON WHAT 'S COMING DOWN THE PIPELINE WE'RE GONNA HAVE A REPORT FROM USDA IN MAY THAT IS GOING TO BE THE VERY FIRST NEW CROP CARRYOUT ESTIMATE. I THINK THAT INFORMATION COULD CAUSE ANOTHER LETDOWN IN THE SOYBEAN MARKET POTENTIALLY TESTING NINE DOLLARS. THE NEW CROP CORN CONTRACT, SOMETHING I'M WATCHING THE LAST SEVERAL YEARS PRIOR TO A SUMMER RALLY WE'VE BOTTOMED OUT AROUND THREE SIXTY FIV.E THAT MIGHT SUGGEST MAYBE ANOTHER FIFTEEN TWENTY CENTS AND DOWN SIDE THERE. IF THAT 'S GONNA BOTHER YOU HAVE COVERAGE. IF YOU CAN MANAGE THAT STORM THAT LIVED THROUGH AND SEE IF WE GET A GOOD ROUND FOR SUMMER.ALRIGHT THANKS, TOMMY.  A COUPLE THINGS I'M LOOKING AT IF WE WANT A WEATHER MARKET MAY TRULY HAVE A WEATHER MARKET HAVE IN THE SPRING WHEAT UP IN DAKOTAS WWATCH THAT PEOPLE PEOPLE WERE GOING AT A RECORD LOW SPRING WHEAT ACRES WHY SOME PEOPLE ABANDONED EVEN MORE OF THOSE ACRES IN SWITCH IT TO SUMMER CORN OR BEANS ARE ALSO AS BRIAN SAID EARLIER AND SHOW YOU ON THESE CATTLE IN THIS RECORD LONGS AS WE SAID YOU KNOW THESE FUNDS GET IN THESE MARKETS WHEN THEY GO OUT IT COULD LEAD TO A STAMPEDE AND THAT COULD BE UGLY ONE LAST THING IS WHAT YOUR PLAN FOR TWENTY SIXTEEN CORN WE KNOW YOU HAVE IT AND THE MARKET KNOWS YOU HAVE IT AND YOU YOU YOU'RE GONNA NEED A PLAN TO GET OUT AT SIXTEEN SHE COULD MAKE ROOM FOR SEVENTY ALL RIGHT THANK YOU BOTH JOHN PHIPPS JOINS US NEXT <U.S. FARM REPORT. AMERICA'S LONGERS LASTING  NEWS PROGRAM FOR FARMERS IS POWERED BY RAM  TRUCKS, AMERICA'S LONGEST LASTING PICKUPS>

JOHN’S WORLD
HIGHER CROP PRICES ALSO PRODUCING COSTLY FARM  INPUTS. JOHN HAS MORE IN THIS WEEK'S JOHN'S  WORLD.  THIS WILL NOT BE NEWS TO MANY OF YOU, BUT AS I WAS SPRAYING  HERBICIDES ON THE CORN, I CAME FACE TO FACE WITH THE SKYROCKETING  EXPENSE THIS NOW REPRESENTS. BECAUSE OF RESISTANT WEEDS WE  ARE APPLYING A RESIDUAL PRE-EMERGENT HERBICIDE AS WELL AS USING  GLYPHOSATE LATER AFTER THE CORN IS TALLER. THE SAME TYPE OF  PROGRAM IS NECESSARY FOR SOYBEANS TOO. I AM FIGHTING THE URGE TO WHINE ABOUT CANDY BARS THAT COST A  NICKEL LIKE OLD GUYS DO, BUT THIS ESCALATING EXPENSE REINFORCED  FOR ME WHAT A REMARKABLE PERIOD OF PROFIT GRAIN FARMERS ENJOYED  A DECADE AGO. WHILE WE THINK BACK WISTFULLY ABOUT 6 AND 7 DOLLAR  CORN AND 15 DOLLAR BEANS, THE OTHER ASTONISHING FACTOR WAS THAT  WAS THE TIME WHEN GLYPHOSATE WORKED 100% OF THE TIME, AND  HAD GONE OFF PATENT, SO IT WAS DIRT CHEAP.  HERBICIDE COSTS WERE  THE LOWEST OF MY CAREER, OFTEN LESS THAN $10 AN ACRE FOR  MATERIALS. I REMEMBER A FRIEND GRIPING HOW THE CUSTOM SPRAYING  FEE WAS MORE THAN THE HERBICIDE COST. SEED COSTS WERE RISING BUT STILL PROPORTIONATELY FAR FROM THE  PRICES WE ARE FACING TODAY. AND CASH RENTS SEEMED HIGH AT THE  TIME, BUT WERE ACTUALLY A BARGAIN IN RETROSPECT. MY POINT IS NOT SIMPLE NOSTALGIA FOR INCREDIBLE PROFIT MARGINS, BUT  THE SOBERING REALITY THAT IT WILL BE HARD TO DUPLICATE THAT MATCHUP  OF STABLE OR EVEN DECLINING COSTS AND SURPRISING CROP PRICES.  STRONG DEMAND MAY HELP GRAIN PRICES IN THE FUTURE, BUT THE ODDS  OF IT OCCURRING SIMULTANEOUSLY WITH TECHNOLOGY DRIVEN INPUT COST  DECLINES ARE VANISHINGLY SMALL. THE BOOM TIMES OF 2008-2013 ECLIPSED THE PREVIOUS HIGH WATER  MARK NEARLY A CENTURY EARLIER BEGINNING IN 1914. IF THIS 100-YEAR  INTERVAL IS INDICATIVE, WE WERE ALL DANG LUCKY TO BE AROUND FOR  THOSE HALCYON YEARS. AND NO MATTER HOW OLD YOU ARE, THE  CHANCES FOR A REPEAT IN YOUR LIFETIME COULD BE A TAD OPTIMISTIC.

