US Wheat Profits Per Acre a Sad Comparison to Foreign Markets, Foreshadows Months to ComeThu, 17 Nov 2016 17:30:01 CST
Oklahoma State University Extension Grains Market Analyst Dr. Kim Anderson talks wheat prices with SUNUP's Lyndall Stout this week- and offers a comparison of US wheat profits per acre to those around the world in foreign markets and according to him, they are not looking very good.
Dr. Anderson reports that around the world, Russia and Ukraine are bringing in approximately $50 per acre profits; Canada at $24/acre; Australia at $20/acre; Germany and France at $8 and the US only generating $4/acre.
Early estimates of total acres planted are currently being projected lower than last year with big declines in the US at a total 49 million acres planted. Dr. Anderson notes this was approximately the same acreage planted in 1970. Most countries have planted about the same, some a little more though like Argentina and Russia, which has risen the most at about 5˝ to 6 percent in planted acres. But overall worldwide, acres planted are slightly less.
Adding to the dismal market climate is an increasing value of the dollar having moved from 97 to 100.5. Anderson says it has been up about 3.6 percent over the last couple weeks.
“That means our wheat is 3.6 percent higher on the export market,” Anderson said. “That doesn’t help us at all.”
Looking into the future, Anderson says things will be fairly bleak for wheat farmers in the months to come.
“I don’t expect wheat prices to recover. They could go up a little bit but not much,” he said. “I really think it’s going to be a 2018-19 marketing year before we get prices back up,” adding that weather will be the determining factor there.
You can watch their visit tomorrow or Sunday on SUNUP- but you can hear Kim's comments right now by clicking on the LISTEN BAR below.
Beyond Lyndall's weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:
This week on SUNUP, we start with an update on the winter canola crop across Oklahoma.
- Then, Randy Boman explains why bacteria blight has damaged the cotton crop this year. He also has information about the 2017 Red River Crops Conference.
- In Vet Scripts, Dr. Barry Whitworth has advice for identifying and treating foot rot in cattle.
- In Cow-Calf Corner, Glenn Selk says it’s important to select cows based on udder soundness.
- Derrell Peel explains how the U.S. cattle numbers compare to Canadian and Mexican markets.
- Kim Anderson shows us how potential wheat profits in the U.S. compare to other countries.
- Finally, we travel to Pottawatomie County to see how a community shows its “thanks” for their school with a Thanksgiving-themed feast.
Programming Note: SUNUP will be pre-empted on OETA the weekend of November 26-27. We’ll resume with a new episode Saturday morning, December 3.
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