Kim Anderson Says Wheat Prices Volatile in June, But Producers Could Expect a Rally Later This SeasonThu, 27 Jun 2019 17:40:06 CDT
Rains have subsided in Oklahoma, enough that combines have been able to get into fields and continue with wheat harvest which now stretches from southwest Oklahoma up into Kansas. This weekend on SUNUP, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins host Dave Deken again to discuss how the price of wheat has fluctuated.
Over the course of this month, Anderson says prices have moved up and down within a range of anywhere from $4.75 a bushel to as low as $4.30. At present, the price has come off a recent rally now at $4.50. Overall, he says the current market is quite volatile. Anderson ascribes that to the 65 cent premium that SRW wheat has over HRW wheat currently, in addition to lower than preferable test weights and protein levels that have been included in early reports from the field.
From a global market perspective, exports have performed well but Anderson says the general expectation is that they should soon begin to taper off as foreign competitors from the Black Sea Region begin harvesting their crops. As of now, 20 to 25 percent of the world’s total wheat production has been harvested. Both India and Pakistan, self-sufficient countries in terms of wheat, have increased their production this year and are likely to export more this year than in the past. Egypt, the world’s No. 1 importer of wheat, has also increased its production and is likely to reduce its total imports. All of this, coupled with the increased production in the former Soviet Union countries which currently control the market, is likely to impact the United States’ ability to market its wheat globally.
However, Anderson says there is a slight chance that the Black Sea Region could potentially lose its crop. If that comes to pass, Anderson says the US price of wheat could pickup as much as $3 to $4 dollars. He maintains that producers should consider selling their wheat before the end of September – when the Black Sea will have gotten its harvest underway and more accurate forecasts of its crop can be made. Historically, Anderson has reported that in the last several years, farmers who have sold their crop after September 30th have received a lower price than farmers who sold before that date.
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 their weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:
This week on SUNUP, Dave Lalman shows us how they are studying the feed efficiency of cattle and he explains what that could mean for breeding more efficient cattle.
- In Cow-Calf Corner, Glenn Selk explains why it is important to monitor mineral feeders during the summer months.
- Tom Royer has advice for producers as summer crops mature.
- In the Mesonet weather report, Wes Lee says soil moisture varies greatly across the northern part of Oklahoma, especially between Miami and Boise City. Gary McManus shows us how much rain the state has received in 2019.
- Bruce Dunn explains how hydroponics can be used in agriculture and has information about an upcoming conference.
- Finally, In Food Why’s, Darren Scott explains the difference between cast iron, stainless steel, and carbon steel pans.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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