tv U.S. Farm Report FOX August 1, 2010 4:00am-5:00am EDT
controversy over livestock industry concentration reaches a new level of intensity lts of the investigation in today onu.s. farm report a new level of intensity results of the investigation into the soybean operations are released and crop damage from tropical storms continues to be hard to predict. u.s. farm report. brought to you by chevy. >> hello and welcome to u.s. farm report. i'm john fipps is long debate
over the protein sector of agriculture. it seems to me that whenever multiple factors like economics demographics and cultural trends and government policy are contributing to changes in an industry most participants will zero in on policy that is the battle ground, i think we over estimate the power of government. my experience is for every legal expert cresting regulation there are 10 devicing profit. thank you john. u.s. da has decided to extend a period on life stock marketing. the grain inspection packers and stock yard administrators announced changes to how they
can produce cattle. farm groups asked the ag department to extend the comment period by 120 day. u.s. da agreed to a 90 day extension. according to an ncba release the rule has the potential to take the beef industry back 30 years by stifle cattle producers. after an 18 month investigation the usda office of inspector general has cleared itself from misconduct. the inspector found the soybean operation is operating as it shod along the gulf coast of texas tropical storms have played tricks with farmers. as reporter shows us the situation looks much better as
you travel north to the panhandle and beyond. the grain crop this texas is off to a good start in most places. well it looks really good. right in this area, we have got a few timely rain and is the dry land is about 6-8-inches tall right now and it's going to need more rain as of right now it's holding on. acres are down a bit from last year across the nation mostly because of competition from other crops. if you look in the kansas area, particularly current rallyss soybean has a bigger increase there over corner and northwest kansas increase in corn acres. cotton prices are higher than usual. in addition prices are low this you're. >> bases are the difference
between the actually price that the farmer has been volatile in sour gum in the last year and now it's tightened back quite a bit. the price is turning around. part of sit tied to strong international demand to sour gum recently and ethenol plants is pulling on the sour gum supplies. certainly not what it's been a couple years ago from a price standpoint but you know some improvement over where it has been the last few months. texas i'm erik a. as of last weekend the ag department rated 71% of the sour gum crop good to excellent. that is it for headlines now back to john for crop watch.
crop watch this week. texas extension said damage caused by the river totaled $40 million in 2 counties : rent heavy rains and hurricane alex concreted the problem. in neighboring counties in texas they say they are trying to dodge rain showers. sour gum survived in some areas. along the california boarder growers drought has led to water cut off. when u.s. farm report returns al is joined by mike flores the discussion quinns in just 2 minutes please stay with us.
u.s. farm report round table guests this week. flores trading and mike stewart, got two mikes here today. what did the markets do this week? we had a sell off on grains. based on upon good weather u.s. production will be good. the weather took out some of the market premium monday, and tuesday and then you got stores again about the russian
situation in wheat and the funds came in and bought up the markets. we closed the week strong and wheat up 30 some and beans up 20 some. who is running the prices? i'm going the and you the question. >> it's fund moneying pushing the market up. we are coming to the end of it to be honest. i think the corn market will be the first one to suffer or stop going up i should say. that will be the market that tops first. >> okay. mike, how bad is the drought in russia, i mean? you know are not over there to ground but what you know. >> i get from maps or people that are on the ground. the area is about the size of indiana. caught a little rain on the eastern half of that area. temperatures were down cooler this week ask now they are back in the 100s.
