Given the steady decline in commodity prices, particularly in the soybean market, the 2018-2019 crop year may be a good time for many farmers in Oklahoma to consider returning to wheat rather than some of the other summer crops that have drawn their attention the last few seasons. Oklahoma State University Extension Grain Market Economist Kim Anderson made that argument this week in an interview with SUNUP Host Lyndall Stout.
In the past few weeks, commodities across the board have steadily declined. Not just grains but all commodities- metals, fuels, gold, silver, etc. Anderson attributes a large part of this to the strengthening of the US Dollar. In the past week, the USD has risen almost two percent and in the past few months, nearly four to five percent. In that time, the price of wheat, corn and soybeans have all dropped from 30 cents to as much as a dollar or more. Wheat had rallied up to $6.00/bu. but has since fallen below $5.00. Anderson says the US has simply been outpriced by the Black Sea market.
According to recent reports, Egypt just bought a large cargo of wheat from Russia for $7.00 which adjusted the inland price of wheat here in Oklahoma down to around $5.00, knocking off that rally that had excited the market.
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