Anderson Urges Farmers to Take Advantage of Wheat Market RallyFri, 19 Dec 2014 11:47:06 CST
Christmas came early for Oklahoma wheat farmers. In this weekend's edition of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson talks about the rally that surprised. The Kansas City wheat price has been wallering around $6 dollars for the past several weeks. Recently wheat broke through $6.20 and went higher to $6.60, then came down, only to return higher and now be near $7.
SUNUP host Lyndall Stout asked Anderson about what contributed to the bounce in the market. He said the rally comes from the usual suspects with Russia having potential problems with quality and restricting exports. The European Union has crop quality problems with their harvest, Australia looks to have a slightly smaller harvest than anticipated and Argentina has policy restrictions on their wheat exports. This week the Obama Administration also announced efforts to normalize trade relations with Cuba which could result in potential wheat exports. Anderson said plus you have the United States with below average stocks and below average yields this past year.
For the past several weeks Anderson has talked about this market going into the holiday season, which can bring some unexpected moves. At this point its hard to tell how long $7 dollar wheat will last. Anderson said he will have to wait until after January second when there is more volume and participation in the market. He is attributing the latest price rally to the funds moving their money out of the cattle market and putting that capital into corn and wheat. He said they went from net short in wheat to net long and he thinks that is a big reason for the move.
In looking at the harvest price, he said farmers can buy a $6.40 or $6.50 put for 30 or 40 cents and lock in a minimum price of $6. Anderson said right now you can forward contract wheat at $6.50 a bushel for harvest delivery and if the US has a decent wheat crop, he thinks that will be a good price.
This week on SUNUP, we talk with Brian Arnall about soil nutrients and N-Rich strips, which should appear soon in wheat fields.
-- In a holiday edition of Cow-Calf Corner, Glenn Selk explains why reindeer have the ability to fly.
-- Derrell Peel analyzes the U.S. livestock trade with Canada and Mexico.
-- In the Mesonet report, Al Sutherland covers year-end rainfall totals, the recent lack of sunshine in Oklahoma and the latest drought monitor.
-- Then, Kim Anderson looks at the factors behind this week's wheat price rally.
-- A holiday greeting from DASNR Vice President, Dean and Director Tom Coon.
-- Next, James Trapp recalls highlights from Extension's centennial celebration year.
-- We travel to Major County to join Charlotte Tucker as she puts the finishing touches on the Extension centennial quilt. Recia Garcia talks about the quilt block challenge, and we visit with 94-year-old Marie Davis of Washington County, who won first place in the hand-pieced category.
-- Finally, an encore of SUNUP's "A Cowboy Christmas" with OSU President Burns Hargis.
Catch SUNUP: Saturdays at 7:30 a.m. & Sundays at 6 a.m. on OETA-TV
SUNUP can be seen on OETA across the state of Oklahoma- Dr. Anderson's segment on the markets is one of the standard features of this weekly show from Oklahoma State University. Catch SUNUP online through the OSU website by clicking here or through YouTube by clicking here.
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