TODAY ON AGDAY
FEB. 8, 2016
OPENING HEADLINES:
COMING UP TODAY ON AGDAY -BAYER AND E-P-A ARE AT A STALEMATE OVER PULLING AN INSECTICIDE FROM STORES.
AND CHIP NELLINGER OF BLUE REEF AGRIMARKETING TALKS MANAGING MARKET VOLATILITY IN TODAY’S AGRIBUSINESS.
“UNFORTUNATELY THE VOLATILITY THAT WE HAVE SEEN HAS DRIVEN PEOPLE AWAY FROM THE MARKET AND THEY ARE SAYING TO THEMSELVES: I CAN’T USE THE MARKET ANYMORE.”
MACHINERY PETE IS PLAYING GAMES.
AND THE CRAFT BREW INDUSTRY WON BIG OVER THE WEEKEND, BUT WILL THE BIG GUYS START PUSHING INTO SALES?
BAYER FIGHTS EPA TO KEEP INSECTICIDE ON SHELVES:
GOOD MORNING I’M CLINTON GRIFFITHS.
BAYER CROP SCIENCE IS PUTTING ITS FOOT DOWN, TELLING THE EPA IT WILL NOT VOLUNTARILY TAKE A PRODUCT OFF THE SHELVES.
BAYER IS REFUSING A REQUEST FROM THE ENVIRONMENTAL PROTECTION AGENCY TO VOLUNTARILY PULL ITS BELT INSECTICIDE OFF THE MARKET DUE TO ENVIRONMENTAL CONCERNS. NATIONAL REPORTER BETSY JIBBEN JOINS US WITH MORE.
EPA ARGUES CHEMICALS COULD BE HARMFUL TO ORGANISMS IN SOIL
THE EPA IS CONCERNED WITH A CHEMICAL IN BAYER’S BELT INSECTICIDE, SAYING IT’S POTENTIALLY HARMFUL TO SOME IN-VERT-I-BRATES THAT LIVE IN THE SOIL NEAR WATER. BAYER SAYS ITS QUESTIONING THE EPA’S DATA AND IT’S SUPPORT FOR PRODUCTION AGRICULTURE. THE PRODUCT HELPS FIGHT AGAINST PESTS LIKE ARMY WORMS AND CORN BORERS. IT’S REGISTERED FOR USE ON 200 CROPS BUT IT’S MOSTLY USED ON TREE NUTS.
BAYER DATA:
BAYER SAYS IT’S CONDUCTED MORE THAN 200 STUDIES ON THE PRODUCT TO DATE. AND IT’S DATE-A ALONG WITH REAL LIFE OBSERVATIONS SHOW NO IMPACT TO THE ORGAN ISMS THAT EPA IS CONCERNED ABOUT. WHAT BAYER IS WORRIED ABOUT IS EPA’S REQUEST TO PULL A PRODUCT WITHOUT WHAT THEY CONSIDER IS SOUND SCIENCE.
EPA SAYS PRODUCT IS TOXIC:
EPA SAYS IT’S MODELING RAISES ENOUGH CONCERN ABOUT THE INSECTICIDES’ IMPACT ON INVERTEBRATES AND THE PRODUCT’S IMPACT ON THE ENVIRONMENT.
THAT IT’S ASKING BAYER TO PULL THE PRODUCT.. “EPA REQUIRED ADDITIONAL STUDIES THAT FOUND THE PRODUCT DEGRADES OR BREAKS DOWN INTO A MATERIAL WHICH IS MORE TOXIC -THAN THE CHEMICAL ALSO KNOWN AS-FLUBE-IN-DIE-A-MIDE.” “THE EPA WILL MOVE FORWARD WITH CANCELLATION PROCEEDINGS, ACCORDING TO THE STATUTE, IF THE COMPANIES IN FACT FAIL TO COMPLY WITH THE CONDITION.”
