Foreign Wheat Crop Expectations Slipping - Kim Anderson Betting this Sustains $5.00 Wheat in Okla.Thu, 14 Jun 2018 16:24:49 CDT
Combines are continuing to roll across Oklahoma as harvest in the state reaches the downhill slide. Meanwhile, the price of wheat has managed to stay well above $5.00 a bushel. This week on SUNUP - OSU Extension Grain Market Economist Dr. Kim Anderson joins host Lyndall Stout again, to discuss what he sees going on in the markets that have sustained this price level and what advice he has for farmers looking to take advantage of it.
According to Anderson, this past week ushered in a 50 cent increase to the basis. However, farmers also saw about 30 cents knocked off the futures price with about 20 cents of that recovered by the end of the week. Currently, Anderson reports that the Kansas City July contract has support at $5.20 which was tested in recent days, but seems to be holding there on the hopes of farmers. Soon, though, the market will roll over to the September contract where support rests at $5.36 - notice the 17 cent carry over there.
So, what is causing the market to remain so buoyant? Anderson rationalizes that the reason why is part and parcel with lowered expectations for many of the major foreign crops in Europe and Australia due to withering dry conditions much like what farmers have experienced here in Oklahoma this season.
As for a protein premium this year, Anderson says farmers can expect to see 20 to 30 cents folded in with the current basis - however, traders he’s spoken to do not believe these prices will last very long as good protein wheat has been steadily coming in. But, Anderson says if Russia and Australia’s crops turn out to be a bust this year, farmers are likely to enjoy relatively higher prices with or without a protein premium.
His advice to farmers is to take advantage of such a generous offering and suggests at minimum securing a basis contract.
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 Lyndall's weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:
We start the show with a look at potential wheat varieties with Brett Carver at last month’s Lahoma field day.
- Then, we learn from Jeff Wright about the importance of a clean combine when harvesting certified seed.
- In Cow-Calf Corner, Glenn Selk explains the importance of pregnancy checking replacement heifers.
- Todd Baughman says phenoxy based herbicides can damage unintended plants, but you may be able to save them.
- In Vet Scripts, Dr. Barry Whitworth has ways to prevent exposure of horses to the Equine Herpes virus.
- In the Mesonet Weather Report, we welcome Wes Lee as incoming agricultural coordinator at the Oklahoma Mesonet. He and Al Sutherland will be rotating appearances on SUNUP until Al retires in August. Gary McManus says exceptional drought is shrinking across western Oklahoma, but the potential for drought is growing in the east.
- Finally, we head to Tulsa County to see how middle school students are learning about the impact of fire to our ecology.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News