Hay Wheat Potato Markets

Hay Wheat Potato Markets

David Sparks Ph.D.
David Sparks Ph.D.
Agricultural economist Michael Stolp checked in with three markets.

Hay – A wide price spread between dairy-quality hay and lower-quality feeder hay increased grower focus on quality versus quantity. Weather permitting, production of higher quality hay should offset losses and bolster growers' profit margins. Export shipments reveal a relatively strong start to the year, with increased shipments to the United Arab Emirates, Taiwan, Saudi Arabia and China.

 

Wheat – Northwest wheat crop conditions are average to well above average, supported by timely rains in most regions. However, the outlook for wheat prices remains bearish, overshadowed by forecasts for rising U.S. and global ending stocks. Questions around quality loom domestically and internationally. Although record U.S. hard red winter wheat yields are forecast, millers note challenges associated with low protein levels. Protein premiums are expected to widen. 

Potatoes – The 2015-16 potato marketing season is closing with storage-related quality challenges. Lower late-season packouts reduced growers' returns. However, reduced supplies and demand for fresh and processing potatoes set the stage for strong early-harvest potato prices. Despite lower 2016 contract prices, processor potatoes remain profitable while fresh, open (uncontracted) potato returns are more dynamic.

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