“THE EPA WILL MOVE FORWARD WITH CANCELLATION PROCEEDINGS, ACCORDING TO THE STATUTE, IF THE COMPANIES IN FACT FAIL TO COMPLY WITH THE CONDITION.” A SPOKESPERSON FOR BAYER SAYS THE NEXT STEP IS SEEKING ACTION IN AN ADMINISTRATIVE COURT AT THE EPA. THE PRODUCT IS STILL ON THE MARKET. FARMERS ARE STILL ABLE TO BUY AND USE IT.
RE-DESIGNATION OF COTTON COULD MEAN MORE COVERAGE:
THE CHAIRMAN OF THE HOUSE AGRICULTURE COMMITTEE AND THE SECRETARY OF THE AGRICULTURE DEPARTMENT ARE GOING “TOE-TO-TOE” ON THE DESIGNATION OF COTTON OIL SEED.
AS AGDAY FIRST REPORTED LAST WEEK, AG SECRETARY TOM VILSACK SAID HE LACKS AUTHORITY TO DESIGNATE COTTONSEED AS AN “OTHER” OILSEED. IF INCLUDED IN THAT CATEGORY, COTTONSEED WOULD QUALIFY FOR COVERAGE IN FARM SAFETY-NET PROGRAMS. CANOLA AND FLAXSEED HAVE THAT DESIGNATION.
CALL FOR AG SECRETARY TO ACT:
HOUSE AG COMMITTEE CHAIRMAN MIKE CONAWAY SAYS VILSACK NOT ONLY HAS THE LEGAL AUTHORITY BUT THE RESPONSIBILITY TO ACT.
LOW PRICES, A DROP IN DEMAND AND FOREIGN COMPETITION ARE HURTING COTTON FARMERS. SUPPORTERS SAY ADDING COTTONSEED OIL TO THE LIST WOULD BOLSTER FARMERS’ BOTTOM LINE.
COTTON PRODUCTION FACES CHALLENGES:
THE N-C-C SAYS U-S COTTON GROWERS HARVESTED THE SMALLEST ACREAGE IN 30 YEARS, EXPORTS ARE AT THE LOWEST LEVEL IN 15 YEARS, AND PRICES ARE AT THEIR LOWEST SINCE 2009. ADAMS SAYS THOSE FACTORS MAKE IT DIFFICULT TO BE OPTIMISTIC HEADING INTO THE 2016 SEASON.
USDA SHOWS MORE AMERICANS ARE SPENDING MONEY ON EATING OUT:
U.S. CONSUMERS SPENDING LESS TIME AT THEIR HOME KITCHEN AND MORE TIME EATING OUT. THE LATEST NUMBERS FROM USDA SHOW AMERICANS SPENT MORE FOR FOOD AWAY FROM HOME THAN THEY DID ON MEALS PREPARED AND CONSUMED AT HOME. THESE NUMBERS ARE FROM 2014. IT’S THE FIRST TIME THAT’S EVEN HAPPENED.
CONSUMERS SPENT JUST OVER 50 PERCENT OF THEIR FOOD DOLLAR AT RESTAURANTS, SCHOOL CAFETERIAS AND SPORTS VENUES. BACK IN 1960 THAT WAS SHARE WAS 26 PERCENT.
CROP COMMENTS:
WE HEAD OUT OF THE SNOW AND INTO THE SUN FOR THIS MORNING’S CROP COMMENTS. MIKE GOOD MORNING, CLINTON.
LET’S START OFF CROPWATCH IN DAL-HART, TEXAS.
JARRET BOWERS SAYS DESPITE THE PATCHES OF SNOW, IT WAS NICE ENOUGH OUTSIDE TO PRACTICE SHOWING PIGS IN SHORTS.
TEASE:
WHEN WE COME BACK, VOLATILITY IN THE CATTLE MARKET HAS BEEN A HOT TOPIC THE LAST FEW MONTHS. WE’LL DISCUSS THAT AND SOME TIPS FOR MANAGING THE TURBULENCE.
