Another Quiet Week in Grain Markets, But OSU's Kim Anderson Says That's Not Such a Bad ThingThu, 04 Oct 2018 16:33:15 CDT
It has been another quiet week in the grain markets. Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins SUNUP Host Lyndall Stout this weekend for his analysis of whether or not this sideways movement in the market is a good thing for producers.
In a preview of his appearance, Anderson suggests that given the current market situation for most commodities, this steady market trend is preferable to the alternative of turning lower that could easily be the case.
For wheat, it is a bit speculative as the USDA has predicted HRW export sales to be even with the previous year. However, at this point, US wheat exports are down 37 percent, which means is the USDA is correct then there is a lot of export demand left to make up the difference that has yet to come in. At the same time, though, small rallies continue to spark as rumors pop up that Russia is suspended exports from certain terminals. While that is good news in general, Anderson wonders if Russia is not simply attempting to build up expectations and prices in order to capture a higher price for its wheat.
Looking at other commodities- corn and soybeans are both in a similar situation with either near or above record production this year. Most analysts agree that the price of corn has hit a bottom and could even in fact bump up by 30 to 40 cents. Meanwhile, soybeans have been overall steady but have recently increased by as much as 50 cents. Anderson, though, is hesitant at this point to call it an upward trend- at least not until it breaks $9.30 or better in the near-term.
Finally, cotton has also sparked some speculation as well with prices lately mostly flat. Prices started out at around 90 cents, Anderson says, and has since worked down to 75 cents which is where USDA pegged the seasonal average price for cotton. While he thinks there is still some room for cotton to work down maybe a few cents lower, overall he believes cotton is very near its bottom in the market.
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, we get an update on the Oklahoma wheat crop from Josh Bushong.
- In the Mesonet weather report, Wes Lee looks at the impact cloudy conditions have had on hay production. Gary McManus says even though most of the state has seen rain, drought is intensifying in northeast Oklahoma.
- In Cow-Calf Corner, Glenn Selk has advice for deciding which cows to cull.
- Then, Amy Hagerman has an update on the expiration of the farm bill and explains its impact on CRP payments. She also has information on the upcoming Rural Economic Outlook Conference.
- Dwayne Elmore explains what land owners and hunters should keep an eye out for when it comes to Chronic Wasting Disease in deer.
- Finally, we celebrate 10 years since SUNUP came back on the air! I had the opportunity to catch up with Clinton Griffiths, Kathy (Shelton) Chambers and Austin Moore to see what they are doing now and reminisce about bringing SUNUP back to the airwaves.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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