TEASE
STILL TO COME, THE NEWLY SWORN IN AG SECRETARY  IS ROLLING UP HIS SLEEVES GETTING TO WORK. PLUS,  MANY IN THE PORK INDUSTRY IN HIGH ANTICIPATION OF  A COUPLE PORK PROCESSING PLANTS COMING ONLINE  THIS YEAR. COMING UP, WE GET AN EXCLUSIVE TOUR  OF ONE OF THE LARGEST.. AND IT'S THE TECHNOLOGY  THAT'S CUTTING EDGE. 

HEADLINES
FROM THE STUDIOS OF FARM JOURNAL BROADCAST,  THIS IS U.S. FARM REPORT.  WELCOME BACK TO U-S FARM REPORT. WE HAVE MUCH  MORE AHEAD. THE NEWLY CONFIRMED AG SECRETARY SAYS HE'S  ROLLING UP HIS SLEEVES AND GETTING TO WORK,  A MASSIVE PORK PROCESSING PLANT IN COLDWATER  MICHIGAN IS CREATING AN OPPORTUNITY FOR  PRODUCERS TO EXPAND. WE HAVE A BEHIND THE  SCENES LOOK.  AND JOHN PHIPPS ANSWERS A QUESTION ABOUT A  PRIVACY POWER-GRAB.

PERDUE AND TRUMP’S EXECUTIVE ORDER
NOW FOR THE HEADLINES, THE WAIT IS OVER FOR A  NEW LEADER AT USDA. FORMER GEORGIA GOVERNOR  SUNNY PERDUE SWORN IN AS THE 31ST SECRETARY OF  AGRICULTURE THIS WEEK.  <I'VE BEEN WAITING TO SEE YOU AND IT LOOKS LIKE YOU'VE BEEN  WAITING TO SEE ME TOO, RIGHT?  THE NEWLY APPOINTED SECRETARY MAKING SOME  LIGHT HEARTED REMARKS TO USDA STAFF THIS WEEK.  YALL NEED TO KNOW I WAS A FARMER FIRST... WE'RE GOING OT GET  COMFORTABLE IN WORKING CLOTHES, OKAY> BUT THE SECRETARY PROMISING TO GET RIGHT TO  WORK, SETTING A LOFTY GOAL FOR THE AGENCY.  <THIS JOB AT USDA IS ABOUT WORK RIGHT, IT'S ABOUT GETTING STUFF  DONE, BC WE HAVE A LOT OF PEOPLE DEPENDING ON US. AND THAT'S  THE POINT WE WANT TO MAKE TODAY IS AS A DEPARTMENT, MY VISION  FOR THE DEPARTMENT OF AG IS TO BE THE BEST RUN, THE BEST  MANAGED, THE BEST REGARDED AGENCY IN TEH COUNTRY WITH THE BEST  REPUTATION. CAN WE DO THAT? CLAP> SECRETARY PERDUE GETTING DOWN TO BUSINESS  IMMEDIATELY THIS WEEK, SITTING AT A TABLE ALONG  SIDE PRESIDENT DONALD TRUMP AS THE PRESIDENT SIGNED AN EXECUTIVE ORDER FOR AGRICULTURE. <TODAY AMERICA'S FARMERS FEED NOT ONLY OUR NATION, BUT MILLIONS  OF PEOPLE  AROUDN THE WORLD, AND WE'RE GOING TO OPEN THAT UP  MUCH MORE FOR YOU FOLKS> TITLED PROMOTING AGRICULTURE AND RURAL  PROSPERITY IN AMERICA,THE PRESIDENT SAYS THE  EXECUTIVE ORDER WILL EMPOWER PERDUE TO  IDENTIFY AND ELIMINATE UNECESSARY REGULATIONS  THAT HURT FARMERS ADN RURAL COMMUNITIES.   THE PRESIDENT ALSO ASSURED DAIRY FARMERS IN  WISCONSON AND NEW YORK THAT THEY'LL OPEN UP  TRADE DOORS.  <DAIRY FARMERS UP IN UPSTATE NEW YORK, WISCONSIN A LOT OF  DIFFERENT PLACES BORDER STATES IN PATICULAR, CANNOT SELL THEIR DAIRY  PRODUCTS INTO CANADA, AND THIS HAS BEEN GOING ON FOR A HWIOE, AND WE'RE NOT GOING TO PUT UP WITH IT> PRIOR TO SIGNING THE ORDER, THE PRESIDENT MET  WITH A 14 PERSON FARMER ROUNDTABLE DISCUSSING  ISSUES IMPORTANT TO THEM. 

