Harvest is starting to advance more rapidly across Oklahoma—yields are less than half what farmers harvested a year ago, but protein levels are elevated. That’s good news for cash bids because there is a lot of lower-protein still in storage from the last two years, said Kent Prickett, general manager at Farmers Grain Co. in Pond Creek, Oklahoma.
The HRW futures are beginning to react with more urgency to the smaller, but higher-quality U.S. wheat crop, as limited rains in southern Russia and eastern Ukraine will curb global production while too much rain is becoming quality problem in Germany and France. There is better demand surfacing for newly-harvested supplies than in the past two years.
Most farmers in Prickett’s area are just starting to ramp up harvesting activities. Many will collect 25 bu. an acre, down from 50 bu. to 55 bu. the last two years. USDA last month projected that the state will harvest 47% less than a year ago and its second-smallest crop since 1957. Protein premiums have eased a bit in the past week, but remain strong.
``Millers, exporters and elevators are all looking for protein,’’ Pricket said. ``There are so many deals floating around.’