Wheat Markets Take Another Beating as USDA Projections Set Expectations Low for Prices to RiseThu, 21 Feb 2019 17:08:20 CST
It has been another rough week for wheat prices in the grain market with another drop off nearly 50 cents after traders began to realize the actual weakness of US export demand. Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins SUNUP host Dave Deken again this weekend to comment on this development and to run the numbers on the latest projections out this week from the US Department of Agriculture for the 2019-20 cropping year and how those are being interpreted from a market outlook perspective.
Anderson attests that traders rolled back prices again this week as reality set in that the Black Sea region, which has dominated global export demand for months now continues to push wheat through its ports with little sign of truly slowing down as some speculators had hoped would have happened by now. While Egypt’s purchase of US wheat this week bolstered optimism, Anderson says the news was something of a disappointment when they opted for SRW rather than HRW.
In addition, speculation was increased Thursday after the release of USDA projections that made some minor adjustments to existing expectations for this year’s planted acres picture. In summary, Anderson says the report indicates higher corn production and lower bean production. According to the report, wheat acres are expected to remain roughly same as last year with only a marginal adjustment down.
Taking those insights into account, Anderson says corn prices are likely to remain weak while soybean prices may stand a chance to see nominal increases despite the massive carryover of stocks. The wheat price situation, he says, likely to remain unchanged from its current trend.
“With not much change in acres and strong competition… there’s just not a lot of hope for prices to increase even slightly,” Anderson said. “The question is, how do I use this ground.”
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 Deken’s weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:
This week on SUNUP we start with a soggy update on winter crops from Josh Lofton.
- In the Mesonet weather report, Wes Lee looks at how close recent temperatures have been to average. Gary McManus shows us where drier conditions persist, even following recent rain and snow.
- Ryan Reuter explains why wheat pasture is an option for grazing livestock across Oklahoma. Also, Clint Rusk talks about the grazing research conducted at the Marshall Wheat Pasture Research Unit over the past 30 years.
- Paul Beck has information about the upcoming 30th Anniversary Field Day at the Marshall Wheat Pasture Research Unit on March 8.
- In Cow-Calf Corner, Glenn Selk explains how colder weather impacts birth weights of calves.
- Kris Hiney shows us how important the correct tack is for the comfort level of horses.
- Finally in Food Whys, Darren Scott shows us how much food Americans waste every year and the new goals to reduce it.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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