Jul 28, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Caution on 2011 Wheat Planting

August 12, 2010

Wheat futures prices are very attractive, says H. Scott Stiles, economist at the University of Arkansas, Division of Agriculture. "What may keep acreage expansion subdued is seed availability. SRW acreage was down so much last year and this has had an impact on seed quantities available for fall 2010 planting.

"Another issue is basis," he says. "As futures prices continue to surge, the 2011 basis widens further. Today, the basis for June/July 2011 delivery to the Mississippi River at Memphis is 80¢ under July 2011 CBOT futures. It’s more than $1 under further out at the country elevators. This is leaving growers with new-crop bids around $6.55 in some areas.

"I caution growers to do their homework; look at their basis, yield history, production costs, and rent arrangements. There is not an automatic profit in wheat at these prices."

For More Information

http://twitter.com/hsstiles  

 
 

See Comments

RELATED TOPICS: Wheat, Marketing, Management

 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

 
 
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions