Producers balance strong prices with rising costs
Washington Ag Today April 11, 2011 In its First Quarter Market Snapshots report Northwest Farm Credit Services says strong markets for most ag commodities are tempered by increasing uncertainties this spring. The Snapshot says agricultural producers’ challenges include rising input prices, a wet and cold spring that will delay planting and the unknown impact of the Japanese Disaster on Pacific Northwest ag markets. Also, vine and tree fruit industries face undetermined damages caused by severe winter freezes. The Snapshot notes cattle prices have been at record highs with the price for a 550-pound steer having increased by more than 33-dollars a hundredweight in the last year. USDA economist Joe Glauber talks about the latest price outlook for livestock issued Friday and the impact meats may have on food inflation this year. Glauber: “Steers we took up 3.4% from last month, almost at $112 a hundredweight. Hogs we brought those prices up to almost $64. That is up four percent and broilers up about a percent. So, we have seen some increase in those prices. I think that can bode for higher food prices and we have seen inflation start to creep up from admittedly low levels. We are at about at 2.8% out of the last numbers from BLS. ERS is currently forecasting food at home inflation at 3.5 to 4.5% for the year. I think that certainly by the end of the year we can see higher inflation rates than that in large part due to things like this, this increase in meat prices.” USDA economist Joe Glauber. I’m Bob Hoff and that’s Washington Ag Today on Northwest Aginfo Net.
