Radio Oklahoma Ag Network Intern, Maci Carter, had the chance to catch up with Oklahoma State University Extension grain marketing economist, Dr. Kim Anderson and talk about the latest WASDE report, the grain markets, and more.
As grain stocks are tight, Anderson said, and there were not too many changes in this WASDE report’s numbers- especially U.S. wheat.
“They did increase the projected ending stocks,” Anderson said. “That should have had a negative impact on price, but in the world wheat situation, they kept those stocks relatively tight and actually lowered them a little bit, so wheat stocks are tight, they remain tight, and we saw wheat prices increase today after the report.”
Anderson said hard red winter wheat prices increased by about seven or eight cents following the report.
Regarding corn and soybeans, Anderson said there is potential for some production changes, but wheat is pretty much in the bin now.
“Looking down the road, stocks are tight with wheat,” Anderson said. “On corn, we have got above average U.S. stocks of corn, and soybean stocks are tight.”
Russia and Ukraine have had a big impact on the markets in the past month, but Anderson said that is not the case at the moment.
“If something changes so that Ukraine could export more product, they don’t have a lot of products to export,” Anderson said. “That could impact the market a little bit. Russia has got a large quantity of wheat they need to get on the market, and they are moving it on the market relatively well. If something happens to prohibit them from exporting, then we would have an increase in prices.”
Right now, Anderson said producers should be looking at what prices will be down the road.
“Right now, the market doesn’t indicate many changes in corn or bean prices, so I think what producers should look at is the cost of production for 2024, and what prices are looking for that far in advance,” Anderson said.
Since wheat stocks are relatively tight and wheat stocks around the world are below average, Anderson said the wheat market is near the bottom.
“We are right now just a little bit above average, and with the stock situation, I think we should possibly be a little higher than that,” Anderson said. “But again, Russia is putting a lot of wheat on the market, and that is creating some inconsistencies in the market.”
