Kim Anderson Says Two Years To Clear Wheat Stocks But Only One Year To Clear Feed Grain Stocks

 

“It means we’ve got too much grain,” Anderson replied bluntly.

 

He bulleted grain ending stocks being projected currently to illustrate his point.

 

According to Anderson, wheat ending stocks are projected at a record 9.7 billion bushels, above the five-year average of 8 billion bushels. For corn, ending stocks are under record levels but still well above the average of 7.6 billion bushels at 8 billion, currently. Soybeans have exceeded record levels at 3.6 billion bushels, above the average of 2.7 billion.

 

Focusing just on wheat, Anderson reports that approximately 85 to 90 percent of the planted area around the world has at this time been harvest. Regarding production, he says well over 90 percent has been harvested, with harvest across the whole Northern hemisphere essentially complete.

 

However, in the Southern hemisphere, harvest will soon begin in Australia, Argentina and South Africa. And to each their own set of problems. Australia’s crop is suffering from drought related issues, likely to cost farmers there about 30 to 35 percent of their crop compared to the previous year. Argentina’s crop is above average there, but in contrast to Australia, the South American country is reeling from too much moisture, with production expectations on the decline.

 

Anderson predicts it will take two years of a short crop to use these ending stocks up. For feed grain, perhaps only one bad year will correct the situation. 

 

For more of Anderson’s insights and advice for wheat producers storing grains still, you can watch their visit tomorrow or Sunday on SUNUP- or you can hear his comments right now by clicking on the LISTEN BAR below.