that seems to be the normal this week. they are on the same schedule as north america. the winter wheat is being harvested. the the bad weather hit, spring wheat is what they are worried about. my question is, then, is we have had so much wheat that the wheat prices have been down. why would just russia have that -- would that be cause the prices to go up? >> i think that is a good question. that is a bit of ahead scratcher this time. you have india, 400 percent greater than their target ending stocks and australia having a great year. you have fund buying we are certainly over sold, in wheat and probably worth 50-70
current ralliy. you wonder if there's not fund rallying in india. you know we will interesting to see what happens next week. >> a quick word to the wheat producers wheat prices that high, it may not be bad to sell some. >> put your selling shoes on. you talked about this world market, we are really in a world market al and so is this part of what we can expect in a world market we talk about china buying beans and south america producing them? >> yes it's all connect sure. when the market perceives there will be a shortage than the funds come in running the market up. the way i look at it we have plenty of wheat around to counter act this situation, so this is i think more of a just a speculative money rushing into a certain market that will
not last long. >> a concept that people have trouble understanding is why corn and soybeans follow wheat? >> they buy everything. the corn we are going to have a good corn and bean crop the year so to keep pushing those markets up i'm glad they are doing it but i doubt that we will stay at these price levels we will be topping. now longer term i think that we are in good shape i think agriculture is in good shape and i think we will press significantly higher over time and going into august the first of august i don't think that we are really much left to up side. >> are you agree withing him that we are topping here. maybe next week we will be at the top in. >> i would think so. today we broke through this some resistance on soybeans corn still held it's ground. that is thick resistance.
i agree there's a lot of speculative money coming into the market as you look around there's a few areas that are in trouble but by and large it's pretty good. >> everyone said about three years ago that ethenol was driving the corn prices up and the funds will buy and buy and buy and they don't have enough money because they lost enough money to stock exchange right? >> no they have no shortage of money. if you put all 3 contracts together they are the longest then been in the last couple of years. it's easy to get carried away it does not mean we will be up monday. it just stops one day and then there's no buyers left. >> thanks very much we will be back with more u.s. farm report in just a moment.
guests this week. mike flores and mike hogan you deal with speculators on a regular bases, what should a speculator to make money look at this year from now on? until the end of the year? >> my personal position is i trade almost every day i'm short the corn, december corn i'm short the s&p 500 and i'm long gold. i think those positions will work for me of the next couple of weeks to short-term monday
is a decay on corn. it will top out at 4.14 area those are good areas to be selling if you take a speculative position you don't want to lose too much on any one trade. it's just a trade there's always tomorrow. when you speculate you move money in and out you don't want to take big risks on any one trade. most of the guys -- is it day trading or 2 -- 3 a week. >> a swing is what i'm looking for not necessarily day trading. >> when you say put a stop on there, so if you go long on corn. >> 10-cents on grain. is a number i try to stick to. >> an opportunity to lose or make money. any time you trade we have to point that out. >> speculation. >> okay. from a producer's standpoint a
producer does not realize that he is long. he has plantd a crop it's out from and growing so he is long. what should a producer do should they look at marketing their crop or taking advantage of the markets? >> sure. well if you're long a crop that means your inventory manager, as a producer. that is i think an easy way to look at it. from that standpoint in is market is in a trend higher you want to keep as much back as possible, as we have seen the high prices come the market has put work and effort into getting back to these prices. 30 days ago we were standing at the cliff and looking over so from that aspect if you are 30, 40% priced get over that 50, 60% hump it's a good time to do that. if you are more advanced, 70, 80% sold to finish off the last bit of crop. you might want to have a stop.
you can get a longer position on it so you can have 2 thirds of your corroborate long or short. that is a good way to keep this when you are in a volatile type market. >> you need to watch out for storage. because if you do not have storage you have to buy it off of somebody else. >> absolutely. >> another thing is what we call bases that is the difference that you pay at the local elevator bases what is in chicago. how do you manage those? are there details? ways that you can do that? >> if you have storage on farm. you look at the spreads and the basis neither of those are quite worth pushing out at this point. >> except for wheat in the western states? >> yes. stuff it in a bin as long as you can at this time. corn and beans different story. if you have december or
november future for the corn and beans and you have storage, i would still be waiting at that point. >> okay. now, i'm going to ask you something hard to do. we are looking avenue the first of the year looking at next year as we get ready to plant from your case from a speculator's standpoint, what do you think will happen after we go down or up or what as we start next year? >> a short-term top in the market is approaching we will get an early harvest low and i think that next year we will have a bigger bull market than we had this year. higher prices next couple years. we have good prices coming at us. >> what do you think? >> if i would sat on this panel a year ago at this time. we would have index funneled buying come in vs. where we were at and it would be more than thought and if we
had had china coming in and buying corn and the ethenol business getting on it's feet andd aing more demand. and then -- we would say 5-6 or 7-dollar corn. you would still be looking at pricing ahead 20, 30% of the new crop, corn beans wheat at this time. >> thank you for being here today and we will be back with u.s. farm report in, just a moment.
