3rd Quarter Market Snapshot

3rd Quarter Market Snapshot. I'm Greg Martin with today's Line On Agriculture. The ag industry in the northwest has been facing some challenges during the 3rd quarter. Michael Stolp with NW Farm Credit Services gives us an overview. STOLP: Overall when we look at agriculture in the northwest we see that crop farmers have some reason for some optimism. Specifically if you recall this summer we saw grain prices really take a spike and probably of most interest to our farmers here in the northwest are wheat prices which really increased and a lot of that increase was based on crop production challenges in Russian and Europe. In fact, Russia banned grain exports Stolp says that there has been some backing off on some of those prices. STOLP: In addition to the grains we've also seen a relatively good start to the 2010/2011 potato crop as well as sugar beet and onions. If we're going to flip over though, Greg, to the protein side that's where we see some stress in the northwest commodity market. Here's the good news when it comes to dairy markets, we've seen prices pop up above break even from most every producer and that's good news. But according to the latest report, it's not all good news. STOLP: On the flipside though we've also seen feed component prices increase. Particularly we look at corn, that's where we see some significant caution as we look at the future and profitability because corn prices as we all know have increased significantly. In fact, the USDA just reduced yields again which have seen additional increase. All that said, most area producers continue to produce above break even this fall and that's good news in that market. Stolp says there's also near term optimism in the cattle market. STOLP: Particularly if we look at calf prices we've seen them stronger than last year and we've also seen strong exports of our beef and lower imports and that has supported good cattle prices but as I noted with dairy and increasing corn prices there is some concern that these increasing corn prices of course will find their way all the way back to cow/calf producers in decreased prices from the feeders. Northwest FCS provides financing, related services and crop insurance to farmers, ranchers, agribusinesses, commercial fishermen, timber producers, and rural homeowners in Montana, Idaho, Oregon, Washington, and Alaska. That's today's Line On Agriculture. I'm Greg Martin on the Ag Information Network.