Kim Anderson Says Bad Weather, Poor Crop Conditions Have Driven Wheat Prices Up Over $5.20

May 25, 2018

This week on SUNUP - Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins host Dave Deeken again talking about some good news this week in the wheat markets ahead of harvest.

Anderson reports about a 50-cent increase in the Kansas City July contract this week, thanks to some improvement in the basis. Cash prices across Oklahoma range currently between $5.20 to $5.50.

Anderson says this is good news in the market is being driven by all the bad news in the field, citing inclement weather and expectations of low yield production and grain quality for this harvest.

Apparently, this situation is not only limited to Oklahoma and the Southern Plains. Rather, these dry and poor growing conditions have affected crops worldwide. Anderson explains that this is having a positive price impact here at home.

He believes farmers that actually will be harvesting their crops this year, will enjoy premiums well over the $5.30 range if they deliver high-quality grain to the elevator with 59lb.+ test weight and a minimum of 12 percent protein. On the other hand, he says discounts and dockage will cut deeply this year for subpar grain.

You can watch their visit tomorrow or Sunday on SUNUP- but you can hear Kim's comments right now by clicking on the LISTEN BAR below.

Click here to see more...

Video: Is China Buying US Soybeans + USDA Nov 14th Crop Report could be “Game Changing”

After a week of a U.S./China trade truce, markets/trade is skeptical that we have not seen a signed agreement nor heard much from China or seen any details. There are rumors that China is buying soybean futures & not the physical. Trust in Trump?
12 MMT of U.S. soybean purchases by China by year-end is better than 0 but we all need to give it more time and give it a chance to unfold. China did lower the tariffs on Ag and is buying U.S. wheat and sorghum.
U.S. supreme court could rule against Trumps tariffs, but the Trump administration does have a plan B.
U.S. government shutdown is now the longest in history at 38 days.
But despite a U.S. government shutdown we will be getting a USDA November crop report next Friday and it could be “game changing.” If the USDA provides a bullish surprise with lower U.S. corn and soybean yields and ending stocks that are lower than expected both corn and soybean futures will break out above their ceilings at $4.35/bu and $11.35/bu respectively.
The funds continued their selling in live and feeder cattle futures on continued fears that the Trump administration want to lower U.S. beef prices. The fundamentals have not changed, only market psychology has.
Stocks markets continue to worry about a weak U.S. job market, but you can blame ChatGPT for that. In the future, we will have a more efficient, productive and growing economy with a higher unemployment rate until we have more skilled AI workers.
After 34 new record highs in the S & P 500 and 124 new records in the NASDAQ in 2025 we are back to a correction and investor profit taking as AI valuations may have gotten too stretched near-term ahead of NVDA’s 3rd quarter earnings announcement on Nov. 19th. But this is not an AI bubble.
75% of Tesla shareholders approved a $1 trillion pay package for Elon Musk!
It has rained in South America in the last 7 days, but both the American and European models agree that Central Brazil remains dry in the next 14-days!

Syngenta fungicides receive EPA registration

Alberta seeding approaching halfway point