This Week on SUNUP Kim Anderson says Global Wheat Market about to Get a Lot More CompetitiveFri, 02 Nov 2018 11:49:19 CDT
Although Russia continues to command the global wheat market, the US is starting to become a bit more competitive as foreign nations are beginning to flirt with the idea of purchasing American wheat. According to Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson, Egypt is currently toying with the notion, though Russia is likely to steal that deal once again with readily available high protein wheat that can be shipped at a cheaper expense.
In his latest interview this week with the SUNUP crew, Anderson says this is a good sign nonetheless as Russia will eventually run out of wheat to export sometime in mid to late February 2019, making room for the US to step up to supply the world’s wheat demand.
However, harvest is underway in the Southern Hemisphere. Notable wheat producing countries like Australia and Argentina will soon come online and once again dull the US’ competitive edge on the world market. Early reports suggest that Argentina’s crop is about 34% above average while Australia’s crop will fall 25% below average this year.
While the Southern Hemisphere is home to only about 10% of the world’s total wheat production, the US still needs every opportunity it can get at this point to sell its exportable wheat. Export sales in the US are currently off by 16% for all wheat and 35% below average for HRW export sales. Anderson says this is reflective in the domestic price of wheat, currently. Once Russia finally bows out, though, Anderson says the price of wheat should begin to climb. He advises producers with grain in the bin that can manage the 40 to 50 cent price risk to continue storing their grain until the needle moves in the market - which he predicts will occur sometime between December and January when Russian stocks begin to wane.
You can watch Kim offer his latest analysis of the wheat market tomorrow or Sunday on SUNUP- but you can hear Kim's comments right now by clicking on the LISTEN BAR below.
Beyond their weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:
This week, we head to the soil pit for a quick lesson from Jason Warren on how water moves through the soil.
- In Vet Scripts Dr. Barry Whitworth explains what coccidiosis is in cattle and how to treat it.
- Jeff Edwards has an update on the wheat crop and information about the upcoming Wheatinar.
- In the Mesonet weather report, Wes Lee shows us whether the cotton crop has received the heat units needed to reach maturity. Gary McManus says no change in drought, thanks to October rains.
- Then, Rod Will and Chris Zou share their research into how eastern redcedars and other ground cover can impact watersheds.
- Finally, In Cow-Calf Corner, Glenn Selk explains the importance of maintaining cattle body condition scores between breeding seasons
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