Agricultural News
This Week on SUNUP - Dr. Kim Anderson Talks About the Uncertainty Plaguing the Markets
Thu, 18 Jul 2019 18:17:58 CDT
Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins SUNUP host Dave Deken this weekend for his weekly update on the grain markets. According to him, as we move from harvest and into planting season, the market is very volatile right now. He says producers should expect that for some time, with the uncertainty plaguing multiple markets right now.
Andersons says during this time of year in the past Oklahoma producers have sold anywhere from 50 to 70% of their crop into the market. Producers are looking at when to move their crop right now. The price of wheat the last couple of weeks has risen as much as $.45/bu and has now gone back down $.40/bu. That is the volatility in the market producers should expect in the coming months, he said.
To understand the price changes in the market, you have to go to the Black Sea Region. Russia and Ukraine are both in the early stages of their harvest. Russia is currently coming in with protein around 13%. Recently Russia sold wheat to Egypt $.20/bu higher than our prices, he added.
With the potential of a smaller corn crop this year, there are opportunities to see wheat in the feed market. Anderson said this is still uncertain due to the fact of so many uncertainties in the corn market. No one will know what the corn crop will look like until the USDA releases its next report. This uncertainty in the corn market creates tension in the wheat market. Anderson alluded to the fact that if we see a smaller corn crop, wheat will be seen going into the feed market which will be good for Oklahoma producers.
There is excess grain sitting in storage overseas right now, which for Oklahoma producers could be a good thing. He says this causes there to be an excess in the transportation sector, making it cheaper to transport our commodities to our world markets.
This week on SUNUP we learn from Justin Talley about managing flies and mosquitos around cattle and horses to prevent the spread of diseases.
- In the Mesonet weather report, Wes Lee explains how heat and humidity is expanding across the state. Gary McManus shows us where drought conditions could soon be reentering the state.
- Then, Alex Rocateli demonstrates how the practice of wicking is a more efficient way to control johnsongrass. Misha Manuchehri explains why wicking is a better use of herbicide.
- Derrell Peel says projected corn production could impact cattle prices.
- In Cow-Calf Corner, Glenn Selk explains how hot weather can impact motility in bulls.
- Kris Hiney warns against using mold damaged hay.
- Finally, Kim Anderson says the word of the week is "uncertainty." He says producers should pencil out the potential for a 2020 wheat crop right now.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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SUNUP.okstate.edu
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