Harvest Updates
OSU's Kim Anderson Believes Volatile Wheat Prices Mean American Producers Have an Opportunity to Profit
Thu, 05 Aug 2021 20:06:55 CDT
Lower than expected global wheat production numbers are making wheat prices go up, according to Oklahoma State University Extension Grains Market Analyst, Dr. Kim Anderson.
A month ago, the global wheat harvest was expected to finish with about 29.1 billion bushels harvested. But, in the last two weeks Russia keeps lowering their wheat production expectations. Additionally, Germany and France’s wheat crop are coming in lower than expected in the last week. With this new information, Anderson said he expects the number of bushels harvested to be closer to 28.9 billion.
Less wheat on the global market and bad weather are driving wheat prices up.
“The Spring wheat crop in the northern United States and Canada saw bad weather and crop conditions continued to deteriorate and wheat production expectations went down,” Anderson said. “This positively impacted price.”
In the past month-and-a-half, wheat prices have moved $1.80, with the average price being $6.07, Anderson said. Right now, prices are at $5.80, but Anderson said American wheat Farmers have an opportunity to use this volatile market to their advantage.
“Given the volatility in this market I don’t think you can do a one-and-done sale,” Anderson said. “I think you have got to stagger your sales.”
Anderson advises wheat farmers that if they need to sell in a month, sell a quarter of their harvest each week instead. He also said to do the same if you plan on selling over a longer period.
“With this type of volatility, you can’t hit the top or the bottom of the market,” Anderson said.
According to Anderson, Corn prices remain flat, Soybeans are down and Cotton has increased by a couple pennies.
Besides the regular segment with Dr. Anderson- here is the rundown for this weekend’s SUNUP:
This week on SUNUP, Seth Byrd updates us on how the cotton crop is faring throughout the state.
In the Mesonet weather report, Wes Lee says soil conditions are starting to dry out. Gary McManus reports drought is creeping up from Texas.
Kris Hiney says horse owners who feed alfalfa need to be on the lookout for blister beetles because they can cause severe issues for their horses.
In Cow-Calf Corner, Mark Johnson explains the benefits of DNA testing purebred cattle.
Kim Anderson says the wheat market has experienced a $1.80 price movement since June, and weather around the country could be the main reason for the volatility.
Then, Oklahoma 4-H recently celebrated its 100thRoundup, and we hear from club members on why this milestone is so special.
Finally, we meet a Canadian County 4-H member who’s using her garden to feed those less fortunate in her community.
Join us for SUNUP:
Saturday at Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
YouTube.com/SUNUPtv
SUNUP.okstate.edu
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