The price of wheat has again been on the move over the last couple weeks and according to Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson, things are looking more positive right now than we have seen in a while. In fact, he will share with SUNUP host Dave Deeken this weekend that wheat prices are actually higher than they were before the recent rally in grain and commodity markets.
Currently, Anderson reports the price of wheat has climbed nearly a dollar from recent lows up to $5.80, give or take a nickel. Corn is up about 30 cents this week, supporting a forward contract price of $3.50 a bushel. Soybeans are up as well by 60 cents with a current price of right at $8.00, while cotton remains relatively high on the board at 88 cents.
Anderson attributes the weather and resulting lower wheat production as the culprits driving this market rally. Russia’s production woes seem to be the main driver in this situation with a significant drop in production this year compared to last from 3.1 billion bushels total production down to 2.4 billion or so, roughly 15 to 20 percent. However, this is still an average crop for Russia. The EU is also expected to have an average crop, though down about 10 percent in its production. Ukraine, also down by about 5 percent. Australia, however, is forecast to be below average in its wheat crop by 11 percent. Essentially, with less wheat on the market to export, prices are on the rise around the world. Whether or not prices will continue to rise, Anderson says depends on how this story of worldwide production plays out, especially with Australia and Argentina as they continue to wrap their arms around this year’s crop.
In his own opinion, Anderson believes there is the slight chance prices may continue to climb some, but he is fairly certain that the market has reached its top. He advises producers to take advantage of these current market highs and sell a portion of their wheat to capture some of this price point profitability.
You can watch their visit tomorrow or Sunday on SUNUP- but you can hear Kim's comments right now by clicking on the LISTEN BAR below.
Beyond the SUNUP team’s weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:
We are in Vinita to start fair season with a stop at the Craig County Fair. We start the show with an update from Josh Lofton on summer crops, and learn how to tell when corn and sorghum are ready to harvest.Click here to see more...