~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Wednesday January 13, 2010A service of Johnston Enterprises, P & K Equipment/ P & K Wind Energy and American Farmers & Ranchers Mutual Insurance Company!
-- Major Market Movers- Crop Reports, Stocks Data and Wheat Seedings All Released Tuesday Morning
-- We Also Got Kim Anderson's Take and Advice in the Aftermath of These Reports
-- American Farm Bureau Policy Session Finishes Tuesday Night- Highlighted by Climate Change Special Resolution
-- Beyond Cap and Trade- Lots of Policy Decisions Made on Tuesday by AFBF Delegates
-- Farm Bureau Delegates Prefer "All or Nothing" Negotiating Stance With Asian Countries for US Beef Access
-- Growth Energy Applauds US Corn Farmers for Record Crop in 2009
-- Soyfoods Shown to be Safe for Breast Cancer Patients
-- Let's Check the Markets!
Here's your morning farm news headlines from the Director of Farm Programming for the Radio Oklahoma Network, Ron Hays. We are pleased to have American Farmers & Ranchers Mutual Insurance Company as a regular sponsor of our daily update- click here to go to their AFR web site to learn more about their efforts to serve rural America!
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Major Market Movers- Crop Reports, Stocks Data and Wheat Seedings All Released Tuesday Morning
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Stocks of all major grains were higher than a year ago- and that factor, along with the surprising word from USDA that the 2009 corn crop turned out to be a record sized crop at 13.15 billion bushels, shoved the wheat, corn and soybean markets sharply lower during the Tuesday open outcry session. Overnight trade this morning also shows that the selling is not yet complete, as all three commodities have more red ink for their active contract months as we write this email this morning.
Acres planted to wheat this past fall are well down from the number of acres planted in 2008- and USDA reports the smallest wheat plantings for all winter wheat since 1913. For Oklahoma, the total number of acres planted appears to be 5.2 million acres, down a half million acres from the number of acres planted a year earlier- the 5.2 million acre number is the smallest wheat plantings in the state since 1971.
We have a good overview of the three big reports that we mentioned in the headlines above- click on the link below for that summary of what the numbers said- and it appears that the trade looked at the total body of work- and decided for one day anyway- it was time to sell!
We Also Got Kim Anderson's Take and Advice in the Aftermath of These Reports
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~About an hour after the reports were released by USDA, we got on the hotline between our studios and Stillwater and talked impact with Dr. Kim Anderson, OSU Grain Marketing Economist. Dr. Anderson believes that the wheat seedings going lower across the wheat belt partially reflects market savvy on the part of wheat farmers, who said large supplies and cheaper prices and backed away from planting marginal acres to wheat this past fall.
He adds that the wheat stocks growing by 24% from last December is not a surprise- and shows that we will have half of an average wheat crop already in storage as we approach harvest this coming May and June. Anderson says that is a huge drag on prices. While he says it is unlikely, the market really needs a 1.8 billion bushel wheat crop or less this year from the US producer to have a chance to realize higher wheat prices for the year. Higher prices would be $5.50 to $6.00 if a much smaller than normal US crop was harvested.
Click on the link below and take a listen to our full conversation with Dr. Kim Anderson- we talk about marketing strategy for the 2010 crop- and the fact that the basis is telling producers you will be paid in 2010 for a higher protein crop- throwing on some nitrogen fertilizer is likely to be an excellent investment in the new year.
American Farm Bureau Policy Session Finishes Tuesday Night- Highlighted by Climate Change Special Resolution
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Farm and ranch delegates at the American Farm Bureau Federation annual meeting today unanimously approved a special resolution to strongly oppose "cap and trade proposals before Congress" and strongly support "any legislative action that would suspend (the Environmental Protection Agency's) authority to regulate greenhouse gases under the Clean Air Act." The 369 delegates, reiterating the theme of a successful campaign kicked off this fall, said: "Don't cap our future."
Oklahoma Farm Bureau President Mike Spradling says the ten Oklahoma delegates were pleased to support this special order of business to help send the message to Capital Hill that the legislation that has been developed to this point is a non starter for American agriculture.
"The administration's economic projections show that the proposed cap and trade legislation would result in planting trees on 59 million acres of crop and pasture land thereby damaging the capability of U.S. agricultural producers to feed a growing world population and create the conditions for (hiking) consumer food prices," according to the resolution. "Cap and trade legislation would eliminate jobs, and could result in the loss of 2.3 million jobs in the U.S. over the next 20 years."
The delegates cited recent developments in the climate change debate as reasons to re-emphasize their opposition. "E-mails made public, call into question just how unsettled the science really is on climate change and demonstrate the unwillingness of many of the world's climatologists to share data or even entertain opposing viewpoints," the delegates stated. "The recently completed Copenhagen summit resulted in demands for the U.S. to transfer billions of dollars to the developing world to fight climate change, but produced no meaningful agreement."
