tv U.S. Farm Report FOX May 16, 2010 4:00am-5:00am EDT
china, china, china...corn growers can't stop watching today on u.s. farm report china, china, china. corn growers can't stopwatching this customer. bay producers adjust to environmental scrutiny. tallying up the losses from the massive flood. u.s. farm report brought the you by chevy. el low and welcome to u.s. farm report. i'm john -- the result so far as to cause have been it wasn't me. seriously, not only do we not know why the dow plunged nearly
1,000 points points in three minutes we find out we don't know how much the markets work. we've added so many new trades, it is now officially incomprehensible. this is confidence inspiring to say the least. so when you see that standard warning about risks in the markets we show every week, i would take it seriously. time for headlines now. here's al pell. >> thank you, john, good morning everyone. for the second time in less than a month, china is in the market for american grown corn. china placed an order for -- tons this week, just after buying 100,000-tons. the purchase was made on tuesday night and is destined for feed mills. chinese mills have been
struggling with searing sear -- soaring prices. the strategy is the result of an executive order issued by the president last may. it encompasses several states including virginia, maryland, and hundreds of acres of farmland. there's a maximum daily load that -- the amount of sediment flowing into the bay. the ag department says it will develop a program where producer producers can change credits. the latest report shows the winter crop is getting bigger. it's down 4% from 2009 but nearly 25 million-bushels more
than estimates. the united states yield is forecast at just under -- an acre. >> production is expected to be lower. we're starting starting with more wheat in storage. when we look at overall demand productions, we expect this year -- tore usda expects exports to be a little built higher. domestic yeast to be a little herer and we should end the year with about the same amount in storage as when we began. we're starting with very large levels in storage. those many are dodging raindrops, planning projects continue. 81% of the corn crop was
underground. 30% of so i soybeans have been planted. saturated tennessee damaged -- two weeks after a foot of rain swamped the state. usda's tennessee office says there will be reduction in the winter crop. the crop is projected to drop by 32%. that's it for the headlinesment now back to john for crop watch. week begins in saginaw county, and we begin crop watch in saginaw kahn michigan. temperatures dropped to 37 with the corn up 3 inches. and then it was raining the rest of the week.
round table guests this week on u.s. farm report, justin kelly, sue martin from ag and investments. justin, if you want to give us some perspective on the markets. you said they're down big time. what happened? >> we had another commodity sell off. some jitters from the injury owe. that causes -- to be down $3. another sharp sell with the dow down over 200 points that. spilled over the the grains. i think that was the bigger
picture than anything. fundamental nothing changed from thursday. we had a pretty barish crush number came out for soybeans, and i think that added a little bit of pressure on the so soybeans. >> i think i agree to some degree. the crude oil market peak add week ago and fell apart quite hard and we made lower lows this week. we had lows on monday and yesterday and now today. i think the crude oil market has topped for a while, and i think that along with what's going on in the stock market and seeing it start to sell off and reminiscence of a week ago fie as cogot everybody jittery again. cat system trying to find the door a little bit. i think that's what's happening.
>> it seems whenever these prices go down, it's providing an opportunity for the use terse get in there. have we seen that yet? >> well, i think so. if you're looking at corn, for example, you know, justin and i were talking about before the show that i think it's very telling when you have the dollar at the highist of the year maybe within 400 points of last year's high, and corn has had a little bit of a rally, maybe 30-cents or so, and all of a sudden china steps up to the plate. either they're nervous about things going higher an it's going to cost more. to me it's saying they're absolutely needing corn. >> we've had a lot of our commentators have indicated that china is really in trouble. corn and maybe even soybeans. they haven't let up, but we'll get to you with soybeans in a
little bit. justin? >> i think no one really knows how much corn is over in china. that's the hard part. if it was 150 million-tons and lower -- their prices continue to decline domestically. i think they were wanting to test the waters. they haven't done so in about four years. soybean imports have been growing consistently every year, site a matter of time before corn -- before they have to start importing corn every year. >> a lot of people don't realize the size of agriculture industry that china has. they have four, five times as many hogs as we have. >> they used to counter 70% of the hog numbers. now it's over 50%. they have two facilities
they're putting up that should be ready for 2012. it's mind-boggling, but it's there. you know, when you -- >> they're also putting in ethanol plants too. we don't want to forget that. >> they are. when you look at china, i think they have an absolute need and diet for corn, but when you look at the usda report on tuesday, they didn't know the announcement of the corn, because it was may 1st. , so they came out with a new crop corn estimate because your carry out from '09, 10 '10 going into 11. you have not much more than this year. it doesn't leave room for problems. >> so what you said about that, and you only have 30 second to give me this answer. do you think based on that the corn is going to find a bottom
here pretty quick? >> we certainlied that the best start? mystery, so we think as new crop corn gets toward that 4 there are mark and as nearby prices come up, we think we'll be in the demand. we need to see the polynesian weather. >> we'll come back in just a moment with u.s. farm reporting. break.
