Agricultural News
OSU's Kim Anderson Discusses the Impacts of Phase One for Producers and the Markets
Thu, 16 Jan 2020 17:23:00 CST
This week on SUNUP, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins host Dave Deken to discuss the U.S. China Phase One Trade Deal. And what it means for producers and the markets moving forward.
"I think there is the potential for slightly higher prices," Anderson said. "Now, coming into the agreement, I believe the impact was already factored into the market. But, when they are going to come in and on the first year, spend $12.5 billion on U.S. commodities. And the second year $19.5 billion."
Anderson says that will all of this news, he believes there will be a positive impact for producers. However, the day of the signing corn and wheat prices were down $.10/bu, soybeans were down about $.20/bu and cotton was down $.02 to $.03. But he says this is expected, because the markets had the signing factored in.
"What farmers and the market generally do is they anticipate the positive impact of a piece of legislation," he said. "So, they will the product off the market until after the signing. And then the backed-up commodity comes on the market and drives it down a little bit."
Anderson alluded to the fact that the full impacts of this trade deal will not be completely seen for another couple of months. As more sales are made to China, he added.
You can hear all of Kim's comments this Saturday and Sunday on SUNUP or you can hear Kim's full analysis right now, by clicking or tapping on the LISTEN BAR below.
This week on SUNUP, we start with an update on wheat conditions from Amanda Silva.
- Then, in Cow-Calf Corner, Glenn Selk goes in-depth about what to expect during stage two of calving.
- We learn about the potential for an ag teacher shortage in Oklahoma classrooms and what is being done to encourage students to go into the field.
- In the Mesonet weather report, Wes Lee shows us some of the weather-related factors slowing the growth of wheat. Gary McManus says recent rains have helped the drought picture, and the outlook is favorable for more moisture
- Kim Anderson explains why commodity prices dipped following the recent US/China trade agreement announcement.
- Dr. Barry Whitworth has information about a bacterium that is crossing species from equine to swine.
- Finally, we recap the announcement of this week's $50 million gift to OSU Agriculture from the Ferguson Family Fondation.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
YouTube.com/SUNUPtv
SUNUP.okstate.edu
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