US Not as Competitive in the World Wheat Market as It Once Was, Reports OSU's Dr. Kim AndersonThu, 21 Sep 2017 16:11:44 CDT
This week on SUNUP - Oklahoma State University Grain Market Economist Dr. Kim Anderson joins host Dave Deeken again, this time talking about how the world’s wheat market has evolved over the last ten years.
According to Anderson, world production has risen 4.9 billion bushels during the last decade, with current production at a record 27.3 billion bushels this year. The majority of this global increase in production comes from the former Soviet Union countries - Russia and Ukraine, which is up 46 percent. China, India and the European Union have all seen significant increases of their own as well. Anderson says only Argentina and the United States have declined in wheat production.
The issue, though, lies not just with production - but yield. On average, Anderson says the world yield average was 42 bushels per acre 10 years ago. Today, it has increased 20 percent to 50 bpa. The US has gone from 42 bpa to 47, an increase of 12 percent. Oklahoma’s average yield, however, has dropped nearly 14 percent during this time, from 33 to 28 bpa.
If you look at harvested acres, though, the world has increased by three percent, while the US and Oklahoma have lowered harvest acres by six and 18 percent, respectively. Anderson says the increase in yield is what is boosting production.
So, what’s really behind all this? Anderson attributes this expansion in wheat production to the use of new technology and improved management practices being adopted across the world - a change Anderson believes is here to stay.
The good news, though, at least in the short term, Anderson says he believes the price of wheat to be bottoming out. With both Argentina and Australia reeling from unfavorable weather conditions as they approach their harvest season, Anderson anticipates prices will soon begin to improve.
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, we visit the Great State Fair of Oklahoma!
- Misha Manucheri says winter crop producers should start planning a strategy to manage weeds.
- In the Mesonet weather report, Al Sutherland shows us which parts of the state got a little rain last week. Then, Gary McManus has an outlook that may contain slightly more rain.
- Damona Doye has information on protecting personal information following a recent cybersecurity hack.
- Then, we head to Grant County to see how 150 years has changed the Chisholm Trail.
- In Cow-Calf Corner, Glenn Selk explains why producers should consider temperament when making decisions about culling cattle.
- Derrell Peel says calf and stocker producers should watch the markets in the near future.
- Finally, we learn what goes into judging 4-H exhibits at the Great State Fair of Oklahoma!
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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