Wheat Prices Attempting to Create a Bottom, But Optimism Wanes for Potential Price ImprovementThu, 03 Aug 2017 18:33:44 CDT
On Thursdays, we typically summarize regular SUNUP guest Dr. Kim Anderson’s weekly comments on the grain markets. However, SUNUP, which generally airs on OETA-TV Saturday and Sunday mornings, will not be broadcast for the next couple weeks - with its next airing scheduled for August 17th.
However, Radio Oklahoma Ag Network Associate Farm Director Carson Horn caught up with Anderson during the Oklahoma Wheat Growers Convention Thursday in El Reno, Oklahoma to get his weekly update. You can hear their full conversation, by clicking or tapping the LISTEN BAR below at the bottom of the page.
Currently, according to Anderson, markets are attempting to make a bottom. He says current prices levels have received strong support - driven by information on Russia’s crop soon to be harvested. He says every report that comes out of Russia raises production expectations. At the moment, it seems Russia will have produced as much or more than their crop from last year.
“We’re talking about 200 to 400 million bushels here,” he said, “and that’s having an impact on our prices. Hopefully we’re on the bottom right now.”
As we get further into the August, September, October months, he says the markets will continue to get a better handle on the size and quality of the foreign crops as they are harvested. Anderson says reports are already coming in - with Australia’s crop potentially set to fall as much as 33% below last year’s production. In addition, Argentina is reporting many acres were left unplanted that they had hoped would be. All positive signs for prices, but still, Anderson remains cautious about what to expect.
“I saw one report that said we’ve seen the high price for the year; that’s a possibility,” he said. “I think prices are just going to waller around now until we get the full information on the Russian crop and what happens in Argentina and Australia. I’m not very optimistic right now.”
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