Strong Markets Fuel Wheat Growers Optimism

Strong Markets Fuel Wheat Growers Optimism

I’m KayDee Gilkey with the Northwest Farm and Ranch Report.

Northwest Farm Credit Services recently released their quarterly Market Snapshots on 18 different commodities. Today, we’ll focus on what wheat growers can expect for the remainder of 2012 as well as into next year.

Michael Stolp, Northwest Farm Credit Services Vice President of Marketing Research and Development shares a brief overview of the snapshot.

Stolp: “Dryland grain producers’ profits are supported by average to above average yields and strong prices reinforced by tight corn and soybean markets. Wheat markets should continue to find cross market support in tight world feed grain and oilseed supply-demand balances. Production shortfalls in Russia and the Black Sea Region combined with questions around the Australian wheat crop should provide wheat markets strength through yearend.”

As of Oct. 7 National Ag Statistic Services Crop Progress Reports states 75 percent of Washington’s winter wheat is planted and 59 percent of the crop has emerged. In Oregon 37 percent of the winter wheat has been planted and 17 percent has emerged.  Idaho reports 64 percent of their state’s winter wheat planted and 20 percent of the crop emerged. The entire Pacific Northwest region is experiencing below normal precipitation levels.

Stolp shares more.

Stolp: “Regardless of the commodity, several factors affect the market going forward, including short domestic cattle supplies, corn yields, foreign trade activity, tight domestic supplies of competing proteins, global economic credit problems, continued high unemployment, and the health of the domestic and international economy.”

I’m KayDee Gilkey with the Northwest Farm and Ranch Report on the Ag Information Network. 

For more information on the Northwest agricultural and forest products industries please visit Northwest FCS’ Knowledge Center.