Agricultural News
Volatility, Economic Uncertainty, Sideways Pattern Still Dominate Wheat Market
Thu, 15 Nov 2012 16:54:42 CST
In a preview to these Saturday's SUNUP program, OSU Grain Marketing Specialist Kim Anderson says that though we may be stuck in a sideways pattern in the wheat market, it's important to remember that there's a 92-cent spread in that pattern. "That shows the volatility and uncertainty of our market today."
"As you look back over, say, the last five years going back to June 1 of '07 you can look at February 27 of 2008, the Oklahoma cash prices were $12.58 a bushel. You get up to June 9, 2010, less than two years later, we're down to $3.08. That's a $9.50 range in a two-year period. Right now we've got prices up. We've been talking about this sideways pattern running from $8 to around $8.60."
He says there is economic uncertainty centered on the European Union and the "fiscal cliff" that could be facing the U.S. after the first of the year. The farm bill is still languishing in the House of Representatives and that results in "uncertainty relative to ethanol and relative to the fuels and the corn and how that's going to spin off on the wheat."
With all that uncertainty roiling the markets, Anderson says producers would be wise to do what they do best: "I think the producers just need to ignore the uncertainty and concentrate on producing a high-quality crop that consumers will buy."
You can hear Anderson's full conversation with SUNUP host Lyndall Stout by clicking on the LISTEN BAR at the end of this story.
Also on this week's program:
--the 2012 Rural Economic Outlook Conference and insight from Damona Doye, Richard Crowder and Chad Wilkerson.
--In the Mesonet report, Al Sutherland and Gary McManus analyze the weekend rain's impact on soil moisture and the historical trend for the percentage of Oct./Nov. normal rainfall.
--With the election over, Larry Sanders weighs in on farm bill progress and the potential fiscal cliff.
--In Shop Stop, Wayne Kiner and Randy Taylor demonstrate how to contain debris while grinding metal.
--In Cow-Calf Corner, Glenn Selk examines research on cattle grazing near high-voltage power lines.
--As drought lingers, we learn the reasons why we are not having a repeat of Dust Bowl conditions with Chad Godsey, Jason Warren and Gary McManus. In addition, historian Dayton Duncan, the co-producer of the new PBS documentary The Dust Bowl, will also appear.
--Finally, in Naturally Speaking, Dwayne Elmore describes beneficial vegetation growing along the banks of receding ponds.
Catch SUNUP Saturdays at 7:30 a.m. on OETA. You can also watch archived shows on the OSU website by by clicking here, or on Youtube by clicking here.
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