OSU's Kim Anderson Talks About the Current State of the Wheat Market and the Projections for the U.S.Thu, 11 Jul 2019 17:40:33 CDT
Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins SUNUP host Lyndall Stout this weekend for his weekly update on the grain markets. According to him the protein content, test weights and the overall quality of the Oklahoma wheat crop this year are down.
The July 2019 United State Department of Agriculture (USDA) World Agriculture Supply and Demand Estimates (WASDE) report was released and it shows some impacts on the wheat market. Anderson says the USDA increased yield per acre from 37 bushels to 38 bushels per acre in Oklahoma. However, they lowered the overall production for Oklahoma to 104 million bushels compared to the projected 111 million bushels. In the U.S. test weights are coming in just under 60 pounds. Protein content is coming in around 11.3% to 11.5%, the market would prefer it around 12.5%.
U.S. projections are still as high as expected at 1.92 billion bushels. With Hard Red Winter Wheat making up 875 million bushels of that. Corn production is projected at 13.9 billion bushels and soybean projections settle in at 3.85 billion bushels.
In the Black Sea Region, Russia and Ukraine’s early harvest is coming in with a protein content above 13%, which is too high for bread flour. The U.S. protein is too low, while the Black Sea Region protein is too high. Anderson expects other countries to buy wheat from both the U.S and the Black Sea Region to blend them together to get the protein content they want.
In the panhandle wheat is at $4.20/bu and corn is at $4.40/bu. Wheat should be used for feed again this year, Anderson added. From an export stand point, the world is still going to want this year’s wheat. However, the domestic millers are going to want to keep the crop in the market here. Anderson is hopeful the millers will bid high on the wheat to keep it in the domestic market.
You can watch Kim's full report tomorrow or Sunday on SUNUP, or you can listen to his comments right now, click the listen bar below.
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