OSU's Kim Anderson Advises Farmers to Keep Calm and Carry On as US and China Work Things OutThu, 05 Apr 2018 17:00:45 CDT
This week on SUNUP - Oklahoma State University Grain Market Economist Dr. Kim Anderson will join the team to discuss the impact if any that Chinese tariffs will have on US grain prices, and what producers should do in preparation.
The problem at the moment, though, is that no one will really know what effect tariffs will have on markets until trade is actually conducted under those restrictions. As of right now, neither the US nor China have indeed enacted the tariffs they have advertised - which do include politically sensitive US soybean imports. According to Anderson, the US government is delaying the action for several weeks to fully vet the decision and what ramifications it could potentially have. China is waiting to see what action the US ultimately takes. Essentially, Anderson says negotiations between the two countries are in the works and this is simply a political maneuver to set the stage of those discussions.
With that market uncertainty clouding the skies for wheat farmers, still feeling the pressures of oversupply and weak price strength - Anderson advises growers to ignore the political rhetoric until something actually occurs. Until that happens, he says the situation remains the same and farmers should continue with business as usual.
However, he does admit that in these situations the market tends to get more volatile, especially with forward contracts. Buyers in the futures market also tend to hedge their bets more - taking risk premiums which could potentially result in a price drop of 10-15 cents. For now, though, Anderson asserts farmers should stay the course of action and wait to see what comes of this developing situation at the appropriate time.
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. Andersonís weekly chat - the SUNUP crew has a very full lineup for your viewing this weekend:
We start the show with information about rehabilitating pastures with Alex Rocateli and Hailin Zhang.
- Then, David Marburger has an update on wheat across the state, as well as a way for wheat producers to regularly communicate with state specialists about the crop.
- In Cow-Calf Corner, Glenn Selk explains why weaning dates are important for the fall calving season.
- Derrell Peel tells us how a trade war could impact the cattle markets.
- In the Mesonet weather report, Al Sutherland shows us what a whirlwind (some pun intended) week it has been with the weather and Gary McManus explains why drought is intensifying.
- Finally, in Naturally Speaking, Dwayne Elmore explains the importance of pasture cutting height when thinking about wildlife.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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