The wheat markets have been lacking trend direction. With global wheat crops in the bin and the 2016 winter wheat acreage estimates out, there’s not much news influencing wheat prices. On this weekend's edition of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson said the March and July Kansas City wheat futures contract prices are bouncing around. He said the March Kansas City wheat futures contract has support at $4.65 and resistance at around $4.80.
With the strong U.S. dollar, U.S. wheat prices are well above international competitors. Anderson said Argentina’s wheat is 84 cents a bushel lower than the U.S. because of Argentina's elimination of their 23 percent export tax. Russia is selling 12 and a half percent protein wheat for 68 cents a bushel less than the U.S. wheat and France has soft red wheat near those levels. He said right now U.S. wheat prices are well-above the world’s market price.
SUNUP host Lyndall Stout asks Anderson about the harvest price outlook. He anticipates prices around $4.50 to $4.75 with fewer planted acres. He said right now farmers need to think about preparing equipment, top dressing their wheat, so the crop has the nutrients necessary to produce a quality crop. Anderson’s biggest concern is producing a large, low protein crop that’s not marketable. Oklahoma needs to produce 12 to 12 and half percent protein to match the Russia and Ukraine wheat crops. Additionally, farmers need to know how much they have invested in this wheat crop, so they can calculate their cost of production on a per bushel basis. Anderson said that will help with marketing the crop this next year. Further, he said farmers need to look at the economic situation to make plans for finishing out this crop and establishing the 2016 wheat crop.
SUNUP host Lyndall Stout interviews Anderson. Click or tap on the LISTEN BAR below to listen to the full interview.
This week on SUNUP, Dave Lalman has advice for cattle producers who may be dealing with grass tetany in the coming weeks.
- In the Mesonet report, Al Sutherland shows us where wheat producers will need to scout for first hollow stem in the coming weeks.
- Kim Anderson says wheat producers should grow and sell the best product they can to compete in the world market in 2016.
- In Cow-Calf Corner, Glenn Selk explains why placing a newborn calf over a fence may not be the best way to help it breathe immediately after birth.
- Derrell Peel says the recent avian flu outbreak may not be great for foreign markets, but could mean lower prices for U.S consumers.
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