Kim Anderson Makes Wheat Marketing Recommendations on This Weekend's SUNUPMon, 23 Jun 2014 05:08:06 CDT
As wheat harvest progresses in Oklahoma, farmers are contemplating when should they sell their wheat crop. Oklahoma State University Extension Grain Marketing Specialist Kim Anderson says now is as good as time as any.
"Cash price in Oklahoma is $7 dollars plus in most areas," Anderson said. "You look back at the six-year average annual price $6.52, so we're above that."
The June price average over the last six years is $6.48. In 2013 the June average price was $7.35, so getting $7 dollars plus is relatively very good price if you look over the last six years.
In deciding which month to market your crop, Anderson has analyized the numbers for the six year average. He says the six year average June price is $6.48, the average July price is $6.52, August $6.75, September $6.49, it drops off in October $6.23, November $6.22 and December $5.99. These are the average prices minus storage and interest, so anytime between now and September is a relatively good time to market the crop.
In 2013 the average price in June was $7.35, then it dropped to $6.93 in July, $6.74 in August, $6.61 in September and popped up in October averaging $7.11, then back to $6.78 in November and $6.26 in December.
In looking at supply and demand, Anderson says this year looks to be similar to 2013, so it is possible that prices will track like last year, but a lot will depend on the wheat crop in Australia and Argentina.
"If you don't want to take risk or can't afford risk now is a pretty good price and I don't think you will lose a lot of money selling for $7 dollars or better," Anderson said.
If you want to take a risk he recommends spreading out marketing this year's crop to capture some potential rallies this fall.
Click on the LISTEN BAR below to hear Kim Anderson's full report, which was seen this past weekend on SUNUP, as produced by Oklahoma State University's Ag Communications Department.
Also on this week's SUNUP show:
- 2014 wheat harvest. SUNUP rides along in the combine with Oklahoma Foundation Seed’s Jeff Wright in Major County and visit producer Paul Fruendt’s field in Logan County. Then, Mike Schulte, executive director of the Oklahoma Wheat Commission, provides overall perspective on the industry and this year’s crop.
-In Cow-Calf Corner, Glenn Selk looks at how to maintain and manage mineral intake.
-Next, Brett Carver, Jeff Edwards, Shannon Ferrell and Mark Hodges provide an explanation of the U.S. Plant Variety Protection Act as it relates to seed wheat.
-Kim Anderson tells us the best time for producers to sell their wheat.
-In the Mesonet report, Gary McManus examines the impact of the past month’s rainfall and shows us the improving drought monitor.
-Finally, we return to OSU's North Central Research Station at Lahoma to discuss cover crops with Jason Warren.
Catch SUNUP online through the OSU website or through YouTube.
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