Agricultural News
Higher Wheat, Corn Prices Not All Good News, Anderson Says
Thu, 28 Jun 2012 16:33:19 CDT
Wheat is up 20 percent, corn is up 25%, but it is not all good news according to Kim Anderson, OSU Extension grain marketing specialist.
"You look at Oklahoma prices, they've increased over the last couple of weeks from about $6 to over $7, around $7.15, $7.20. You've had a significant increase in the corn prices. Corn is running. As they go up, the market is running. Corn is king right now. As those prices go up, wheat prices go up."
Anderson says while those prices may look good, there are some concerns. He says the index of the dollar relative to the other major currencies has gone from about .79 to .899, a 13-percent increase.
"That makes corn, that makes wheat, that makes soybeans 13 percent higher price on the world market. So that's negative.
"You also look at oil. Oil prices since May have dropped about 25 percent, from about $107 a barrel to $80 dollars a barrel. That lowers the price of the ethanol. That makes ethanol less profitable. There's been some major ethanol plants shut down. That reduces demand for corn. That's negative for corn prices. Of course, weather has trumped that, but if weather ever straightens out and turns around, then we've got these negative factors that can drive that corn price down and wheat prices will come down."
You can see more of Kim Anderson's analysis on this week's SUNUP program on OETA at 7 a.m. Saturday morning. Also on this week's program:
--Daren Redfearn discusses the prevalence of pasture weeds, looks at control options and has advice on continued drought recovery.
--In Cow-Calf Corner, Glenn Selk explains the importance of testing summer annuals for nitrates.
--Jody Campiche analyzes the Senate-approved version of the farm bill and looks at what's next as the House prepares to vote on its version.
--In the Mesonet report, Al Sutherland and Gary McManus look at the latest air temperatures, fractional soil moisture levels and drought monitor.
-In Shop Stop, Randy Taylor and Wayne Kiner show how to design a storage box made out of sheet metal.
-Josh Massey shows the peach orchard at OSU's Cimarron Valley Research Station.
-And SUNUP takes a trip to Alfalfa County to see the quilt patterns painted on the side of a barn.
You can catch SUNUP Saturday mornings at 7:30 a.m. on OETA or watch archived programs on the OSU website or on Youtube.
Click on the LISTEN BAR below for more of Lyndall Stout's interview with Kim Anderson.
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