Speaker 1: Good morning, it is a chilly monday april 18th, 2022
Speaker 1: this is dc signal to noise since we last talked E. P.
Speaker 1: A made some important decisions regarding the availability of E
Speaker 1: 15 which started some, many fires for the industry to
Speaker 1: put out.
Speaker 1: Fighting continued in Ukraine were basically just waiting for Mariupol
Speaker 1: to fall into Russian control and early start to spring planting,
Speaker 1: slipped into the past
Speaker 1: may corn
Speaker 1: overnight, $8.01 half cents. The cubs went on a six
Speaker 1: game road trip and came back with a 500 road record.
Speaker 1: Happy tax day. I'm agritalk host chip Flory. Good morning.
Speaker 1: Pro farmer policy analyst Jim Louis Mayer, how are you
Speaker 1: today buddy?
Speaker 2: Pretty good. The nationals continue to lose and it looks
Speaker 2: like we're just gonna, you know, train players to be
Speaker 2: sold to other teams. You
Speaker 1: know, there's in some worlds, they call that rebuilding,
Speaker 2: I'm
Speaker 1: just saying
Speaker 2: we just give them away trade turner shares, er et cetera.
Speaker 2: You know, uh it's a lot like the Detroit tigers
Speaker 2: and Minnesota twins, they do the same thing,
Speaker 1: yep, yep. And then you got even Schwarber, Schwarber was
Speaker 1: a one year deal for you.
Speaker 2: Yeah, just it's nuts. He was a fan favorite in
Speaker 2: all those home runs and they
Speaker 2: uh well I think now we know the reason why
Speaker 2: the learners looks like they want to sell the team
Speaker 1: so they're
Speaker 2: getting high cost off the off the ledger.
Speaker 1: Exactly, exactly. Um jim I think we need to, the,
Speaker 1: the most important story out there is Ukraine
Speaker 1: and what is happening there. But I think we should
Speaker 1: probably start with the ethanol happenings from last week because
Speaker 1: President biden came to Menlo Iowa last week and, and
Speaker 1: made it official said,
Speaker 1: well, I shouldn't say made it official, at least it's
Speaker 1: official for him. Uh, said that E 15 will be
Speaker 1: available this summer, june 1 to september 15th.
Speaker 2: Yes. And then we have the, the same types of questions,
Speaker 2: what's the impact chip and with the vast majority of
Speaker 2: service stations not
Speaker 2: caring, not having
Speaker 2: E 15 pumps. Of course it's very important to Iowa
Speaker 2: in states like Minnesota. So I'm not gonna, I'm not
Speaker 2: gonna say it wasn't an important announcement, it depends on
Speaker 2: the state, but see this goes back years ago, chip,
Speaker 2: when you had a disagreement within the ethanol lobbying
Speaker 2: community
Speaker 2: about infrastructure are the lack of it, the necessary wells
Speaker 2: at stations and the, and the, uh, both E 85
Speaker 2: E 15 pumps and uh, and that was a result
Speaker 2: really of why we got growth energy as, as a group,
Speaker 2: You know, looking back and they are still lagging behind.
Speaker 2: And I asked, I was asking, uh,
Speaker 2: in two of my speeches last week, what's the impact
Speaker 2: of this? And it's, it's really, when you look at
Speaker 2: aggregate lee again, it's not a negative, but it's relatively
Speaker 2: minimal to me. It's what we, we need to get
Speaker 2: those pumps out there
Speaker 1: right and there's some more money available for that when
Speaker 1: we talked with Secretary Vilsack last week on agritalk,
Speaker 1: Uh, he made quick mention that there is $100 million
Speaker 1: 15 available to more places. And one thing that, that
Speaker 1: I thought was interesting Jim was he said when the
Speaker 1: funds become available, they get snatched up there. There's demand
Speaker 1: for the funds.
Speaker 2: Well then they should, you know, keep making that available
Speaker 2: because again, that goes under infrastructure and I wish we
Speaker 2: would've put even more in the infrastructure bill because that's,
Speaker 2: that's major for the industry because these states like Iowa
Speaker 2: and Minnesota are doing the E-15 year round individually or
Speaker 2: at least trying to.
