01/19/09 Tight club wheat supplies a concern

Farm and Ranch January 19, 2009 Is there going to be enough club wheat left in the Pacific Northwest to meet market demand before this summer's harvest? Mick: "We are of the opinion that there is enough club out there but supplies are very tight." That is Tom Mick, CEO of the Washington Wheat Commission and tight is right! The Commission is projecting a club wheat carryout at the end of this coming May of only 1.3 million bushels. And that estimate is based on exporters blending 21 percent of club with soft white to make western white specs of 20 percent. Mick: "Problem some exporters are having right now in addition to tight supplies is that the kernel morphology on some of the leading varieties, one in particular, does not grade club. So they are having to load 30% club at these high prices to make sure FGIS can pick out 20%, which is what the contract specifications are. And this is putting additional pressure on supplies." The kernel morphology of Bruehl club wheat is the main problem. The high premium of club wheat over soft white, currently about $1.50 a bushel, could reduce demand. Mick: "If they go much higher we will probably see many customers back away from western white and go to just soft white. They just can't afford it." Mick met recently with some Portland area exporters but they wouldn't share their club wheat numbers and according to him, one exporter even said farmers and country elevators aren't helping by "holding out for the last penny." I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.