Agricultural News
Anderson Says Corn, Wheat May Become Uncoupled in Grain Markets
Thu, 19 Jul 2012 17:32:54 CDT
Kim Anderson, Oklahoma State University grain marketing specialist, says conditions are right for corn and wheat to come uncoupled in the markets. He says the deepening drought and decreasing stocks may have a long-term impact.
"The drought has been responsible for a couple-dollar increase in corn prices and wheat prices, but I think that drought impact is slackening now. I think the market is starting to look at more demand issues, things that are going on in the market, and some supply.
"If you look at corn, they're talking about not having enough corn either to meet our feeding needs or export needs or the ethanol needs. So, something's got to give there. The EPA said that we're not going to reduce EPA standards.
"China comes into play because China's bought a lot of corn. Will China export some corn? If China buys more corn-and we know they've got plenty of dollars-then that is really going to tighten things up and maybe have a shortage in corn."
Anderson said the price of wheat could come uncoupled from the corn price if we lose a little more wheat production.
"I think wheat stocks are tight enough that wheat could divorce itself from the corn price and no longer be a follower and wheat prices could go on up irrespective of what corn does.
Click on the LISTEN BAR below to hear the rest of the preview of Kim Anderson's analysis of grain markets on this weekend's SUNUP.
Also on this Saturday's program:
--Jody Campiche explains the new federal drought disaster declarations for Oklahoma and updates the progress of the 2012 Farm Bill.
-In the Mesonet report, Gary Sutherland reveals the history of the current drought.
-A visit to Garfield County with producer Karen Eifert Jones previews the upcoming Women in Agriculture and Small Business Conference with Damona Doye and Jennifer Jensen.
-Then, Leland McDaniel and Shan Ingram talk about plans for the 2012 Southern Plains Beef Symposium in Ardmore.
-In Cow-Calf Corner, Glenn Selk looks at how heat stress can impact reproduction.
-Derrell Peel explains why current drought conditions are having a greater impact on cattle markets than the same period last year.
-Randy Taylor and Wayne Kiner give a safety lesson on using hand signals when operating equipment.
-Finally, senior citizens in Blaine County show how they initiated their own community exercise program.
Catch SUNUP: Saturdays at 7:30 a.m. on OETA
You can watch archived programs on the SUNUP website or on Youtube.
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