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coming home can be hard if you're a veteran of iraq or afghanistan. you may feel like you're all alone. but you're not alone. at iava.org, your fellow vets are all around you.

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grain this last week. >> in a nutshell, this was a volatile week. >> every week has been volatile. >> since february, the market has been up and down. it has not been able to orchestrate seven or eight days. it does it with some speed. we started out weak and then bounced and came back strong. beans recovered a little bit from the week, but corn was the leader this week. the market is developing in this sideways -- when the theory says the tighter the ban and the longer the ban, when you break up or down, it's going to be very violate. i think that's what the market is saying are we going to break on this side or this side. >> nobody really knows because you don't know what the weather is going to be at. how about the supplies? supplies going go down or what? >> it's hard to say. we've looked at the planning

process it's been perfect. perfect may be a little bit strong, but its been really, really good. all that is is a foundation. you can have a foundation, but if you frame that house badly, you can have a bad house. the weather so far, we could see a significant increase in supplies this fall. that's a long ways away. that's putting a lot of weight on this market. >> i would suggest the corn market, one group would argue we're going to have a 162, 167 and another group are saying, going back to trend average, which would be 157, it would be 1.1 billion. both bulls and bears believe their case. that's why the market is so tight. close on corn would be very

bullish. we should go higher after memorial day. the bulls are going to be running out of ammunition. >> let's talk closely about what can actually make this go long term a little bit, how the dollar figures into this, how other countries figures into this. bob, you had a couple of questions earlier you wanted to ask. what are those questions? >> the european markets are affecting china. they're trying to cool down their economy and tighten up their credit. is this going to affect your -- who ultimately buys their corn. how do you feel about their demand situation? is it going to be a sharp growth? how do you think it's going affect corn? >> certainly if we see europe go into a continuen'ting wide -- it's going to affect china. so from 2007 to 2009 and early

10 when we had the worst whatever we call what we just went through. sure, we saw china's economy slow down. we saw it close to 6% growth. the rest of the world would have loved to have% growth. i believe we're going to see some sort of continent wide growth. ireland, iceland, a lot of these lesser -- less wealthy european countries have been the drivers of growth. they tier ones that are going to slow down. i think they're going to slow that continental growth down. that's going to hurt china's economy. we're talking about maybe, again, 3, 4% growth, which we should still see sustained growth in their incomes, protein demand, meat demand and certainly our soybeans.

>> is this a 2008, 2009 demand? that's what made the 2007, 2008 even. is pace going to out pace demand. are we going to do a flat market or a volatile market? that's what a farmer ultimately wants to know. >> do you think this is 69 to 73 market? >> i think based on crop fundamentals, i think that's a sideways mark. the real question out there is oil prices. >> when we come back with u.s. farm report, we'll talk about oil prices when we return. - 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. matt, how do you think the old crop quality of corn -- particularly corn -- a lot of

us put in wet because we had a late year, and it's not come out yet. what is that going do to the prices to it and the other prices? >> i think that's a great question, by the way. part of the things that complicate, yes, we've had a lot of issues. i've heard it from farmers from wisconsin all the way down to kentucky. they are, i think, very widespread, much wider spread than we've ever seen before, certainly in the last 20, 30 years. i think there's a lot of this corn that's been held back from market. i think it's probably going to hit the market august, september, october, as the first new crop comes off. now the question is going to be how does that interact with these large wheat stocks that we're going carry through. nobody is going to want to carry any more grain into harvest than we have to. i don't think we know exactly how much is out there.

>> if you don't do that, if the european market is improving, that's positive, but the stock market has lows in october and you have a summer bounce and the outside market continues continues continues to multiply into spain and porch gull, i think once the market knows this new crop corn is out of danger, this old crop doing is going to have to move mid july, august. the basis i've been told is very exposed. all the corn is going to be stored in wheat and the new crop corn is going to have to store on the ground. you 'got the elevators filled with wheat. you're going to have to force it to stay on the farm. >> this is going to be the worst quality corn coming out because there's already been a lot of that go through the system, so dockages are going

to get bigger and corn is going to have to be blended and that's going to be the job of the buyer. they're not going to be paying top dollar. >> we're exporting poor quality corn while we're trying to improve our export market. i just don't like the situation developing. >> i'm not worried about that. i'm not worried about them blending it and keeping china happy. it's going to push these discount prices all the way back to to farm. i think that could end up with really ugly numbers this fall. >> a lot of people say corn and oil are similar. oil has been going down. what's the deal with our food prices. >> up through the last two or three years we've been really correlated. i think they're overpowering the outside market. i think oil will become