TAX REFORM
THE ESTATE TAX COULD BE A THING OF THE PAST...  THAT'S IF THE PRESIDENT HAS HIS WAY. THIS WEEK, THE PRESIDENT RELEASING HIS TAX PLAN.  NOT ONLY WOULD HIT ELIMINATE WHATS REFERRED TO  AS THE DEATH TAX, BUT IT WOULD ALSO CUT THE TAX  RATE FOR OWNER-OPERATOR BSUINESSES AND CORPORATIONS TO 15 PERCENT. THE PRESIDENT'S PLAN ALSO CALSO FOR LIMITING THE  CAPITAL GAINS TAX RATE AT 20 PERCENT.  THE TREASUARY SECRETARY SAYING, QUOTE, OUR  OBJECTIVE IS TO MAKE U-S BUSINESSES THE MOST  COMPETITIVE IN THE WORLD, END QUOTE. THOSE ON THE LEFT SAID OF THE AISLE VOICING  STRONG OPPOSITION TO THE PLAN

WEATHER
THAT'S IT FOR NEWS...METEOROLOGIST MIKE  HOFFMAN JOINS US NOW WITH THE NATIONAL  FORECAST AND EVEN A GLIMPSE AT THE 90 DAY. MIKE.  THANKS TYNE. LET 'S GET RIGHT TO IT YOU CAN SEE A PRETTY BIG TROUGH  FOR AS WE HEAD THROUGH THE LATTER PART OF THIS WEEKEND ANYWAY  FOR THE MIDDLE OF THE COUNTRY. AND THAT 'S MOVING ON UP THROUGH  THE GREAT LAKES AND INTO THE NORTHEAST AND THAT WILL BE SPREAD IN  SOME HUGE AMOUNTS OF RAIN ALREADY GOING ON IN THE MIDDLE OF  THE COUNTRY. BUT THAT WILL SPREAD IT OFF TO THE NORTHEAST BY  WEDNESDAY. THEN A CHILLIER SHOT OF AIR COMING IN BEHIND THE  WATCH. WHAT HAPPENS ANOTHER TROUGH INTENSIFIES THROUGH THE  MIDDLE OF THE COUNTRY BY THE END OF THE WEEK AND THAT WILL BE  SPREAD IN SOME RAIN UP AND DOWN THE EAST COAST BY FRIDAY AND  INTO THIS COMING WEEKEND. AND YET ANOTHER TROUGH KIND OF  DIGGING TO THE NORTHERN ROCKIES AS WE HEAD TOWARD SUNDAY SO  KIND OF A VOLATILE WEATHER PATTERN SETTING UP HERE OVER THE NEXT  WEEK LET 'S GO FOR NINETY DAY OUTLOOK MAY TEMPTERS BELOW NORMAL  NORTHERN PLAINS ABOVE NORMAL MID ATLANTIC SOUTHEAST INTO THE  SOUTHWEST JUNE TEMPTERS ABOVE NORMAL FOR MOST AREAS EAST OF  THE MISSISSIPPI VALLEY AND PARTS OF THE NORTHERN PLAINS BELOW  NORMAL IN MONTANA NORTHWARD AND JULY TEMPERATURES ABOVE  NORMAL GREAT LAKES AND EAST COAST AND THE WEST NO BELOW  NORMAL AREAS PRECIPITATION THIS IS ALWAYS TOUGH FOR HIM GOING  ABOVE NORMAL FROM THE NORTHERN ROCKIES TO THE GREAT LAKES AND  ABOVE NORMAL WHILE THE SOUTHEAST IN THE EASTERN TEXAS TYNE

