This week on SUNUP - Lyndall Stout is joined again by Dr. Kim Anderson, Oklahoma State University Extension grain market economist. During this week’s edition, Anderson work’s through the latest developments in the wheat markets to help producers storing grain right now, decide whether or not to sell yet.
According to Anderson, producers have seen an increase of about a dollar in wheat prices after they bottomed out early last fall, resting now at about $3.15, plus an additional .03 of interest if taken from the loan. He says if producers took it all out now, they would save about three months storage cost of .12-.15 bringing a total expected price of roughly $3.53 - $3.60.
Under current conditions, now, Anderson advises, is probably a good time to start taking wheat out from the loan. If not all at once, then at least staggered slowly over the next few weeks and months.
Looking ahead, based on weather forecasts which call for above average temperatures and average moisture in 2017, Anderson says he expects an average crop. In fact, he says we may also be dealing with a potentially early harvest, alluding to conditions that may prompt plants to take an early exit from dormancy.
He continues that if producers can secure a good weight and protein in their wheat crops this year, we could even expect to see rallies in the futures market, resulting in a higher cash price. His advice - sell your wheat at harvest.
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