Agricultural News
Corn is Still King in Grain Markets, Anderson Says
Thu, 12 Jul 2012 16:56:24 CDT
Grain markets reacted to the release of the USDA's WASDE report this week, and OSU Small Grains Marketing Specialist Kim Anderson said the report sent the markets higher with corn in the driver's seat.
"Corn is still running the market and after that WASDE release that came out Wednesday, Wednesday was a volatile day for both corn and wheat. Corn production lowered 12.3 percent to 12,970,000,000 bushels down from over 14. You look at corn ending stocks, they were lowered almost 35 percent down to 1,180,000,000. Some analysts believe that in August the USDA will lower the corn ending stocks lower, maybe even below a billion bushels. So we had quite a shock with corn. Corn prices are still holding the wheat prices. "
Anderson said lower expectations for corn stocks was good for wheat prices.
"Now, the market was relatively good for wheat. You've got wheat production lowered 1.3 percent, down to just over 2.2 billion bushels. Wheat ending stocks lowered 4.3 percent down to 664,000,000 bushels. I think that's an important number for wheat because it's going to set the stage. Our wheat stocks are going to be tight enough and are tight enough that if we lose a Southern hemisphere crop, then wheat could start being bid by itself."
Andersen said December corn prices are nearing the 7.25 cent range predicted by Allendale and a little moisture in the Corn Belt would put downward pressure on that price. He said wheat could then tumble as much as one dollar.
Click on the LISTEN BAR below for more of the preview of Lyndall Stout's interview with Kim Anderson on this week's SUNUP program.
Also on SUNUP:
--In the Mesonet report, Al Sutherland reveals the 30-day rainfall totals, soil moisture levels and the lack of moisture across the U.S.
--Marley Beem explains how to use aeration to prevent fish kills in ponds in Naturally Speaking.
--SUNUP travels to Cedar Hill Seasonings in Edmond to see how the company is working with the Robert M. Kerr Food and Agricultural Products Center to package meals for the Regional Food Bank of Oklahoma.
--Finally, Wayne Kiner and Randy Taylor offer tips on preventing friction between two pieces of metal.
Catch SUNUP Saturdays at 7:30 a.m. on OETA.
You can also see archived broadcasts onthe OSU website by clicking here.
Click here for SUNUP broadcasts on YouTube.
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