Commodity prices continue to trade mostly sideways. On this weekend’s edition of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson said wheat, corn, cotton and sorghum prices continue to have a hard time moving significantly higher. Wheat prices traded about 15 cents higher this week. The December Kansas City wheat futures contract has been trading from $4.70 to just below 5.00. Anderson said December KC wheat prices have strong support at $4.70 and very strong resistance at $5.20. He said overall wheat prices continue to be on a downward trend since the 2015 U.S. wheat harvest.
In looking at new crop wheat prices, Anderson said local cash prices are running around 28 to 50 cents lower than the July 2016 Kansas City wheat contract. The contract this week was around $5.25, so forward contract prices are running around $4.75 to $5.00 a bushel around Oklahoma.
The commodities futures market continues to be influenced by the weather. Anderson said traders are watching the weather forecasts for the 2016 wheat crop. Additionally, the funds are entering and exiting the market. Anderson said export demand also continues to be a big driving force of wheat prices. With the strong U.S. dollar, U.S. wheat prices are higher than other countries around the world. Anderson said the quality of the U.S. crop has helped export demand.
“We’ve got a good quality wheat and I think why we are exporting with a higher price is because we can deliver a high quality product that they can buy and blend in their poorer quality products,” Anderson said.
Corn prices showed lack of direction this week. Anderson said there was essentially no change in corn prices. Over the last three weeks, he said corn prices were running about 25 cents lower. The December corn contract has support around $3.72, resistance at $3.96 and strong resistance at $4.00.
“If we could break that $4 corn level on that Chicago December contract we could get some movement,” Anderson said. “The problem there is producers around the nation have a lot of corn in the bin and they’ve been holding it waiting for higher prices.”
This week on SUNUP, we learn about cotton varieties with Extension Cotton Specialist Randy Boman.
- In the Mesonet report, Al Sutherland and Gary McManus show us how much moisture Oklahoma received during the recent fast moving rain event.
- Kim Anderson explains why the U.S. continues to export wheat in a flooded market.
- Then, Angela Post looks at five weeds canola producers need to watch for right now.
- In Cow-Calf Corner, Glenn Selk covers the importance of maintaining body condition scores in cattle leading into the next breeding season. Click here to see more...