Agricultural News
The World is "Awash with Wheat" and It's Hurting Prices - Kim Anderson Explains
Thu, 07 Jul 2016 23:55:48 CDT
2016 wheat harvest numbers continue to rise, and 2016 wheat prices continue to fall. OSU Extension Grain Market Economist Dr. Kim Anderson says global yields are on track to break last year's record-setting total.
Current world production estimates are at 26.85 billion bushels, and Anderson expects that number to go up after the next World Agricultural Supply and Demand Estimates report is released next week.
"Last year was a record 26.98, so we're near that record already," he says. "I think we'll probably go above that."
World ending stocks are about 2 billion bushels higher than the five-year average, which is also keeping wheat prices depressed.
Anderson says producers may want to consider an FSA marketing assistance loan to create a price floor.
"I think it offers them the opportunity to leave it in storage. They get some money in hand. If prices go up, they can take advantage of those prices and pay off the loan. If prices go in the tank, they just turn over the wheat and the loan is forgiven," he says.
Looking ahead to other crops, corn, sorghum and soybean prices are still significantly too high to qualify for marketing assistance loans, but Anderson recalls wheat prices being too high before the bumper crop was harvested.
"If we have a massive corn and sorghum harvest, that just tells you how much lower the prices could go to get to that loan rate," he says. "Doesn't look like they're going to do that right now, but it is a possibility."
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.
In addition to the 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:
- Dave Lalman has advice for feeding wheat grain to cattle.
- In Cow-Calf Corner, Glenn Selk shares research concerning calf birthweight and birth season.
- Then, Andrine Shufran says there are more to black widow and brown recluse spiders than you may think.
- In the Mesonet Weather Report, Al Suterhland shows how many sites have already surpassed 100 F.
- Finally, see how Grady County 4-Hers are helping to expand literacy in their community.
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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