Economic Uncertainty Forcing Oklahoma Producers to Make Difficult DecisionsThu, 06 Oct 2022 15:22:40 CDT
This Week on SUNUP is Oklahoma State University Extension grain market economist, Kim Anderson. During this week's edition, Anderson talks about the current economic situation and how it is impacting the grain markets.
“Crop prices were up a little bit this week, but I don’t think there are any big changes,” Anderson said.
Wheat went up about 40 cents, Anderson said, from $9.25 to $9.65.
“I think we have got the drought problems that are impacting prices,” Anderson said. “And of course, things that are going on in the war in Russia and Ukraine.”
Corn had around a 15-cent price increase Anderson said, and harvest is about 20 percent complete.
“If you look at soybeans, going from $13.30 up to $13.70, about 40 cents there- a little price move, but when you have got $13.50 beans, or $13.70 beans, 40 cents is just not very much,” Anderson said.
Cotton was volatile, Anderson said, but no big moves.
“It started out at 84, went up to 88 and it is back down to 83, so moving in the mid- ‘80s on that futures contract and you can take about 3 cents off of that to get to Oklahoma prices,” Anderson said.
We have got relatively tight stocks, Anderson said, especially for wheat.
“You get into corn they are tight,” Anderson said. “Domestically, a little less in the world situation.”
Anderson said soybeans are also relatively tight.
“To ship a container from Asia to the United States was $19,000 a container,” Anderson said. “You come into January; it was $14,500. Now, it is $39,000, an 80 percent decline in the cost to transport something from Asia to the United States, and I think that should help our prices come down, and of course, the markets watching the war.”
Russia’s invasion of Ukraine, Anderson said, is impacting prices all over the board. Russia is a number one wheat, and natural gas exporter, he added, not to mention many other world exports such as nitrogen fertilizers.
“You mess up the supply of those products and commodities, you’ve got problems with prices,” Anderson said.
The current economic situation, Anderson said makes decision-making for Oklahoma farmers more difficult with all of the uncertainty in the market.
“You got relatively high input prices, you’ve got relatively high output prices, but you’ve got uncertainty on those prices,” Anderson said.
The drought situation, Anderson said, does not help matters
Anderson and his colleagues will be talking about the current economic situation at next week’s Rural Economic Outlook Conference at the ConocoPhillips Alumni Center located on the OSU campus on October 12.
This week on SUNUP:
• Amy Hagerman, OSU Extension agricultural policy specialist, examines the Oklahoma Legislature’s recent approval of $20 million for drought relief.
• Dave Lalman, OSU Extension beef cattle specialist, discusses the discounted hay and livestock water testing OSU Extension is offering to producers.
• We have information on farm stress and mental health programs available for those in need.
• Wes Lee, OSU Extension Mesonet agricultural coordinator, predicts more above average temperatures for next week. State climatologist Gary McManus says this is the driest period in the past 100 years.
• Kim Anderson, OSU Extension grain marketing specialist, discusses the impact Russia’s war with Ukraine is having on world crop markets.
• Mark Johnson, OSU Extension beef cattle breeding specialist, gives winter preparation tips for cattle producers.
• John Weir, OSU Extension fire ecologist, explains how these extremely dry conditions could increase wildfire potential this fall and winter.
• We preview the upcoming OK-Fire workshops.
• Finally, Barry Whitworth, OSU Extension veterinarian, says avian influenza could become an issue again as waterfowl migrate south.
Join us for SUNUP:
Saturday at 7:30 a.m. & Sunday at 6 a.m. on OETA (PBS)
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