Kim Anderson Says Sideways Pattern to Continue in Grain MarketsThu, 06 Dec 2012 15:52:44 CST
In this week’s preview of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson says given the dry conditions and potential for crop loss, grain markets are reacting with caution.
“With the current supplies--ending stocks 700-million bushels, right around average for the U.S., just slightly below average for the world--you would expect wheat prices to be lower than they are right now. The drought, I think, has got the market afraid that we’re not going to have much of a crop in 2013 and they’re going to keep as much wheat as possible in storage. To a certain degree, I think, they’re betting on higher prices as you get out into the March, April, May, June, July time period. If it rains, then I think we could see prices going down.”
Anderson says the sideways pattern is continuing, with prices holding near the bottom of their range. He expects them to stay there for the next few weeks.
“We’re in the holiday time period, not much happening in the markets right now and I don’t think much is going to happen until we get out into, maybe, mid-January as the market is looking at wheat to come out of dormancy and see how much moisture we’ve received in that time period.
Also on this weekend’s SUNUP:
--The crew travels to El Reno and Marshall for perspective on winter wheat conditions with Jeff Edwards and Brad Tipton.
--In the Mesonet report, Al Sutherland and Gary McManus show us the plant-available water and the latest drought monitor.
--A visit to the South Central Research Station at Chickasha yields an update on the Biomass Research and Development Initiative (BRDI) with Ray Huhnke and Michael Buser.
--Chad Godsey looks at how 2012 summer crops fared.
-In Cow-Calf Corner, Glenn Selk helps producers prepare for winter calving.
-Finally, Derrell Peel analyzes year-end beef demand and what could happen to prices if the drought continues.
Catch SUNUP Saturdays at 7:30 a.m. on OETA. Archived programs are available on the OSU website by clicking here, or on Youtube, by clicking here.
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