Oklahoma State University Extension Grains Market Analyst Dr. Kim Anderson talks wheat prices with SUNUP's Lyndall Stout this week- this time sharing both some good and bad news for producers.
Starting with the bad news, Dr. Anderson points out that collectively, world wheat supplies are some of the highest they’ve ever been with world totals coming in at 9.2 billion bushels.
This year, the US could see a threat to its trade channels as export markets will be flooded with excess grain stocks. The former Soviet block countries are projected this year to export approximately 2 billion bushels; 1.1 billion of that contributed by Russia alone, securing the nation’s place as the current No. 1 exporter in wheat. The US is projected to export under that at 975 million bushels.
The good news is, India has suffered poor crops two years in a row now and are heavily ramping up their imports. In addition, although HRW exports were relatively low for the US last year, exports are actually up 91 percent. Plus, Dr. Anderson reports that over the last month, wheat prices have seen a bump of $0.34, which he finds very encouraging. His advice to producers though, remains stuck on the same message as it has for several weeks now.
“Raise a quality product,” he says. “If you have a product quality that the millers want to buy, our prices will go up.”
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