at all. jet extreme as we headwe see the ridge building northward for the great lakes as we head into friday and saturday, we will cool down once again. the ridge will go to the west and that will build the heat all the way up into the eastern rockies. on monday we are expecting a stationary front in the southeast and that will be hit and miss variety of thunderstorms. there will be showers and thunderstorms along the system moving through the upper great lakes and the northern plain states back into the central rockies and mild temperatures coming in behind that and it
moves quickly east and a cool front by sunday and that will be the showers and thunderstorms that will focus along that next system then with showers and thunderstorms in the western montana and earned eastern dakotas, muggy continuing down south. we will check the longer forecast later in our next half hour.
their results are. it's a measure more how strong a relationship is. this may stem from my competitive and land rental market. knowing a competitors yield is a big factor in predicting what he made bid for rent. it seeps broadcasting does not bring benefits that i can identify. and there's a situation where your neighbor is having a rough year. detailing your numbers would be piling on. and most of us have been on the other side of that situation. just as it is bad form to discuss your salary in business i think producers will keep this information private and need to know. certainly, my lender will get the data and land owners but i now see that folks who i thought were oddly closed mouthed about yields were probably doing me a favor, and meeting a higher professional standard.
when you think about it, bragging rights really are only useful for braggers. let us know what you think. send emails to u.s. info in farmer report.com. the good life on a colorado ranch, the second part of u.s. farm report is coming up. today on u-s .. the conservation today on u.s. farm report, the conservation reserve program reopens after 4 years and global competition pushes another ag sector. u.s. farm report brought to you
by chevy. and their award winning cars trucks and cross overs. hello and welcome to u.s. farm report. i am john fipps this has about a good year for our garden having survived asparagus problems i've been eating a lot of vegetables at every meal. to be fair jan does considerable preservation. the first couple of weeks is great of course but this years crop has worn out their welcome. the big cahuna looms ahead. we have harvested home grown tomatoes. let get to the headlines now.
thank you john. and hello everyone. for the first time singles time since 2006. the government will pay owners to take environmentally sensitive lands out of use. grounds under contract under the 2008 farm bill they reduced the maximum number of acres down to 32 million. starting monday farmers and ranchers can head to the local fsa office and sign up the general enrollment period lasting through august 27. the delta cat fish industry is taking a beating and much of that blame is pointed at cheeper imports from southeast asia the reports show the amount of cat fish produced and the number of acres use inside ponds has gone down.
u.s. cat fish production is found in three states alabama, arkansas and mississippi. the ag department said fish produced is down 13%. 29million-pounds of cat fish was imported from last year that is up from 8 million pounds a decade ago and most of that comes from issue a in the battle against obesity farmers and football players are teaming up. each year they create a display made of butter. the icon fevers players from the ohio's two nfl teams. the american dairy association has teamed up to push kids to get 60 minutes of exercise every day.
