Kim Anderson Address Stagnant Wheat and Corn PricesThu, 23 Oct 2014 22:21:40 CDT
Wheat and corn prices have tapped resistance levels over the past week. There has virtually no price movement this past week with wheat prices moving about 10 cents and corn prices moving 8 to 10 cents. In this weekend's edition of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson corn and wheat prices are pounding up against very strong resistance levels.
"If they can break that, then we can get a little run in these prices," Anderson said. "Those resistance points are $6.20 for wheat and $3.60 for corn."
Those resistance levels are being caused by the lack of news in the market. Wheat harvest in the US has wrapped up and in the southern hemisphere with Argentina or Australia there is no news coming out of on changes in expectations for wheat production. With corn, the US Department of Agriculture has forecast the crop will average 174.2 bushels per acre. Ending stock are well above average with over 2 billion bushels. The average ending stocks are 1.2 billion bushels. Corn harvest is running well behind average with 31 percent harvested this past week, well behind the five year average of 53.
"That's old news," Anderson said. "Until something changes I don't think the prices are going to change very much."
When prices begin to move it's hard to predict where prices will go. Anderson said if prices break out the top they are going to run and if they break out the bottom prices are going to fall.
In looking ahead to 2015 wheat price, Anderson said most elevators are offering about 50 cents less than Kansas City July 2015 contract which is around $6.00, so that give farmers about $5.50 next June. He thinks that is a relatively good projection for 2015 harvest price, especially this far out.
This week on SUNUP, we learn about common spiders in Oklahoma from Andrine Shufran, coordinator of the Insect Adventure.
-- In the Mesonet report, Al Sutherland and Gary McManus look at the latest drought monitor, as well as the three-month temperature and precipitation outlook.
-- Next, Kim Anderson talks about stagnant wheat and corn prices and what that could signal for the 2015 marketing year.
-- In Cow-Calf Corner, Glenn Selk discusses the importance of using ionophores with replacement heifers.
-- For the Ag Apps segment, Brian Arnall shows us useful mobile tools for calculating sprayer formulas.
-- Derrell Peel analyzes how ranchers are responding to continued high livestock prices.
-- Finally, in Food Whys, Chuck Willoughby explains the difference between natural and organic food products.
Saturdays at 7:30 a.m. & Sundays at 6 a.m. on OETA-TV.
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