A $.50 increase in the July Kansas City contract combined with a steady basis has OSU Grain Marketing Economist Dr. Kim Anderson excited. Although the potential $4.30 to $4.40 harvest price is still relatively low, he says it’s all relative.
“When you’ve been looking at $4 or less, $4.30 or $4.40 looks better,” Anderson says.
There are several theories responsible for the price bump, including potential freeze damage to Oklahoma and Kansas wheat crops and reduced global wheat production.
“The world may be realizing that Ukraine had 20 percent less planted acres and Russia production may be down 9 percent,” Anderson says. “You’ve got these little pieces of news that are negative supply wise and haven’t come to fruition yet that maybe changing the odds of 2016-17 world wheat production.”
Anderson told SUNUP host Dave Deken that while the current situation can usually provide a good foundation for what is going to happen in the future, it can also make it difficult to think in different terms.
“When you’ve had five or six record wheat crops every year and still a large one projected this year, it’s hard to change that psychology that low production is a possibility,” he says.
You can watch Kim and Dave this weekend on SUNUP, or you can get an early listen to his comments by clicking on the LISTEN BAR below.
In addition to Kim's wheat market update on SUNUP, here's the rundown on the OSU Ag Communications production that returns to OETA this weekend:
This week on SUNUP, we travel to Cotton County for an update on the canola crop from Josh Lofton, cropping systems specialist.
- In the Mesonet report, Al Sutherland shows us which area received the most moisture following the recent rain, and how it is replenishing the soil profile.
- Next, in Naturally Speaking, Marley Beem explains why it is important to inspect pond dams this time of year.
- Then, Southwest Area Agronomist Heath Sanders looks at why canola tours are a great opportunity for producers to learn about the crop.
Click here to see more...