increasingly -- on corn. we've got to watch the price. >> this last week oil went down. >> oil prices seasonally decline. crude declines in june, but $65 is a buy level for crude oil. seasonably between mid may to late july, over the last 15 years, things have declined. that's when you should be buying natural gas. >> your comments. >> i agree with bob. we've seen big correlation. it started to ramp up in '02 and we've seen really all the ag culture markets. the correlation decline damatically in the last several months. i think that's an indicator of the elimination tore disappearance of the bio diesel

entry and the blend becoming important. the price of corn is going to affect the price of ethanol than the price of gasoline. >> when do you believe -- it started last fall, inflation, that it was going to pull up corn prices. we have not seen that inflation. do you believe and when do you believe inflation will be a variable? that's the first question. the second one is are inflation and interest rates tight rates -- tied together. >> i think so. it doesn't mean perfectly tide together, but higher inflation leads to -- >> when interest takes off, land will break. >> unless we see the -- >> so when should i sell my land. >> don't answer that question because it's used all of our time up for today. we'll be back with more of u.s. farm report in just a moment.

welcome back to u.s. farm report. we continue to watch the drought monitor, overall it's not looking bad. northwest portions of wyoming and montana. a few pockets in california, down into arizona, a lot is usually worse than this. you can see louisiana and east texas, but the worst area in the corn belt seems to be the area of wisconsin and lower peninsula of michigan. let's check out the situation in the jet stream. shows a big difference from west to east. trough out west is going to be brings in cold air. the highest elevation will be in the form of snow.

a huge ridge in the eastern plains. the ohio valley, this is going to be the warmest air we've seen in this part of the country. there will be back door cold front in parts of the northeast. monday we're going to be a slow moving system and in parts of montana, wyoming, into the dakotas. same thing out ahead of the cold front. these are all hit and miss spotty thunderstorms in the afternoon, mozarab yas get mist each of these days. first stalls out and weakens. you can see the warm air holds in most of the country. that back door cold front coming into the northeast sections of the country. we'll can't to watch these areas and hopefully they get a little bit of rain. for on the forecast in our next

half hour.

the world of thoroughbred horse races is deep in tradition and long admiration for decisions by trainers and owners who can judge flesh and sort out winners. that could be challenged by technology. the speed gene adds a new -- scientists discovered -- correlate horse's ability to race at distances. while traditional horse breeders are discounting the importance of this test, i tend to believe it will semiapproximately be the first of several tools that will eventually replace much of the

intuitive skills hard to acquire by years of experience. as that occurs the my seek of the horse industry will diminish. removing some of the chance from horse breeding also removes some of the glamour. somehow watching a veteran eye a two-year-old for -- please, let us know what you think. send e-mails to info at u.s. farm.com. coming up our next half hour, a steam -- with our triple digit birthday. the second half of farm report is coming right up. report...

dairy farmers just can't seem to cut back, as milk output soars to a new record today on u.s. farm report, dairy farmers can't cut back as milk soars too a new record. cane sugar goes back into ketchup. and we check out the delicious world of chocolate. u.s. farm report brought the you by chevy and their award-winning cars, trucks, and crossovers.

hello and welcome to u.s. farm report. i'm john pips. it's almost a good thing we've been trying to get the rest of my crop planted rather than the commodity market. making surprise of the strength earlier and the the painful collapse recently is not easy. we've talked about how global zed our markets are. now they're train quill waters. losing what we thought was a fundamental understanding of the value of our output will sink in. maybe we were just fooling ourselves before. let's get started with the headlines now and al pell. thanks, john. hello everyone. according to usda, nearly -- was produced in april a new record for the month. despite a drop in herd

production is up. especially for dairies out west. even with these dairies report, most analyst say the average milk price for the year will be 15 there are per hundred weight. citing helicopter concerns, wisconsin governor veto as dairy to sell milk to consumers. federal law prohibits the sale of raw millening, but states have the right to regulate the sale in its borders. critics say it causes over 70% of the food borne illnesses related to dairy. responding to consumer demand, hunts ketchup will replace hfcs with traditional sugar. it will be available nationwide by the end of the month.

