Kim Anderson Says April WASDE Report Will Have Big Impact on Commodity Prices Across Okla.Thu, 12 Apr 2018 16:51:25 CDT
This week on SUNUP - Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins host, Lyndall Stout, again to review the latest USDA WASDE report for April and how it will affect the price of wheat here at home.
According to Andersonís report, US wheat ending stocks arrived at 1.64 billion bu., which was higher than the 1.36 billion bu. that the trade was expecting. Worldwide, wheat stocks ended in April at just under 10 billion bu. total, breaking the previous record that was just shy of 9.4 billion bu.
Anderson says this will have a rather negative impact on prices in Oklahoma, stating that anytime US ending stocks are over a billion bushels, it is never good news for the market. He says it is especially bad in this case given that the actual number was even higher than the trade had anticipated.
Weather has also played a part in the price scheme recently, dropping the spread between HRW and HRS wheat from its typical $1.50 premium in favor of spring over winter to now at just $1.00. Currently, HRW has a 45 cent premium over SRW.
Abroad, weather is influencing prices as well. Anderson says that while farmers here at home are dealing with uncooperative weather this year, producers in Russia and Ukraine are enjoying weather thatís been very conducive to productivity. Recent reports suggest that Ukraineís crop will exceed last yearís production - more bad news for farmers here in Oklahoma, says Anderson.
In the meantime, China this week has backed off of some of its trade war rhetoric. Anderson says right now that is all that this spat between the US and China is - just rhetoric setting the stage for possible negotiations - but nonetheless he admits it adds a great deal of volatility-injecting uncertainty into the market.
The combination of all these factors has prompted Anderson to advise farmers to start thinking about alternative crops for the future. He says now is the time to start reevaluating your strategy and understand that until substantially more wheat is taken off the global marketplace, the financial situation is about to get very tight.
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:
We start the show with David Marburger explaining how to scout for freeze injury in wheat.
- In the Mesonet weather report, Al Sutherland tells us how low temperatures got over the weekend and how long they remained below freezing. Gary McManus shows us where rain has fallen over the past 180 days.
- In Cow-Calf Corner, Glenn Selk explains why producers should keep track of heifer calves born as twins to bulls.
- Then, Brian Arnall explains how to calculate nitrogen rates using the Stanford Equation.
- In Vet Scripts, Dr. Barry Whitworth has recommendations for preventing foot rot in sheep.
- The 18th class of the Oklahoma Agriculture Leadership Program recently graduated. We learn about their study of Oklahoma and international agriculture.
- Finally, you may think thatís wheat in the formal gardens on the Oklahoma State University campus, youíre close. Landscape Services Director, Steve Dobbs, says itís actually wheatís close cousin that is helping soil quality and ďbringing the worms back.Ē
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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