Agricultural News
This Week on SUNUP - Kim Anderson Begs the Timely Question of To Sell or Not to Sell Your Wheat
Thu, 19 Jan 2017 17:11:48 CST
This week on SUNUP - Lyndall Stout is joined again by Dr. Kim Anderson, Oklahoma State University Extension grain market economist. During this week's edition, Anderson work's through the latest developments in the wheat markets to help producers storing grain right now, decide whether or not to sell yet.
According to Anderson, producers have seen an increase of about a dollar in wheat prices after they bottomed out early last fall, resting now at about $3.15, plus an additional .03 of interest if taken from the loan. He says if producers took it all out now, they would save about three months storage cost of .12-.15 bringing a total expected price of roughly $3.53 - $3.60.
Under current conditions, now, Anderson advises, is probably a good time to start taking wheat out from the loan. If not all at once, then at least staggered slowly over the next few weeks and months.
Looking ahead, based on weather forecasts which call for above average temperatures and average moisture in 2017, Anderson says he expects an average crop. In fact, he says we may also be dealing with a potentially early harvest, alluding to conditions that may prompt plants to take an early exit from dormancy.
He continues that if producers can secure a good weight and protein in their wheat crops this year, we could even expect to see rallies in the futures market, resulting in a higher cash price. His advice - sell your wheat at harvest.
"I think sell the wheat at harvest," Anderson said. "This may be the year because between the lines, we're getting reduced production expectations around the world. If that will continue we'll get that big price increase in that September/October time-period."
Beyond Lyndall's weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:
This week on SUNUP, we start with David Marburger and J.D. Carlson explaining the Oklahoma Mesonet's First Hollow Stem Advisior.
- In the Mesonet Weather Report, Al Sutherland and Gary McManus show the areas of the state that received the most rainfall and whether it impacted the drought monitor.
- Then, Brian Arnall tells us how producers can improve yields with basic experiments and record keeping.
- Rodney Jones has advice for producers who are thinking about leaving their cattle on grain-intended wheat.
- In Cow-Calf Corner, Glenn Selk builds a calving kit ahead of the spring calving season.
- Kim Anderson says wheat prices are up and says it may be time to sell.
Join us for SUNUP:
Saturday at 7:30 a.m. & Sunday at 6 a.m. on OETA-TV
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