By Kim Anderson
Wheat farmers should root for sideways movement in the wheat futures market in the next several trading sessions. According to Dr. Kim Anderson, Extension Grain Marketing Economist at Oklahoma State University, the wheat market has climbed up from its post harvest lows, but is currently in a sideways pattern.
The current range- based on December Kansas City Wheat Futures- is from $5.80 to $6.20. We are in the lower part of that range and there is a danger that we could break support and fall below $5.80 a bushel. Dr. Anderson says that if that happens, "we're gonna go down and test $5.50." He believes that the best hope for the wheat market right now is to log some time in the $5.80 to $6.20 trading range, adding "I think the best thing that can happen over the next couple of weeks is a sideways move, hopefully between $5.80 and $6.20."
Anderson says that both corn and soybean markets have been struggling as well, but that there is more of a case that can be made for some upside in either of those markets compared to wheat. A major concern for these spring crops now being harvested is transportation.
As for upside- he says "I believe for wheat the odds are relatively slim, because we have got more than adequate world stocks." Anderson's complete remarks that will be seen this weekend on SUNUP can be heard right now- just click on the LISTEN BAR below.
FRIDAY MORNING UPDATE- Overnight electronic trade shows the December KC Wheat contract below that $5.80 support level at $5.72 3/4.
Besides the Kim Anderson market outlook segment- it is shaping up to be a busy SUNUP this weekend as produced by Lyndall Stout, Austin Moore and Dave Deken at the Ag Communications Department within the Divsiion of Agriculture at Oklahoma State University.
Here's their rundown of what can be seen on the show that will air on Saturday and Sunday on OETA:
The SUNUP crew starts at OKC West Livestock Market in El Reno to visit with Gant Mourer and Derrell Peel about the sale of preconditioned calves in the Oklahoma Quality Beef Network.
- In the Mesonet report, Al Sutherland and Gary McManus analyze this week’s rainfall, along with the hours below freezing, soil temperatures, drought monitor and precipitation outlook.
- Then, Kim Anderson explains why we are currently seeing low wheat, corn and bean prices
- In Cow-Calf Corner, Glenn Selk looks at factors that impact conditioning and dressing percentage when marketing cattle.
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