Russia Selling Venezuela Higher Protein Wheat for Less Than the US and Canada Can OfferThu, 24 Aug 2017 16:23:11 CDT
Once again, OSU’s Extension Grain Market Economist Dr. Kim Anderson joins host, Dave Deeken, on SUNUP this week, talking about the price of wheat, which after another week - has taken an even bigger beating.
Anderson says the Kansas City contract for wheat dropped below $4.00 this past week now at $3.99, the December contract at $4.27 and July a little better at $4.77.
In his conversations with other market analysts, it seems no one is willing to guess at where a bottom to this trend lies. He says prices continue to decline because of the news coming out of Europe, particularly from Russia and the former Soviet states. Anderson reports that Russia has the potential to produce over 3 billion bushels this year, and will likely reclaim its place from last year as the world’s No. 1 exporter of HRW wheat.
Russia has boasted its latest sales of 12.5% protein wheat at low prices and easy delivery. France, too, has stepped up, announcing that 92% of their wheat crop this year features 11.5% protein or better, making for excellent milling quality wheat.
Venezuela has jumped on board with Russia, as the country’s first customer this year, purchasing 2.2 million bushels expected for delivery. Venezuela has traditionally been a market for the US and Canada.
With increased competition ramping up, Anderson predicts that US exports will likely shrink this year. He says he is keeping his fingers crossed that the markets have already accounted for this eventuality. He believes the markets are building a bottom, but expressed that belief with cautious optimism.
Before seed goes in the ground, though, Anderson advises producers that marginal acres will probably not be affordable. He insists the important things to do will be to manage your costs and grow for high yields.
You can watch their visit tomorrow or Sunday on SUNUP- but you can hear Kim's comments right now by clicking on the LISTEN BAR below.
Beyond Dr. Anderson’s weekly chat - the SUNUP crew has a very full lineup for your viewing this weekend:
This week on SUNUP, Brian Arnall explains how the recent moisture can impact soil fertility, especially ahead of winter crops.
- In Cow-Calf Corner, Glenn Selk explains how long a heifer or cow takes to calve, and when you need to call for help.
- Derrell Peel says recent temperatures and moisture favor potential wheat-pasture for cattle in Oklahoma.
- In the Mesonet weather report, Al Sutherland has the big winners of the recent rain, and Gary McManus has a drought monitor that reflects a wetter than normal August.
- In Food Whys, Tim Bowser explains the difference between conventional and convection ovens.
- Finally, we travel to Blaine County to learn how a family has added creativity to their farm to diversify their income.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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