COLDWATER PORK PLANT
THANKS, MIKE. TALKS OF PULLING OUT OF NAFTA ALSO  SENDING RIPPLES THROUGH THE PORK INDUSTRY. THE  PORK INDUSTRY SEEING IMPRESSIVE DEMAND SO FAR  THIS YEAR, WITH FEBRUARY SHIPMENTS TO MEXICO UP  22 PERCENT.  BUT THE U-S PORK INDUSTRY IS STILL IN EXPANSION MODE, PARTIALLY ENTICED BY NEW PROCESSING  PLANTS COMING ONLINE.  IN THIS FARM JOURNAL REPORT, WE GET AN EXCLUSIVE  TOUR OF WHAT COULD BE ONE OF THE LARGEST PORK  PROCESSING PLANTS IN THE COUNTRY. LOCATED IN  COLDWATER MICHIGAN, IT'S CREATING A BIG  OPPORTUITY FOR PRODUCERS IN MICHIGAN, INDIANA  AND OHIO TO EXPAND.  MICHIGAN FARMER BRAD BLONDE IS IN THE MIDDLE A  MAJOR EXPANSION PROJEC, LAYING \THE FOUNDATION  FOR A NEW OPPORTUNITY IN FARMING.  <THIS PAST J ANUARY I BOUGHT MY DAD OUT. AND DECIDED THAT WE  WEREN'T GOING TO OWN ANY PIGS ANYMORE> AFTER PARNTING WITH HIS DAD FOR NEARLY 20 YEARS,  IT'S A DECISION THAT DIDN'T HAPPEN OVERNIGHT... SELLING THE 2 THOUSAND HEAD OF PIGS THEY HAD  LEFT AND INSTEAD, INVESTING IN INFRASTRUCUTRE.  <WE HAD ABOUT 3500 HEAD SPACE BEFORE. AND WE'LL HAVE 12,000  HEAD SPACE NOW. > THIS BIG INVESTMENT WILL ALLOW BLONDE TO FINISH  OUT 32,000 HEAD OF PIGS A YEAR FOR ONE PRODCUER.  <WE'RE ACTUALLY JUST A CONTRACT GROWER. WE OWN THE BUILDINGS,  SOMEONE ELSE PUTS THE PIGS IN, WE TAKE CARE OF THEM FOR THEM,  AND WE JUST PAID ON A PER HEAD PACE>THE DRIVING FACTOR OF THAT DECISION? HE'S  LOCATED 15 MILES FROM THIS...<IN THE MOST SIMPLIST FORM, THIS IS FRESH PORK PROCESSING PLANT> THIS COLDWATER, MICHIGAN PLANT IS SET TO BE UP  AND RUNNING ON SEPTEMBER FIFTH... A PLANT THAT  CLEMENS FOOD GROUP CEO DOUG CLEMENS SAYS IS  ONE-OF-A KIND.  <BEHIND YOU IS ACTUALLY OVER 650,000 SQUARE FEET OF PLANT, AND THIS PLANT WAS DESIGNED TO BE THE MOST EFFICIENT, > CLEMENS SAYS WITH A PLANT OF THIS SIZE,  PROCESSING CAPACITY WILL GROW OVER TIME.  < WE EXPECT BY  FEBRUARY OF 2018 TO BE AT FULL CAPACITY. > WITH REQUIRED PERMITS ALREADY IN HAND, CLEMENS SAYS THEY'LL PROCESS 10,000 HEAD A DAY BY  FEBRUARY. BUT IT'S BUILT TO HANDLE A DOUBLE SHIFT,  MEANING AS MANY AS 22 THOUSAND HEAD COULD GO  THROUGH THESE DOORS EVERY DAY WITHIN THE NEXT  3 TO 5 YEARS.  <THIS WAS ACTUALLY A PRODUCER VISION THAT KIND OF BROUGHT US  TOGETHER WITH THEM TO MAKE THIS PLANT A REALITY> IT STARTED WITH A VISION, BUT THE REALITY IS  CUTTING EDGE.  <WE TRIED TO INCORPORATE AS MUCH TECHNOLOGY TO MAKE IT AS FULY  AUTOMATED AS POSSIBLE> HE SAYS A SIMILAR PLANT OF THIS SIZE WOULD  REQUIRE 1 THOUSAND EMPLOYEES. BUT WITH LABOR  POTENTIALLY A CHALLENGE, CLEMENS SAYS  TECHNOLOGY IS REDUCING THAT NUMBER TO JUST  OVER 800.  <WE SPENT A LOT OF TIME OF RESEARCHING WHAT WERE SOME OF HTE  OPPORTUNITIES WE HAD TO MAKE IT EFFICENT BUT TO ACUTALLY INCORPATE  AS MANY ROBOTICS AS WE COULD INTO THIS PLANT AND ALSO TO MAKE IT  VERY FOOD SAFETY FRIENDLY > THE MAJORITY OF THIS INNOVATION IS SOURCED FROM  EUROPE.  <THIS IS A WATER JET CUTTER, > CLEMENS SAYS IT'S THE FIRST TIME THE 122 YEAR OLD  COMPANY IS USING SOMETHING LIKE THIS... AND THE  GOAL IS TO INCREASE YIELD FROM THE PORK BELLY.  <BECAUSE NOT EVEYR BELLY IS SQUARE, SO WE CAN MAKE IT PERFECTLY  SQUARE TO GET AS MANY SLICES OF BACON OUT OF A BELLY AS WE  POSSIBLY CAN> FROM ADDING EFFICIENCY TO PRIORITIZING ANIMAL WELFARE...  <THESE HOG HOLDING PENS ARE DESINGED TO HOLD AROUND 5,000  HEAD. , SO IT'S ALMOST A HALF A DAY OF HARVEST THAT WE CAN HOLD  WITHIN THESE PENS>.  THE DESIGN INSPIRED BY DR TEMPLE GRANDIN AND  REQUIRES AN ANIMAL TO DE-STRESS FOR AT LEAST  TWO HOURS.. <45 DEGREE ANGLES WERE COMPLETELY ELIMINATED FROM THIS DESIGN,  FOR FREER ANIMAL FLOW, IN TURN HIGHER MEAT QUALITY. ACCESS TO WATER  AS SOON AS THEY COME INTO THE HOG HOLDING PENS.> WHILE THIS SITE IS SET TO OPEN IN SEPTEMBER, A PLANT IN SIOUX CITY, IOWA COULD BE ONLINE AS EARLY  AS AUGUST.  <NEITHER ONE OF HTOSE PROBABLY UP TO THEIR FULL CAPACITY OF ABOUT  10,000 HEAD PER DAY, BY TEH END OF TH EYEAR, BUT THEY ARE SURE  GOING TO HELP OUT ALOT> MEYER SAYS THAT'S HELPING SOLVE LAST YEAR'S  PROBLEMS WITH PROCESSING CAPACITY... <WE WERE VERY TIGHT LAST FALL, AS A MATTER OF FACT WE WERE RIGHT AT  OR EXCEEDED SLAUGHTER CAPACITY IN ABOUT 9 WEEKS DURING THAT FALL,  > THAT PRESSURED PORK, PUSHING PRICES LOWER IN  2016.  BUT NOT ENOUGH CAPACITY COULD SOON BE TOO MUCH, < WE'RE TALKING  ABOUT 9 TO 10 PERCENT INCREASE IN CAPACITY OVER A 3 YEAR P ERIOD.  AND THAT IS A VERY RAPID GROWTH RATE> THEN THE QUESTION BECOMES IS THERE ENOUGH  DEMAND? < LET'S PUT IT THIS WAY, WE WILL  EAT ALL THAT WE PRODUCE, THE QUESTION IS AT WHAT PRICE WILL WE GET  IT DONE> MEYER POINTS TO EXPORTS AS THE BRIGHT SPOT, UP  16 PERCENT FROM LAST YEAR.  <BUT I DON'T THINK WE CAN KIND OF HOLD OUR BREATH AND HOPE THAT  WE HAVE THAT KIND OF GROWTH ON EXPORTS FOR A LONG TIME, THER'S NOT  A LOT LEFT IN THE EXPORT MARKET AND UNTIL WE GET SOME OTHER FREE  TRADE AGREEMETNS,> MEYER SAYS WHILE HE THINKS SEASONAL DEMAND  COULD PUSH PORK PRICES HIGHER DURING THE  SECOND AND THIRD QUARTER OF THE YEAR, THE  OUTLOOK ISN'T AS BRIGHT IN Q- 4.  <NOT AS WEAK AS LAST FALL BEACUSE WE WON'T HAVE THE PACKING  CAPACITY ISSUES THAT PUSHED THOSE PRICES DOWN THE LAST 10 OR 15  DOLLAR DROP THE FALL OF 2016> BUT FOR BLONDE,  NO LONGER DOES HE HAVE THE  WORRY OF RIDING THE WAVES OF COMMODITY  MARKETS.<THE MARKET IS THE MARKET. IT GOES UP IT GOES DOWN. WITH THIS  SCENARIO, WE STILL GET TO DO WHAT WE LIKE, WE GET TO RAISE PIGS, WE  GET TO HAVE THE MANURE FOR FERTILIZER AND WE GET A GOOD STEADY  INCOME> AN OPPORTUNITY HE THINKS WILL HELP BRING HOME  THE BACON IN THE END.  CLEMENS FOOD GROUP TOLD ME THE PLANT IS  ALREADY SET UP TO HANDLE A SECOND SHIFT... ALL THEY NEED TO ADD IS ADDITONAL COOLER SPACE. 