Speaker 2: But because they don't have the faith that the federal
Speaker 2: government is, is going to do it. But if you
Speaker 2: have the pumps that gives congress a little more momentum
Speaker 2: to go ahead.
Speaker 1: Right. Right. The other thing that secretary Vilsack said was
Speaker 1: that the $700 million dollars
Speaker 1: in covid aid for ethanol producers
Speaker 1: should finally make its way to those producers by the
Speaker 1: end of this month.
Speaker 2: Mm hmm.
Speaker 2: You want, Did he say? Why it took so long?
Speaker 1: No, I just said thank God.
Speaker 2: Yes. Yes. Yes. So there's usually more answers that there's
Speaker 2: more questions than answers on biofuels policy and, and this
Speaker 2: continues to be the
Speaker 2: seen. But again, the announcement was a positive,
Speaker 2: but we we really have to keep focusing on that infrastructure.
Speaker 1: Yeah, yeah. Um, and, and I do have to mention
Speaker 1: that every time that ethanol moves back into the spotlight, uh,
Speaker 1: it's an opportunity for the haters to come out in droves,
Speaker 1: which they did
Speaker 1: this time. The focus really. And I think it's because
Speaker 1: of
Speaker 1: just kind of the way the whole thing is, is assumed.
Speaker 1: But there was an assumption that,
Speaker 1: Or there is an assumption that the reason that E-15
Speaker 1: isn't available from June 1 to September 15 is because
Speaker 1: there's a higher potential for smog during the summer months
Speaker 1: with the 15, which is exactly the opposite of the truth.
Speaker 1: Um, there's lower emissions from E 15. There's even lower
Speaker 1: in the 20, even lower in the 30. But just
Speaker 1: sticking with the 15. It all goes back to the
Speaker 1: Clean Air Act written 50 years ago and it was
Speaker 1: worded poorly. That's the whole problem here.
Speaker 2: Which is what you're saying is we shouldn't have the
Speaker 2: requirement anyway for the summer months then. Right,
Speaker 1: well, it shouldn't be necessary.
Speaker 2: It shouldn't be necessary.
Speaker 1: Right? The waiver should the waiver should not be necessary. Uh,
Speaker 1: and i
Speaker 1: It's, it's going to be difficult to reopen 50 year
Speaker 1: old legislation, the Clean Clean Air Act and try to
Speaker 1: get that change.
Speaker 2: Not in this environment. Yeah.
Speaker 1: No. Yeah, no way
Speaker 2: not there. It's just, it's almost 50 50 split. You
Speaker 2: wouldn't be able to get it through the Senate, uh,
Speaker 2: let alone the House and you have your deniers out there,
Speaker 2: you have skill, some chip that, you know,
Speaker 2: let's say it takes more energy to make ethanol. That's,
Speaker 2: that's totally untrue.
Speaker 1: Right, Right. Just using outdated information when they, when those
Speaker 1: claims are made. Uh, another thing that is happening at
Speaker 1: the administration right now referring to the infrastructure package that
Speaker 1: you talked about,
Speaker 1: There's gonna be a tour of some of the highest
Speaker 1: ranking uh administration officials. I believe it starts this week.
Speaker 2: It does, it does. And Biden himself is going out
Speaker 2: to in a in a host of officials including Vilsack.
Speaker 2: So
Speaker 2: yeah, there and, and I applaud them for selling it because,
Speaker 2: you know, let's face it, the biden administration.
Speaker 2: But biden himself is still tanking further in the polls
Speaker 2: and uh former President Obama said at least he thinks
Speaker 2: that democrats have a story to tell. They better start
Speaker 2: telling it.
Speaker 2: Yeah,
Speaker 1: they, that's exactly right if they're gonna stand a chance
Speaker 1: this fall. Um, Hey, as a reminder to everyone, the
Speaker 1: comments tab is open on, on your page. Go ahead
Speaker 1: and click on that and you can send us a message.
Speaker 1: Good morning Melody. It's good to talk with you this morning.
Speaker 1: But you can send us a message and we'll be
Speaker 1: sure to get your comments in
Speaker 1: uh, jim anything else from from last week that you
Speaker 1: that you feel like we need to highlight.
