OSU's Kim Anderson Discusses the Stagnation of Crop Markets and How the Future of the Markets LookThu, 29 Aug 2019 17:26:02 CDT
On this week's episode of SUNUP, host Kurtis Hair and Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson discuss the stagnation of crop prices right now.
"Let's start with corn it's been running at a $.15/bu range," Anderson said. "It is in a slight down trend and it may be creating a sideways pattern, between $3.65/bu and $3.80/bu. And of course, wheat is tied to corn right now, it also established its trading range on August 13, as a $.10/bu range, from $4.00/bu and $4.10/bu and that is a sideways pattern."
Anderson says soybeans started their trading range before the August World Agricultural Supply and Demand Estimates (WASDE) report was released. Soybeans trend at $8.55/bu and $8.90/bu, which is a slight down trend. And cotton started its sideways trend on August 5th at $.57.5 and $.62. All the prices are low, and Anderson says they aren't moving much any time soon.
"The one interesting thing I read last week is that Russia's price, they had a sale to Egypt, and it was about $.10/bu cheaper than it was a couple weeks ago," he said. "And it said it was because of relatively low U.S. prices. It is interesting that U.S. prices are leading the market right now. You look at Russian production, it's at 2.68 billion bushels, and it may be lowered a little bit. And their exports are projected to be down 74 million bushels this year from last year."
Anderson says if you look at Ukraine, they are offsetting Russia's lower production and lower ending stocks. While hard red winter wheat exports in the United States are 65% higher right now than they were this time last year, Anderson added.
"I think wheat is being priced pretty much as a feed grain right now," he said. "Of course, I didn't mention in the news, corn the markets are watching closely the USDA estimates of 90 million planted, versus the trades estimates of 86-87 million. So, whatever happens there, wheat is probably going to follow corn, either up or down."
This week, we join you from the Caddo County Free Fair in Anadarko. We start with information from Paul Beck about preparing for graze-out and dual-purpose wheat pasture.
- In Cow-Calf Corner, Glenn Selk explains why weaning dates are important to value-added sales.
- Phil Mulder says pecan producers should be on the lookout for pecan weevils.
- Amy Hagerman has important dates for producers concerning the latest farm bill.
- In the Mesonet weather report, Wes Lee looks back at how sites across the state measured the storms on Tuesday. Gary McManus shows us where drought is strengthening across the state.
- Kim Anderson says wheat prices are on a sideways pattern and pricing as a feed grain.
- Finally, Dr. Barry Whitworth has information about bio security for livestock at county fairs.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
WebReadyTM Powered by WireReady® NSI
Top Agricultural News