This Week on SUNUP- Kim Anderson on What to Expect as Futures Moves from December to MarchThu, 16 Nov 2017 16:40:18 CST
This week on SUNUP - Dr. Kim Anderson joins host Lyndall Stout again for a wheat market update and his opinions regarding the market’s outlook.
This week, wheat prices dropped about ten cents, which Anderson says certainly grabbed the attention of those in the market where typically little volatility occurs. Currently, the markets are treading water in a range of 20 to 30 cents in a sideways pattern. Anderson says with harvest completed in the former Soviet Union states, the markets have a handle on that region’s production. However, Argentina and Australia are both in the process of bringing their wheat to the table now.
As long as new wheat is coming online into the market, Anderson says prices will continue to be pressured.
Looking ahead, Anderson says the KC contract’s transition from December to March will cause the basis and cash price of wheat to drop approximately 17 cents. He says not to worry, though, because this adjustment is simply a correction in the markets that balances out the internal connections that ties cash and futures prices.
However, Anderson sees no reason for any large price increase. He reports that the March contract has been trading between $4.30 and $4.50, and has the potential to pick up 15 to 20 cents. On the other hand, though, if it breaks the $4.30 mark, then he says we could see prices drop 20 to 25 cents.
Meantime, many producers are considering making a rotation in their fields this year with a different crop. Anderson says on the whole, that may be a wise decision for some.
“Producers need to take into consideration their soil and management expertise; their equipment compliment, or if they need to make other investments or go to custom harvesting,” he said. “They’ve got to put a good pencil to it but for the most part, it’s a wise decision.”
You can watch their visit tomorrow or Sunday on SUNUP - or 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, David Marburger has an update on the wheat crop and advice for producers who got a late start.
- In the Mesonet weather report, Al Sutherland shows us the parts of the state with decent soil moisture and the parts that are drying up.
- In Cow-Calf Corner, Glenn Selk has advice for selecting the right number of heifers to retain as you plan your herd.
- In Vet Scripts, Dr. Barry Whitworth explains how germs transfer from livestock to humans.
- Then, we learn how the 2017 pecan harvest is progressing.
- Finally, in Naturally Speaking, Dwayne Elmore offers tips on managing land to help the deer population.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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