PLUS MACHINERY PETE IS HERE.
STICK AROUND, FOLKS. COMING UP I WILL TELL YOU ABOUT OUR MACHINERY PETE PRICE GUESSING GAMING ON A PAIR OF LOW HOUR JOHN DEERE TRACTORS. AND LATER THE CRAFT BREW INDUSTRY IS WORRIED ABOUT GETTING SHOVED TO THE SIDELINES. THAT STORY TODAY ON IN THE COUNTRY.
CME:
IN AGRIBUSINESS LETS SEE HOW FUTURE’S MARKETS CLOSED LAST WEEK. FOR THAT WE HEAD TO THE FLOOR OF THE CME IN CHICAGO. LOOKING AT THE AGRICULTURAL MARKETS HERE TODAY, ACROSS THE BOARD THEY ARE ALL GETTING HIT. YOU HAVE THE CORN, SOYBEANS, WHEAT ALL SELLING OFF. BEANS HERE, THEY’VE HAD THEIR LAST RUN-UP OVER THE LAST COUPLE OF WEEKS. BUT ONCE THEY GET NORTH OF THAT 8.80 LEVEL OR 8.84, THEY START TO PULL BACK FROM THERE AND CORN PRICES AGAIN, WEAKNESS THERE. SAME THING WITH WHEAT. I THINK WHEAT HAS A BOTTOM. YOU’RE SEEING A REDUCTION WITH ACRES FOR WHEAT. I THINK THE CORN PRICES WILL PUSH DOWN TO 3.50 ON THE LOW END. LOOKING AT THE LIVESTOCK TRADE HERE TODAY, IT’S REALLY HIT WITH OUTSIDE FACTORS LIKE THE DOLLAR INDEX OR WEAK PAYROLL NUMBER. JUST ACROSS THE BOARD SELLING GOING ON HERE.
THAT’S WEAKNESS IN THE DOLLAR. LOOKING AT THE DOLLAR THE THOUGHT PROCESS IS A LITTLE BIT SLUGGISH ON THE DEMAND GOING FORWARD. THAT’S CONCERNS ABOUT GLOBAL GROWTH. MARKETS WILL CONTINUE TO SELL OFF HERE. WE’RE DOWN ABOUT A BUCK HERE MID-SESSION. I THINK WE WILL CONTINUE TO PULL BACK. LEAN HOGS, WE LIKE THE SHARP PATTERN ON THAT.
AGAIN THIS IS PHILLIP STREIBLE WITH RJO FUTURES.
AGRIBUSINESS:
AT THE RECENT CATTLE INDUSTRY CONVENTION IN SAN DIEGO, MARKET VOLATILITY WAS A HOT TOPIC. IN THIS MORNING’S ANALYSIS TYNE MORGAN JOINS US TO DISCUSS THE VOLATILITY INCLUDING TIPS FOR SAILING THE CHOPPY WATER.
