Agricultural News
Anderson Breaks Down USDA Ag Outlook Estimates
Thu, 19 Feb 2015 19:08:36 CST
The U.S. Department of Agriculture provided a grim outlook for agriculture in 2015. This week the agency released its first unofficial estimates for 2015 - 2016 at the Agricultural Outlook Forum in Washington, D.C. On this weekend's edition of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson breaks down the estimates on farm income, planted acres and commodity prices. Click on the LISTENBAR below to listen to this week's feature.
USDA estimated the nation's farm income at $73.6 billion dollars. Anderson said that is the lowest farm income since 2007.
In looking at acres, USDA is projecting lower planted acres for wheat and corn, while soybeans are projected to be nearly unchanged from a year ago. Anderson said all wheat acres were estimated to be down 1.3 million acres and corn is projected to decline by 1.6 million acres. USDA will update their projected acreage outlook for corn and soybeans on March 31st.
Lower commodity prices means tighter margins for that nation's ag producers. Anderson said last year wheat averaged $6 a bushel. In this outlook, USDA is project the wheat price at $5.10. USDA projects a similar trend for soybeans. Anderson said soybean prices are projected to drop $1.20, from $10.20 to average $9 a bushel this year. The price of corn is forecast to be down 15 cents over a year ago in averaging $3.50 a bushel this year.
Anderson said this outlook is different from other USDA reports. He said the World Agricultural Supply and Demand Estimate (WASDE) reports are based on surveys, while this outlook is based on computer models.
SUNUP host Lyndall Stout asks Anderson about outlook's impact on wheat prices. He said the strong U.S. dollar continues to hurt exports as U.S. wheat is price $1 a bushel above the world price. In watching the world situation as India begins harvesting a record wheat crop in the coming weeks. He also believes the market is watching the winter wheat crop situation in Oklahoma. Anderson said there is still a long time between now and harvest, so there is a lot that can happen with prices in the coming months.
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: Saturdays at 7:30 a.m. & Sundays at 6 a.m. on OETA-TV
Catch SUNUP online through the OSU website by clicking here or through YouTube by clicking here.
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