Kim Anderson Says Wheat Prices are on the Rise, But He Wouldn’t Call It a Rally... Yet - on SUNUP!Thu, 28 Sep 2017 17:07:08 CDT
This week on SUNUP – OSU Extension Grain Market Economist Dr. Kim Anderson joins host Dave Deeken again, talking this time about the price of both corn and wheat. According to Anderson the price of corn dropped this week in the Chicago market by $0.25 - .35. In addition, the basis for corn, especially old crop corn has declined.
Anderson reports that ethanol plants have recently informed producers and elevators they will no longer be accepting old crop corn, which has added to the pressure on old crop corn’s basis. This move likely to divert old crop corn stocks to the export or feed markets.
While this may be good for beef producers, it is sure to hurt wheat farmers.
Wheat prices this week, though, have seen a slight increase, Anderson says. But he hesitates to call it a rally, insisting prices continue to struggle.
Still – he reports that wheat prices achieved the “monumental” task of climbing above the Kansas City December contract price of $4.50, up currently about a nickel or so. Looking at new crop July ’18 price – Anderson quotes the price at having crossed $5.00 putting it $0.90 to a $1.00 under basis.
“That’s giving us a $4.00 to $4.10 cash price in Oklahoma next June,” Anderson said.
However, he encourages wheat farmers in Oklahoma to consider what is happening on their own farm – not concerning themselves with what’s happening statewide or internationally in the wheat market. He says look at what you are doing, and if yields are high – continue on. If yields are low, figure out why and adjust. He insists that the US and Oklahoma’s wheat crop can be competitive still on the global market, but farmers have to invest in producing a quality crop.
“We do that, and the prices will take care of themselves,” he said.
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 visit the Tulsa State Fair!
- Dave Lalman demonstrates how to calibrate cake feeders for cattle.
- In Cow-Calf Corner, Glenn Selk explains positive associative affect, and how it impacts cattle when forage quality wanes.
- Brian Arnall explains the science behind pH, and what it means for your soil.
- In the Mesonet weather report, Al Sutherland shows us the parts of the state that received rain and those that missed out. Then, Gary McManus has the latest information on the Drought Monitor.
- Next, J.D. Carlson has a preview of the new OkFire website and training dates on how to use it.
- Finally, we learn how teamwork translates to horsepower. We follow a team of draft horses as they compete at the state fair.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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