Oklahoma State University Extension Grains Market Analyst Dr. Kim Anderson talks wheat prices with SUNUP's Lyndall Stout this week- and gives his projections on what parameters producers can afford to keep their margins given the current economic climate in the grain markets. Unfortunately for many in Oklahoma, Dr. Anderson says wheat looks to be the worst of all the crops. Over the past nine years, Dr. Anderson quoted the average price for wheat at approximately $6 with the current price near $2.80. Variable costs he says range anywhere from $150-$190 per acre. If producers can keep their yield at 35bu./acre, a breakeven price can be calculated at $4.86/bu. If that yield is increased by 5 bu. to 40, it lowers the breakeven down to $4.25. Currently, the markets are predicting a price for June/July 2017 for $3.66. That equals a $1.26/bu. loss for 35 bu. wheat or $44/acre if working off 40bu. wheat, in which case it is only a $23/acre loss.
Canola though looks a little better, says Dr. Anderson. Breakeven prices he says are around $7.50 if working with 30 bu. an acre. That can be dropped to $6.42 if yields are increased to 35 bu./acre. Currently, average prices are near $8/bu. Good news for corn growers though, Dr. Anderson says this is the only crop that looks to have any profit in it. Most importantly, Dr. Anderson says is yield.
“If they can keep that cost down and that yield high,” Anderson said, “they’ll dramatically increase the odds of making a profit.”
You can watch their visit tomorrow or Sunday on SUNUP- but you can hear Kim's comments right now by clicking on the LISTEN BAR below.
Beyond Lyndall's weekly chat with Dr. Anderson- the SUNUP crew has a very full lineup for your viewing this weekend:
This week on SUNUP, we start with an overview of the weeds that could impact winter crops, with DASNR’s new Extension Weeds Specialist, Misha Manuchehri. She also a preview of the Herbicide Symptomology Clinic on Nov. 1st.
- In the Mesonet report, Al Sutherland shows us how the temperatures have transitioned from warm to cool.
- Kim Anderson explains what crops have the potential to make a profit in 2017.
- In Cow-Calf Corner, Glenn Selk discusses supplement needs for cow-calf pairs on hay.
- Then, Derrell Peel looks at global beef-exporting countries. The top producer may surprise you.
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