Beyond Cap and Trade- Lots of Policy Decisions Made on Tuesday by AFBF Delegates
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~During the Tuesday policy session, the 369 delegates called for meaningful relief from the estate tax, with no conditions or qualifications. They said that an increase in the overall exemption would be Farm Bureau's main priority. They also reaffirmed their support for full stepped-up basis at the time of death in order to reduce the capital gains tax burden on farm and ranch heirs. Also on taxes, the delegates opposed the imposition of any health-related taxes on foods or beverages.
On farm policy, the delegates affirmed their support for the current farm program and continued their support for a mandatory country-of-origin labeling program, as enacted in the 2008 farm bill. They also called for a workable ad hoc disaster program and approved a new policy calling for a specialty crops title in future farm bills, along with additional research programs and promotion of U.S. specialty crops.
A couple of the resolutions that passed called for farmers to be
treated "right" by the corporations they deal with. One was in regards to
biotech seed that carries a seed technology fee. If the seed that a farmer
buys, based on certain traits contained in the genetic makeup of that
seed- the delegates said that companies who sell that seed that has traits
that fail (such as weed resistance to chemicals) should be forced to
refund the technology fee if that failure occurs.
Farm Bureau Delegates Prefer "All or Nothing" Negotiating Stance With Asian Countries for US Beef Access
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The issue of how to deal with countries that have been slow to reopen their markets to US beef came up in the policy discussions conducted by the American Farm Bureau delegates on Tuesday in Seattle. A resolution came to the floor that would have tempered the "all or nothing" approach to negotiating that was the Bush Administration trademark in their dealings with especially Japan after the discovery of the cow that stole Christmas back in 2003. The discovery of BSE in the United States cattle herd gave the Japanese and several other countries the opportunity to restrict US beef into their markets- and in the case of Japan, the restrictions of only accepting US beef from animals 20 months of age or younger means the loss of as much as a billion dollars annually to the US cattle industry.
The resolution before the Farm Bureau delegates stated "To aid meat industry trade associations in their efforts to restore full market access for U.S. meat exports, the AFBF Board of Directors should urge all relevant offices of the federal government (chiefly the USDA and the U.S. Trade Representative) to consider intermediate steps to complete access."
Today's Beef Buzz- click on the link below to go and listen- includes arguments made on both sides of this resolution. At the end of that debate, the organization rejected the step by step approach, saying that the policy position would remain "all or nothing."
Growth Energy Applauds US Corn Farmers for Record Crop in 2009
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~American farmers are expected to produce a record 13.2 billion bushels of corn, the largest U.S. corn crop in history, according to the Tuesday crop report released by the U.S. Department of Agriculture. Growth Energy said the record yield shatters the myth of "food vs. fuel" and repeated its demand that the Grocery Manufacturers Association apologize for its multi-million dollar propaganda blitz to spread lies about ethanol.
"Today's USDA forecast of a record corn crop once again confirms what America's farmers and renewable fuel producers have known for a long time. Continued innovation in ethanol production and agricultural technology means that we don't have to make a false choice between food and fuel. We can more than meet the demand for food and livestock feed while reducing our dependence on foreign oil through the production of homegrown renewable ethanol," said Tom Buis, CEO of Growth Energy.
Click on the link below for more on the conclusions drawn by Growth Energy from the record sized corn crop- and how they contend it's good news for supporters of ethanol in this country.
Soyfoods Shown to be Safe for Breast Cancer Patients
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~As research continues to demonstrate the human health value of eating soyfoods, a recently published study shows that soyfoods are not only safe but also beneficial for breast cancer survivors. In the past, some doctors have cautioned some breast cancer patients and survivors to avoid eating soy, because of the mild estrogen-like effects exhibited by isoflavones, a natural plant compound in soy, in certain lab conditions. But with this study, recently published in the Journal of American Medical Association, health professionals can feel comfortable recommending soyfoods to breast cancer patients.
The soybean checkoff and the United Soybean Board (USB) fund research on the healthfulness of soyfoods. Checkoff-funded research has helped to prove benefits such as soy's ability to help reduce the risk of heart disease.
"It is important the soybean checkoff work with universities and other science-based entities to make sure that accurate research is being done that will put factual information out to the public and medical professionals," says Laura Foell, soybean farmer from Schaller, Iowa, and Vice Chair of the USB Domestic Marketing program. "Soybean farmers know that their product is a very worthwhile and healthy product. With research into soybeans' nutritional value, the soybean can be considered as part of a healthy diet."
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Let's Check the Markets!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~We've had requests to include Canola prices for your convenience here- and we will be doing so on a regular basis. Current cash price for Canola is $7.35 per bushel, while the 2010 New Crop contracts for Canola are now available are $7.65 per bushel- delivered to local participating elevators that are working with PCOM.
Here are some links we will leave in place on an ongoing basis- Click
on the name of the report to go to that link:
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