Agricultural News
OSU's Kim Anderson says Grain Markets are Settling Down
Thu, 04 Aug 2022 17:55:58 CDT
This week on SUNUP is Dr. Kim Anderson, Oklahoma State University Extension grain market economist. During this week's edition, Anderson provides his analysis of the grain markets and an outlook on the trends.
Looking at the way things are moving in the wheat market, Anderson said you must with the Black Sea area.
“This week, the first ship loaded with wheat left Ukraine port and was escorted out and went into Turkey for inspection,” Anderson said.
Anderson said they claim to be able to move one ship per day, but in a few weeks, Anderson believes they will possibly be moving up to two or three.
“The wheat is starting to move, and the crop is starting to move out of Ukraine,” Anderson said.
Russia is exporting their wheat, Anderson said, and looking at fertilizer exports.
“Except for the ammonia, their exports are back to normal,” Anderson said. “In the news is also the drought in the European Union area. The Rhine River is low, and they may have to stop export movement out of that Rhine river area and that will impact German exports. Germany is a relatively large wheat exporter.”
In the United States, Anderson said estimates for corn, soybeans, milo, and cotton production are being watched. Next week, he added, the USDA WASDE report comes out.
“We are waiting on the WASDE to see what those supply and demand estimates are,” Anderson said. “Before that WASDE comes out on Friday, we will have the pre-release estimates. Those always have an impact on the market, and then on the charts for the futures contracts, we are watching the trends and the spreads on those charts.”
For price trends that have been established, Anderson said wheat is moving sideways.
“Your cash wheat price in Northern Oklahoma is about $8.20,” Anderson said. “Southern Oklahoma is $7.60. Looking at that December contract for wheat, it is right in between $8.25 and $9 and currently somewhere around $8.65 in sideways movement.”
For corn, Anderson said cash for forward contract is at $5.85. Looking at December, he added, it is at $5.16 to $6.25 with some sideways movement and trading somewhere around six dollars now.
“On soybeans, I don’t know that they have a trend,” Anderson said. “They are just all over the board.”
Anderson said cotton is slightly up and trading in between 90 and 97 cents.
“If you look at the trends, I think they are telling us that the market is settling down a little bit,” Anderson said. “You look over the last few years- it is the most uncertain times I think we have had for the last 40 years.”
This week on SUNUP:
• Brian Arnall, OSU Extension precision soil nutrient specialist, has information on nutrient values in failed summer crops being used for forage.
• Wes Lee, OSU Extension Mesonet agricultural coordinator, discusses the recent cool-down. State climatologist Gary McManus updates the latest drought monitor map.
• Amy Hagerman, OSU Extension agricultural policy specialist, says now is the time for producers evaluate their productions when it comes to risk.
• Kim Anderson, OSU Extension grain marketing specialist, thinks the markets may be leveling out.
• Mark Johnson, OSU Extension beef cattle breeding specialist, helps producers determine which cows to cull from the herd during this drought.
• Finally, Derrell Peel, OSU Extension livestock marketing specialist, says the overall drought in the country will impact cattle markets for years to come.
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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