Thu, 13 Oct 2022 16:28:15 CDT
This Week on SUNUP is Oklahoma State University Extension grain market economist, Kim Anderson. During this week's edition, Anderson talks about crop prices and factors impacting the grain markets and economy.
There was not much movement this week with corn, beans and cotton, Anderson said, but wheat went up 55 cents on Monday and came back down 33 cents on Tuesday.
Corn this time last week was $7.54, Anderson said, and went down to $7.46 and back up to $7.60 and is looking like it is moving sideways.
Soybeans last week were $13.24, Anderson said, and $13.46 this week, so they are staying in a narrow range.
“Cotton was down at 83 (cents) last week, went up to 88, back down to 86 or 87, so it is just short, small movements there,” Anderson said.
The Ukraine and Russian war, Anderson said, is to blame for the volatility in wheat prices.
“Ukraine and Russia are both important to the world’s economy- especially Russia,” Anderson said. “In the area over there, Russia invaded Ukraine and took some eastern section on around to the southeastern part of it. What they have accomplished there, is they have got poor facilities and they can, to a certain degree, control the exports, out of Ukraine and out of Russia."
Anderson said Russia has taken over a major industrialized agricultural section of Ukraine.
“You are talking about 5 million metric tons of crops coming out of that and going into exports,” Anderson said. “Plus, you have got those export facilities along that Sea of Azov coming out there and Russia wants those export facilities so they can control them. Right now, all Ukraine has got is one export facility in the Black Sea, but the export facilities in Azov- they are not available anymore. Russia wants to control those, and when they control those, they control the good part of Ukraine’s agriculture.”
As for the WASDE (World Agricultural Supply and Demand Estimates), Anderson said he has never seen the report match the expectation so perfectly.
“There was just essentially no difference, you know minor differences, but no difference between expectations and what USDA came out with,” Anderson said.
Russia and Ukraine are having the largest impact on the markets currently, Anderson said, because they are not only impacting grain prices, but other inputs that come out of Russia such as oil and gas.
This week on SUNUP:
• Todd Baughman, OSU Extension weeds scientist, discusses the concerns of herbicides in failed summer cropsused as forage.
• Wes Lee, OSU Extension Mesonet agricultural coordinator, explains how the recent rains had little impact on soil conditions. State climatologist Gary McManus says Oklahoma and Kansas are facing the worst drought conditions in the country.
• SUNUP visits the recent Rural Economic Outlook conference and speaks with James Mintert, professor and director of the Purdue University Center for Commercial Agriculture, about the challenges producers are dealing with, including high input costs.
• Derrell Peel, OSU Extension livestock marketing specialist, says the lack of wheat pasture prospects has led to a decline in the stocker cattle market.
• Mark Johnson, OSU Extension beef cattle breeding specialist, explains why retaining heifers and marketing them as bred heifers could be beneficial to your operation.
• Kim Anderson, OSU Extension grain marketing specialist, updates us on the continuing impact Russia’s war on Ukraine is having on world crop markets.
• Finally, Marley Beem, OSU Extension aquaculture specialist, discusses drought-stricken livestock ponds.
Join us for SUNUP:
Saturday at 7:30 a.m. & Sunday at 6 a.m. on OETA (PBS)
YouTube.com/SUNUPtv
SUNUP.okstate.edu
