Wheat Prices Jump on Short-Covering, Kim Anderson SaysThu, 21 Mar 2013 13:32:36 CDT
This week old-crop wheat jumped 40 cents and new-crop wheat jumped 26 cents. Oklahoma State University Grain Marketing Specialist Kim Anderson explains why in his preview to this week's SUNUP program:
"I think we're seeing a rise because funds are covering their short positions. We've been talking about that for the last six or eight weeks that they had near-record short positions in wheat. They're covering those positions by buying both old crop and new crop. It's driving the prices higher."
He says the difference in price rise between the old and new crops is mainly due to who is purchasing in the markets currently.
"I think we're seeing the higher new crop because-and we've talked about this in the past, too-wheat is being used as in the ethanol plants. There's some concern in the markets about relatively tight wheat stocks moving into that, plus wheat exports have been good over the last month or so."
Turning to next year's crop, Anderson said he did some informal research to discern the current condition of the state's wheat. He called grain elevator operators across the state and asked them what percentage of a normal year's crop they expected to take in this year.
"The state, as a whole, said 75 to 80 percent of the average. Some places are looking at average and some lower than that. Right now, if you had to guess, I'd say 75 to 80 percent of an average Oklahoma wheat crop."
Anderson says that elevator managers said their predictions were dependent upon getting more timely rains as the crop matures and that does not appear to be borne out by current forecasts.
In addition to Kim Anderson's analysis, this week's SUNUP will include:
--A visit to both Osage and Love counties in search of wild pigs. Oklahoma State University Wildlife Specialist Dwayne Elmore joins Osage County Extension Educator Will Cubbage, and feral swine experts from Mississippi State University and the Noble Foundation.
--Derrell Peel explains what is behind the recent rebound in box beef prices.
--In the Mesonet report, Al Sutherland digs into the soil moisture numbers.
--Brian Arnall discusses a natural way to judge nitrogen levels that has been showing up in wheat fields across the state.
--In Shop Stop, Randy Taylor and Wayne Kiner discuss shear bolts.
-In Cow-Calf Corner, Glenn Selk explains why it is vital to maintain body condition in cows between calving and breeding.
-Finally, Bob Kropp, Jacob Nelson, Heather Buckmaster and Seminole County cattle producer Richard Myers talk about the Oklahoma Beef Quality Summit at the Robert M. Kerr Food and Agricultural Products Center (FAPC).
Catch SUNUP Saturdays at 7:30 a.m. on OETA. You can watch archived shows at http://www.sunup.okstate.edu or http://www.youtube.com/sunuptv .
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