As the government shutdown continues, the flow of information consumed by the market has been limited, though according to Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson, if this situation had to happen - it could not have happened at a better time.
This week on SUNUP - Anderson joins Host Dave Deeken again to explain how recent inactivity in the marketplace has suppressed the impact of the effects of the government shutdown. With most federal employees furloughed, much of the information and data regularly supplied by the US Department of Agriculture has been abandoned for the time being. This has left only independent surveys conducted by industry firms for traders to rely on.
“Our information is limited,” Anderson remarked, “but it’s enough to see what’s going on in the markets.”
Anderson reports that currently, wheat markets have barely moved in a narrow 11 cent range for weeks now. He contends the only way to break from this sideways price pattern is for foreign export demand to build in the global market. Unfortunately, that is not likely to happen until Black Sea Region suppliers run out of exportable wheat. Recent reports, though, suggest that both Russia and Ukraine are nearing their limits. The expectation now is that these countries will exhaust their export supplies by March.
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