OSU's Kim Anderson Talks About the Impact the Uncertainty in the Corn Market is Causing in the Wheat MarketThu, 25 Jul 2019 16:44:23 CDT
On this week's episode of SUNUP, host Kurtis Hair and Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson discuss the uncertainty in the corn market caused by the planted acres survey that the USDA released in late June and how it is impacting the wheat market.
Anderson says corn market uncertainty is affecting wheat prices, but in a positive way. Wheat is currently priced near $4.20/bu. while corn is closer to $4.30/bu. Feed mills and feedlots are now reportedly using wheat instead of corn, which Anderson says is helping raise the price of wheat.
Uncertainty is also prevalent the soybean market as well. USDA estimates there are 80 million acres planted of soybeans, while the market had expected significantly more than that. However, the USDA is conducting a survey this month to re-estimate the soybean and corn planted acres, the results of which will be released August 12th. Anderson says uncertainty in the markets will likely continue until the survey is released.
The current market volatility supported by this uncertainty is evident. Currently, December futures are at $4.30/bu and the trading range is from $4.30/bu to $4.70/bu. Here in Oklahoma, corn prices are about $3.90/bu in Central Oklahoma and $4.45/bu in the panhandle. Overall, Anderson feels the market's outlook in regard to corn is optimistic.
Globally, though, it was announced this week that a US trade team will travel to China to continue negotiations. Anderson says soybean prices are directly tied to the outcome of those negotiations, with the contracts at around $9.10/bu to $9.50/bu. However, those prices could change when the USDA finishes its survey of the planted acres. In the Black Sea Region, Russia and the USDA lowered the projected production for Russia in the wheat market. Which is positive for the U.S. wheat market. However, Russia is only 40% done with their harvest, which leaves room for their production to come down even further. While Ukraine's record wheat harvest is coming in as expected.
This week on SUNUP we join you from the 98th annual Oklahoma 4-H Roundup and look at ways youth are building leadership skills.
- We learn about how the Oklahoma Collegiate Cattlemen's Association is creating leadership opportunities for the cattle industry.
- In Cow-Calf Corner, Glenn Selk explains how heat stress can impact recently-bred cows.
- Then, we learn how the recent Big 3 event helps cultivate decision making skills used in leadership.
- In the Mesonet weather report, Wes Lee shows us where soils are starting to dry out at root levels. Gary McManus says parts of the state are nearly 3 inches below normal rainfall and drought could start moving back into the state.
- Kim Anderson says uncertainty in corn planted acres is impacting wheat prices and will until August 12th, when revised corn acreage numbers are released.
- Finally, we learn how a recent Google grant to National 4-H could help Oklahoma 4-H members continue to build leadership skills.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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