Global conditions push wheat prices up for Oklahoma farmers

Oklahoma farmers are seeing some growth on wheat market prices as they near the end of the planting season for the coming year’s crop.

Over the past six weeks, the market price for hard red winter wheat has climbed 40 cents a bushel.

Kim Anderson, Oklahoma State University Cooperative Extension emeritus grain marketing specialist, said factors outside of the U.S. are impacting the market.

Australia, he observed, is losing its third crop in as many years because of drought.

And Argentina, which had been projected to have a record wheat crop, also has been hit with dry conditions and has lowered its harvest estimates as a result.

“Then you’ve got the Black Sea area, where exports are significantly lower than they were at the same time last year,” Anderson said.

“So, world wheat prices are up about 40 to 45 cents, and U.S. wheat prices are up about 40 cents” a bushel, he said.

As for Oklahoma’s coming crop, Anderson noted the price farmers get will depend upon the amount of protein their wheat contains.

“You can forward contract the 2020 crop for $4.20 to $4.25,” he said.

“I think that’s priced with the expectation of 11.4% protein in U.S. wheat.

“If we have 12.6% protein like we did in the 2018 crop, we pick up that 80-cent protein premium and you’ve got $5 wheat.”

Wheat Squared is sponsored by the Oklahoma Wheat Commission and Oklahoma Genetics, Inc. Visit wheatsquared.com to learn more.