It has been another rough week for wheat prices in the grain market with another drop off nearly 50 cents after traders began to realize the actual weakness of US export demand. Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins SUNUP host Dave Deken again this weekend to comment on this development and to run the numbers on the latest projections out this week from the US Department of Agriculture for the 2019-20 cropping year and how those are being interpreted from a market outlook perspective.
Anderson attests that traders rolled back prices again this week as reality set in that the Black Sea region, which has dominated global export demand for months now continues to push wheat through its ports with little sign of truly slowing down as some speculators had hoped would have happened by now. While Egypt’s purchase of US wheat this week bolstered optimism, Anderson says the news was something of a disappointment when they opted for SRW rather than HRW.
In addition, speculation was increased Thursday after the release of USDA projections that made some minor adjustments to existing expectations for this year’s planted acres picture. In summary, Anderson says the report indicates higher corn production and lower bean production. According to the report, wheat acres are expected to remain roughly same as last year with only a marginal adjustment down.
Taking those insights into account, Anderson says corn prices are likely to remain weak while soybean prices may stand a chance to see nominal increases despite the massive carryover of stocks. The wheat price situation, he says, likely to remain unchanged from its current trend.
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