Northwest FCS Small Grains Market Snapshot

Northwest FCS Grain Market Snapshot

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

Each quarter, Northwest Farm Credit Services updates more than 15 different commodities through their Market Snapshots. Northwest FCS Vice President of Market Research and Development Michael Stolp shares more from their fourth quarter 2012 results of the small grains Market Snapshot.

Stolp: “Strong yields and markets resulted in an outstanding year for most wheat producers. Looking ahead, lower global wheat supplies may boost domestic wheat prices during the 2012/13 marketing year, but so far the pace of U.S. exports is poor. Despite estimates that the U.S. winter wheat crop is in its worst condition in nearly three decades, ample U.S. wheat supplies and a projected increase in domestic wheat acres may pressure prices for the 2013/14 crop lower.”

The snapshot gives the following overview of the conditions of Northwest wheat.
Grain markets have been strong in the fourth quarter. After peaking above $9 per bushel, wheat markets have eased at yearend, trading around $8 per bushel. The majority of Northwest producers’ 2012 wheat crop is sold. In some cases, growers have forward contracted into 2013 and 2014.?
Winter wheat crop conditions have rebounded after an uncertain, dry start. October and November rains increased germination and strengthened Northwest winter wheat crops. Moderate winter temperatures support healthy winter wheat crops in the New Year.
Wheat producers’ profitability is driving demand for farm ground. Dry land real estate markets throughout the Northwest are active.