Agricultural News
OSU's Kim Anderson Says Wheat Prices May Have Found a Bottom
Thu, 21 Jul 2022 15:32:43 CDT
This week on SUNUP is Dr. Kim Anderson, Oklahoma State University Extension grain market economist. As wheat and prices of other commodities continue to go down, Anderson says he believes they have found a bottom, at least temporarily.
Since harvest started, Anderson said prices were around 11 dollars, then they went down to $7.98 in northern Oklahoma, and then to around $5.30.
“You look back over the last couple of weeks at both the future prices and the cash prices, I think they have found a bottom at least temporarily,” Anderson said. “I can’t see them going much lower.”
There has been a lot of talk about the dollar, Anderson said, and the dollar has been impacted over the last several months.
“The dollar is extremely high,” Anderson said.
In the market this week, Anderson said Egypt tentatively bought U.S. wheat and then canceled the purchase. There is also talk about the European Union lowering wheat production, Anderson added, and on top of that, there is the Russian and Ukraine situation.
“I think the market right now is betting that Russia and Ukraine will come to some agreement with the United States and other countries about sanctions and we will get that wheat out on the market,” Anderson said.
Anderson said the USDA is predicting an average annual price of wheat to be at $10.50.
“Now, I’d say the U.S. average price is maybe around 9 dollars at the best,” Anderson said. “You look at what has been going on in the last week, you know I said that the prices would be between 9 and 10 dollars as we got out in the year. This week I’m not so sure of that.”
Anderson said it looks like they are coming to an agreement on the Russian and Ukraine situation.
“I think the market is betting on that and I think that is why prices are low,” Anderson said. “ If we come to that agreement, that is going to put a lot of wheat out on the market.”
Looking out at the market, Anderson said he sees a bottom, but he does not think we will reach $10.50 and maybe not 9 dollars either.
Regarding other commodities with lowering prices such as corn, beans and cotton, Anderson blames Russia and Ukraine and the high value of the dollar.
This week on SUNUP:
• We travel to Noble County to meet with a producer who’s getting his forage sorghum hay tested for nitrates. Dave Lalman, OSU Extension beef cattle specialist, and Rick Clovis, OSU Extension agricultural educator in Pawnee and Osage Counties, offer management and forage testing advice.
• Alex Rocateli, OSU Extension forage systems specialist, gives guidance for producers wanting to use corn as forage.
• State climatologist Gary McManus says there is an above average chance of rain for much of the state in the next 6 to 10 days.
• Mark Johnson, OSU Extension beef cattle breeding specialist, discusses the benefits of early weaning during extreme temperatures.
• Kim Anderson, OSU Extension small grains specialist, says wheat prices may have finally hit bottom.
• Derrell Peel, OSU Extension livestock marketing specialist, breaks down the latest news in the cattle markets.
• Finally, Paul Beck, OSU Extension beef cattle specialist, has guidance for managing heat stress in cattle.
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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