TEASE
UP NEXT, JOHN PHIPPS <HWAS IT A POWER GRAB OR A GIVEAWAY?> <HERE'S YOUR CHANCE TO WIN A DREAM SPORTS TRIP  PLUS $10,000 DONATION FOR A COMMUNITY SPACE.  TEXT DREAM TO 31313 TO ENTER TODAY>

CUSTOMER SUPPORT
WE HAD QUITE A FEW VIEWER QUESTIONS AND  COMMENTS AFTER JOHN SHOWED OFF HIS NEW COFFEE  MUG. HERE WITH ONE OF THOSE COMMENTS IS JOHN  PHIPPS.  YOU DISCUSSED DATA SECURITY, THE CLOUD, AND CONGRESS'  CANCELLATION OF THE REQUIREMENT THAT ISPS ASK PERMISSION TO  COLLECT PERSONAL INFORMATION. AS YOU WELL KNOW, THE RULE HAD  NOTHING TO DO WITH DATA SECURITY AND CLOUD STORAGE. IT WAS A  POWER-GRAB BY THE LIBERAL HEAD OF THE FCC FROM THE FTC. THE  FTC HAD BROUGHT ENFORCEMENT ACTIONS IN THE PAST. INTERESTINGLY,  GOOGLE AND AMAZON WERE EXEMPTED FROM THE RULE, POSSIBLY DUE  TO THEIR CLOSE ASSOCIATION WITH THE OBAMA ADMINISTRATION." THANKS FOR YOUR COMMENTS, DAVID AND FOR INCLUDING YOUR  ADDRESS.  "POWER GRAB" HAS BECOME A USEFUL WORD TO DESCRIBE  ABOUT ANY GOVERNMENT ACTION WITH WHICH YOU DISAGREE. THE  RULING AND SUBSEQUENT LAW WAS INDEED ABOUT INTERNET PRIVACY  BECAUSE IT ALLOWS INTERNET PROVIDERS LIKE VERIZON OR COMCAST TO  HARVEST AND SELL YOUR BROWSING HISTORY TO ADVERTISERS. IF ANY  POWER WAS GRABBED, IT WAS BY INTERNET PROVIDERS. THE REASON  GOOGLE HAS BEEN ALLOWED TO DO THIS WAS YOU ARE IF YOU ARE USING  THEIR BROWSER, PERMISSION IS ONE OF THOSE LINES IN THE VOLUMINOUS  "DO YOU AGREE" STATEMENT YOU SIGN OFF ON TO DOWNLOAD THEIR  SOFTWARE. THIS APPLIES TO ALL BROWSERS LIKE INTERNET EXPLORER OR  SAFARI. SIMILARLY, SITES LIKE AMAZON ALSO CAN HARVEST YOUR DATA  YOU CHOOSE TO GO TO, THEIR WEBSITES. THE CHANGE IS THE FCC WAS  GOING TO CLASSIFY THE INTERNET A COMMON CARRIER, LIKE TV  FREQUENCIES, AND REGULATE IT. THE LOGIC FOR THIS DIFFERENT TREATMENT  WAS WHILE YOU CAN CHOOSE YOUR BROWSER OR WHAT WEBSITES YOU  ISIT, IT'S MUCH HARDER TO CHANGE YOUR INTERNET PROVIDER. THIS  REMAINS CONTROVERSIAL, AND THE REVERSAL OF THE PREVIOUS DECISION  IS A BIG WIN FOR CARRIERS. MY VIEW IS THE CONSERVATIVE POSITION ON  THIS ISSUE WOULD BE TO FAVOR INDIVIDUAL RIGHTS AND PRIVACY RATHER  THAN ADD TO THE NUMBER OF EYES WATCHING YOUR INTERNET ACTIVITY. THAT SAID, SINCE I SPOKE ABOUT THIS AN ENTIRE INDUSTRY HAS SPRUNG  UP TO HELP ANYONE PROTECT THEIR BROWSING HABITS FROM SCRUTINY.  YOU CAN USE SOMETHING CALLED A VIRTUAL PRIVATE NETWORK OR VPN,  OR BROWSERS LIKE OPERA OR TOR ARE AVAILABLE TO SAFEGUARD YOUR  DATA. REGARDLESS, LIKE MOST TECHNOLOGICAL DISPUTES, MY BET SOMEBODY IS GOING TO MAKE BILLIONS SELLING A SOLUTION TO PEOPLE  WHO WANT THEIR INFORMATION KEPT PRIVATE, MAKING THIS POLITICAL  BICKERING LARGELY POINTLESS.

TEASE
THANKS, JOHN. AND REMEMBER, IF YOU HAVE A  QUESTION OR COMMENT, JUST EMAIL JOHN AT MAILBAG  AT U-S FARM REPORT DOT COM OR SHOOT US A NOTE  ON FACEBOOK OR TWITTER. WHEN WE COME BACK, IT'S TIME A FOR A TRIP OUT  WEST TO VISIT BAXTER BLACK. 

