It has been another quiet week in the grain markets. Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson joins SUNUP Host Lyndall Stout this weekend for his analysis of whether or not this sideways movement in the market is a good thing for producers.
In a preview of his appearance, Anderson suggests that given the current market situation for most commodities, this steady market trend is preferable to the alternative of turning lower that could easily be the case.
For wheat, it is a bit speculative as the USDA has predicted HRW export sales to be even with the previous year. However, at this point, US wheat exports are down 37 percent, which means is the USDA is correct then there is a lot of export demand left to make up the difference that has yet to come in. At the same time, though, small rallies continue to spark as rumors pop up that Russia is suspended exports from certain terminals. While that is good news in general, Anderson wonders if Russia is not simply attempting to build up expectations and prices in order to capture a higher price for its wheat.
Looking at other commodities- corn and soybeans are both in a similar situation with either near or above record production this year. Most analysts agree that the price of corn has hit a bottom and could even in fact bump up by 30 to 40 cents. Meanwhile, soybeans have been overall steady but have recently increased by as much as 50 cents. Anderson, though, is hesitant at this point to call it an upward trend- at least not until it breaks $9.30 or better in the near-term.
Finally, cotton has also sparked some speculation as well with prices lately mostly flat. Prices started out at around 90 cents, Anderson says, and has since worked down to 75 cents which is where USDA pegged the seasonal average price for cotton. While he thinks there is still some room for cotton to work down maybe a few cents lower, overall he believes cotton is very near its bottom in the market.
Click here to see more...