Anderson Provides Grim Outlook for Canola and Wheat PricesThu, 07 May 2015 21:31:39 CDT
Canola prices are much lower than a year ago. This time last year, canola prices were around $8.50 a bushel. Oklahoma State University Grain Marketing Specialist Dr. Kim Anderson said the forward contract price for harvest delivery looks to range from $5.90 to $6.30 a bushel.
“Canola prices have fallen mostly because you’ve got lower soybean prices, soybean meal prices and soy oil prices,” Anderson said. “That’s market determines our canola price.”
On this weekend’s edition of SUNUP, Anderson also address the outlook for wheat production and prices. The Oklahoma Grain and Feed Association held their 35th annual wheat tour in measuring yield potential of wheat fields. After surveying fields throughout the state, the association has predicted Oklahoma farmers will produce 108.8 million bushels of wheat this year. Their annual tour estimated yields at 27.7 bushels per acre and 3.9 million harvested acres. Anderson said that was much higher than what he was forecasting a few weeks ago. The five year average for harvested aces in the state is 3.5 million acres with an average yield of 27.4 bushels per acre with production at around 100 million bushels of wheat.
As Oklahoma farmers go into harvest, they will be competing with a lot of wheat from around the world. Anderson said world wheat production estimates are coming in at around 26 billion bushels. That’s an above average crop. Anderson said if that comes to fruition that will keep wheat prices relatively low. With below average prices, he said farmers will want to switch up their marketing plan by selling less at that low price. He recommends farmers sell a fourth or a fifth harvest, then sell the remainder in three-eighth lots or equal lots in the September/October and November/December time frame.
“I think when prices are low, you want to modify that strategy, sell less on that low price,” Anderson said. “Doesn’t mean prices are going up, but the odds are on your side that they will.”
This week on SUNUP, we visit with Josh Bushong about the effect of recent rain on Oklahoma’s canola crop. He also invites viewers to the upcoming Canola Harvest Clinics.
-- In the Mesonet report, Al Sutherland analyzes rain totals from Tuesday and Wednesday, and looks at how the moisture is impacting crops.
-- Next, we revisit a favorite SUNUP story about canola harvest in Grant County.
-- Kim Anderson discusses canola and wheat prices, the Oklahoma crop tour and the influence of foreign markets on prices.
-- In Cow-Calf Corner, Glenn Selk offers tips on the information to include in herd vaccination records.
-- We travel to Edmond for a practice round leading up to this week’s National Land and Range Contest, featuring 4-H and FFA students from across the U.S.
-- Finally, we close with highlights from this week’s Extension Centennial Time Capsule Ceremony at the state capitol in Oklahoma City.
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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