Anderson Says Wheat Prices Near BottomThu, 02 Oct 2014 17:59:26 CDT
Wheat prices continue to decline. How much lower will these prices go? That's the question posed this week to Oklahoma State University Grain Marketing Specialist Dr. Kim Anderson on this weekend's edition of OSU's SUNUP TV program. Anderson said the market is relatively near the bottom for wheat prices.
"There are indications we will probably hold $5.50, we've touched it a couple times," Anderson said. "...If we can continue to hold this as we get into the fall maybe as get some export demand I think wheat prices may come up 30 - 40 cents, but the next two weeks is going to tell the story. If we break $5.50, we're going on down to $5."
In having lower prices that should increase demand, but the shortage of transportation is keeping that from happening. The demand for rail and barge transportation has been very expensive and hard to come by. Anderson said he has heard some grain handlers can make money by selling their rail or barge, then from selling the crop.
If there was adequate truck, rail and barge availability, transportation rates would be lower. Anderson said the US would have higher exports and stronger prices for wheat and corn.
Soybean prices have also been on a downward trend. Since 2007 soybeans have been on a long run upward trend. Anderson said stronger prices ended two months when prices were at $13 and now have dropped to below $10 a bushel. Looking at the outlook Anderson said soybean prices have the potential to go down to $8.50 or even $8.00
A stronger dollar is also hurting agricultural exports. Anderson said the US dollar index has increased from 79 to 86 relative to other currancies. He said that makes US wheat more expensive at the Texas or Louisana Gulf in making wheat 50 cents a bushel or $18 a metic ton more expensive. Anderson said this making US wheat more expensive on the world market and that's making the difference between getting a sale or no sale.
This week on SUNUP, we visit with Dave Lalman at OSUís North Range about livestock winter supplementation and nutrition needs.
-In the Mesonet report, Al Sutherland and Gary McManus analyze soil moisture and the latest drought monitor. They also compare Septemberís rainfall amounts to the same period in 2010, when the drought started.
-Then, Kim Anderson looks at soybean prices and whether corn and wheat prices have hit their low point, as well as how crop transportation and the value of the dollar can impact prices.
-In Cow-Calf Corner, Glenn Selk offers tips on preparing bulls for breeding season.
-We learn about upcoming OK-FIRE training workshops around the state from J.D. Carlson.
-In the policy update, Jody Campiche tells us about the ARC/PLC election and enrollment process.
-Randy Taylor and Wayne Kiner demonstrate how GRCI outlets work, in Shop Stop.
-Finally, we catch up with Cody Hollingsworth at a practice for the OSU Rodeo Team to learn more about the CASNR's Cowboy Stampede rodeo, Oct. 9-11 at the Payne County Fairgrounds in Stillwater.
Catch SUNUP Saturdays at 7:30 a.m. & Sundays at 6 a.m. on OETA-TV
Catch SUNUP online through the OSU website <> or through YouTube
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