Now's a Good Time for Wheat Growers to Evaluate Their Production Strategies and Marketing PlansThu, 22 Feb 2018 15:06:26 CST
This week on SUNUP - Oklahoma State University Grain Market Economist Dr. Kim Anderson joins host Lyndall Stout again with his weekly analysis of the wheat market, which he says has seen about an $0.80 rally over the last few weeks, however prices have backed off that price by about $0.15 putting the Kansas July contract right at $5.00 at the moment. Anderson hopes that price will hold, but fears that it could still potentially drop back down to $4.80.
What Anderson is paying close attention to right now, though, is the strength of the US dollar which he reports has declined since this past fall by almost 13 percent from 103 pts. to 89.5.
“What that does is makes US wheat cheaper on the world market, but it also makes Russia’s wheat production cost more expensive relative to the rest of the world,” he said. “To producers, that means wheat prices are still below the cost of production.”
He says with the dollar continuing to weaken, the world market will become increasingly more competitive. With that in mind, Anderson suggests farmers not consider forward contracting their wheat as they look towards the 2018 harvest. Instead, he advises farmers make a marketing plan and decide now when you think you will sell - either at harvest or store until the fall. Also, he recommends setting a price point that will trigger your wheat to sell.
The other thing Anderson says to include in your plan - is a Plan B - what you will do if you indeed lose this year’s crop. He says now is a good time to start evaluating your whole farm and how it is organized. He says start looking now at alternative crops that you could potentially plant for summer, and perhaps rethink your crop mix and your planting and production strategies.
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 Lyndall's weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:
This week on SUNUP, we learn from Extension Forage Systems Specialist, Alex Rocateli, that it’s not too early to develop a pasture management plan for the summer.
- Then, in Cow-Calf Corner, Glenn Selk explains how nutrition needs change for cows after calving.
- In the Mesonet weather report, Al Sutherland shows us how diverse this week has been in weather.
- Next, Brian Arnall tells us about the 17 elements plants need from the soil to grow.
- In Food Whys, Milling and Baking Specialist, Renee Albers-Nelson, explains how the Oklahoma Home Baking Act impacts baked goods produced for sale from the home.
- Finally, we leave you with some great photos of the ongoing ice storm.
Programming Note: SUNUP will be preempted March 3, 10 and 17 for OETA Festival. SUNUP will continue as scheduled at 6 a.m. Sundays.
Join us for SUNUP:
Sunday at 6 a.m. on OETA-TV
WebReadyTM Powered by WireReady® NSI
Top Agricultural News