Agricultural News
OSU's Kim Anderson Talks about the Current Rise in Wheat Prices and What the Future Looks Like
Thu, 17 Oct 2019 22:53:51 CDT
In his weekly visit with SUNUP host Dave Deken this weekend, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson talks about the wheat prices now and in the future.
"There is a possibility that we are going to get higher prices," Anderson said. "Last week it popped through that $4.10/bu resistance, and went up and took out $4.20/bu."
Anderson says he thinks that $4.20/bu mark was a critical point to get to. He says the market held above that mark this week. He thinks the market may be able to get up to $4.30/bu to $4.40/bu. However, if the market goes back down below $4.20/bu, the $4.00/bu low could be challenged.
"The news right now, is mostly in spring wheat production in the Northern U.S. and Canada," he said. "The excess rains along with freezes and snows, is reducing the quantity and quality of those products. That is going to reduce the protein around the world."
He says there is still uncertainty when it comes to Russian production. That is just a waiting game, he added. In Australia, they continue to be dry and continues to lose production. There is also speculation that Argentina will have lower production this year, he added.
"Right now, the market is just waiting to see what is going to happen," Anderson said. "Mostly in the southern hemisphere I think Northern U.S. and Canada and then Russia, the market has a relatively good handle on what's going on there. However, there could be some surprises there, as there has been in the last several years with Russian production."
He says prices typically go up as you head into the December and January time periods. And he thinks that could happen this year. In the forward contracts, you can contract for $4.15 to $4.20/bu, he thinks the market is pricing relatively low protein content.
To see what else SUNUP has in store for this week's show, click here.
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