Southern Plains Moisture and Big Wheat Crop in India Add Up to Lower US Wheat PricesThu, 07 Mar 2013 02:39:11 CST
Wheat prices have dropped significantly in the past week and OSU Grain Marketing Specialist Kim Anderson spoke with SUNUP anchor Lyndall Stout about the factors impacting grain prices.
"I think the big news is the moisture that we've received in the hard red winter wheat area. Obviously, it's improved the crop conditions, the wheat conditions as they come out of dormancy. Also, if you'll look at India, they're starting their harvest in the next couple of weeks. Looking at a near-record crop there. They've already got massive carryovers. They're moving that out on the export market. That's going to compete with our export wheat. And you've got the Soviet Union's prices coming down and they'll possibly move some wheat. So, you've got several things going on right now that's driving the nearby crop prices down."
Anderson says farmers and traders are keeping a keen eye on Oklahoma's weather. The 30-day forecast shows temperatures will be about average. When you look out three or four months, he says, forecasters are calling for temperatures slightly higher than normal. He says hot, dry winds after the wheat has reached the soft dough stage could reduce production.
He says precipitation forecasts are shaping up in much the same way with above average precipitation indicated for the next 30 days, and below average precipitation a few months out.
"I believe that's going to be positive for wheat prices as we get out to June, but it's negative for wheat production and most producers would rather have production as price."
Anderson says that wet weather in the corn belt will also have a downward impact on corn and grain prices and could send wheat into $7 per bushel territory.
You can hear the complete interview by clicking on the LISTEN BAR below.
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