Wheat Price Rebound Good Sign, Kim Anderson SaysThu, 23 Jan 2014 21:43:15 CST
Wheat prices have recovered slightly over the last few days and in his preview to this week's SUNUP program, Oklahoma State University Extension Grain Marketing Specialist Kim Anderson says that is a good sign.
"The last couple of days have had good news relative to prices. At the end of the week wheat prices were up Thursday 12 or 13 cents. I think we've hit the bottom and recovered from the bottom of wheat prices for this marketing year. Now, there's a lot of news out there yet to come in. Wheat's in dormancy so a lot could happen, but I think we've bottomed out, at least for a little while."
Anderson says activity in other parts of the world has driven prices down about $1.25 over the last few months.
"India will start harvesting a record crop in March. In India the government also said that they are going to export and they are already right now exporting wheat out of their stocks. You have Australia that had a larger crop than expected. You've got Argentina that's getting their things straightened out and is starting to export wheat. The hard red winter we stocks are tight and so we've lost exports to these other countries."
Corn prices are not providing any help for wheat prices this year, Anderson says, and there's no prospect corn prices will rise much before wheat harvest 2014.
Even amidst that atmosphere of low prices, Anderson says there is good news for Oklahoma wheat producers.
"The plant soil scientists and people I talk to out there say it looks really good. And I think that's good news for producers. The price is lower, but you can make up for a lot of low prices when you have wheat to sell and it doesn't matter what prices are. If you don't have wheat to sell, you're not going to make money. So, I think the production side is looking really good for the Oklahoma producer."
You can hear more of Kim Anderson's preview of this week's SUNUP program by clicking on the LISTEN BAR below.
Catch SUNUP: Saturdays at 7:30 a.m. & Sundays at 6 a.m. on OETA-TV or online at http://www.sunup.okstate.edu or on Youtube at: http://www.youtube.com/sunuptv
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