Speaker 2: Well, we got the confirmation that the leading ceo s
Speaker 2: from the meatpacking companies are indeed, uh, were asked
Speaker 2: Uh to attend, they didn't put a specific date but
Speaker 2: before they indicated it would be an April 27 earring
Speaker 2: on the House Side Committee. So we did get confirmation
Speaker 2: on that. I think we talked about it as a
Speaker 2: spec piece on Mondays.
Speaker 2: Uh yeah you know you know monday's program. So we
Speaker 2: got that confirmation. Uh So that that could be revealing
Speaker 2: some people say that the C. E. O. S. Don't
Speaker 2: know the ins and outs that I think that they
Speaker 2: know their industry uh that they'll have staff with them.
Speaker 2: So I think it will be the hearing Jeff
Speaker 2: on on on this issue. And we're going to see
Speaker 2: if the finger pointing continues and I can't wait for
Speaker 2: that hearing to tear out some significant questions.
Speaker 1: Uh The
Speaker 1: when I had the let's talk about food prices a
Speaker 1: bit for for a moment when I had the conversation
Speaker 1: with Secretary Vilsack last week,
Speaker 1: I was listening very closely for three very specific words
Speaker 1: and
Speaker 1: I'm I'm glad that he did not say them on
Speaker 1: on a great talk but the Putin price hike
Speaker 1: a
Speaker 1: jim.
Speaker 1: I've got
Speaker 1: I've got some liberal friends
Speaker 1: and when they hear the Putin here the administration say
Speaker 1: Putin price hike. It makes them want to puke.
Speaker 2: Yeah.
Speaker 2: Yeah because this was well both the gasoline price, it
Speaker 2: has extended the gas price. But you had what about
Speaker 2: a dollar uh increase before February 24 the the legit
Speaker 2: onset of the invasion and now are
Speaker 2: uh but yeah the food prices to they were going
Speaker 2: up and uh
Speaker 2: and now it's it's amplified because of the supply problems
Speaker 2: that you know chain problems and yes it's aggravated and
Speaker 2: will last longer
Speaker 2: as a result of the invasion war because of the
Speaker 2: market is still trying to ascertain how much of the
Speaker 2: Ukrainian crop will either not be produced or cannot be exported.
Speaker 2: And all are the alternative routes uh other ports,
Speaker 2: uh land shipments etcetera. And so that's still a question
Speaker 2: mark there. But
Speaker 2: so again I I applaud the secretary for not taking
Speaker 2: an easy way out that nobody believes
Speaker 1: anyway.
Speaker 1: Okay. Yeah. Yeah let's let's talk a little bit more
Speaker 1: about the supply chain because that shutdown than in China
Speaker 1: 400 million people was the last count that I had
Speaker 1: a
Speaker 2: Little rounded rounding a little under 400 million. But that's
Speaker 2: a lot.
Speaker 1: That's the U. S. Population.
Speaker 2: Yes. First started the best thinkers and sources, we had
Speaker 2: chips said this is going to be
Speaker 2: a major impact on the supply chain again. I mean
Speaker 2: look at Tesla's trying to get those plants up and
Speaker 2: up and running again today. By the way. Apple computer
Speaker 2: has some uh chip vendors over there even though I
Speaker 2: think they've done a good job of making their own chips.
Speaker 2: Uh And so yeah this is going to this just
Speaker 2: shows that this issue has legs on it now. We
Speaker 2: did get a report that some shipping rates have gone
Speaker 2: down this year And in fact since
Speaker 1: the U. S. In
Speaker 2: the US and since mid March. So that'll just hopefully
Speaker 2: make us products more competitive in the export market because
Speaker 2: the wheat market needs it because
Speaker 2: we're high priced and it's hard to sell us weed
Speaker 2: in the export market.
Speaker 1: Yeah us truck rates have gone down. Um I heard
Speaker 1: the barge rate market described as a collapse last week.
Speaker 1: I don't know if it was that bad or not
Speaker 1: but uh it has fallen significantly. Uh One of the
Speaker 1: things that I wanted to focus on here jim is
Speaker 1: that
Speaker 1: they are not moving food from ports into the interior
Speaker 1: for that
Speaker 1: a huge number of people. Uh the food shortage conversation
Speaker 1: not not just around china but around the world I
Speaker 1: fear is going to ramp up in the week ahead
Speaker 1: and that
Speaker 1: you could have an impact on
Speaker 1: on on some potential decisions made in in D. C.
