Kim Anderson Say Upward Movement in the Basis Good News for the Wheat Markets and FarmersThu, 19 Apr 2018 16:09:54 CDT
This week on SUNUP - Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins host Lyndall Stout again to report the good news and the bad news for Oklahoma’s wheat industry. Starting with the bad news, Anderson describes the uncooperative growing environment farmers have faced this year.
From one extreme to the other, Anderson lists drought and freezing temperatures as the major contributing factors that have influenced this crop’s development - which have so far resulted in the worst level of crop conditions Oklahoma has seen in years. In addition, Anderson says the Kansas City July contract recently fell about 40 cents, dragging the harvest price of wheat down with it. Topping things off, he says China has added even more uncertainty into an already depressed market, slapping increased tariffs this week on US grain sorghum as part of an ongoing trade dispute.
On bright side, though, Anderson also had good news to report. Despite the harsh elements farmers have had to deal with, he says the good news is that there are areas in the state where wheat has not been damaged by late freezes and have also managed to survive persistent drought conditions. More so, rain is expected in the forecast which he says might help to promote better yields, test weight and protein levels in viable fields. Also, while the Kansas City July contract has dropped lower, Anderson says the basis has actually risen up about 45 cents over the last month and a half - a sign that the market needs this crop, he says.
Looking towards harvest, Anderson is betting a good delivery price is probably around $4.75. However, with good test weight and protein, he suggests a quality crop could potentially demand up to $5.00 a bushel. Lower quality wheat, though, might see prices drop down to $4.00. All things considered - Anderson says he is fairly optimistic.
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 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 information on how to donate hay and agricultural supplies to the western Oklahoma wildfire relief efforts.
- Then, David Lalman explains how adjusting ways of feeding cattle can help ration forage and feed during drought.
- Derrell Peel says cattle producers should “proceed with caution” as we move toward summer.
- In Cow-Calf Corner, Glenn Selk explains why producers should consider culling cows with unsound udders.
- In the Mesonet weather report, Al Sutherland shows us why conditions on Tuesday were ripe for wildfire and Gary McManus explains why green-up is delayed compared to previous years.
- Josh Lofton has an update on the canola crop following the 2018 Canola Crop Tour.
- Finally, we travel to Custer County to see how 4-Her’s are teaching students about Oklahoma history and land runs.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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