OSU's Kim Anderson Explains the China Deal Last Week That is Plaguing all Agriculture Commodity MarketsFri, 09 Aug 2019 14:14:37 CDT
On this week’s episode of SUNUP, host Dave Deken and Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson discuss the China deal last week that is plaguing all agriculture commodity markets.
“I don’t think much has changed over the last week,” Anderson said. “If you look at wheat, on average China imports about 127 million bushels of wheat a year. Which is just a little bit more than Oklahoma’s wheat crop. Of that 127 million only 38 million come from the United States. Which is about 30% of China’s imports. On the 2018-2019 marketing year for wheat, zero wheat was imported by China from the United States.”
Anderson says, China only imports 144 million bushels of corn, with 23 million bushels of that being U.S. corn. However, China imports 3.2 billion bushels of soybeans each year, with 1.1 billion of those bushels coming from the U.S. Last year China only imported 528 million bushels of U.S. soybeans. They also import about 5.9 million bales of cotton each year, of that 1.8 million bales come from the U.S., he added.
There are other countries interested in these commodities. With China buying essentially all of their soybeans from Brazil, that opens up other countries to the U.S. Anderson alluded to the fact that the China deal has affected U.S. wheat and corn prices, but it has had a greater impact on soybean and cotton prices. The U.S. is picking up other markets, however they are not enough to make up the loss of the Chinese market, he added.
“Our wheat here in Oklahoma averaged 11.3% protein, that means a lot of this crop needs to go into the feed market,” he said. “We either need to export it as feed, or we need to feed it into our feed mills, or our livestock feedlots.”
This year, the farther the harvest went for hard red winter wheat, the lower the protein content got. Overall, the average protein content of wheat decreased. Anderson says, often times Oklahoma will import protein wheat from Kansas to blend together then move into the market. However, Anderson is skeptical this will be possible this year.
This week on SUNUP we learn how the West Nile Virus can impact equine from Kris Hiney and Barry Whitworth DVM.
- Then, Justin Talley explains how insects can transfer viruses between animals.
- In the Mesonet weather report, Wes Lee says August 5 is typically the hottest day of the year but he shows us how 2019 has been anything but typical. Gary McManus shows us where drought is intensifying across the state and where the Climate Prediction Center is optimistic for rain next week.
- Kim Anderson says if China doesn’t buy U.S. commodities, someone around the world will. He also says it might be time for some producers to look at returning wheat acres to pasture land.
- In Cow-Calf Corner, Glenn Selk explains the importance of ensuring vaccines are stored at the correct temperatures.
- In Naturally Speaking, Marley Beem tells us why fish kills happen and what landowners can do to prevent them as we move into fall.
- Finally, we see how a community is teaming up with OSU Extension to show how their food is grown.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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