When it comes to wheat, most of the news that is coming from the industry is focused outside of the US. The spotlight for several weeks has been trained on Russian production, which according to Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson, has peaked out and is expected to be adjusted down by as much as three percent from its reported total production. Exact numbers though are still yet to be determined, working within a range of 2.6 to 3.1 billion bushels.
In addition, the Iraqis have tendered 475,000 tons of wheat this week, bidding at $7.35 a bushel for cost and freight. That amount is comparatively higher versus bids of $7.00 a bushel from mid-July. Anderson explained to SUNUP Host Dave Deeken this week, that although the Iraqis have expressed interest in purchasing Russian wheat, they will likely be forced to do business elsewhere as the Russian wheat supply is all but tapped out. Anderson predicts this will have little impact on domestic wheat prices. Although, as more countries express buying interest after Russia’s eventual departure from the market, he suspects the price of US wheat to rise as we approach harvest season.
Stateside, though, Anderson says the big story for the week is the fact that winter wheat planting has fallen behind schedule in the Southern Plains - with the latest USDA Crop Progress Reports indicating the industry’s failure to keep up pace with the state’s average planting progress.
He also says that producers have expressed more optimism in regard to their late planted wheat fields, designated for harvest only. According to his recent conversations with producers, early planted fields have become heavily grown up in weeds.
Meanwhile, much of the state’s cotton is still in the fields, but producers have so far exceeded historical progress and gotten near half of this year’s cotton crop out. Prices have remained stable and Anderson believes there to be little reason for the market to fluctuate moving forward.
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