Agricultural News
What Wheat Traits Will Pay at the Elevator in 2017 - OSU's Dr. Kim Anderson Has the Answers
Thu, 01 Dec 2016 18:35:38 CST
Oklahoma State University Extension Grains Market Analyst Dr. Kim Anderson talks wheat prices on SUNUP this week - and this time he explains what crop traits will pay at the elevator in 2017.
Producers should be on the lookout for two things when harvesting this next crop: test weight and protein, says Dr. Anderson. According to him, the wheat in bins right now is only averaging 11.2 percent protein. And the previous year's crop only weighed in at 55 to 56 lbs. test weight. Both these numbers are lacking in desirability to millers.
Looking at Kansas City, Anderson says the protein basis rests at the 11.2 percent level and is valued at a 0.55 premium. However, jumping up to 14 percent protein wheat, if you can find it, will bring you a $1.66 basis premium, leaving a $1.05 spread between 11.2 and 14 percent protein wheat.
Anderson insists there is money to be made here, although he advises producers not to put all their eggs in one basket as the elevators can't guarantee a premium payout upon delivery. But, he says in order to capture the highest price come harvest, 2017's wheat crop will need to carry at least 12 to 14 percent protein and a test weight of 60+ pounds.
"The higher the protein, the higher the test weight, the more valuable that crop is going to be," Anderson said.
If you plan to build your own storage bins, Anderson says that could potentially pay off, but cautions those doing this to maintain the quality of their wheat once it goes in. He insists it is imperative to protect it from insects, heat and moisture.
"All you got to do is lose one bin and it'll take all your profits with it," Anderson warns.
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 discuss upcoming changes to the Veterinary Feed Directive with University of Tennessee's David White and Oklahoma Extension Veterinarian Dr. Barry Whitworth.
- Then, Bob Hunger has an update on wheat rust in Oklahoma.
- In Cow-Calf Corner, Glenn Selk says it's important to check calving equipment before you need it.
- Derrell Peel explains how recent rallies in the cattle markets could carry through to the end of 2016.
- Kim Anderson says getting a premium for wheat is worth the work.
- In Food Whys, we learn about scoring cuts of beef from Gretchen Mafi.
- Finally, we mark the 75th anniversary of Pearl Harbor with a look at the way Oklahoma agriculture changed after December 7, 1941.
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