Speaker 1: Going forward.
Speaker 2: It will. And now the I. M. F. And World
Speaker 2: Bank are having their spring meetings all of this week
Speaker 1: and
Speaker 2: last week. Uh U. S. Treasury Secretary Janet Yellen
Speaker 2: called for a separate meeting to look into the food
Speaker 2: price situation, supply demand
Speaker 2: etcetera. So this has the highest levels uh attention. This
Speaker 2: is not going to go away anytime soon. And even
Speaker 2: in the US we're going to have with logistics concerns
Speaker 2: etcetera we're going to see USDA keep increasing their food
Speaker 2: price forecast.
Speaker 1: Yeah tell me more about the I. M. F. And
Speaker 1: World Bank meetings that are happening this week. Is it
Speaker 1: in D. C.
Speaker 2: Yes it's in D. C. Each year and every Tuesday
Speaker 2: uh they issue the world economic outlook report. So we're
Speaker 2: going to see them go down in a number of
Speaker 2: countries and especially china,
Speaker 2: we saw china come out with their GDP first quarter
Speaker 2: number
Speaker 2: literally overnight, you know monday at the time and it
Speaker 2: was 4.8% a little higher than what the trade thought.
Speaker 2: But below their so called goal of 5.5%. But they're
Speaker 2: they're downturn is going to continue now are less growth
Speaker 2: than they want
Speaker 2: because of the problems we said earlier in shanghai and
Speaker 2: other countries. But with the I. M. F. And World
Speaker 2: Bank in town you're gonna see a lot of updates
Speaker 2: over the next few days under the U. S. And
Speaker 2: european economies and the impact of this war. Just just
Speaker 2: you know, continuing to uh unfold and on the food
Speaker 2: policy area. I think that they're going to plead with
Speaker 2: countries not to re uh restrict uh there uh exports.
Speaker 2: I think that'll be a clear message out of yelling
Speaker 2: and and her and and her counterparts.
Speaker 1: Well which gets me to another topic that I wanted
Speaker 1: to discuss, there's going to be
Speaker 1: more conversation about. Listen if the price of food is
Speaker 1: going up in the US, let's not send as much overseas.
Speaker 2: It always happens,
Speaker 1: yep, yep. Uh huh.
Speaker 1: The odds of putting some sort of a restriction on
Speaker 1: US exports still very low
Speaker 2: low. But I will tell you the pressure will be
Speaker 2: severe if you have a U. S. Corn and our
Speaker 2: soybean crop
Speaker 2: below trend yield chip. Because then then what over $8
Speaker 2: what are you talking about for corn? And and then
Speaker 2: I I we're going to have to reassess at that
Speaker 2: juncture and it's too early. We're into this to season
Speaker 2: that I always call too much rain, Too little rain.
Speaker 2: Too much heat, too little heat.
Speaker 2: And we've got to go through that
Speaker 2: for, you know, you know, price volatility. But if you're
Speaker 2: in a while I don't care whether you're a republican
Speaker 2: administration or democratic administration.
Speaker 2: Uh when you hear the pressure on food prices, its
Speaker 2: attacks just like gas is a tax
Speaker 2: and they hear it and they usually want some way
Speaker 2: to alleviate it.
Speaker 1: Right.
Speaker 1: Right, okay,
Speaker 1: let's go to the southern border texas. Governor Abbott is
Speaker 1: feels like he's taking this problem into his own hands.
Speaker 2: Uh Your Abbot?
Speaker 1: Yes,
Speaker 2: Well two things that he's chipping off people to Washington D. C.
Speaker 2: That's coming into the border and I always find that
Speaker 2: amusing and insightful that we have to feel it here
Speaker 2: as well.
Speaker 2: And he uh he did for a couple of days
Speaker 2: and the and the pressure got so severe restricting the
Speaker 2: trucks coming in from Mexico Jeff and that was really
Speaker 2: affecting the US poultry market for, in, in, in, uh,
Speaker 2: in particular.
Speaker 2: And the truckers, uh, jobs because they have to sit
Speaker 2: in line for
Speaker 2: so long. So that's been alleviated as of friday. So, uh,
Speaker 2: it looks like they're rolling again for the 22 country trade.
