Oklahoma Weather and Wheat Market Very Volatile as Harvest NearsThu, 28 May 2015 19:36:16 CDT
Rain has been great to help get rid of Oklahomaís drought situation, but itís not all good news. Wheat harvest is nearing and this ongoing rain will bring challenges in harvesting the crop, plus its negatively impacting the quality of this crop. On this weekendís edition of SUNUP, Oklahoma State University Grain Marketing Specialist Dr. Kim Anderson said he is hearing there will be some sprout damage, but elevator managers are hoping the impact is limited.
Another area of concern is protein. Rain often dilutes protein levels, which farmers receive a premium for, in producing higher protein wheat. Anderson is hearing protein estimates around 11.5 percent. As harvest nears, this crop needs to dry out. He said if we can get some dry conditions, the quality will come in at least acceptable. As soon as fields can dry out, wheat harvest will get underway in southern Oklahoma.
SUNUP host Lyndall Stout also asks Anderson about the wheat market, which has been quite volatile, just like the weather. Anderson said the Kansas City wheat futures contracts were able to catch a 60 cent rally recently and the July contract broke $5.60. He said the funds were buying wheat contracts, which pushed prices higher. This week the price has come back down. Anderson said in four days the price has dropped 55 cents and the price is now below the $5.20 support level.
In looking at cash prices, Anderson said basis levels are running from minus 45 cents in southern Oklahoma to minus ten cents in the Enid area and the Panhandle is at minus 35 cents. In having the July Kansas City wheat contract at $5.10, cash prices are ranging from around $4.65 - $5.00. In looking at the price outlook, Anderson said the July KC contract needs to break through $5.20, then its next target is $5.60. But he doesnít think that will happen anytime soon. If prices fall lower, he said the market could test the support levels at $4.85 and $4.50.
Click or tap on the LISTENBAR below to listen to the full interview.
This week on SUNUP, we look at potential issues associated with an abundance of moisture. Interviews include Justin Talley with mosquito prevention tips and Dave Lalman on treating and avoiding foot rot in cattle.
-- In the Mesonet report, Al Sutherland and Gary McManus show us the current river levels and explain how this monthís rainfall broke the drought.
-- We return to the North Central Research Station at Lahoma, where Randy Taylor has an overview of research on planter spacing and speed.
-- Next, Kim Anderson talks about wheat quality, when harvest could start and why prices dropped in the past week.
-- In Cow-Calf Corner, Glenn Selk has tips to prevent fires caused by spontaneous combustion in moist hay.
-- Then, Derrell Peel covers the impact of rain on cattle, retail meat prices and how avian flu is impacting the market.
-- Finally, in Naturally Speaking, Marley Beem teaches us how rainfall changes a pondís habitat.
Catch SUNUP: Saturdays at 7:30 a.m. & Sundays at 6 a.m.on OETA-TV
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 online through the OSU website by clicking here or through YouTube by clicking here.
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