Farm Bureau Press for June 14

JUNE 14, 2019 • VOLUME 22 • ISSUE 12

Farm Bureau Press A PEEK INSIDE

ARKANSAS FARM BUREAU FOUNDATION DONATES $50,000 TO RED CROSS The Arkansas Farm Bureau announced Wednesday a donation of $50,000 to the American Red Cross-Greater Arkansas Chapter, to be used for flood relief efforts throughout Arkansas.

ArFB Foundation Awards Grant to Old State House, page 2.

Record flood levels have been reached along the Arkansas River, impacting thousands of acres of farmland, buildings, homes and infrastructure.

“This is the single largest contribution our foundation has made to any disaster relief effort done so far. And we know The Red Cross is going to put it to good use. They are already doing good things to help people, particularly those in rural areas that don’t have a lot of options for support,” said Warren Carter, executive vice president of Arkansas Farm Bureau.

Winners Named in the 2019 Dairy Foods Contest, page 3.

FOLLOW US ONLINE (L to R) Arkansas Farm Bureau Executive Vice President Warren Carter, ArFB Education and Foundation Coordinator Amanda Williams, American Red CrossGreater Arkansas Chapter Regional Philanthropy Officer Llahoma Jackson and Executive Director Lori Arnold and ArFB Senior Vice President of Organization and Administration Chuck Tucker.

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ARFB FOUNDATION AWARDS OLD STATE HOUSE GRANT Arkansas Farm Bureau Foundation’s grant program continues to support innovative ideas for the promotion of education and agriculture by awarding Old State House Museum with a $5,000 grant.

The grant will assist in funding their newest development, the Arkansas State Fair Exhibit. Arkansas Farm Bureau Foundation presented a check to the Department of Arkansas Heritage Director, Stacy Hurst, and Development Director Rae Ann Fields on June 4 at the Old State House Museum in Little Rock.

ARKANSAS FARM BUREAU IN A group of Arkansas Farm Bureau board members visited Washington, D.C. June 10-11 for the American Farm Bureau’s Advocacy Fly-In event. In addition to connecting with representatives of other Farm Bureaus around the country and hearing updates on critical national issues, the members visited with Congressmen French Hill, Bruce Westerman, and Steve Womack, and Senator John Boozman, along with staff for Senator Tom Cotton.

The Old State House hopes to educate the public about the agricultural roots of State Fairs through the displays of historical innovation and competition, while capturing the fun, youthful spirit that fair season is known for with its concerts, rides and family attractions.

In addition to showcasing the foundation and essence of the State Fair, the exhibit will also explore the impact of the Arkansas State Fair.

The exhibit will highlight decades of artifacts provided by the Arkansas Livestock Show Association, while embracing the use of technology to make the exhibit interactive and engaging for visitors. The Arkansas State Fair Exhibit will be the first of its kind at the Old State House and the only to boast an agricultural feature. The exhibit is anticipated to open to the public during next year’s 2020 Arkansas State Fair.

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N WASHINGTON D.C. During the meetings, the team addressed issues of concern for Arkansas farmers and ranchers, including Arkansas River flooding recovery needs, the U.S.Mexico-Canada trade agreement (USMCA), ongoing tariff battles, food labeling, feral hog problems and more. The team consisted of ArFB President Randy Veach, Vice President Rich Hillman, Secretary Joe Christian, and board members Tom Jones, Caleb Plyler, Gene Pharr and Terry Dabbs.

WINNERS NAMED IN 2019 DAIRY FOODS CONTEST Sixteen-year-old Faith Fritch of Hiwasse and 18-year-old Kalin Key of El Dorado bested five other finalists in their respective categories in the 2019 Arkansas Farm Bureau Dairy Foods Contest June 6 at the state fairgrounds in Little Rock.

Fritch’s Salted Caramel Mini Cheesecakes recipe won in the “Party Ideas” competition, while Key’s Almost Cajun Creamy Shrimp and Grits dish earned the top spot in the “Main Dishes” category.

Other finalists in the Party Ideas category were 15-yearold Katy Richard of Mountain Home, second place, 11-year-old Jessie Kroeger of Lepanto, third and 13-yearold Daniel Bullard of Waldron, fourth. Runners-up in the Main Dishes competition were 12-year-old Elizabeth Ferren of Searcy, second place, and 11-year-old Ezekiel Olson of Viola, third.

