Agricultural News
Though Grain Prices are High, Input Costs are Also Rising Says OSU's Kim Anderson
Thu, 30 Sep 2021 13:45:54 CDT
This week on SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson talks about grain futures markets. Corn and Soybeans are in the middle of the harvest season and winter wheat is begging to be planted, according to Anderson.
"Markets are watching the Russian plantings right now," Anderson said. "It is dry in some key areas (and) they are talking about planting less acres in 2022 than 2021. Lower production is going to put some stress on our tight wheat stocks."
At the same time, Anderson said problems within some of the world economies are also affecting grain futures market prices.
"Let's start with China," Anderson said. "You got a major construction company that is having trouble making its payments, it may be going belly-up with some other construction companies - that is about 25% China's economy."
If the housing development company Evergrande fails, Anderson said that could cripple China's economy, possibly affecting trade around the world. This week, China bought U.S. soybeans and cotton, which Anderson said is important when looking at the markets.
Right now, in the U.S., wheat prices are around $6.75 and have been for the last three or four weeks, according to Anderson. In the short run, he said prices are on a down-trend, but looking at the long run, it looks like U.S. wheat prices are establishing an upward-sideways pattern.
Corn follows wheat, with prices around $5.20 for the last few weeks, Anderson said. The short-run for corn looks sideways, but the long-run looks like it is trending down, he added.
Soybeans have been on a down-trend but seem to be leveling out, Anderson said.
Cotton us way up, Anderson said, thanks to strong overseas demand with about two-thirds of that coming from China.
All this news translates to more dollars for U.S. producers, according to Anderson. At the same time, input costs are also rising, he added.
Hit the LISTEN BAR below to hear more from Dr. Anderson this week on SUNUP.
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This week on SUNUP, OSU Extension small grains specialist Amanda Silva has recommendations for producers who have decided to plant wheat by dusting it into their dual-purpose systems.
In the Mesonet weather report, OSU Mesonet agricultural coordinator Wes Lee summarizes overall rainfall and average temperatures for this past summer. State climatologist Gary McManus says nearly all of Oklahoma is facing drought.
Amy Hagerman, OSU Extension agricultural policy specialist, discusses drought assistance programs available through the USDA.
In Cow-Calf Corner, OSU Extension beef cattle specialist Dave Lalman discusses the impacts mature weight and body condition scores have on forage intake in cattle.
Roger Sahs, OSU Extension agricultural economic specialist, explains the benefits of land leasing surveys.
Then, OSU Extension fruit and nut specialist Becky Caroll gives us a pecan update.
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