Kansas City Wheat Futures Are Up- What's a Wheat Farmer to Do? Kim Anderson Explains AllThu, 01 Mar 2018 18:14:44 CST
There will be no SUNUP show on OETA this weekend- but Dave Deken with the SUNUP show did spend a few minutes with Dr. Kim Anderson to get his take on the current status of the hard red winter wheat market.
Dr. Anderson says be cautious about any forward pricing of the 2018 winter wheat crop- even with the recent jump in wheat prices. He tells Deken that if you are areas that got little rain in recent days and the crop still is looking poor to very poor- it would be a mistake to forward contract any wheat as you may have a hard time having enough bushels to meet any obligations that you would incur. He does advise producers in areas that got rain and that the wheat has responded to think about forward contracing a small amount- say ten to fifteen percent of your expected bushels if you are feelig risk adverse.
Dr. Anderson believes that this latest price move is the market telling the wheat producers across the winter wheat belt that it is looking for bushels of good qality wheat. There was been a dollar increase from early December to the first of March in the July 2018 Hard Wheat Futures Contract- and Andeson says that is due in part to droughty conditions in Oklahoma and Texas- and to a lesser extent in Western Kansas.
Globally, Anderson says that China has about half of the wheat in storage in the world- and that if you subtract their stocks from the global totals- the world does not have a glut of wheat.
Click on the LISTEN BAR below to hear Dave Deken and Kim Anderson talk wheat prices and marketing ideas.
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