Growing Competition in the World Wheat Market Choking US Export Demand Out, Kim Anderson ReportsThu, 28 Mar 2019 21:17:10 CDT
Prices continue to struggle this week as wheat producers are beginning to grow understandably concerned about when they might expect to see some relief from the persisting depression in grain markets. Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins SUNUP host Lyndall Stout this weekend to attempt to address those concerns. In all frankness, Anderson says the general expectation a few months ago was that prices would be significantly higher by now. However, that has obviously not been the case.
Anderson attributes the market’s poor performance to a lack of export demand resulting from increased worldwide competition, specifically from the Black Sea Region which includes major contenders like Russia and Ukraine that have dominated the global wheat markets in 2018-2019. Initially, before the end of last year, speculators believed these countries would run out of exportable wheat and demand for US wheat would return. While those countries are now finally reporting limited supplies, demand has failed to return to the US due to the rise of a new generation of competitors in the wheat market.
By harnessing new technologies and varieties and the implementation of modern infrastructure, countries that were once considered Third World, have been able to increase their production and improve the quality of their crops and for the first time – have been able to attract export business away from the US.
Anderson predicts this trend will continue for a few years as countries like Romania, Hungary, Poland, Bulgaria and Paraguay continue to grow their wheat industries. At the same time, too, he says many importing nations are also increasing their production, which means they will be importing less product. While the situation may sound dire for the American producer, Anderson reassures that demand will eventually come back to the US. According to him, consumption is increasing faster than production. As economies around the world continue to grow, people around the world are demanding higher quality food. As consumption grows and economic success builds, Anderson says the world will turn to the US, which has been and continues to be the residual supplier of quality wheat.
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 on SUNUP we get an update on wheat across the state from Josh Lofton as well as an explanation of the importance of soil temperature when planting summer crops. Josh also has information about the upcoming canola tours.
- In the Mesonet weather report, Wes Lee looks at bare soil temperatures at four inches and how they compare to average. Gary McManus shows us why there is such a difference in the drought picture in comparison to last year at this time.
- We learn about an ongoing range research prescribed burning project in Southeastern Oklahoma with Laura Goodman.
- Then, John Weir explains why planning for prescribed burns in Eastern Oklahoma is different than in the western half of our state.
- Derrell Peel says the latest Cattle on Feed Report show there are more placements than usual.
- In Cow-Calf Corner, Glenn Selk explains why consistency in nutrition is important when adjusting cattle prior to the breeding season.
- Dr. Barry Whitworth has information about downer cows and why they can become this way.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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