WELCOME BACK, CHIP NELLINGER, BLUE REEF AGRIMARKETING. CHIP, WHEN WE TALK ABOUT THIS CATTLE MARKET AND THE EXTREME VOLATILITY WE HAVE SEEN IN THE PAST YEAR. WHAT’S YOUR ADVICE FOR SOME OF THOSE CATTLE PRODUCERS WHO ARE SO FRUSTRATED WITH THE FUTURES MARKET? > YEAH, WELL UNFORTUNATELY THE VOLATILITY THAT WE HAVE SEEN HAS DRIVEN PEOPLE AWAY FROM THE MARKET AND THEY ARE SAYING TO THEMSELVES: I CAN’T USE THE MARKET ANYMORE. WE TAKE A LITTLE BIT OF A DIFFERENT PERSPECTIVE: THE WIDE SWINGS THAT WE HAVE HAD, WHILE IT IS KIND OF A GUT WRENCHING ROLLER COASTER RIDE AT LEAST IT GIVES YOU OPPORTUNITIES TO POSITION YOURSELF AND USE OPTIONS.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY WITH METEOROLOGIST MIKE HOFFMAN. MIKE, KIND OF STARTING THE WEEK WITH A PRETTY COLD SHOT OF AIR ACROSS THAT COUNTRY. THAT MAY BE THE COLDEST AIR OF THE SEASON IN SOME PLACES. WE’LL HAVE TO WATCH THAT. IT DOES LOOK LIKE IT BECOMES MORE TRANQUIL AS THE WEEKEND COMES ALONG. IN FACT, THIS JET STREAM LOOKS LIKE A LOT LIKE THE LAST COUPLE OF WINTERS. IT’S A BIG OLD TROUGH INTO THE EASTERN TWOTHIRDS OF THE COUNTRY. BIG RIDGE OFF THE WEST COAST.
REGIONAL WEATHER:
THAT’S A LOOK ACROSS THE COUNTRY. NOW LET’S TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL, LET’S HEAD TO SPRINGERVILLE, ARIZONA. THERE’S TONS OF SUNSHINE AND CHILLY TODAY. THE HIGH TEMPERATURE IS 51. IRON MOUNTAIN, MICHIGAN COLDER, LAKE EFFECT SNOW SHOWERS DEVELOPING. THAT’S 28. AND FINALLY, SALISBURY, MARYLAND PARTLY SUNNY AND MAYBE A SHOWER IN SPOTS. THE HIGH IS 47.
TEASE:
MACHINERY PETE IS UP NEXT. AND HE’S READY TO PLAY SOME GAMES.
AND LATER THE CRAFT BEER INDUSTRY HAS BEEN BOOMING...BUT NOW SOME IN THE INDUSTRY WONDER IF THE BIG GUYS COULD PUSH THEM TO THE BACK OF THE BAR.
MACHINERY PETE:
MACHINERY PETE -SPONSORED BY THE GRIT, TOUGHNESS AND PERSERVERANCE OF FARMERS EVERYWHERE, WHO RELY ON CHEVRON DELO, BECAUSE UNCOMMON JOBS REQUIRE UNCOMMON TOUGHENSS. CHEVRON DELO LET’S GO FURTHER. YOU CAN CALL MACHINERY PETE MANY THINGS -EQUIPMENT EXPERT, NUMBER CRUNCHER, OR JUST A NICE GUY. NOW YOU CAN ADD ANOTHER TITLE “GAME SHOW” HOST. GREG. ALL RIGHT, GOT SOMETHING REALLY FUN FOR YOU FOLKS. MACHINERY PETE’S AUCTION PRICE GUESSING GAME. THERE ARE TWO VERY LOW HOUR JOHN DEERE TRACTORS ON A FARM ESTATE AUCTION THIS THURSDAY, FEB. 11. OUT IN WILCOX, NEB.
TEASE:
CHANCES ARE IF YOU’RE UP THIS EARLY, YOU’RE NOT SUFFERING FROM A SUPER BOWL HANGOVER. NEXT WE’LL TALK ABOUT ONE OF THE BIG WINNERS IN THE GAME -THE NATION’S CRAFT BEER SECTOR.
INSTINCT II AND N-SERVE NITROGEN STABILIZERS MAKE MORE NITROGEN AVAILABLE TO CORN LONGER -FOR OPTIMIZED YIELD POTENTIAL. FROM DOW AGROSCIENCES. SOLUTIONS FOR THE GROWING WORLD.
