Agricultural News
OSU's Dr. Kim Anderson Explains What Wheat Farmers Should Consider When Marketing Their Grain
Thu, 08 Jun 2017 16:31:29 CDT
This week on SUNUP - OSU Grain Market Economist Dr. Kim Anderson joins host Lyndall Stout again this week, talking wheat harvest in Oklahoma and selling strategies producers should consider as they wrap up their harvest this year.
According to Anderson, there has been an $0.80 increase in the price of wheat over the last month, which he attributes $0.20 of that to an increase in the basis, and the remaining $0.60 to an increase in the Kansas City July contract, being driven by weather.
To take the best advantage of the current markets, Anderson offers a few different strategies producers can consider and hopefully secure the best price. But he says it all rests on the individual producer's preferences.
"It's going to depend on what your price expectations are," he said.
First, Anderson says if you do not want to risk a drop in prices, you can sell all your wheat after its been harvested and be done with it.
Second, if you have more of a stomach for taking on risk and want to bet on prices moving higher, you can store your grain in the bin and sell later, hopefully at a better price. The catch here is, you will have to factor in storage costs. Anderson calculates that in order to make a profit in the current market, prices will need to reach at least $4.20 before you will make a profit. Something to keep in mind.
The third option, and Anderson's personal preference, is to spread your risk and sell your grain incrementally, a third at a time. By selling a third a harvest, in the fall around September/October, and then again in November/December, you will get an average.
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 Dr. Anderson's weekly chat - the SUNUP crew has a very full lineup for your viewing this weekend:
This week on SUNUP, we are at the Cimmaraon Valley Research Station at Perkins where Josh Lofton shows us how the sorghum crop is progressing. He also has a map of the sugarcane aphid progress as they enter Oklahoma.
- In the Mesonet weather report, Al Sutherland explains how the wet bulb globe temperature compares to the actual air temperature. Gary McManus says dry conditions are moving back into Oklahoma.
- Then, Jason Warren explains how soils may change between elevations in the same field.
- In Vet Scripts, Dr. Barry Whitworth has tips to determine if your cattle are sick.
- Kim Anderson explains what to consider when marketing 2017 wheat.
- Finally, in Cow-Calf Corner, Glenn Selk has advice for managing cattle with pink eye.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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