July 1, 2010

As the 2010 winter wheat harvest approaches, the news from points south of Nebraska has both negatives and positives for growers here.

The crop in Texas, Oklahoma, Kansas, and Colorado has yielded well and is carrying above average test weights. These high yields, combined with large carryover from the 2009 crop, are putting some downward pressure on prices as we move through harvest.

On the other side of this coin, some of the southern harvest has had lower protein levels than most buyers would like to see. The protein numbers in Texas and Oklahoma were relatively low across the board, while those reported across Kansas and Colorado are mixed with numbers ranging from 9% to 15%. If Nebraska’s wheat has higher protein levels, there may be some opportunities for premiums at the elevator this summer.

It will definitely be worth checking with the local elevators for potential protein premiums and the levels at which they kick in. Producers with high protein wheat and access to on-farm storage to segregate the wheat may have even larger opportunities to capture higher market prices as the season moves on.

This is a good time, as you prepare for this year’s harvest, to make a few phone calls and determine what your strategy should be if your wheat happens to be a 14% protein crop.

Paul Burgener
Extension Ag Economics Research Analyst