Speaker 2: But on the immigration front, yes, texas is, uh,
Speaker 2: trying to deal with this. And you have a number
Speaker 2: of democrats, the moderate democrats who are, who are going
Speaker 2: to be in very
Speaker 2: close elections with their Republican counterparts saying, uh, biden's um,
Speaker 2: rule 42 is really going to add still more pressure
Speaker 2: on on the southern border. So we're gonna see ahem
Speaker 2: bridge again coming up if he doesn't back off of,
Speaker 2: of uh,
Speaker 2: of that regulation ship.
Speaker 1: Okay, alright, let's go to the comments. Melody is wondering,
Speaker 1: are there direct links between the increased soy plantings? The
Speaker 1: reduction of meat production and the introduction of miracle meets,
Speaker 1: I don't,
Speaker 1: mm hmm. Go ahead.
Speaker 2: I don't know whether I'd call a miracle. Meet you.
Speaker 2: You mean the non meat meat? Okay. Um, the, the uh,
Speaker 2: I think it's the fertilizer price primarily on
Speaker 1: this year for
Speaker 2: this year on that one. You maybe have some relative
Speaker 2: to the renewable diesel, but that's more income as well.
Speaker 2: But maybe they're getting ready.
Speaker 1: There was, there was so much, there was so much
Speaker 1: talk about the renewable diesel over the winter that I think,
Speaker 1: uh, some of the acreage increase that we got was
Speaker 1: a bit premature on soybeans. And the soybean market is
Speaker 1: trying to give some of those acres back over to corn.
Speaker 2: Yeah. And the, the ratio right now, correct me if
Speaker 2: I'm wrong, chip corn, soybeans, you no favors corn. And
Speaker 2: it's such suggests that we could have what up to
Speaker 2: another million acres more than the planting intentions.
Speaker 1: I, I think it'd be pretty easy to move two
Speaker 1: million acres from beans back over to corn.
Speaker 2: Yeah. But, but again, we're seeing a potential shift in
Speaker 2: the future for this, uh, more soybean acres. If some
Speaker 2: of these things,
Speaker 2: uh, you will pan out, especially relative to renewable diesel
Speaker 2: wherever I go in my speeches, I get a lot
Speaker 2: of questions on that topic Now. It needs, especially the
Speaker 2: sustainable aviation fuel s a f
Speaker 2: Now they're in the pending legislation in Congress, there's a
Speaker 2: dollar 25 a gallon incentive, if you will, subsidies, if
Speaker 2: you're against it
Speaker 2: for that, that that will make such fuel eventually competitive.
Speaker 2: But there's, it's still gonna be costly. But this is
Speaker 2: where the carbon mitigation becomes so important to renewable diesel.
Speaker 2: Once this country gets into full
Speaker 2: carbon mitigation policy, the airlines are going to need carbon offsets.
Speaker 2: That's where this essay f sustainable aviation fuel is going
Speaker 2: to look so attractive to them because they can buy
Speaker 2: it
Speaker 2: and have that serve as a carbon offset.
Speaker 2: And that's why you're seeing a number of of the,
Speaker 2: you know, soybean processing plants either built new are being
Speaker 2: expanded because it looks like the industry thinks this is
Speaker 2: going to go, you know, be ago chip
Speaker 1: well.
Speaker 1: But that's I agree that that's part of the reason
Speaker 1: for the for the soybean processing but
Speaker 1: S. A. F. Is an ethanol play? It A. D. M. Starting,
Speaker 1: is it in 2022? Or is it uh it may
Speaker 1: be 2023 but ADM some at some point in the
Speaker 1: near future is committing 900 million gallons of ethanol to
Speaker 1: sustainable aviation fuel production. So this is very much this
Speaker 1: is ethanol's play in an E. V. World.
Speaker 1: Okay, so if if
Speaker 2: if we
Speaker 1: make that transition to E. V. S, I'm still not convinced.
Speaker 1: Um the the play then for ethanol becomes the aviation
Speaker 1: fuel market. Uh Secretary Vilsack on on, well last week
Speaker 1: on Agritalk said that it's a 35 billion gallon market. Uh,
Speaker 1: when we talked with Jeff Cooper from the renewable fuels association,
Speaker 1: He said that it's closer to a 24 billion gallon market.
