Kim Anderson Says It Was a Tough Week for Wheat Prices - But a Small Rally Might Be in the FutureThu, 16 Jun 2016 23:42:41 CDT
Wheat harvest is rolling on across much of the state, but it’s hard to ignore the hit wheat prices took this week. OSU Extension Grain Market Economist Dr. Kim Anderson says the lower prices compared to the last few weeks are most likely from higher-than-expected yields.
“You know we talked about adequate space and we thought we had adequate space to put everything, but I think there’s some elevators running out of space,” he says. “When they run out of space, then they gotta lower that basis because they’re going to lose some wheat if they have to put it out in bunkers or on ground storage.”
Anderson says the cash price was down $.50 to $.60. The market lost $.40 on the futures price and another $.05 to $.15 on the basis depending on the location.
Looking forward, Anderson says prices may continue to fall slightly but the bottom is near.
“The market will probably waller sideways from here, and then I think we’re going to get a rally before we get into planting time,” he says. “Some producers just aren’t going to plant wheat if this price doesn’t go higher because they’re planting at below cost of production.”
You can hear Anderson’s comments that will be a part of SUNUP this weekend a day early by clicking on the LISTEN BAR below.
Besides the weekly Kim Anderson grain market outlook segment - here is the lineup of what will be seen and featured on this weekend's SUNUP program on OETA:
- David Marburger has an update on the 2016 wheat harvest
- Then, Brian Arnall tells us about an app that helps with recording soil samples
- Derrell Peel explains how stronger beef exports from Mexico could impact the market
- In Cow-Calf Corner, Glenn Selk shares benefits of the Oklahoma Goldand Super Gold supplementation programs for growing cattle on summer forage
- Kris Hiney says snakes can be dangerous to horses
- Al Suterhland explains what the Wet Bulb Globe Risk means and Gary McManus says the recent rains have helped soil moisture, but there could still be a flash drought on the horizon
- We revisit a favorite Naturally Speaking segment talking about the Food Plot appwith Dwayne Elmore
The weekly program can be seen Saturday at 7:30 a.m. & Sunday at 6 a.m. on the statewide OETA network of stations.
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