Agricultural News
OSU's Kim Anderson Talks About the Further Decrease in Wheat Prices and What is Causing it
Thu, 05 Sep 2019 17:41:42 CDT
In his weekly visit with SUNUP host Lyndall Stout this weekend, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson addressed the further decrease in wheat prices over the past week.
"Last week I was looking at the December contracts, and it was on a sideways trend at $.10/bu to $.12/bu up and down range with support at $4.00/bu." Anderson said. "It popped that $4.00/bu resistance point. I also said last week that I was concerned about the basis falling off, but the basis actually increased a nickel."
Anderson says he missed the mark on the market last week, with the cash price of wheat falling $.13/bu. However, he says it bounced back by the end of the week. "The big thing is probably corn, people have been watching what is going on with the corn production," he said. "But something we haven't been paying much attention to or talking about is the value of the U.S. dollar."
Anderson says if you go back to June and July, the U.S. dollar index was around 95.2 and last week it got above 99. That was a 4% increase at the Texas Gulf. He says that us about $.20/bu decrease in wheat prices, because of the value of the dollar.
"If you back to the August WASDE, the market prior to the release had corn production at 3.2 billion, and the USDA came in at 3.9 billion bushels and everybody went ballistic," Anderson said. "Well Allendale came out this week with a new projection for corn production at just under 3.8 billion bushels. And you go back to August to now, the market has been trading that USDA number, and it looks like with the weather going the way it is, that number is going to be relatively close."
This week on SUNUP, we join you from the Tulsa County fair and start with an update on African Swine Flu with Dr. Barry Whitworth.
- Then, in the Mesonet weather report, Wes Lee explains why it has been so humid this year. Gary McManus says the recent rain has helped lessen drought and September could be wetter than average.
- Kim Anderson says producers should expect five dollar wheat at harvest, and they will need higher protein to get it.
- Brian Arnall explains a work-around for producers expecting to fertilize using DAP during a MAP shortage.
- J.D. Carlson has information about upcoming OK-Fire classes.
- In Cow-Calf Corner, Glenn Selk has factors to consider to help with culling decisions.
- In Food Whys, Darren Scott explains the history of canning and why it has become safer over time.
- Finally, we learn why the Tulsa County Fair is imortant to the citizens of the county and how it differs from the Tulsa State Fair.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
YouTube.com/SUNUPtv
SUNUP.okstate.edu
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