Prior to the Thanksgiving holiday, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson taped his weekly visit with SUNUP Host Dave Deeken to offer viewers and overview of the major commodities and their current status in the marketplace.
Starting with wheat, Anderson says the grain market has been in a short run down-trend, falling by a penny or so lower nearly every day. At present, Anderson reports that the March Kansas City contract is priced at under $5.00.
In corn, markets have stayed on a steady sideways, albeit somewhat of a down-trending pattern for several weeks now.
Soybean prices have given producers little reason to get excited this year. Anderson says the price of beans is “in the tank, along with the basis” moving in a sideways pattern as well. While one can point to the obvious China debacle as the anchor on these prices - Anderson also attributes record production as part of the cause behind this depressed market situation.
However, cotton comes as a source of good news for farmers this year, retaining a relatively stable price of 77 cents per pound, which Anderson says is a price farmers can be happy about.
Compared to year-ago prices, though, cotton is somewhat lower. In 2017, producers were commanding a strong 90 cents per pound for cotton. Soybeans were much higher - as much as $2 - $3.50 higher last year before the US declared economic war on the Chinese. Corn was only slightly higher than where it is now. Wheat, however, is comparatively more attractive this year than it was looking back at 2017 when prices were below $4.00 a bushel.
As for now, though, Anderson says wheat looks good - relative to the position of other commodities in the marketplace currently, which have almost all come down from their previously higher positions. In addition, Anderson says wheat has some of the best price potential, pointing out that producers can command a higher premium at market if they deliver a high-quality product.
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