Grain Economist Kim Anderson Says Prices are on the Move and Summer Crops are in the SpotlightThu, 21 Jun 2018 17:38:37 CDT
Producers have been frustrated and at the same time intrigued by what has been happening in the markets this week, Oklahoma State University Extension Grain Market Economist Kim Anderson included. He joins host Dave Deeken again this weekend on SUNUP to talk about all that has been going on - starting with some of the good news.
According to Anderson, the basis for wheat is currently at about 20 to 20 cents above the July Kansas City contract. To put that into perspective, over the last ten years, that basis in June has averaged 51 cents below the July contract price. Anderson explains that the strength in the basis right now, in his mind, is a reflection of the good protein levels and test weights found in this year’s crop.
On the other hand, prices in the futures market have decline. This, says Anderson, is reflective of the increased demand on the export market which has driven prices down in order to keep US wheat grain competitive on the world market.
Meanwhile, as harvest wraps up in Oklahoma, producers are now beginning to turn their attention to their summer crops. Anderson reports that currently, the US corn crop condition is looking excellent with higher than anticipated yield expectations which have started to drag the price of corn down about 40 to 50 cents - bringing the current price for corn to $3.75 and a forward contract price at $3.30 for harvest delivery.
And then there is soybeans, which Anderson remarked, “has a lot going, right now.” In recent days, the price of soybeans has declined by about $1.50 down to $9.10 and forward contract price of $8.25. Anderson attributes the obvious increase in risk associated with rising trade tensions with major US soybean customer China.
This developing situation, Anderson says, is having many indirect impacts on all agricultural markets and adding pressure to an already diminished ag economy.
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 Deeken'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 recap of the 2018 canola crop and a look at summer crops with Josh Lofton.
- In the Mesonet weather report, Al Sutherland introduces us to the newest Mesonet station in the state. Gary McManus says El Nino could influence weather patterns this winter.
- Brian Arnall put on his orange lab coat and explains how sulfur impacts soil nutrients.
- In Cow-Calf Corner, Glenn Selk has a formula to figure out how much water your cattle use.
- Derrell Peel says “so far, so good” about supply and demand of the cattle and beef markets in 2018.
- Dwayne Elmore guides us through the slippery subject of rattlesnakes.
- Finally, we head to Grant County, and learn why four generations of wheat producers continue to bring in a crop.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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