The seven finalists were selected from dairy foods contests conducted by 45 county Farm Bureau organizations. June is National Dairy Month and it is the 62nd year for Arkansas Farm Bureau to conduct the contest that promotes the state dairy industry.

Scholarship Recipient | Luke Callahan, Danville High School Senior, received a scholarship from the Yell County Farm Bureau presented by county FB President Tommy Fink.

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MARKET NEWS as of June 11, 2019 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com

Rice Rice futures have been trending higher as the market adjusts to the reality of a lower than expected planted acreage. September, however, failed at $12, and the price action after that failure is a bit negative. The market needs to hold above support near $11.60 to prevent another leg down.

The Arkansas crop is now 95% planted, which may be better than we thought it would be a week or two ago. USDA did not wait until the June acreage report to adjust their production numbers. The June WASDE cut all U.S. acreage from 2.87 million acre to 2.67 million, and harvested acres from 2.84 million to 2.57 million. The projected yield was actually increased to 7,717 pounds per acre, partially due to the higher than usual abandonment. That brings the new production estimate to 198.1 million cwt., down 9% from the May estimate of 218.2, with the entire reduction in long grain. Imports were raised to a record-large 29.2 million cwt and exports were reduced one million cwt to 100 million. The season average on-farm price was raised 50 cents to $11.70 per cwt.

Corn As with rice, USDA did not wait for the June acreage report to revise their production estimates for corn.

While 2018/2019 ending stocks were revised higher by 100 million bushels due to reduced export prospects, 4

ending stocks for 2019/2020 were slashed to 1.675 billion bushels from the May estimate of 2.485 billion. If realized, this would be the lowest ending stocks since 2013/2014.

Unprecedented planting delays are expected to prevent planting and reduce yield prospects. Production is expected to decline 1.4 billion bushels to 13.7 billion, which would be the lowest since 2015/2016. The season average on-farm price was raised 50 cents to $3.80 per bushel.

Technically, July charted a bullish key reversal in reaction to the report, but ultimately, gains were limited by the increase in ending stocks for the current marketing year. July will have resistance at the recent high of $4.38.

December has an upside objective of the May highs of $4.54.

Soybeans USDA, unsurprisingly, increased soybean ending stocks for 2018/2019 due to a 75-million-bushel reduction in projected exports. Disappointing shipment totals in May and a lower import forecast for China were reason for the decrease. The situation with China is complicated by the trade dispute and also by the spread of African Swine Flu. As their pig inventory continues to be ravaged by the disease, demand will suffer.

The soybean production estimates were left unchanged in the June supply/demand report since there are still several weeks left in the plaiting season. There is still a lot of uncertainty, since unplanted corn acres could switch to soybeans.

Currently, 2019/2020 ending stocks are projected at 1.045 billion bushels, down 25 million from the 2018/2019 projections.

Technically, soybeans have seen strength recently, mostly due to carryover strength from corn, but the upside has been limited by uncertainty about U.S. production

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numbers and export prospects, especially to China. November has been working a bit lower after failing at resistance just above $9.21. The next downward objective is the chart gap between $8.64 ½ and $8.58.

Cotton USDA left the cotton supply/ demand balance sheet unchanged except for the average on-farm price forecast, which was lowered by one cent to 64 cents per pound. World cotton carryout for 2019/2020 was increased by 1.57 million-bales, due to a 1.1 million bale increase in beginning stocks and a 660,000-bale decline in consumption.

The cotton crop is off to a mostly favorable start. Nationwide, the crop is 75% planted, compared to a fiveyear average of 87%. The weather in West Texas is forecast to be hot, with below average precipitation, but there is currently no concern for drought.

Technically, December has tested 64.70 cents two days in a row. It’s possible this could become support moving forward.

Livestock Cattle futures are under renewed pressure from the new USDA corn production estimate, and the resulting strength in corn futures.

October feeders have support at the recent contract low of $133.45 and October live cattle have support at the contract low of $103.17 ½. USDA has reduced the production forecast for beef, pork, and turkey production, but also reduced the price forecast to reflect current price weakness.

EDITOR Ashley Wallace ashley.wallace@arfb.com