Kim Anderson Says Quality and Protein the Keys to Capturing the Wheat Market's Profitability in 2019Wed, 10 Oct 2018 14:18:59 CDT
With ample moisture, cool temperatures rolling in and more than 50 percent of this year’s expected wheat crop for Oklahoma in the ground, the prospect of establishing wheat pasture and viable opportunities to market wheat next harvest look promising. Radio Oklahoma Ag Network Farm Director Ron Hays caught up with Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson this week to talk about his expectations for Oklahoma’s wheat crop as we continue into planting season here across the Sooner State. You can listen to their complete conversation by clicking or tapping the LISTEN BAR below at the bottom of the page.
For wheat that is already in the ground, Anderson says the recent rains across central and western Oklahoma will certainly be of great benefit to producers hoping to get a firm establishment of their crop, especially if they intend to graze their pastures this fall.
“Overall, I think it’s always good to get moisture in the ground, but there’s good news and bad news with rain,” he said, referring to the fact that many cotton, corn and soybean fields that have yet to be harvested and are now standing in water. “But, I’m basically optimistic. I think in December-January, we’re going to see some relatively good market moves in wheat. Russia is trying to load the market right now. As they do that and clear their bins, I think it will give us the opportunity to sell wheat when we get into the December-January time period.”
Anderson advises producers with grain from the 2018 crop still left in the bin that can afford a 50 cent price risk to seriously consider taking a gamble on the market and wait for that opportunity to present itself around the beginning of the new year. Looking ahead to next harvest, however, Anderson says there will again be a major opportunity to capture wheat’s full profit potential- but says it will require producers to commit to managing their crops for high quality characteristics.
“We’re going to come into ’19 with very little protein and poor-quality wheat in the bins. They’re going to need a quality product. If producers will produce better than 12.5 percent protein and better than 60 lb. average test weights, the market is going to buy it,” he said. “The market rewards us for protein.”
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