Agricultural News
External Factors Bring Bounce in Wheat Market, Anderson Says
Thu, 26 Mar 2015 17:46:35 CDT
The spring rally has continued for wheat. On this weekend's edition of SUNUP, Oklahoma State University Grain Marketing Specialist Dr. Kim Anderson said wheat prices have made some movement. The Kansas City July Wheat contract price was at $5.44 on Friday, March 13th. By Monday, March 23rd the price reached $5.80. Since then the price has moved lower.
SUNUP's Dave Deken asked Anderson what's causing the price movement. Anderson responded it's the positions the funds have in the market, the U.S. dollar value relative to other currencies, the weather and crop conditions.
The value of the U.S. dollar has been highly variable in recent weeks. Anderson said the dollar index has gone from 100.7 on March 13th to dropping to 97.3 on March 23rd. That's about a four percent decline. Anderson said as the price of wheat went up, the funds were buying contracts. The lower dollar index was also making U.S. wheat less expensive on the world market, which increased export demand.
Next week the U.S. Department of Agriculture will be releasing the perspective plantings report on Tuesday. Anderson said pre-release estimate has all wheat acres forecast at 55.8 million acres. That estimate is about 1 million acres less than last year's 56.8 million acres.
Trade analysts are predicting about 88.7 million acres of corn will be planted this year. That's about 1.9 million acres lower than last year's 90.6 million acres.
This week on SUNUP, we feature progress reports on canola and wheat with Josh Bushong and Jeff Edwards.
-- In the Mesonet report, Al Sutherland and Gary McManus look at rainfall amounts from the past week and the latest drought monitor.
-- Next, Roger Sahs discusses Oklahoma land values.
-- In Cow-Calf Corner, Glenn Selk covers OSU research on maintaining body condition scores between calving and rebreeding.
-- Then, Kim Anderson looks at the factors influencing wheat prices.
-- In Food Whys, Rodney Holcomb explains how Oklahoma Grown farmer's markets are organized.
-- Finally, in Shop Stop, Randy Taylor and Wayne Kiner show us how to make flare jack stands out of pipe.
SUNUP can be seen on OETA across the state of Oklahoma - 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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