This week on SUNUP - OSU Grain Market Economist Dr. Kim Anderson joins host Lyndall Stout again, with a review of this week’s wheat market activity.
Currently, Anderson says the Kansas City July contract placed against the basis yields a price of right at $4.00 or perhaps just under for producers’ 2018 wheat. He suggests, though, that if the right management decisions are made during the growing season, producers could potentially command $5.00 wheat come harvest.
The world is awash with wheat, right now, Anderson says and the demand for high-quality protein is high. Anderson contends that if producers can grow a crop that delivers on both high protein and high test weight, he believes the price will go up. He reports, too, that planted acres are expect to be down this year as well. Some early estimates putting total acreage at about five to ten percent lower than last year - somewhere around 4 million acres - the lowest since 1942 and 1918, going further back. But, the acreage isn’t likely to help too much.
According to Anderson, the big problem lies across the Atlantic, meaning Russia and the Ukraine. These former Soviet Union states have produced tremendous amounts of wheat (nearly 3 billion bushels) and high-quality stuff at that, with an average protein content at 12.4 percent.
Anderson says these countries are cornering the protein market and absorbing export market sales, stealing them from the EU, Australia, Argentina and even the US.
Anderson advises producers to stay the course and most importantly - use good management to produce a high-quality crop.
You can watch their visit tomorrow or Sunday on SUNUP - or you can hear Kim's comments right now by clicking on the LISTEN BAR below.
Beyond Dr. Anderson’s weekly chat - the SUNUP crew has a very full lineup for your viewing this weekend:
This week on SUNUP, we start the show with Josh Lofton and a look at what researchers learned about the 2017 sorghum crop. He also has information about the upcoming Winter Crops School.
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