BAXTER BLACK
IT'S TIME NOW TO TAKE A TRIP OUT WEST TO VISIT  BAXTER BLACK.  YOU KNOW IT TAKES A LOT OF JOBS ON A RANCH TO KEEP IT RUNNING FROM  SMOOTH THE COWBOYS ARE IN THE SPOTLIGHT IN REAL LIFE IS LIKE THEY  ARE IN THE MOVIE 'S UNLESS THE BOSS IS AROUND THE RANCHER AND  HIS DAUGHTER OFTEN HAVE GOOD PARTS OF THE MECHANIC WHO MAKE  SURE THE HAY AND EQUIPMENT THE TRUCKS TRACTORS AND ASSORTED  MOTORS ARE MAINTAINED AND FIXED TO GET A LITTLE PUBLICITY, EVEN THE  COOK GETS TO SAY A FEW LINES BUT WHO GREASES THE WINDMILLS? AND  KEEPS THE GARDEN AND FEEDS THE CAT AND DRIVES THE PICK UP AND  GENERALLY DOES WHAT NOBODY ELSE WANTS TO DO WHEN THEY PUT HIM  ON THE PAYROLE IN ALL A COWBOY WHO WONDER WHY BECAUSE HE  DIDN'T OWN A SADDLE, COULDN'T  ROPE AND DIDN'T TRY BUT THEY GAVE  HIM ALL THE BAD JOBS THE ONES THAT THEY'D PUT OFF AND WENT ABOUT  THEIR BUSINESS. LEAVING HIM TO CLEAN THE TROUGH AND FIX THE FENCE AND CHOP THE  THISTLE DOWN WHEN THEY ALL RAN OUT OF BEER WITH HIM THEY WENT TO  TOWN. HE HANDLED ALL THE DETAILS FOR THE COWBOYS WOULD IGNORE  THAT HELD A PLACE TOGETHER KEPT WOLVES FROM THE DOOR. AND WE  ONLY SAW HIM NOW AND THEN AT NIGHT WHEN I COME IN CAUSE THINGS  WERE RUNNING AWFUL SMOOTH AND THEY WERE BUSY MAN NOBODY EVER NOTICED THAT HE ALWAYS DID ANY PART TILL THE DAY THE WIND  MILLS ROSE AND THE PICKUP WOULD START AND THE COYOTES GOT THE  CHICKENS AND THE BUTANE TANK WENT DRY, THE  MILK COW TORE THE  BARN DOWN AND THE  MECHANIC 'S WIFE GOT HIGH. NOBODY STOKE THE WOOD STOVE OR  STARTED UP OF FIRE SO THE COOK REFUSED AND BREAKFAST INN  THREATENED TO RETIRE THE DOG TORE UP THE SMOKEHOUSE LIKE THEY'D  HIT IT WITH A BOMB AND THE RANCH GROUND TO A STAND STILL AND THE  COWBOYS SAID WHERE'S TOM? SEEING AS THEY'D REALLY NEVER  THOUGHT ABOUT HOW MUCH THEY'D MISS HIS FACE FINALLY HIT HIM ON  THE DAY THE HIRED MAN QUIT THE PLACE THIS IS BAXTER BLACK FROM OUT THERE YOU CAN HEAR MORE OF BAXTER'S HUMOR ONLINE, AT  BAXTER BLACK DOT COM.

TEASE
WHEN WE COME BACK, MACHIENRY PETE HAS THIS  WEEK'S TRACTOR TALES, SO DON'T GO ANYWHERE.  <THIS IS MARHCNIERY PETE INVITING YOU TO CHECK  OUT MY NEW WEBSITE- MACHINERYPETE.COM.  OFFERING FAREMRS TENS OF THOUSANDS OF USED  EQUIPMENT LISTINGS TO SEARCH. LET MACHINERY  PETE HELP YOU FIND AND VALUE YOUR NEXT PIECE OF  USED EQUIPMENT>

