Agricultural News
Higher Wheat Prices Seen in Recent Days, But OSU's Kim Anderson Sees Wheat Below Cost of Production for Awhile
Thu, 10 Mar 2016 21:03:57 CST
Wheat prices have risen in the last few trading sessions, but Oklahoma State University Extension Grain Marketing Economist Dr. Kim Anderson says we remain below the cost of production. With July 2016 Kansas Wheat July wheat around $4.90, the delivered to a local elevator price in central Oklahoma is around $4.25 per bushel.
Dr. Anderson says that several wheat market watchers see a real possibility of below the cost of production wheat prices for a couple of years- and he says that eventually weather somewhere in wheat producing areas of the world will turn, provide the global market with a short crop and that's where wheat prices will rise. He says that our most recent rally off a low under cost of production level was back in 2009-2010. Wheat prices started rallying the last day of July in 2010, and within three and a half months- wheat prices had moved three dollars bushel higher. "Then we lost the southern hemisphere crop and prices jumped another three dollars a bushel."
Anderson talked with Radio Oklahoma Network's Ron Hays and says he believes that cost of production is higher than current wheat prices- farmers are not going to continue to produce in a losing market, so prices will eventually go higher. Anderson also talked about where we stand on the potential 2016 Oklahoma wheat crop- both in terms of bushels produced and the quality of the crop that we will be putting in the bin at harvest this coming June.
To hear the full conversation, click on the LISTEN BAR below.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News
More Headlines...