that's it for headlines. now we're here with the national forecast. well, we've been hearing from a lot of corn farmers over the last couple of weeks, hey, we need some heat to get this corn moving. you can see a huge ridge developing. this will be the warmest say for the season so far. it's going to be fairly hot in the southland, although you've had some heat as well. these are going to be hit and miss pop up thunderstorms in this ring area. most areas don't get anything, but these are the things that bubble up in the afternoon and fall apart in the evening. the trough is going to cause a fair amount of rain: you can see the northeastern part here. the first one weakens as it tries to move into this ridge. we'll see that fall apart as it moves toward the northeast. the next section comes out west by the end of the week.

you can see mountain snows. again the heat continues and these are spotty afternoon variety pop up thunderstorms. behead into friday and the trough continues out west. the trough is developing in the east. they may cause a back door cold front there. it's going to continue in much of the corn belt. next week, this takes us to the first week of june. above temperatures. great lakes, normal in the southeast. preacceptation next week, normal through the northern states. texas in the southwest, dryer than normal and the northeast dryer than normal. the plains below normal.

michigan is the stop this week for the ultimate farm quest. rhonda brooks tells us about the second family involved in this process. >> the farm journal family that has been selected for the ultimate farm quest is fairly young family, very progressive. their names are leon andier for kunurk. they live in michigan close to cold water. they have roughly 2,000-acres of corn, soybeans and wheat. in addition to that, they have a cattle operation. leon comes from a family that federal out beef cattle for years, fairly significant operation for south central michigan. so he's continued that tradition that his father set. he's really looking to build

upon that. leon is always looking for a way to learn and to have the opportunity to pick the minds of people who are specialist in their field. so he's real excited about having the opportunity to talk to the field economist of economic issues. to talk business management with our experts that are focused in that area. to talk about how do i raise the bar on what i'm doing from a marketing standpoint. i think other people are going to be really excited about getting to hear what's going on with this farm family. they're dynamic real people, very warm people, generous. i think it's going to be a lot of fun to cover story for the next year. >> you can learn more at www.agweb.com. when we come back, a tennessee chocolate maker. spirit of the heart land is

next. chocolate, right?

in nashville, there's a great spot to quench virtually everybody likes chocolate, right? in nashville there's a spot to satisfy your appetite including truffles that include a variety and taste. in this report from the university of tennessee, the chocolate company with an

international flair. >> bethany came to nashville to write songs. while she hasn't given up entirely, she meantime discovered a new talent. i'm a self-taught self-taught chocolate tier tier. she creates truffles at the cocoa tree. >> i name them after women who inspired me. >> this downtown business haystacks to an african nation more than 5,000 miles away. soon the cocoa tree could be working with crops grown in

liberia. farmers grow this tree crop in countries such as liberia. she recently spent time as part of a research exchange program. mushu wants to expand her country's market. >> i wanted to learn more about the cocoa industry and take that back home to liberia, that i would be able to change things in liberia, to improve the cocoa quality in my country. >> we have a wide range of businesses that would benefit from this research. >> dr. wilcox works in development. a frequent customer of the cocoa tree, he -- and believe there's a potential partnership here. >> we're trying to put liberia in a position to sell beans to the united states and companies

in tennessee and elsewhere. it's a product we need in order to continue providing what so many people love in your chocolate products. >> bethany plans to name a chocolate truffle for her friend. cocoa beans are -- to supply the -- with chocolate. anyone would call this new business arrangement sweet. chuck tells us dr. wilcox traveled to africa as part of this program. next week, keeping a coy boy tradition alive in california. up next it's story time with our own cowboy baxter black. we'll be right back.

welcome back...it's story- time now featuring our old friend baxter black. today, he has the tale of the "broken wristed cowboy". today baxter has the tale of the broken wristed cowboy. >> he was a utah cowboy and he wore a good felt hat that was pulled down level to his ears until the tops of them were flat. the weather lines on his face showed he had a checkered past.

i reached to shake hi proffered hand, but both his wrists were in a cast. carpal tunnel i asked, but it never broke a grin. rodeo he quietly said. bull i asked again. no. team roping was hi answer. i responded quite a wreck. well the healer saw it better and he winced and stretched his negative, and then began his tragic tale. i was on my horse who hadn't backed for two weeks and was steady on the course. you know how you've always thought if you're tallied up and tight your horse can't buck while dragging all that weight. well, that ain't right. my horse came off the ground

when my pony broke in two. the second jump, we cleared the fence, but i held my dallies true. i think if i make this ride i might get a good score, but he fired me from the saddle with such force he came unshod. he bucked so hard up to the sky, so high that i saw god. beside him, according to this spiel, respectfully i waited for the wisdom he would reveal. some devine sense revelation of man's purpose here on earth or cowboy heavy or what -- cow are worth. did he give you any inkly of your future dirt to dirt? yes, he did.

