USDA Seedings Report Suggests Farmers Can Expect Another Year of Increased Wheat ProductionThu, 18 Jan 2018 19:04:52 CST
This week on SUNUP - OSU Grain Market Economist Dr. Kim Anderson joins host Lyndall Stout again, this time recapping the USDAís Ending Stock, WASDE and Seedings reports released last week. According to Anderson neither the stocks or WASDE report made much impact on markets, but the Seedings report did - especially related to HRW.
Anderson says the price of wheat fell $.014 last Friday followed by another $0.04 on Monday. Since then he says it has gained back about $0.08 over the week. Looking at other grains though, corn he says was essentially unchanged and soybeans actually received a $0.10 bump upon the reportís release and then another $0.23 the following session.
What caused wheatís price to drop, Anderson says, is that the expectation was for wheat seedings to drop by about 10%. However, the report actually noted a 1% increase. In translation, 9% more wheat acres were planted that what was anticipated which means the industry can once again expect increased production.
Anderson says Oklahoma farmers reacted to the already low wheat prices, and planted 9% less acres. But farmers in Kansas and Texas, collectively planted 9% more, effectively offsetting the amount Oklahoma didnít plant.
Not all is bad though, says Anderson. With increased production - if consisting of quality grain with high protein content and test weight - it can be blended with the subpar grain sitting in bins. By doing so, Anderson says producers may be able to market their grain better and get it moving. But, he stresses that this yearís production must be of high quality.
You can watch their visit tomorrow or Sunday on SUNUP - or you can hear Kim's comments right now by clicking on the LISTEN BAR below.
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