Agricultural News
Anderson Reacts to Wheat Market Bouncing Back
Thu, 02 Apr 2015 17:43:42 CDT
Wheat prices saw a nice bounce in the market in going up 31 cents in the past week. In this weekend's edition of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson said that price bump can be attributed to the U.S. Department of Agriculture releasing the planted acreage report, the latest crop conditions report and a softening U.S. dollar.
SUNUP host Lyndall Stout asked Anderson about the USDA Prospective Plantings Report that came out on Tuesday. Anderson said the all-wheat planted acres were down three percent at 54.4 million acres, compared with 57.1 million acres a year ago. Winter wheat acres were down four percent at 40.8 million acres, versus 42.4 last year. Hard red winter wheat acres were down three percent at 29.6 million acres, compared with 30.4 million last year.
"I think that's good news price wise and we saw a little bump from that," Anderson said.
Many farmers have expressed how bad this wheat crop is looking, but the crop condition reports from USDA tells a different story. In Monday's report, Anderson said 58 percent of the Colorado wheat crop received a good to excellent rating. That was well above last year's rating of 12 percent in the same condition. Kansas had 39 percent in good to excellent condition versus 32 percent a year ago. Oklahoma had 44 percent of the crop in good to excellent shape versus 17 percent last year. While Texas had 55 percent in good to excellent category versus 11 percent last year.
"So you look at those numbers, you've got significantly better crop conditions this year, than last year," Anderson said. "You'll remember last year the production was 738 million bushels for hard red winter wheat. Our average is 893."
This past week, prices also got a boost from the U.S. dollar index relative to other currencies dropping slightly, which makes U.S. wheat more competitive on the global market.
In looking at prices, Anderson said the July Kansas Wheat contract was up 23 cents. He finds there is resistance at $5.80 and support at $5.40 and if prices can break through the $5.80 threshold, prices can potentially go up another 40 cents. Anderson said for prices go higher it's going to have to take some weather and lower production for the U.S. or for foreign competitors like Russia or Ukraine.
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.
This week on SUNUP, we feature an overview of planting and managing sorghum with Brian Arnall.
-- In Cow-Calf Corner, Glenn Selk looks at the best times to wean calves for successful rebreeding.
-- Next, Kim Anderson analyzes new USDA reports on planted acres and crop conditions.
-- In the Mesonet report, Al Sutherland and Gary McManus show us current soil temperatures, the latest drought monitor and the 30-day rain and temperature outlook.
-- Randy Taylor and Wayne Kiner define electrical polarity and explain why it's important for appliances and tools, in Shop Stop.
-- In Naturally Speaking, John Weir has tips for landowners on safely burning brush piles.
-- Finally, a reminder for viewers about the Canola Field Tours across Oklahoma April 14-17.
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