TRACTOR TALES
TRACTOR TALES BROUGHT TO YOU BY THE MOST  TRUSTED NAME IN FARM EQUIPMENT, MACHINERY  PETE!. WELCOME BACK TO TRACTOR TALES FOLKS!  WE’RE OFF TO THE LONE STAR STATE FOR A WORK HORSE FROM THE INTERNATIONAL FAMILY. THIS INTERNATIONAL HARVESTER 1468 HAD ALL THE COMFORTS YOU NEEDED, BACK IN THE EARLY 70’S.  BOB STONE WAS PROUD OF THIS RED AND WHITE GIANT, AND WASN’T AFRAID TO OPEN IT UP ON HIS FARM I BOUGHT THIS TRACTOR FOURTEEN SIXTY EIGHT UP IN KANSAS AT BELLEVILLE KANSAS RIGHT THE NORTH PART OF KANSAS.  THIS TRACTOR WAS USED AT A LOCAL COOP. THEY PULL SOME KIND OF A AH FERTILIZING UNIT WITH IT THAT FARMERS TO RENT THIS TRACTOR AND THE FERTILIZER FOR A FEW HOURS A DAY.  PUT THE FERTILIZE IT'S GOT UNDER THREE THOUSAND HOURS WHICH IS VERY UNIQUE. IT 'S GOT A FOUR WHICH IS VERY RARE.  MOST OF THEM EVEN HAD A TWO POST OR THEY HAD A CAB, I'D SAY MOST OF THEM PROBABLY HAD A CAB WITH AIR CONDITIONING BACK AND THEY GOT THE ENGINE FROM THE TRUCK DIVISION IS THE D V FIVE FIFTY AND THE OTHER DAY I PULLED MYSELF OUT OF A SKID LOADER OUT OF THE POND WITH THINGS LIKE THAT RATHER THAN I WENT AND GOT THE BIGGEST TRACTOR WAS I WAS I WAS PRETTY BAD IF IT 'S GOT ALL THE BELLS AND WHISTLES DOES VERY GOOD JOB.  THIS ENGINE THE DV FIVE FIFTY WHICH WAS MADE BY THE INTERNATIONAL HARVESTER TRUCK DIVISION ACTUALLY RUNS ON 4 CYLINDERS WHEN IT'S NOT DOING ANY REAL WORK OR LOAD AND THEN IT SWITCHES TO 8 CYLINDERS. SO THERE WAS VERY THE VERY FIRST PEOPLE BEFORE EVEN CADILLAC  CAME WITH THAT NOTION OF SAVING GAS WELL ON 4 CYLINDERS AND SWITCHING TO EIGHT AS SOON AS YOU GOT A LOAD. THAT MANY AROUND AH THERE 'S NEVER THAT MAY BE MADE THANKS SO MUCH.

TEASE
WELL, DON'T FORGET, THERE ARE FOLKS IN AG AND  RURAL COMMHINITES OF KANSAS THAT NEED OUR  HELP. AND YOU CAN DO SO THROUGH A NEW EFFORT. IT'S  CALLED THE MILLION DOLLAR WILDFIRE RELIEF FUND IS  BEING BACKED BY THE HOWARD G BUFFETT  FOUNDATION AND WILL GO HELP REBUILD MORE THAN  18-THOUSAND MILES OF FENCING DESTROYED THIS SPRING. LEARN MORE ABOUT HOW YOU CAN HELP AT WILDFIRE  RELIEF FUND DOT ORG STAY WITH US, WE HAVE FROM THE FARM PHOTOS  NEXT. 

FROM THE FARM
WELCOME BACK. WELL, IT'S BEEN A BUSY PLANTING WEEK FOR SOME. AND FOR  ONE OF OUR ANALYTS, JAROD CREED, HE AND HIS WIFE  CASSY WELCOMED THEIR LITTLE GIRL JACEY INTO THE  WORLD A COUPLE MONTHS AGO, AND SHE'S ALREADY  GETTING HER FIRST TRACTOR RIDE! LOOK AT THAT  BLONDE HAIR! TOO CUTE. NOT IDEAL PLANTING CONDITIONS FOR PUTTING IN  SUGAR BEETS THIS YEAR. AS YOU CAN SEE, SNOW IS  LIGHTLY COATING THE GROUND. <AND MIKE, I WAS IN MICHIGAN THIS WEEK. THE WHEAT  CROP IS SO LUSH AND GREEN... IT'S HEALTHY DESPITE  THE LACK OF SNOW PACK THEY SAW IN THE THUMB OF  MICHIGAN THIS YEAR.  AND IT HAS BEEN THAT IN THE CASE FOR SOME OF OUR VIEW IT HAS IT HAS IN IT OR GROW A LOT OF SUGAR BEETS UP THERE. NOT SOME OF IT AND THEY DO IN THIS COLDER WEATHER THOUGH I MEAN ARE YOU SEEING ANY MORE COLD SNAPS IN OUR FUTURE. DO YOU THINK WE GET THIS BEHIND US AND WHERE WERE THE NORTHERN PLAINS YOU STILL HAVE THAT POSSIBILITY EVEN IN THE GREAT LIGHTS FOR A ROSTER FREEZE AND SO THAT IS ALWAYS A CONCERN. BUT I DO THINK WE DO IN A WARMER PATTERN ESPECIALLY IN THE SOUTHEASTERN PORTION OF THE COUNTRY. BUT ARE THE NINETY DAY FORECASTER WILL BE SHOWING YEAH RIGHT THING SO MUCH. MIKE.

CLOSE
WELL FOR ALL OF US THAT U S FARM REPORT THANK YOU SO MUCH FOR WATCHING BE SURE TO JOIN US AGAIN RIGHT HERE NEXT WEEK AS WE WORK TO BUILD ON OUR TRADITION HAVE A GREAT WEEKEND. EVERYONE<U.S. FARM REPORT. AMERICA'S LONGERS LASTING  NEWS PROGRAM FOR FARMERS IS POWERED BY RAM  TRUCKS, AMERICA'S LONGEST LASTING PICKUPS> 

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