OSU's Kim Anderson says There are Big Moves in the Market, but we Have Seen it BeforeThu, 07 Jul 2022 15:36:37 CDT
This week on SUNUP is Dr. Kim Anderson, Oklahoma State University Extension grain market economist. During this week's edition, Anderson speaks about the drop in commodity prices and what factors are influencing the price changes.
To better understand today's markets, Anderson talked about the wheat markets in 2008. Starting in January of '08, Anderson said wheat was around 8 or 9 dollars. By March, he added, wheat was up to 12 dollars because supplies were tight.
"Production had been low, use had been relatively good, and it drove prices up," Anderson said.
Looking back to '08, Anderson said, shows that it is possible to have some big moves in the market.
"History tends to repeat itself," Anderson said.
For today's wheat prices, looking at May, Anderson said our prices peaked at $13.13 around the north-central Oklahoma area. This was supply and demand-driven, Anderson said, because Russia and Ukraine had taken a third of wheat off the market and Covid started to come back again.
Coming into June, Anderson said wheat was around 11 dollars and the crop was short but relatively good. In July, wheat was at $8.20, which is 5 dollars off the price of wheat since May, he added.
Anderson said part of the reason wheat prices dropped was because Russia put their wheat back on the market.
Anderson also talked about corn, soybean and cotton prices and said there are lower prices in almost every market. Ukraine is moving corn back onto the market which is affecting corn prices, he added.
As for advice for farmers, Anderson recommends they go ahead and sell their commodities during the course of harvest.
"We do not know what prices are going to do," Anderson said. "There is a lot of risk in the market, and I think just get it over with and stagger it in over harvest."
This week on SUNUP:
• Gina Peek, OSU Extension Family and Consumer Sciences assistant director and associate dean, gives tips on how to protect you and your family from the West Nile virus.
• Justin Talley, OSU Entomology and Plant Pathology department head and Extension livestock entomologist, explains how West Nile virus impacts horses.
• Wes Lee, OSU Extension Mesonet agricultural coordinator, says this heat wave isn't ending anytime soon.
• Kim Anderson, OSU Extension grain marketing specialist, analyzes the recent drop in wheat prices.
• Derrell Peel, OSU Extension livestock marketing specialist, explains why feedlot numbers are at record levels.
• Mark Johnson, OSU Extension beef cattle breeding specialist, talks with Paul Beck, OSU Extension beef specialist, about supplementing ionophores.
• Finally, Tom Royer, OSU Extension Entomologist, gives viewers a preview of the "Sugarcane Aphid Glance N Go" app.
Join us for SUNUP:
Saturday at 7:30 a.m. & Sunday at 6 a.m. on OETA-TV
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