now your comment had to do with corn. let's take care of that because i promised you we would come back. >> well, basically, there is that attitude because the spring weather was so good this year and corn went in in record time, but there's that attitude that it will great good yields, but it really comes off of pollination. several of the last ten years we've been below yields. >> say that again. >> seven of the last ten years we've had below -- trend years.
>> so that indicates we might not have as much corn as everybody says. i just asked you whether corn was going go up and you're equivalent, justin, but based on what you say, it could. >> i think it can. i think corn is going to sell off into june. and either that report is going to hold a surprise for us, the final plantings progress report, you know. this year is different than the last two. the last two, nobody put a lot of stock on that report bauds of the fact they were still planting corn and beans when they got into that report into june, so they had go back and resurvey. this year isn't going to be like that. they'll take it that that's gospel. in the meantime, there's no premium in these markets either. so when you go toward the 4th 4th o.v. july, all this corn is coming up the same.
a lot of it is going to pollinate at the same time. that's going to put emphasis as low as our stocks r it's going to put emphasis on what the forecast is. >> let's shift gears for just a second because i know we were talking and they call at this time green room everywhere else. we talked about what's happening to the livestock market and the cows and hogs. what's happening in the live stock market? >> obviously we went through a period of no profitability in the different animal sectors. we're seeing the repercussions of -- at the same time, the funds have become massive lungs in the cattle and hogs. they're record longs and it estivallal for a shake out. >> when you say that, i've repeatedly said when the funds get in a market and they make it long, whether it's artificial or not, it's up to the farmers to take advantage
of that. >> when you have a chance to lock in profit margins, you should take advantage of it. it usually doesn't last long, over history. >> and another thing, al, we're seasonal. you look at the cattle markets and i does tend go down in june and july. i think we're coming into the time of year where the dollar is also very strong. again, i think the dollar is coming back and haunting cattle and hogs for the product we're exporting. beef extremely expensive overseas and of course pork exports have slowed up, but i think the fast phone chains are balking at the price of the hamburger. >> the food chain is balking because they can't sell it to the consumer. >> and it makes it a big hamburger too.
>> let's shift gears once again. is what's happening in the europe going do anything to ag market specifically. we only have a minute. looks like greece is going go down. >> the big part of that, as the your row deval yous, there's an uncomfortens in the commodities. people are trying to figure out where to put these thousands of dollars. so far the dollar has been winning out of default. we've seen a huge influx into the gold market. there could definitely be a shakeup. if the dollar continues continues to surge, if the your row continues to fall -- >> i ditch the goal of -- >> thank you very much. we'll return in just a moment.
welcome back to u.s. farm report. we have to monitor the drought monitor this time of year just in case. so far so good in most of the corn belt and most of the west. there are some dry areas from western and southwestern montana and wyoming. some of the worst areas have in the higher elevations of western montana. we typically see dryer areas. we'll have to see how the season goes. it continues to be very dry in the western great lakes. that's really been the focus for the worst areas, east of the rockies over the past several months. a moderate drought in pennsylvania and louisiana and texas. that's been a growing area as well. we see a weak trough move through the planes.
that's going to be bringing some rain to the ohio valley and great lakes. that front cuts off and moves votely through the northeast. other than that you cannot see a lot of flow across the country. in fact; we have a huge ridge developing over the mid section and that's going to be the first real heat coming to to northern planes and into the western great lakes. here is the way things are shaping up in the maps. on monday, we'll look for the storm system. warm front to the east and cold grant to the south. could be some heavy -- from the river valley, down to louisiana. that will. >> good news there. and rain to the north and east of the front. the system brings rain and mountain snows in the northwest. it's not going to move too
i ran across an interesting blog comment and food stamps i.'s a hot topic. the commentator was talking about how the food assistance programs were abused. i was in line and the woman in front of me used the stamps stamps to byssus she. okay. i will grant you the market for susie doesn't cross over, but is it such a bad food choice. oddly no. it's low in fat and high in
calories and high in fish oil. it can be high in salt and doesn't have much fiber but prepared to ere fast food, it is very healthy. the problem for me is it tastes like susie. >> i wonder if he would have been that way if she had been buying a t-bone. i'm old enough to remember the fascination and revolve shun. i was shocked when my sons were eating tacos because of their food source. by the way, i would recommend a lot of debt change-up.
