Grain Market Economist Dr. Kim Anderson Says the Markets are Like a Pendulum, Expect CorrectionsThu, 20 Jul 2017 16:57:08 CDT
OSU Extension Grain Market Economist Dr. Kim Anderson joins the SUNUP team, again this week, talking wheat prices.
Recently, the Funds have had a pessimistic outlook on the wheat market. However, there seems to have been a shift to a more optimistic position by the funds. First, Funds were short around 650 million bushels over the last few months, and now after having bought .3 billion bushels, they are long 650 million bushels.
The “cautiously optimistic” move, says Anderson, prompted prices to respond. He reports that cash prices began in Oklahoma at approximately $3.75, peaked on July 11th at $4.80, and have since backed off by $0.50 to now $4.25-$4.30.
“Price is like a pendulum,” he said. “If they go up, they normally go up a little too high then they have to back off. If they go down too far, they have to back off. So, we saw that pendulum swing.”
Negative market factors, such as the size of the foreign crops and the lack of protein-rich wheat, kept the pendulum from swinging any higher, unfortunately for farmers. Anderson advises growers to start thinking now, about how they can produce quality wheat with high protein, this next season.
“If you give them protein,” he remarked, “prices will go up.”
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 join you from the South Central Research Station near Chickasha for the Summer Forage Field Day.
- David Marburger recaps the 2017 wheat crop and explains what producers should be thinking about for 2018.
- In Cow-Calf Corner, Glenn Selk says time of day when cutting forage does not impact nitrate levels.
- Heath Sanders explains why Teff might be a good forage for southwest Oklahoma.
- In the Mesonet weather report, Gary McManus explains why drought it's growing in Oklahoma.
- Michael Pettijohn and Alex Rocateli show us what producers learned at the 2017 Summer Forage Field Day.
- Finally, we travel to Tulsa County to meet a significant woman in agriculture and see how she is helping her inner-urban community.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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