Agricultural News
OSU's Kim Anderson Says Record World Wheat Production Pushes Wheat Prices to Bottom
Thu, 19 Nov 2015 18:32:44 CST
Wheat farmers have produced another record breaking crop for the third consecutive year. With the 2015 global wheat harvest nearly complete, Oklahoma State University Grain Marketing Specialist Kim Anderson said world wheat production will total over 26.9 billion bushels. While harvest continues in Australia, Argentina and South Africa, he said for the most part this crop has been accounted for. He said its expected global wheat ending stocks will total 8.4 billion bushels.
U.S. wheat production fell below average this year at 2.05 billion bushels. Anderson said that's short of the average of 2.13 billion bushels. With massive world wheat production and lack of export demand, he said domestic ending stocks are projected to total 911 million bushels. That compares with an average of 690 million bushels.
Wheat prices around Oklahoma have dropped below $4 a bushel for the first time since October 2009. Prices around the state are ranging from $3.95 to $4.20. Anderson said when prices are low and stocks are excessive, there's just no demand and there's no reason for prices to go up. He thinks wheat prices are near the bottom now.
SUNUP Host Lyndall Stout asks Anderson about the price outlook for the next couple of months. Anderson said he doesn't see any reason for prices to move much. In a few months, he said a lot will depend on the condition of the crop. Currently the U.S. crop is in good shape, the crop in Ukraine has some problems, but right now the global wheat outlook still looks favorable. For prices to go higher, Anderson said that's going to take losing a crop in a foreign country, but until then he doesn't look for prices to move much higher.
This week on SUNUP, Dave Lalman covers limit grazing on wheat for Oklahoma cattle producers.
- Then, Angela Post identifies weeds in wheat and explains treatment options to consider over the coming weeks.
- In the Mesonet report, Al Sutherland and Gary McManus show us the recent wind and rain impacted soil moisture.
- Kim Anderson foresees no movement of wheat prices in the near future.
- In Cow-Calf Corner, Glenn Selk looks at the best way to add ionophores to heifer feed.
- Derrell Peel says outside factors are pressuring cattle markets.
- Finally, in Food Whys, Darren Scott answers the question: does eating turkey make you sleepy?
Join us for 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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