U.S. Wheat Prices Face Downward Pressures, Anderson SaysThu, 30 Jan 2014 16:49:05 CST
Wheat prices challenged support levels this week. In his preview to this weekend's SUNUP program on OETA, Oklahoma State University Extension Grain Marketing Specialist Kim Anderson says the downward pressure is on.
"You can go back two or three weeks ago and we had a 30-cent price rally. I was saying hopefully and possibly wheat prices had bottomed out for the year. We've taken out that 30 cents. This week we challenged that $6 price level for the Kansas City March and July contracts. July actually got down to $5.99 and it closed at $6 so we haven't closed below it, but we're sure putting pressure on that low price now."
He says we can't look at the wheat prices and possible trends without looking at their relationship to corn.
"This time last year wheat prices were 40 cents higher than corn prices. Right now wheat is $1.40 above corn so we don't have the corn prices this year to support wheat prices. So, when wheat prices start falling, there's just nothing there to hold them except for the demand for the wheat."
He says another factor that could put downward pressure on wheat prices is the overall good condition of the 2014 wheat crop.
Also on this week's SUNUP:
-- Jody Campiche talks about the changes Oklahoma producers can expect in the new 2014 Farm Bill.
-- In Cow-Calf Corner, Glenn Selk explains what ranchers should see during the three stages of calving.
-- Josh Bushong has an update on the canola crop and invites viewers to Canola College Feb. 13 in Enid.
-- In the Mesonet report, Al Sutherland looks at the days without measurable rainfall, this week's cold front, wind speeds, the burning index and the first hollow stem advisor.
-In Shop Stop, Wayne Kiner and Randy Taylor show lighting options for the shop.
-Finally, Karen Hickman and Eric Rebek explain how invasive species impact the state and have a preview of the Oklahoma Invasive Species Conference March 25 in Oklahoma City.
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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