OSU's Kim Anderson Says U.S. No Longer the Big Player in Global Wheat MarketThu, 28 Jan 2016 19:39:53 CST
Wheat prices have been on a rollercoaster. On this weekend's edition of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson addresses the rise and fall of wheat prices the last couple of weeks. The Kansas Wheat March futures contract increased about 15 cents. That pushed some farmers to sell their wheat, as prices reached near the resistance level at $4.80. Wheat prices will end the week near the support price at $4.60. With the winter wheat crop in dormancy, there won’t be much news about crop condition until later on this spring.
U.S. wheat exports are coming in near or slightly below expectations. Anderson said there are some rumors that the U.S. could pull in additional demand, as competing countries have already exported their quality wheat. That could bring additional demand to the U.S.
Canada led the way in global wheat exports for the 2014-2015 marketing year. Anderson said Canada exported 886 million bushels, while the U.S. exported 854 million bushels. He said that was the first time that Canada out ranked the U.S. for wheat exports. Globally, Canada came in first, the U.S. ranked second, and Russia was third for wheat exports. In looking at the 2015-2016 export projections, he said Russia is projected to come in first in exporting 14.6 percent of the world’s exports, followed by the United States at 13.5 percent and Canada at 12.7 percent. Anderson said that’s a far different picture than in 1960 when the U.S. exported 41 percent of the world’s wheat exports.
In looking at global wheat production, Anderson said the European Union leads with world in producing 5.8 billion bushels, followed by China at 4.8 billion bushels, Russia at 2.24 billion bushels and the United States comes in fourth at 2.1 billion bushels. While the global rankings have changed and the U.S. doesn’t lead in production, exports or consumption globally, he said the market itself hasn’t changed. He said it still requires producers to be below average in terms of the cost of production, above average in yield and quality and that producers manage their finances. If they do that, he said it doesn’t matter what happens in the U.S. or in the world, because they will generate a profit and they will survive.
SUNUP host Lyndall Stout interviews Anderson. Click or tap on the LISTEN BAR below to listen to the full interview.
This week on SUNUP, Brian Arnall reminds us that producers should be thinking about top dress applications. He also as special advice for canola growers.
- J.D. Carlson explains the benefits of using the Mesonet’s First Hollow Stem Advisor when planning to remove cattle from wheat pasture.
- In the Mesonet report, Al Sutherland shows us the areas of Oklahoma with the highest risk for fire this week. Gary McManus has precipitation totals for January 2016.
- Gerald Horn updates the ongoing cattle grazing research at the Wheat Pasture Research Unit near Marshall.
- In Cow-Calf Corner, Glenn Selk has advice on culling cows that have difficulty calving.
- Kim Anderson says “we (U.S.) aren’t the big player we used to be” in the world wheat markets.
- Finally, in Food Whys, as we get closer to Groundhog Day, Jake Nelson explains what goes into making sausage.
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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