we think it make as difference by having star power of the nfl and the dairy industry working together to deliver a program that gets kids excited in the program. >> this unique piece of art is on display at the ohio state fair through august the eighth. and that is it for news. time now for the national forecast. well the jet stream has not made it that far south in quite some time. i'm drawing in the southern part of that kind of jet area that we would see moving along the canadian boarded for the most part a little cool air lingering into monday as we go into the first part of next week. mild air out west, we are talking hot and muggy stuff. you can see showers and
thunderstorms, mainly this system on monday, this will be the hit and miss afternoon vierity through the southeast. we will see trough but not much, we will see the hot air going northward. and thunderstorms in those areas. and monsoon type thunderstorms will be through the northeast as well. friday then, we will see a bit of a trough trying develop into the great lakes this will expansion into saturday and sunday. but on friday itself we are expecting that front to cause thunderstorms from the great lakes into the central plains. temperatures next week, this would be into the middle of august. august eighth through the 14th
as he we look at rain next week we will go above normal and kind of that boundary where the warm and can air are trying to come north and south. we will see below normal the southern plains and the west. above normal for the west for temperatures. and east of the mississippi level i don't see a below normal area anywhere. in the cental portions of the rockies into the southwest. john. the ultimate farm quest series is brought to you by case ih, the world of farmer is changing. to learn more visit case ih be ready. >> in this week's update of the ultimate farm quest we find out how important continuing education can be. both farm quest families took part in the corn college held
last week this seminar draws producers from across the country can to get hands on practical tips on how the build the bottom line. the families understand why it's important to add skills to their tool box. there's been a number of new things that i picked up. one thing on water quality in spring. a lot of it i knew but the things that i learned today, that was well worst the worth the trip out here. >> if i work on areas that i can control, and maybe hiring people that can help me in the other areas that i cannot control. >> my sons enjoyed it. i have not gotten involved in it i know you think i have but i'm a retired landlord but it's been good for my son. it brushes him up on his knowledge skills because he was a business personal he went
through college and this gives had him the other side. and that is -- and today business is what it's all about. if you don't have the business skills you can have all the other skills you will not make it. >> the families in south central michigan and northwest ohio said they had a good planning season but the rainfall is not exist ant for the past month. when u.s. farm report returns stunning scenery provides the backdrop for a colorado ranch. spirit of the heart land is next. land of
contrasts. along with its alpine colorado is a state of contrast with it's forests and mountains that rise from valley floors the state is also nearly 40% prairie. making their home in these open spaces is the rogers family. we paid them a visit in this report. these lands really are good for nothing other than grazing. i mean it was tried on some areas to be farmed and that is where we ended up with a dust bowls times back in the 30s it's too fragile. we can put a cow out and fewer
grazing she will encourage growth of the better see speciis, we have a lot of short grasses here, if we get a lot of rain we don't always get a lot of tall growth on grasses on rotational grazing it helps where we are not totally losing all the grass that we have got and we can just keep moving them and giving it time to you know come back. >> i've chosen to not over graze and to keep it maintained and in proper health because i need to come back to that same piece of the ground the next year and the year after and year after that. and i have to keep it in good shape if you run it down and degrade it, you cannot get it to come back. by having cattle on there, it encourages the growth of better
quality grasses or shrubs and if you have proper management in that aspect you'll see an increase in everything from song birds on the wild life and deer. >> this is a lifestyle that we are in and it's very family oriented. and it's a 365 day you know, operation, it's 24 hours a day you know we live it and breathe it and it's always here and we love being here. >> to learn more go on line to wagon wheel -- ranch.com. we see how fire can be a valuable tool. we go to mississippi next week. when we come back, new uses for
outlines some rather unique welcome back. in this week's visit baxter black outlines unique ideas for extending the useful innocence of yus. he joins us from his arizona ranch. we have long known the sheep to be a two purpose animal. meat, and wool. now the nevada extension service is finding another purpose, fire control. practicing a technique used in california, the nevada residents using ways to mow the brush. when i first heard about the
project involving sheep and fire control i had difficulty visualizing the idea. were they offing shoulder to lean on? no of course not the sheep are eating everything in sight so there's nothing left to burn. pretty clever these people. i understand they might apply for a grant to and other uses for sheep. i've come up with possibilities they might test. sleep on a bed of sheep when trail riding bring two or three head along they reduce fire danger and you can sleep on them at night. how about when a teen-ager pulls up next to you with his stereo, you can dial 922 bring