Speaker 1: When we talked with Pete Meyer from S. And P
Speaker 1: Global Platts. He said that the the ethanol production that
Speaker 1: we've got right now could produce about 8.8
Speaker 1: I believe it was 8.8, maybe 8.9 billion gallons of
Speaker 1: sustainable aviation fuel feeding about one third of that market.
Speaker 1: So
Speaker 1: the growth potential is unbelievable.
Speaker 2: This is where you don't get to negative relative to
Speaker 2: the renewable fuel standard program. And even if you assume
Speaker 2: the continued increase, what you have been seeing and you
Speaker 2: will be seeing
Speaker 2: in electric vehicles, uh, not overtaking for a while. You know, again,
Speaker 2: all of its problems. We need a we need electric grid,
Speaker 2: major investment in our electric grid. We need those precious, uh,
Speaker 2: you know, minerals academy, um, etcetera, nickel, lithium, etcetera. But uh,
Speaker 2: this shows you the future relative to uh, you know,
Speaker 2: carbon mitigation and how ethanol and renewable diesel can play.
Speaker 2: Not just a role, a major role. And, and it's
Speaker 2: gonna be another revenue stream. There's no doubt in my mind.
Speaker 1: Yeah. Did you see the comment from Elon musk about lithium?
Speaker 2: In what way
Speaker 1: that all the lithium that we need? We can get
Speaker 1: out of Nevada.
Speaker 2: If if you if yeah, if it's mind,
Speaker 1: yes.
Speaker 2: And it takes roughly uh, if it's an existing
Speaker 2: producing, uh, your mind, if you will to to three years,
Speaker 2: but it takes up to a decade chips. So we
Speaker 2: we need to get going, Yeah, our country has a
Speaker 2: lot of it. So yeah, one should not get too down.
Speaker 2: But I I say in my speech is this alone
Speaker 2: should have been a reason why we stayed in Afghanistan.
Speaker 2: They're rich with some of these precious metals. And who
Speaker 2: went in in a big way after we left china.
Speaker 2: So of all the money we spent on Afghanistan and
Speaker 2: the blood of american soldiers, we should have extracted that
Speaker 2: as payment. But we didn't we didn't have a strategy
Speaker 1: from Gary with the ruble strengthening back to pre Ukraine
Speaker 1: strength or levels.
Speaker 1: What's the plan going forward also is dc taking seriously
Speaker 1: the dollar losing reserve currency yet?
Speaker 2: Uh Well they they they are taking it seriously but
Speaker 2: it wouldn't be the ruble because the ruble's gained the
Speaker 2: strength from a currency controls. There's there were no short
Speaker 2: sellers of the ruble. They denied that. And they limited
Speaker 2: the amount of rubles that could go outside the country.
Speaker 2: So
Speaker 2: uh and then he's also uh by he meaning Putin
Speaker 2: the pariah.
Speaker 2: Uh He's he's telling buyers of Russian uh energy that
Speaker 2: they must pay in rubles. So they have to accumulate rubles.
Speaker 2: Whether or not that will succeed remains to be seen.
Speaker 2: So that's a short term play. You have to look
Speaker 2: at the chinese currency as a potential competitor. But again
Speaker 2: do they have a rule of law usually for a
Speaker 2: currency like the like the british pound before the american
Speaker 2: dollar was the king currency. You have to have rule
Speaker 2: of law china really doesn't have it. And we know
Speaker 2: Russia does.
Speaker 2: So yes they they should be concerned. They're also looking
Speaker 2: at Bitcoin's but that's that's that's a uh that's you
Speaker 2: know that's just a minor irritant in in the future.
Speaker 2: As far as the who, what what currency is going
Speaker 2: to prevail at least for now? The dollar? Uh well
Speaker 2: I think easily be the world, you know, currency, but
Speaker 2: china is looking very, very closely at the uh sanctions
Speaker 2: we put on Russia relative to their use of dollars
Speaker 2: and their sanctions on the Russian banks and etcetera. So
Speaker 2: it is changing the tone of of that debate. The
Speaker 2: question is well taken, but again, there's more, you know,
Speaker 2: you no more questions and answers and what are the alternatives,
Speaker 2: Not the ruble
Speaker 2: and not the U. N. Yuan at this particular time
Speaker 2: or the MD, you know, you know, whatever you wanna
Speaker 2: call it.