the cowboy whispered. he said, son, this is going to hurt. this is baxter black from out there. next week, baxter the angler presents a ponder -- runs through it. until then, check out his work at www.baxterblack.com. when we come back, it's time for tractor tales. please stay with us.

each and every week "tractor tales" showcases some great old tractors. this each week tractor tales showcaseed some great tractors. a steam tractor that's 115

years young and still going. 1895, russell steam traction engine. it's a 1530 -- what they call a 1530 rated steam tractor. it was originally designed and ran a thrashing machine when it was new. in fact, it was sold as a package deal, both the tractor and the little 18-inch thrashing machine was sold by the company. russell was made in mass loan ohio. they were in the railroad car, building the fancy cars and they got into building billies and different stationary steam engines. it was actually a working tractor up until about 1964, 65. and it was actually running a small buzz saw for cutting firewood for a bigger boiler

that ran the saw mill for putting out lumber an stuff. it ran up until 1965, as far as we could find out. and the last certification that we got, that it had a certified boiler inspection on it was 1968. i cut up all wood for your tractors so that people get to see it works. when i first got it, it had been around a while and sitting idle, and we had to completely takes off all the exterior plumbing and replum it and everything. that's all been done. the boiler is still in good condition. it gets an annual -- by the state of the california. so we call it smog. there's a lot -- we have to do the yearly inspections, and

they certify us that we're capable of running. every time i come out here and fire it up and got to keep going back and thinking that this thing was made in 1885, and these guys, did they ever think that one of these would last this long, but everything on this tractor is on a modern car. it's got the steam injector. it's got the ring and pinion gears and everything else, same things that are on the modern day car. top speed is maybe a mile and a half an hour. it's an ongoing repair thing. for being 115 years old. a special thanks to antique gas and steam museum in california for their hospitality hospitality. today the goes to the church of crist. founded as an evangelical

truth, it has had three homes. the church has provided five pastors to the faith. the most notable being -- one of the centuries greatest theologians. hour thanks to merita schneider. >> our second church is marking 150 years of service. their current church home is a much improved third building, rededicated in 1997. they are celebration will be june 6th. their number is -- the pastor is jack cunningham. our congratulations to both churches. we would like to learn about your home church as well. stay was. the mail bag is next.

daddy...yeah, buddy? how many nickels are in a dollar? there are 20 nickels in a dollar. look! how do birds fly? does milk really make my bones stronger? yeah, yeah! daddy...when we die will we go to heaven? do you have the answer to life's biggest question? watch the 700

closed captioning is brought to you by optimum brand. time now for weekly look inside the old farm report mail bag. my comment last week about the myth that tax cuts pay for

themselves drew this reaction from old bob. you made a statement this morning to the effect that reduction on taxes does not result in increased revenue. if i am hearing you correctly, then i must disagree. bob, i will post on your web page is sources for my information. analysis suggests that the best a tax cut can do is recover about 50 cents of every dollar over a very long period. also, a leader of the bush administration team and top economics selling textbook. states on page 29, an economist who says tax cuts may for themselves is a snake -- we want to believe we can raise government revenue by cutting taxes as it would allow us to -- tax cuts are powerful tools

for stimulating a slowing approximately, but they must be paid for by spending cuts or debt. too often we've chosen debt, and i don't think we have that option much longer. send comments to u.s. farm report.com or leave us a voice mail. thank you for watching u-s farm report. be sure to join us again next week, we'll be for al, michelle, and mike, thank you for joining us. we'll be working to do even better. coming home can be hard

if you're a veteran of iraq or afghanistan. you may feel like you're all alone. but you're not alone. at iava.org, your fellow vets are all around you. join our free online community. get the resources you need and connect to other vets who know where you're ng from.

coming home can be hard

if you're a veteran of iraq or afghanistan. you may feel like you're all alone. but you're not alone. at iava.org, your fellow vets are all around you. join our free online community. get the resources you need and connect to other vets who know where you're ng from.