OSU's Kim Anderson Spoke to SUNUP About the Wheat Prices and Where They Will Go From Here.Thu, 23 May 2019 17:20:43 CDT
In his weekly visit with SUNUP host Dave Deken this weekend, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson talks about current wheat prices and what to expect in the future.
For 2019 the USDA World Agricultural Supply & Demand Estimates Report (WASDE) projected U.S. wheat prices to be $4.70/bu. In Oklahoma the actual average prices over the last 10 years have came in 20 cents lower than the projected national average, Anderson said. Anderson eluded that unless things change the prices on wheat will stay below $5.00/bu this year.
Anderson said, if a producer is thinking of developing a marketing plan, it is extremely important that they not base it on the outlook for the year. He also said that producers need to get the emotion out of their marketing plan due to low prices.
While past transactions do not indicate what is going to happen. Over the last 11 years the best time to sell wheat is in the months of June, July and August. In those months, the average price was $5.85/bu. However, if you wait until September or even later that average price drops considerably. Have a majority of your grain sold by September, Anderson said.
Perhaps the reason for the price increase this week is that Russia and Ukraine have ran out of wheat to sell. However, Anderson says the stocks of quality wheat have tightened up. The world price of wheat increased and brought the U.S. prices with it.
The market is looking at what is going on with the new crop. For instance, the HRW wheat and SRW wheat areas have had too much rain overall. Which may cause a lowering in yields and a lowering in quality.
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.
This week on SUNUP itís all about rain. We start in western Oklahoma with a look at how the rains last week are still preventing field work and Jason Warren explains how water moves through different soil types.
- Brian Arnall says certain nutrients move through the soil with excessive moisture. He advises watching the plants, they will show you what they need.
- In the Mesonet weather report, Wes Lee says the soil profile across the entire state is saturated for the first time in a long time. Gary McManus says 119 of the 120 Oklahoma Mesonet sites have received above normal rainfall since March. He shows us where the lone holdout is.
- Then, Dave Lalman has advice for producers who have cattle stranded by flooding.
- Dr. Barry Whitworth has information about how excessive wet weather affects livestock.
- In Cow-Calf Corner, Glenn Selk has research into the benefit of culling temperamental cows.
- Kim Anderson says the recent 40-cent price hike in wheat could be a sign of whatís to come and producers should pencil out their marketing strategy now.
- We have information about the upcoming Northwest Oklahoma Ranch Tour.
- Finally, we have links to County Extension Offices and resources for help following natural disasters.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on
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