Agricultural News
High Wheat Prices at Harvest Call for Modified Marketing Strategy, Kim Anderson Says
Thu, 13 Jun 2013 18:04:49 CDT
Wheat prices of the Kansas City Board of Trade continue their downward slide, but are, for the moment, holding about the $7.11 support level, says Oklahoma State University Grain Marketing Specialist Kim Anderson. He says we have a long way to go to reaching the five year average price at harvest of $6.40 a bushel, but we could reach it. Part of the reason for the declining prices, he says, is the rebound that has occurred in some fields due to almost-ideal weather conditions in late spring.
"I'm talking to farmers and producers that say some of them may have record yields this year. Some of the wheat looks a lot better than we expected it to a couple of months ago."
According to the latest WASDE report released Wednesday, U.S. total wheat production is expected to be below the five-year average while world wheat production is projected to be above that average. U.S. ending stocks are projected to be almost 25 percent lower than the five year average and, Anderson says, that would tend to indicate higher prices for wheat. But, he says, he thinks the USDA may be underestimating total world production which would tend to make the U.S. ending stocks number too low.
Anderson says if prices stay above $7-$7.25 as harvest progresses, producers might want to consider selling a higher percentage of their crop now. He said producers that normally follow the strategy of "a third, a third, and a third," might want to sell about 50 percent at harvest and then 25 percent in September-October and the final 25 percent in November-December.
Anderson is taking a week off from SUNUP, but this week's show features:
-- A look at the impact animal programs can have on Oklahoma's youth by looking back at some of our favorite stories.
--An examination of the comprehensive nature of the Hughes County youth livestock feed out program with Aubie Keesee.
--A look inside a livestock fitting contest at OYE to talk about team building and trust.
-A visit with Mark Johnson, coach of the 2012 National Champion Livestock Judging Team, about what it takes to compete and how students benefit both personally and professionally.
-On Cow-Calf Corner, Glenn Selk offers a few tips for keeping show animals healthy as they travel to and from shows.
--SUNUP revisit an inspirational trio of its most heartwarming stories: Noble FFA's inclusive livestock show for students with disabilities, a showman from Sallisaw, and the Rogers County equine therapy program.
--Finally, on Shop Stop, Randy Taylor and Wayne Kiner demonstrate a technique for cutting and melting nylon rope in one process.
Catch SUNUP Saturdays at 7:30 a.m. & Sundays at 6 a.m. on OETA or online at SUNUP.okstate.edu or www.youtube.com/sunuptv
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