Freeze Damage and Drought Playing a Part in Wheat Futures, Kim Anderson SaysThu, 20 Mar 2014 15:36:46 CDT
Despite some drops toward the end of the week, wheat markets have been on an upward trajectory. Oklahoma State University Extension Grain Marketing Specialist Kim Anderson runs the numbers for Lyndall Stout in his preview for this week's SUNUP program.
"We've had a really good run in wheat prices-about $1.80 since early February. You look at that July contract price and it's up near $7.80. If it can close above $7.81 two consecutive days, then $8 will be the next target. That contract also has price support down at $7.58."
Anderson says the run-up in grain prices has extended to canola as well which has seen about a $1.40 increase in the past three weeks.
As harvest draws closer, Anderson says freeze damage and dry conditions have dropped yield potentials both for wheat and canola.
"It's dry out there. You look over a good part of Oklahoma, if you go all the way down to 32 inches there's a shortage of soil moisture. So, it's going to take rain. We need ten to 12 inches just to get back to even, but timely rains of a half inch to an inch could get us some good yields. But, right now, we're probably 20 percent down in canola and who knows how much down in wheat. Wheat is in poor condition."
Given those conditions, Anderson says he would recommend producers to forward contract no more than 25 percent of their crop at this time.
Also this week, SUNUP visits the 2014 Oklahoma Youth Expo in Oklahoma City.
-Congressman Frank Lucas discusses the new farm bill and what it means for Oklahoma producers. Then, Jody Campiche offers advice on selecting farm bill commodity programs, livestock disaster assistance and the potential program implementation timeline.
-In the Mesonet report, Al Sutherland recaps the recent rainfall and wind speeds, and looks at their impact on soil moisture. He also shows the latest drought monitor, which is expanding across Oklahoma.
-Derrell Peel explains why beef and pork prices are soaring, while poultry prices are not.
-In Cow-Calf Corner, Glenn Selk covers OSU research on how restricted diets impact heifer rebreeding rates.
-In Shop Stop, Randy Taylor and Wayne Kiner demonstrate how to test a vehicle's electrical system.
-Finally, Saleh Taghaveian shows the different types of soil moisture sensors available for irrigation systems and invites viewers to a World Water Day event on the OSU campus Monday, March 24.
Catch SUNUP: Saturdays at 7:30 a.m. and Sundays at 6 a.m. on OETA-TV or online at http://www.sunup.okstate.edu or http://www.youtube.com/sunuptv.
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