Kim Anderson: Australian Wheat Bound To Affect World MarketsThu, 23 Feb 2012 16:51:57 CST
Oklahoma State University's Kim Anderson says wheat producers need to keep an eye on global markets and currency exchanges. He recently examined Australia's wheat market and what influence it will play on the world stage this year.
He said the country is coming off two record billion-bushel-plus years. Normal production is in the 880-million bushel range, so substantial surpluses are on hand to the tune of about 1.37 billion bushels.
While the Australians had a great year in terms of production, they didn't have a great year in terms of quality. They produced a record percentage of feed wheat this year, coming in at 31 percent. Anderson said that sounds high, "but with two billion-bushel crops in a row, they've got more than enough milling quality wheat to meet their demand and export demand."
Anderson said those record crops will have an impact on the world market.
They have "about a 40 percent increase in their exportable wheat, maybe more than that. They’re going to compete, they’re going to try to get that on the market. That will have a negative impact for our wheat.
"Now one thing working against them is the value of the Australian dollar. Since October it’s increased against other currencies about 15 percent while the U.S. dollar is about the same as it was. So that means Australian wheat price has increased 15 percent relative to the U.S. wheat price."
You can catch Kim Anderson's analysis of grain markets on OETA's SUNUP this Saturday morning. also on SUNUP this week:
--Dave Lalman analyzes the growth rate of a cattle herd just taken off wheat pasture and provides nutrition advice for spring calving season.
--Phil Mulder has advice for treating alfalfa weevils.
--In Cow-Calf Corner, Glenn Selk discusses the relationship between cow size and nutrient requirements.
--In the Mesonet report, Al Sutherland and Gary McManus showcase improvements in the drought monitor and soil moisture levels, and provide the outlook for March rainfall and temperatures.
--Todd Holbrook, DVM, explains the origin, symptoms and medical approach to treating Pigeon Fever in horses.
--In Shop Stop, Randy Taylor and Wayne Kiner demonstrate a technique for punching holes in sheet metal.
--Finally, Claude Bess talks about the upcoming Eastern Oklahoma Beef Cattle Summit.
Catch SUNUP: Saturdays at 7:30 a.m. on OETA
(SUNUP will take a break March 3, 10 and 17)
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