Agricultural News
We Have a Wheat Supply Problem, Not a Wheat Demand Problem, Kim Anderson Explains
Thu, 21 Jul 2016 23:51:24 CDT
OSU Extension Grain Market Economist Dr. Kim Anderson says seven out of the last nine years have seen record world wheat production, and those numbers are putting a strain on current wheat prices. He says that although wheat consumption has also been record breaking, it just hasn't been enough to offset some of the bumper crops.
"The average per year of production over consumption is 530 million bushels. That's a total of 4.8 billion bushels excess production over the last nine years," he says.
Anderson says sometimes the price of wheat and the price of corn are "married" and sometimes they are "divorced," but these days we are definitely seeing a marriage between the two.
"We've seen corn prices fall off a dollar over the last month," he says. "A lot of this is the wheat going into the feed market in replace of corn.
"And it's relatively good weather for corn production, which again is another supply problem."
Producers should continue to expect low prices through November and December to help reduce overall acres planted, and Anderson says Oklahoma wheat growers have a few considerations to make for the 2017 crop.
"I probably would not plant wheat on marginal acres, but my good acres, I'd plant wheat," he says. "But I'd make sure that I had protein and I had a good milling quality product, or I wouldn't raise it."
You can hear Anderson's comments that will be a part of SUNUP this weekend a day early by clicking on the LISTEN BAR below.
In addition to the the weekly Kim Anderson grain market outlook segment - here is the lineup of what will be seen and featured on this weekend's SUNUP program on OETA:
- Tom Royer says its time to start scouting for Sugarcane Aphids in sorghum.
- Josh Lofton explains how corn can fit into your cropping system.
- Damona Doye discusses how managing the cost of production on the farm or ranch can lead to long-term financial success.
- In Cow-Calf Corner, Glenn Selk defines Positive Associative Affect and how to use it to benefit the herd.
- In the Mesonet Weather Report, Gary McManus says drought is on the move, just not where we are used to seeing it.
- Finally, we learn the science behind blue-green algae from Marley Beem and Bill Henley.
The weekly program can be seen Saturday at 7:30 a.m. & Sunday at 6 a.m. on the statewide OETA network of stations.
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