UNL CropWatch August 6, 2010: Market Journal on Improved Wheat Prices, Heat Stress

UNL CropWatch August 6, 2010: Market Journal on Improved Wheat Prices, Heat Stress

August 6, 2010

Nebraska wheat farmers may see a nice reward for their 2010 crop with prices up as much as $2 per bushel in a market that's become fairly volatile this week. The hike is driven by a market shortage due to a drought in eastern Europe, Russia, the Ukraine, and Kazakhstan and a temporary ban on wheat exports announced this week by Russia. 


This market shift affords Nebraska wheat growers some opportunities to increase profit, but growers should be aware of possible volatility. "Don't get greedy," warns an analyst.  "Know your costs and plan your marketing strategy accordingly."

This market shift affords Nebraska growers some opportunities, explains Paul Burgener, extension agricultural economics research analyst at the Panhandle Research and Extension Center at Scottsbluff.

In the news section of this week's Market Journal Burgener explains how this shortage has caused major export markets to open up to the U.S. Late this week Prime Minister Vladimir Putin announced an export ban on wheat, corn, barley, and rye and pressured other countries in the region to do the same, Burgener said. Eastern Europe's "breadbasket" is facing its worst drought in more than a century.

“We’re seeing a lot more movement in the export markets than we expected, about 50% more than what we expected going into this year,” he said. “Also, the dollar is weakening right now and that’s a real positive for the export market.”

Burgener sees market opportunities all the way through the next year.

“We have some opportunity right now to sell some of the wheat we just harvested -- 1/4 to 1/3 of the harvest," he says, and then take another gain by putting together some January contracts. Growers also can look forward to the 2011 crop, where continued gains are likely.

But with all the good news, he adds a bit of caution in looking toward the 2011 crop.

“Know what your costs are and and don’t get too greedy. Let’s not try to hit $7. Let’s go ahead and make some money while the market is giving us some profit.”

Also on this week’s Market Journal:

  • Improved Cattle Markets -- Dillon Feuz, Utah State University extension agricultural economist, says cattle numbers are declining and pounds of beef are increasing. There is a good opportunity to price fall calves now.
     
  • Managing Pigs in Hot Weather – Duane Reese, UNL Extension swine nutritionist, reminds producers to watch for signs of stress in their pigs. If stress is observed, immediately stop working the animals and have water and sprinkler systems ready.
     
  • Food Recalls – Jean Kinsey, director of the University of Minnesota Food Industry Center, says that if a food product is recalled, the best strategy is to act quickly, clean it up, and move on.

  • Nebraska Soybean Management Field Days – Keith Glewen, UNL Extension educator, says producers will learn how to increase the number of nodules on a soybean plant along with marketing, weed control, and nutrient management at this year’s programs. See program details at www.ardc.unl.edu/soydays.
     
  • Possible Heat Stress in Crops – Al Dutcher, UNL Extension state climatologist, says crops will start using the stored soil moisture rapidly. Temperatures are expected to be in the mid to high 90s, with some parts of the state over 100.

Next Week

Roy Smith, farmer and grain marketing consultant, will discuss the corn and soybean markets and Keith Glewen, UNL extension educator, will talk about why growers need to get more nodules on each soybean plant to increase yields.

Broadcast Times

Market Journal is an educational outreach effort presented by the University of Nebraska-Lincoln Extension and Educational Media in the Institute of Agriculture and Natural Resources.  Programs are hosted by Doug Jose, UNL extension farm management specialist.

NET1 – Saturday, 7 a.m. CT
NET2 – Sunday, 9 a.m. CT
Dish Network, Channel 9411

Friday, 12:30 p.m. CT
Sunday, 9:30 p.m. CT
Wednesday, 8:30 a.m. CT
 

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