new rules to battle the poultry industry. food stamp is expected to hit a record high fueled by unemployment. and we investigate the tricky skill of mushroom interpretation. >> u.s. farm report. brought to you by chevy. hello. and welcome to u.s. farm report. i'm john pips. i know. i know i have moaned on and on about how tough the last two springs have been. so i offer this. one of the sequences of our recent history is every time something goes wrong, we immediately look back and say we're better off than we were this time last year.
i also know it's a slow recovery, but i'll bet you make it next spring, at which time you will saver every good day with an intensity that will surprise you. let's get started with the news and al pell. thank you, john. hello, everyone. new food safety rules take direct aim at poultry. the bacterias are two of the most common causes of food borne illness. each year they sickle nearly 3 million americans and linked to 500 deaths. with unemployment hovering over 10%, a record number of americans are receiving food stamps. according to route -- routers.
, average monthly enrollment was 43 million. a federal initiative that changed the rule landscape forever celebrated its 75th 75th birthday this week. back on may 11, 1935, president root vellet, the goal to bring the power to rule america. in less than 5 years, era established cooperatives that brought power to 300,000 rural homes. >> that's it for news. now, the national forecast. >> well, at this point we don't see any huge storms coming through the lower 48. we do have a slow moving, wet system though although it's not a strong storm, it's going to
continue to move eastward, could have have some thunderstorms around the cold front. that's typical for this type of year. ridge starting to build but the mid section of the country. you have to coming in the west. some rain and snow in the higher investigations. back in idaho and montana, it could be cold enough to stole. scattered areas along the coast. as we head through a friday, then, it looks like a ridge building in the middle of the country. that's going to be humid air. so most of this area will not get rain from missouri to southeast. some of it l. some snow in the
higher elevations. forecast for the next week. looks like a large area of above normal from the eastern states all the way back to eastern colorado. a large area of warm temperatures in texas. the western quarter of the country. near normal in the southeast. southwest should be fairly dry as well. >> we're going go below from the northern planes into eastern oklahoma, above normal in the southeast. precipitation, a couple of areas over the normal. up and down the seaboard. they're the champing of tropical systems, not everybody is going to get that. john?
lawns last week the ultimate farm quest is aimed at helping two operations built for the future. over the next several months, a dream team of expert wills offer their expertise to both farms and we'll be there to document the results. waa brooks is an editor. she sells us about one of the families taking part in the ultimate quest. >> our top producer family is doug and nancy rupp, and they're from striker ohio. doug and nancy are on approximately 2,000-acres and all cash grain, soybeans, vary depressive farm family looking to use new technology, a lot of emphasis on marketing.
very impressed with their ability to look into the future and really use a lot of good technology and techniques already, and they're still looking to him to approve of what they're doing. >> the -- have a number of goals they're trying to achieve, and i would say there's several things that they've got going on that they're deliberate about. one is they're always looking for a way to deal with the current thing they're doing. as i've mentioned with them on the farm, and something that's fairly new for them, but they're going full speed ahead into it. they're always looking at -- doug is really big on focusing on how you market your drop -- crop. he teaches enterprise to high school students at the college level. so it's really focused on how can i do that better?
>> he's always very important about is there anything i can share with other farmers farmers to help them. that's something they would really like do. >> it's safe to say we're going to learn a lot from these growers. these are people who are already really successful in what they're doing and truly looking to do is take their farm to the next level of success. >> next week we're off to michigan to seat the second family taking part in the ultimate harm - for carol. - for my wife.
