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Agricultural News


Wheat Producers in Drought Areas Facing Double Dose of Risk, Kim Anderson Says

Thu, 03 Apr 2014 17:54:02 CDT

Wheat Producers in Drought Areas Facing Double Dose of Risk, Kim Anderson Says
Wheat producers have seen a rollercoaster ride in prices during the first quarter of 2014. That's according to Kim Anderson, Oklahoma State University grain marketing specialist. The price went from six dollars per bushel to near eight dollars in just a few weeks. Prices have since fallen back about 40 cents per bushel in just the last week and a half.


Anderson says in his weekly preview to Saturday's SUNUP show, that some producers are being caught in a price risk-production risk squeeze.


"In a normal year, if production is up then price is down. If production is down, price is up. So, you get some offset between the production risk and the price risk, but not this year in some areas. You take southwest Oklahoma, western Kansas, the Texas Panhandle, where they have poor production. If we can get good production in other areas, we're not going to have that price-production interaction.   Those producers in extreme drought areas are facing both production risk and price risk. Now some producers in other areas, they may have some offsetting factors there between price and production, but there's more risk in the drought areas than there is in non-drought areas."


Also on SUNUP this week:

--Angela Post covers control of sand burrs, as well as current wheat and canola weeds.


--In the Mesonet report, Al Sutherland and Gary McManus explain the expanding drought conditions and how this is Oklahoma's 5th driest beginning of a year on record.


--Next, Josh Bushong previews the upcoming canola field tours and talks about the progress of this year's crop.


--Derrell Peel breaks down recent market movement for boxed beef, fed and feeder cattle.


--In Cow-Calf Corner, Glenn Selk looks at weaning times for fall calves.


--Then, Gant Mourer stops by to review last year's OQBN numbers and their record premiums.


-Finally, in Shop Stop, Randy Taylor and Wayne Kiner demonstrate the different settings on a multimeter.


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 http://www.youtube.com/sunuptv


   
   


Kim Anderson analalyzes increasing risk for producers in drought areas of Oklahoma.
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