IN THE COUNTRY:
NO MATTER WHICH TEAM SCORED THE MOST POINTS DURING THE SUPER BOWL, ONE DEFINITE WINNER IS THE BEER INDUSTRY. THE INDUSTRY ESTIMATES AMERICANS DOWNED 325 MILLION GALLONS OF BEER YESTERDAY. A MAJORITY OF THE BEER HAS A NAME LIKE BUDWEISER OR MILLER. BUT A GROWING NUMBER OF CRAFT BEERS -WITH NAMES LIKE FAT TIRE -ARE GAINING MARKET SHARE. BUT AS PETER BANDA REPORTS, SOME OF THE LARGEST BEER MAKERS ARE STEPPING INTO THE CRAFT BEER WORLD...AND MANY CRAFT BEER DRINKERS AREN’T HAPPY. LONG BEFORE LEGAL POT, THERE WAS THE RISE OF CRAFT BEER IN COLORADO. “IF YOU LOVE CRAFT BEER, IT’S THE BEST PLACE FOR BEER. IT’S LIKE NAPA FOR WINE. KENTUCKY FOR WHISKY.’' ENTREPRENEURS LIKE LEFT HAND BREWING COMPANY CO-FOUNDER ERIC WALLACE AND OTHERS GREW THEIR BUSINESSES IN THE 1990S.
“I LOADED THE VAN WITH BEER. I DROVE AROUND TO VARIOUS LIQUOR STORES, BARS AND RESTAURANTS.’'
50 OF THE LARGEST CRAFT BREWERIES RESIDE IN COLORADO:
COLORADO NOW HAS SIX OF THE 50 LARGEST CRAFT BREWERIES IN THE COUNTRY. THEIR STORIES _ AS WELL AS GOOD BEER _ RESONATE WITH CUSTOMERS. SEEING THE PEOPLE HERE THAT WORK HERE, MAKE THE BEER AND THEN SELL IT TO US IS REALLY FUN.’' BEER GIANT ANHEUSER-BUSCH INBEV RECENTLY SHOOK UP THE COLORADO CRAFT BREWING INDUSTRY AFTER IT ACQUIRED BRECKENRIDGE BREWERY ONE OF THOSE LARGE BREWERS. FORT COLLINS BASED NEW BELGIUM BREWERYMAKERS OF FAT TIRE — IS ALSO REPORTEDLY LOOKING FOR A BUYER.
PARTNERSHIP COULD FORM IN THE FUTURE:
CORPORATE BUYOUTS HAVE LEFT CRAFT BEER PURISTS FEARING A LOSS OF IDENTITY AND FLAVOR. “IT BASICALLY MOVES US BACK IN THE DIRECTION OF THE 1970S, WHICH I LIKE TO DESCRIBE AS THE SCORCHED EARTH WHERE ALL THE BEERS IN THE UNITED STATES PRETTY MUCH TASTED THE SAME.’' BUT BRECKENRIDGE PRESIDENT TODD USRY SAYS HE CHANGED HIS MIND AFTER SEVERAL MEETINGS WITH AB-INBEV’S CRAFT BREWING DIVISION CALLED THE HIGH END. “I FOUND OUT THAT THEY DIDN’T HAVE HORNS, I FOUND OUT THAT WHAT THEY WERE TRYING TO DO WAS PARTICIPATE IN CRAFT NOT TAKE CRAFT OVER, NOT SQUEEZE OUT OTHER PLAYERS.’'
PETER BANDA, ASSOCIATED PRESS, LONGMONT, COLORADO.
CLOSING:
THAT’S ALL THE TIME WE HAVE THIS MORNING. WE’RE GLAD YOU TUNED IN.
FOR BETSY JIBBEN, TYNE MORGAN AND MIKE HOFFMAN, I’M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
I’M CLINTON GRIFFITHS, TUESDAY ON AGDAY - WE’LL TAKE A CLOSER LOOK AT THE COTTON INDUSTRY AS PLANTING ESTIMATES ARE RELEASED. PLUS WHAT’S THE IMPORT-EXPORT PICTURE OF U-S BEEF THIS YEAR? REAL NEWS THAT MATTERS. WATCH US WEEKDAYS ON ADAY.
