Anderson Says Commodity Prices Will Lack Direction During HolidaysWed, 26 Nov 2014 12:28:47 CST
With the holiday season approaching commodity prices are moving sideways across the board for wheat, corn and soybeans. Oklahoma State University Grain Marketing Specialist Kim Anderson said that trend will stay through the start of the new year.
In looking at the price trends on this weekend's edition of SUNUP, Anderson said in going back to June the Kansas City wheat price was around $6.90. By July wheat prices fell to $6.21, by August prices were at $6 and in September prices were at $5.56. Anderson said prices have pretty much wallered with October at $5.52 and November at $5.76.
SUNUP host Lyndall Stout also asks Anderson about the market trend for both corn and soybeans. Anderson said corn prices went from $3.46 in August to $3.25 in September, in October prices were at $3.30 and have corn prices have rallied up to $3.60 in November. Soybean prices in October were at $8.75 in October and have increased to $9.53 for current prices.
Looking ahead, Anderson looks for wheat prices on the futures market to continue to bounce around. Anderson said wheat is in a sideways pattern. The March Kansas City contract is trading between $6 and $6.20 with support at $6 and resistance at $6.20. He said if prices go below six dollars a bushel, prices will continue down to $5.80 and could trend downward to $5.50. If prices can break through the resistance level at $6.20, then $6.60 would be the next target. In terms of marketing the 2014 wheat crop, he said farmers should have their final third of the crop to market and he recommends farmers look at pricing their 2015 wheat crop starting with 10 or 20 percent.
Currently corn is trading between $3.70 and $4 a bushel. Anderson if the prices breaks $3.70, there is support at $3.60 and $3.48. If prices break $4, then the next target is $4.10, then $4.50 a bushel.
Soybeans are trading between $10 a bushel and and $10.80. Anderson said if prices move lower there is support at $9.50 and $9.12. If prices move higher there is upward resistance at around $11.20.
Looking at the price outlook, Anderson said prices will continue wallering around through the Thanksgiving and Christmas holidays. He said there will be little rallies here and there but overall prices will be sideways.
"Don't expect much over the holiday period," Anderson said. " Really when we get into January 1 and after that prices will establish an up or down trend."
Catch SUNUP on-line through the OSU website by clicking here or through YouTube by clicking here.
Catch SUNUP: Saturdays at 7:30 a.m. & Sundays at 6 a.m. on OETA-TV
SUNUP can be seen on OETA across the state of Oklahoma- Dr. Anderson's segment on the markets is one of the standard features of this weekly show from Oklahoma State University. Catch SUNUP on-line through the OSU website by clicking here or through YouTube by clicking here.
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