Oklahoma State University Extension Grains Market Analyst Dr. Kim Anderson talks wheat prices on SUNUP this week - and this time he explains what crop traits will pay at the elevator in 2017.
Producers should be on the lookout for two things when harvesting this next crop: test weight and protein, says Dr. Anderson. According to him, the wheat in bins right now is only averaging 11.2 percent protein. And the previous year’s crop only weighed in at 55 to 56 lbs. test weight. Both these numbers are lacking in desirability to millers.
Looking at Kansas City, Anderson says the protein basis rests at the 11.2 percent level and is valued at a 0.55 premium. However, jumping up to 14 percent protein wheat, if you can find it, will bring you a $1.66 basis premium, leaving a $1.05 spread between 11.2 and 14 percent protein wheat.
Anderson insists there is money to be made here, although he advises producers not to put all their eggs in one basket as the elevators can’t guarantee a premium payout upon delivery. But, he says in order to capture the highest price come harvest, 2017’s wheat crop will need to carry at least 12 to 14 percent protein and a test weight of 60+ pounds.
“The higher the protein, the higher the test weight, the more valuable that crop is going to be,” Anderson said.
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