a yu and a crew will be dispatched and they will stuff sheep inside the teen's car until the sunday is muscled. is muffled,. >> the alternative use for sheep that may have the greatest potential que tips for elephants. this is baxter blacks from out there. >> next week the herd sire a tail only baxter can tell like this one. until then check out his work on line at baxter black.com. when we come tractor tails and
week's "tractor tales". dave dexter introduces us to an old mcc we are off to michigan for tractor trails. i got a 1020, that means that there's 20 horse power on the belt. and 10 on the bob. it's a 1931 and i have had it about 10 years and i bought it at farm auction. the blue some of them have been painted darking blue and but it was probably the gray that you
see on the fender there. they were used on the smaller farms where they could 60 to 80- acres and they would run the trash machines and stuff like that. they are a mazed about the lugs. why does it have steel? >> these old tractors all had lugs like this. they changed to rubber when they got more advanced. when they went to rubber they go easier on the ground and a lot smoother and they have more power on rubber than the lug. it has 2 tanks and it has a gasoline tank that starts it if you want to run on fuel oil. it would have run that years ago. >> right here, there's a little taps right here and there's caps here, and every morning when you go to start it you draw a quarter of oil out of
the bottom of the crank here and pour it in here and here and there's little belts that hold the oil for the cam shaft and she keep it lubricated all day. and the next day you draw another quarter out and pour it again and you're ready to go for the next day. during the harvester wars in the late 1800s, this this was used to be a united harvester. >> five original members began this church in 1900. that church home has been maintained and improved over the last 100 years. one highlight of the year is the annual memorial day dinner when old friends return. the second church is marking their birthday this year saint
ann's catholic church. the founding families also later donated the church cross which is covered in gold leaf. saint ann's 46 families are joined with a group of other parishes under the leadership of 2 pasters. our thanks. as always we want to learn about your home church as well. stay with us weekly look
inside the farm report mailbag.... my commentary time for a weekly look five day forcast the farm report mailbag. my comments about avoiding food in casual conversation cans prompted this rely. 1 reason we have so little understanding of ad in our u.s. families is because we are afraid to offend someone by disagreeing with someone about how farms should operate. not discussing these topics is extending ignorance.
it's about results. most americans are really weary of folks telling them they are ignorant. we have been pursuing education about our work. and those efforts have been less successful than we imagined so why do we insist doing more will solve the problem i've seen little data on what messages seem to work. we are convinced the people know us they will agree with us. that has not been my experience. remember, these are emotional responses and motion emotioned are rarely swayed by intelligence.
i acknowledge consumer concerns and 2 make sure that what i do and say match. and 3 get back to work. as always we want to hear from you send comments to us. thank you for watching u.s. farm report. be sure to join us again next week. we will be working to do better. i can solve difficult problems for a fortune five hundred company. i can run a successful business.
i can manage your home improvements. i can publicize your message. i can motivate your audience. i can put my military experience to work for your company. i can teach your children. i can boost your bottom line. i can add value to your workplace. i can be a loyal and productive employee. but i can't put my skills to work for your organization if i'm not given the opportunity. if you don't recognize my talents and ability, if you don't hire me, if you don't have an open mind and a workplace that's open to everyone. if you don't realize that america works best when everybody works. what can you do? what can you do? what can you do? you can remember that at work, it's what people can do, it's what people can do that matters. nearly 50 million americans have disabilities. capitalize on their talents with employment practices that benefit everyone. learn more at whatcanyoudocampaign.org
you're getting blown up. there's definitely adrenaline. there was the explosion, and i remember just opening my eyes, and it got both of my legs. i had surgery after surgery, you know, i was on a lot of pain medicine. "what's going to happen next? and how long am i going to be here?" the wounded warrior project dropped off a backpack for me. and it had everything in there that i could possibly have needed at that time. peer visitors, people who have been where i had been before, said, "look, brother, "everything's going to be okay. "three months from now, or four months "from now, a year from now, you'll be fine." that type of thing was an invaluable service. to be honest, i don't know if i would be as well adjusted as i am now if it wasn't for them. to learn more, call... or visit woundedwarriorproject.org.
ccc and all of our branding. also from haiti, a family who was there. out of our washington television show he did company corresponding for us, so he went down to haiti as the correspondent the day after the earthquake and brought back information. we provided transportation as well as security which was necessary and provision for him while he was there. he came back yesterday and he shared with the first service some of his experiences, what he saw, the devastation. but one of the things he pointed out is his distaste for how the media has poor trade the haitian people, even before the earthquake struck. and it was the poor trayial of -- portrayial of people who are almost savages. back in the throw backs to africa. and it was sad because, of course, that is not