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Market Headline News: Wheat PowerPoint Presentation
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Market Headline News: Wheat

Market Headline News: Wheat

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Market Headline News: Wheat

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  1. Market Headline News: Wheat Kim Anderson Oklahoma State University

  2. KCBT Wheat Weekly Nearest

  3. KCBT Wheat July Daily

  4. What will it take for $5 wheat? • $5 wheat requires 620 mb ending stocks • Average use 2.16 bb • 980 – 620 = 360 0.36 bb 1.80 bb • Four times since 1975 below 1.9 bb

  5. Expected Production • Winter Wheat: • 37.1 million acres planted • 0.81 (percent harvested) • 44 bu/ac average yield • 1.33 bb • Spring Wheat • 15.7 million acres harvested • 40 bu/ac average yield • 0.63 bb • 1.96 bb Total Production

  6. Yield More Important than Price 29 bu/ac x $5 = $145 40 bu/ac x $3.75 = $150 June 2010 wheat price KCBT July $5.13 Basis-$0.80 $4.33

  7. What to Hope For Marketing Strategy • Hope for: • Above average yields. • Below average yields • Market Strategy: • 1/4 to 1/3 at harvest. • 2/3 to 3/4 fall & winter.

  8. OETA Saturday Mornings 7:30 a.m.