Wheat Market Most Volatile of Commodities Due to Tight Stocks

Listen to Kim Anderson talk about the grain markets on SUNUP.

This Week on SUNUP is Oklahoma State University Extension grain market economist Kim Anderson. During this week’s edition, Anderson talks about the latest movement in the commodity markets and the factors contributing to those movements.

“In the wheat market, there is a lot going on, a little less in corn, and not much going on in soybeans and, of course, cotton,” Anderson said.

Going back about two and a half weeks on wheat prices, Anderson said they have moved back and forth quite a bit.

“They fell off about $1.30 to $1.35, then they increased $1.60 to $1.65 and fell off 77 cents, then increased 20 cents and decreased 20 cents,” Anderson said. “A lot of volatility going on in that wheat market.”

In the last couple of weeks, Anderson said corn prices have dropped 70 cents and gained 20 cents back. Forward contracting prices for corn are around five dollars now, he added.

“Soybeans knocked off a dollar in the last two and a half weeks,” Anderson said. “Down to around 11 for the forward contract for harvest delivery and is stabilized down there.”

In hard red winter wheat, Anderson said the volatility is due to the tight stocks.

This week on SUNUP: 

  • Amanda De Oliveira Silva, OSU Extension small grains specialist, gives a quick wheat update and then discusses how the variety trails are performing at the North Central Research Station at Lahoma. 
  • Wes Lee, OSU Extension Mesonet agricultural coordinator, explains how to use the Mesonet’s drift risk advisor tool. State climatologist Gary McManus says more rain could be in the future. 
  • Brett Carver, OSU Wheat Genetics Chair, begins his annual Lahoma Field Day variety demonstration
  • Kim Anderson, OSU Extension grain marketing specialist, explains why there has been recent movements in the crop markets. 
  • Mark Johnson, OSU Extension beef cattle breeding specialist, says analyzing your production system can help cattle producersidentify traits of economic importance
  • Finally, Shannon Ferrell, OSU agricultural law specialist, says it’s important for producers to focus on their mental health given all the challenges many have faced the past year. 

Saturday at 7:30 a.m. & Sunday at 6 a.m. on OETA (PBS)

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