Hay and Wheat

Hay and Wheat

David Sparks Ph.D.
David Sparks Ph.D.
Matt Kloes from North West Farm Credit Services gives us Market Snapshots of hay and wheat markets in the NW. "Despite favorable first cutting conditions, a shortage of high-quality hay persists across the Northwest,  However, subsequent cuttings were affected by weather that cut into yields and quality. Meanwhile, California and other western states experiencing drought continue to source hay from the Northwest and abroad. Tight supplies will likely support hay prices for the remainder of 2014. Buyers continue to pay high prices for Northwest hay, but anecdotal reports suggest that resistance to current prices is resulting in slower sales. Additional price increases will likely be limited by lower costs for competing feed.

 

Northwest wheat producers face a challenging outlook. Drought, winter kill and spring frosts lowered yields in Washington and Oregon, while harvest-time rains compromised wheat quality in Montana and Idaho. Wheat prices are near four-year lows and face increasing pressure from bumper U.S. corn and soybean crops. With world wheat production projected at a record-breaking level, a strong U.S. dollar, and abnormally low wheat quality, prospects for U.S. wheat exports are limited. Average wheat prices for the 2014-15 marketing year are expected to reach levels at or below breakeven for all but the most efficient producers.

 

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