for my mom. for every pink bucket of grilled or original recipe, kfc makes a 50 cent contribution... to susan g. komen for the cure. together, we can make the largest donation in komen history... to help end breast cancer forever. for dedicated mushroom hunters, spring is the best time of the year. though we're dedicated mushroom hunters, spring is the best time of the year. though the hunt bay be enjoyable, it requires lots of homework to know which
mushrooms are poisonous. >> ken gilbert is an average mushroom hunter, but he's always cautious before he takes a bite. >> there are no old bold hush room hunters. >> for the last 20 years, he has eaten more than 20 kinds of mushrooms forward-looking statements' one he won't forget. >> and this is the one that caused trouble. >> not where have tried this rare mushroom. gilbert says hi books didn't identify them as poisonous. it made me and the person i was with sick, throwing up, diarrhea, fun. >> owe hahn brown says know your mushroom. you put it in your mouth. missouri is blessed with some of the best tasting mushrooms.
if it gross on wood, its' safe, not true. if it tarnishes, that's poisonous, not true. >> there's not single rule that will allow you to distinguish a poisonous mushroom from an edible one. >> they can make you sick and even cause death. brown says learn thousand spot poisonous mushrooms that are look alikes. >> it's a great matter. i encourage people to collect certain ones and take this seriously. >> they can try some of the best mushrooms that missouri has to offer. >> it can be full of pounds and pounds of rewards and wonderful wonder meals. >> they're small, but gilbert says there's no substitute. >> when in doubt, throw it out.
>> from the university of missouri, i'm kent pat i was the reporting. >> for pictures and more on the various information of the mushroom spy cease, we'll put it on the web page. when we come back, a business that's working with farmers on the other side of the world. up next, baxter black looking for those who want to improve their sportsmanship.
baxter black is brought do you by the beef check off. if you have questions about how your beef check off is invested, who makes those decisions and what's the return, yule find all the answers on my beef check off.com. baxter lovers his horse, and he's always looking to improve his horsemanship. as he tells us, that's easier
said than done. i consider myself as progressive as any horseman. when it comes to considering techniques and devices for improving my horse's welfare or my own sportsmanship, humans have been riding horses since mill rina and everybody we take for granted today was the brain stream of -- i don't know cedric, when i have me -- it fall off. funny sir lances lot. i was reading about a gear that was created by a man in western wells, he called it a steer up. you would think after centuries of marking jean uses, they
would have run out of ideas. >> i bought stir rupp swivels and metal hondas and sweetless saddle pads, creeping devices, magic minerals and special concoctions of all kind. my latest a light weight fiberglass unit with interchangeable foot cradle and post. it hasping nets to hold pinchers and clenchers. i like it. it tastes three hoop support systems i'm moving now. at a fair in -- i bought a patented stir rupp -- matt has a lot of age on him and mounting involving parking next
to it and we installed the stir rupp extender on his saddle. it's all with the push of a button. three years later i asked him how it was doing. great he said, but there's one complication, i can get my foot in the stir rupp okay, but when i try to swing my leg over the saddle, i fork too soon. this is baxter black. next week baxter has the tale of a broken wristed coy boy. until then, check him out online at www.baxterblack.com. >> please stay with us. our country church salute.
states. i've been collecting this particular model since 1987. it's one of 14 that i have. this one belonged to a friend in ohio. and he called me up and said he would sell it to me. so thaw's how i got it. i've done some mechanical work on it. international in 1935, they introduced the first wheel -- tractor in the united states. this is 1937, but that's pretty much what makes them unique. they switch to diesel automatically. primary more belt work, running a threshing machine or saw mill. it's 414 no. 60 international harvester. it was a little older plow than would be used reasonably.
plowing is not done much anymore and it's a way to use the old tractors and see what it felt like, i guess. >> next week on tractor tales we've got a special treat from the sunshine state. this sleeking steam engine keeps going. >> today's country church salute goes to or thely south carolina. this congregation was formed in 1970 in order to establish a lieutenant ran presence in or thely. from that beginning, a thriving ministry began to grow. attend dance grows if -- a day. the second church is pine creek christian church. it was chartered in 1860 with meetings originally held in the
local school. the church was iraqed just across the road. over the years, many additions and improvements have been added. it has been a mother church to more than five organizations. it has provided 7 pastors to the faith. as always, we've we -- we would like to learn about your story as well. the mail bag is next.
the way we contribute to hungrier may be part of the problem. i continue to oppose subsidies and morally bankrupt and irrational. the price of subsidized corn has only a -- impact on farms. it's as hard to lay to rest as the now though rolely disproved idea that tax cuts pay for themselves. but like you i think the idea of making good choices available, it's good for everyone. food stamps ran efficient economic tool. while i am suspicious of simple solutions to complex issues, this may have a possible possibilities. since we've already stipulated on what they cannot be used on, why not have stamps designated
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