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Agricultural News

OSU's Kim Anderson says Price Index and Russia and Ukraine are Impacting Wheat Prices the Most

Thu, 22 Sep 2022 16:44:12 CDT

OSU's Kim Anderson says Price Index and Russia and Ukraine are Impacting Wheat Prices the Most This Week on SUNUP is Oklahoma State University Extension grain market economist, Kim Anderson. During this week's edition, Anderson talks about factors impacting commodity prices.

Anderson said wheat prices this week were trending downward.

“Last week they dropped off a little bit,” Anderson said. “On Monday they were lower, but then on Tuesday, we had a big increase in wheat prices, and we got wheat prices going from about $8.70 a bushel to $9.25 a bushel in northern Oklahoma.”

Anderson said the most important thing to take away is that prices broke at 9 dollars and that has been a resistance point lately in wheat prices.

“I think the big reason for the increase in prices is what is going on in Ukraine with Russia,” Anderson said. “Ukraine has been taking territory that Russia had captured earlier. President Putin has been under the gun- there have been calls for him to resign within Russia and the way he seeks to get his points back up, get back popularity increasing, is to start winning in Ukraine.”

When Putin starts making threats such as shutting down the black sea, Anderson said prices are going to move.

Anderson said the Russia and Ukraine situation did not have any impact on corn and bean prices.

“We didn’t see any spillover into corn and beans, and I was surprised at that, especially corn with Ukraine because Ukraine has been exporting corn,” Anderson said.

Because of this, Anderson said he feels like it shows that the world is more concerned with wheat than corn and soybeans.

“You look at corn, around $7.60, it dropped off a little bit earlier in the week, it came back a little bit, but not much moves at all in corn,” Anderson said. “Same thing with soybeans, up around $4.15, dropped off 30 cents or so, which is not much for beans, and came back and recovered that area.”

Cotton has fallen from about $1.16 for December contract, Anderson said, and went down to 93 cents, then up to 96 cents.

Anderson said aside from Russia and Ukraine, the dollar index is impacting prices.

“That increasing value of the U.S. dollar I think is having an impact on all the prices,” Anderson said. “You go back to April, that index was 98, it is up near 111 right now. That is a 13 percent increase in the value of the dollar, and that means our commodities are 13 percent more expensive on the world market, and I think you’ve got to look at exports and the demand for exports. That is what has been driving our prices.”

Four years in a row, Anderson said world wheat production has been a record, but also four years in a row, consumption has been at a record and also higher than production, so we are losing stocks.

“I think what you have to look at there, is would the consumer rather have an extra bag of flour on the shelf or be wondering where they are going to get that next bag and I believe our use has increased because we are stocking the flower and the importing countries are stocking the wheat,” Anderson said.

This week on SUNUP:

Amanda Silva, OSU Extension small grains specialist, offers planting advice for producers who are dusting in wheat.
Colter Chitwood, OSU assistant professor of wildlife, talks about the recent case of chronic wasting disease in a deer found near the Oklahoma border.
Wes Lee, OSU Extension Mesonet agricultural coordinator, says drought conditions have depleted the percentage of plant available water. State climatologist Gary McManus predicts more hot and dry weather is on the way.
Mark Johnson, OSU Extension beef cattle breeding specialist, explains the benefits of early culling in beef breeding heifers.
Kim Anderson, OSU Extension grain marketing specialist, analyzes the impacts of Russia’s war with Ukraine on the wheat market.
Tom Royer, OSU Extension entomologist, says producers planting wheat for pasture need to be on the lookout for fall armyworms.
• Finally, Dave Lalman, OSU Extension beef cattle specialist, discusses ways to manage hay waste this winter.

Join us for SUNUP:
Saturday at 7:30 a.m. & Sunday at 6 a.m. on OETA-TV



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