Agricultural News
OSU's Kim Anderson Says $5 Wheat Possible with a Crop That's High in Quality and High in Protein
Thu, 24 Oct 2019 22:47:12 CDT
This week on SUNUP, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins host Dave Deken again to discuss the current wheat market and price dynamics in Oklahoma. With roughly 80 percent of Oklahoma wheat crop in the ground, Anderson set the stage for what producers in the state can expect from an economic perspective moving forward.
Currently, Anderson says the price of wheat in Oklahoma falls somewhere between $3.90 to $4.00. Forward contracted wheat can earn about a quarter more at this time at $4.20 to $4.25. Overall, the current outlook is that prices across the board are and will remain relatively low.
Anderson asserts that given the situation, producers need to focus their efforts on producing a high-quality crop that is positioned to move come June and July. With a global shortage of high-protein wheat, Anderson says producers will have the opportunity to command a respectable premium at the elevator if they are able to deliver a superior product. Assuming they do, Anderson says a producer could walk away with $5/bu.
Without at least a level of 12.5 to 12.6 percent protein though, growers must realize they will be paid accordingly as markets compensate in order to remain competitive against European and Black Sea grain.
Anderson advises farmers to carefully consider their inputs, remarking on the latest OSU research which suggests that timing is everything when it comes to nitrogen applications. Under the right management, Anderson says an accurately timed application can reduce costs, improve quality and stimulate price.
You can hear all of Kim's comments this Saturday and Sunday on SUNUP or you can hear Kim's full analysis right now, by clicking or tapping on the LISTEN BAR below.
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