Near Record Global Wheat Harvest and Stocks Projected for 2016 - Kim Anderson ExplainsThu, 19 May 2016 21:33:10 CDT
The USDA recently announced projections for the 2016 wheat harvest, and OSU Grain Marketing Economist Dr. Kim Anderson says world production is predicted to be higher than he originally thought.
“You know we talked about being around 26.1 billion bushels a couple of months ago. Of course, the weather changed around the world - in Oklahoma, the U.S. and in the foreign countries,” he says. “The USDA had world wheat production at 26.7 billion bushels.”
Last year’s harvest produced 27 billion bushels of wheat, which is the current record. Anderson says the last three to four years of record or near record production - combined with this year’s bumper crop - will put world ending stocks up over 9 billion bushels.
Because about 50 percent of Oklahoma wheat is sold on the export market, Anderson says that record ending stocks number will affect prices here at home.
“Higher production, higher ending stocks means lower prices, which were experiencing now,” he says. “We got Oklahoma prices in the $3.70 to $3.90 area.”
Current prices means producers can’t afford discounts at the elevator. Anderson once again stresses the importance of delivering clean wheat. He told SUNUP’s Dave Deken dockage can range from a $.05-$.12 discount and foreign material discounts start at $.02 for .5 percent, goes up to $.50 for 3.1 percent and get worse from there.
“The discounts are serious this year because the market wants a quality product; they want a clean product,” he says.
You can watch Kim and Dave this weekend on SUNUP, or you can get an early listen to his comments by clicking on the LISTEN BAR below.
In addition to Kim's update on world wheat projections, SUNUP will feature stories from the North Central Research Station wheat field day near Lahoma, starting with an update on wheat varieties with Jeff Edwards.
- Then, Brett Carver explores the traits of future wheat varieties the OSU Wheat Improvement Team is currently researching.
- In Cow-Calf Corner, Glenn Selk explains how weight can impact the percentage of cycling heifers.
- Next, Derrell Peel says the bump in cattle prices is unusual for this time of year.
- In the Mesonet report, Al Sutherland shows the parts of the state that benefited from the recent rains and the parts that are still dry.
- Finally, Josh Lofton looks at which canola varieties performed the best this year.
Join Lyndall and Dave for SUNUP: Saturdays at 7:30 a.m. & Sundays at 6 a.m. on OETA-TV
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