Speaker 1: Right. Right, okay. Um jim as I was, I was
Speaker 1: cruising through your your comments this morning,
Speaker 1: I saw the phrase term limits.
Speaker 1: What are we talking about? Term limits?
Speaker 2: This is an interesting one. I'm going to go to
Speaker 2: my
Speaker 2: uh news, you know, section old news, they're they're a
Speaker 2: good outfit. They broke the news this morning that if
Speaker 2: the republicans,
Speaker 2: when the house, the republican leadership would consider term limits
Speaker 2: for all chairs and ranking members, not just republicans ship
Speaker 2: because republicans already have that the democrats don't.
Speaker 2: So this would mean if they did act on that
Speaker 2: representative Maxine waters of California. She's the top democrat on
Speaker 2: the financial services since 2013. She would no longer be
Speaker 2: the top democrat on that panel. Bennie Thompson of Mississippi
Speaker 2: on homeland security etcetera. I don't see there's an agriculture
Speaker 2: impact at this particular
Speaker 2: time, but this is what the republicans are telling the democrats.
Speaker 2: This is payback or potential payback
Speaker 2: for excluding some of republican members on various committees for
Speaker 2: actions that the democrats deemed unworthy for for a House members.
Speaker 2: So this, this is, could be potential major news on
Speaker 2: the structure of the House. If the republicans win, Jeff,
Speaker 1: wow, okay. Uh, that's all very interesting. Congress is still
Speaker 1: out this week. Right, But you've got the meetings in town.
Speaker 2: That's a big one. Yes, that's a big one. Earth
Speaker 2: day friday. So we're gonna have a lot of conservation
Speaker 2: oriented uh, announcements on, on friday. Tax day is today
Speaker 2: for most people, not for me, I do, uh,
Speaker 2: cattle on feed and yes, and cold midwest,
Speaker 1: you know what, it was the strangest thing, all of
Speaker 1: my apps, my radars,
Speaker 1: everything was showing that we were getting rain, we're going
Speaker 1: to get rain, we're gonna get snow and we got nothing.
Speaker 1: I was sitting under a green blob for most of yesterday,
Speaker 1: yesterday afternoon and we didn't, I didn't get a drop.
Speaker 1: It was weird
Speaker 2: this if the weather, you know how important the weather
Speaker 2: is now with the, with the demand base that we
Speaker 2: have now and the supply concerns around the world. This
Speaker 2: corn market is, it's going to be the market factor
Speaker 2: in a in a few weeks. Again. We've got time.
Speaker 2: We've got into what early june really?
Speaker 1: You don't want to wait that long,
Speaker 2: but it's increasingly going to be a market factor if
Speaker 2: you have delays.
Speaker 1: Yeah. We've already got make corn making new highs this morning.
Speaker 1: Up to 806 and a quarter is the last check
Speaker 1: that I've got
Speaker 1: december 22 corn futures 7 47.5
Speaker 1: knocking on the door at 7.5 bucks. You've got may
Speaker 1: soybeans over $17 this morning, november soybeans
Speaker 1: Um over 1515. So 1517 and a half.
Speaker 1: We've got wheat futures trading sharply higher this morning.
Speaker 1: It's uh we've got another big move happening. Cattle market
Speaker 2: Is December 23 Corn chip questions on that when I
Speaker 2: speak
Speaker 1: right december 23 corn by the way, we had a
Speaker 1: great conversation about new crop and new new crop, cost
Speaker 1: of production with chris Baron on the afternoon show on
Speaker 1: friday that you might find interesting, december 23 corn futures,
Speaker 1: 6 68 and three quarters
Speaker 1: december 24 5 97 december 25 5 77.
Speaker 1: These are these are markets that as you've been talking
Speaker 1: about jim uh these are markets that are reflecting the
Speaker 1: need for increased production, not just for this year but
Speaker 1: into the future.
Speaker 2: Absolutely. And it's tight and also to the fertilizer. It's
Speaker 2: gonna take a while to get that cleared up as well.
Speaker 1: No doubt about it. Jim If you're wrapped up. I'm
Speaker 1: wrapped up. You're good to go. Alright. Thank you so much.
Speaker 1: Have a great week. Everybody keep watching for those signals.