Agricultural News
Anderson Offers Optimism to Downward Slide of Canola and Wheat Prices
Thu, 16 Apr 2015 19:27:55 CDT
Canola prices have been on a downward slide. In looking at forward contracts for harvest delivery, Oklahoma State University Crop Marketing Specialist Dr. Kim Anderson said prices are at about $6 per bushel in most places in Oklahoma. That's well below harvest prices for 2014, when prices were around $10 per bushel.
On this weekend's edition of SUNUP, host Lyndall Stout asks Anderson about the $4 drop in prices. Anderson said in Oklahoma canola prices are based on soybean meal and soybean oil prices. As the price of soybeans have dropped so has the price of canola.
In looking at canola prices in North Dakota. Anderson said last June prices were about $10.45 per bushel. Now prices are at around $8.40 a bushel, so while prices are down $4 a bushel in Oklahoma, they are down $2 in North Dakota. Anderson said that's a positive indication of where prices can go.
"So, I think that's hope," Anderson said. "I think that gives us hope for our price increase as we approach harvest. Its possible right now that our buyers just don't want to forward contact, just don't want to take harvest risk, with the drought conditions we've got. So I think they're minimizing that risk by offering a low price. It will come up as we approach harvest."
Rain this past week has driven wheat prices lower. Anderson said wheat prices dropped by 40 cents for about a seven percent decline over the last week. In talking with farmers in Garfield County, Anderson said these farmers felt the rain helped boost their wheat yields from 12 to 15 bushels an acre to around 25 bushels. He said that increase in yield will help offset the decline in the wheat price.
Yields could go higher if the wheat belt continues to receive spring rains. If the rains come, Anderson said that will further push wheat prices lower. Anderson said the next price support is at $4.96. If it continues to rain, he said prices could go below $5 a bushel. He doesn't think prices will get that low at harvest, but if they do, he expects wheat prices to rebound to around $5.25 to $5.50 by December first.
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.
-- This week on SUNUP, we visit Kingfisher County, a stop on the 2015 Canola Field Tour. Interviews include local producers, along with Zack Meyer and Josh Bushong.
-- In the Mesonet Report, Al Suthlerland analyzes this month's rainfall totals. Then, Gary McManus compares the rain amounts we've received this year to the same period last year.
-- Next, Derrell Peel talks about how the rain may impact the livestock markets and highlights seasonal expectations heading into the summer.
-- In Cow-Calf Corner, Glenn Selk explains the importance of checking udder soundness in order to make culling decisions.
-- We meet up with Kim Anderson to discuss canola prices and why the rain may have caused a drop in wheat prices.
-- Then, Jeff Bedwell tells us about the varying wheat conditions in northwest Oklahoma.
-- Mike Schulte of the Oklahoma Wheat Commission talks about rainfall and freeze impact on the crop.
-- Finally, Justin Talley shows us how to identify and treat the ticks appearing this season on horses and cattle.
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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