Agricultural News
Grain Markets Eyeing Australia, U.S. Corn Imports, Anderson Says
Thu, 18 Oct 2012 15:55:52 CDT
Grain markets have been keeping an eye on news from Australia recently and OSU's small-grain marketing specialist Kim Anderson talks with Lyndall Stout in this week's SUNUP preview about how that is affecting prices.
"It was reported this week that in Western Australia that they set the highest price for wheat in the world. It's a little lower than what it is at the Texas gulf. They had frost in certain areas of the wheat area in Australia. That may impact the quality, maybe the yields a little bit. The market has a tendency to lower Australia's wheat yields as we go through time," Anderson says.
"That price I was talking about for Western Australia wheat is $9.25 a bushel or $330 a ton. That's a little less than what our hard red winter wheat is at the Texas gulf."
Anderson says that while wheat conditions in Australia bear watching, corn is a bigger story here in the United States.
"Corn continues to be a big story as corn stocks are tight and continue to tighten. It was reported this last week that 23.6 million bushels of corn was purchased from Argentina. It will be shipped in starting in the next couple of weeks and through the May time period of 2013.
"Remember about six weeks ago that the companies there in North Carolina had bought 29.5 million bushels of corn from Brazil. So that makes 53.1 million bushels of corn being imported. And USDA is projecting that 75 million tons-about that much-will be imported on corn this year. I think that's going to have a tendency to at least keep our prices at current levels and it's causing a slight down trend right now in corn prices."
With prices falling slightly, Anderson says he doesn't expect a lot of sharp movements in wheat markets.
"I think we're going to continue on that sideways pattern with that December contract in Kansas City being between $8.69 and $9.57. It is trending in the lower half of that range and below $9 prices. I think it's going to continue in that area at least for the next couple of months until we get some new news."
You can hear more of Kim Anderson's analysis by clicking on the LISTEN BAR at the bottom of this story.
Also on this weekend's SUNUP:
--Dwayne Elmore explains how to identify bluetongue disease in white-tailed deer.
--In the Mesonet report, Al Sutherland has an update on 30-day rainfall totals and recent wind speeds.
--Gant Mourer discusses vaccine protocol and upcoming cattle sales for the Oklahoma Quality Beef Network.
--In Cow-Calf Corner, Glenn Selk tells producers how to utilize mineral supplements to prevent grass tetany in cattle grazing on wheat pasture.
-In Shop Stop, Randy Taylor and Wayne Kiner demonstrate how to make and use a slide hammer.
-Also on tap is a trip to Arcadia for the 4-H State Skeet Contest and talk about the competition with Kevin Allen.
-Finally, to celebrate OSU's Homecoming, Jody Campiche, an OSU alumnus, and Tyson Ochsner, an Iowa State alumnus, meet at Boone Pickens Stadium to compare Oklahoma and Iowa agriculture, tornadoes and football.
You can catch SUNUP Saturdays at 7:30 a.m. on OETA. You can also find archived programs on the OSU website by clicking here and on Youtube by clicking here.
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