Wheat prices continued to move lower this week, despite a number of factors globally that could result in lower production. In this weekend's edition of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson said the World Agricultural Supply and Demand Estimate (WASDE) report came out this week. WASDE reported lower exports for wheat by 25 million metric ton and increased ending stocks. Anderson said the adjustments were anticipated by traders, so the report wasn't a surprise.
Traders continue to watch events in Egypt. The country has rejected their last two tenders because sellers are adding a risk premium of $10 to $20 a metric ton. Anderson said Egypt may not have the financial ability to pay for wheat with the added premium, so they are rejecting loads.
For wheat harvest prices, Anderson is predicting prices around $4.50 - $4.75, which is below the cost of production. He said wheat contracts between now and September are offering a ten to 20 cent price premium. In looking at July 2017 wheat prices, Anderson said that shows indications the market will come back above the cost of production.
For harvest delivered corn, he is predicting cash prices around $3.20, with higher prices in central Oklahoma and the Panhandle. Sorghum is averaging around 15 cents below corn prices and soybeans are around $8.05 for the harvest price.
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