2-6 IAT Hay and Wheat

 A snapshot of hay and wheat markets. 

Yesterday, beef and dairy  market snapshots were featured as we tapped the knowledge of Michael Stolp, VP-Market Research and Development  for Northwest Farm Credit Services  over in Spokane.  Today we look at the hay and wheat markets. Here is Michael:

Hay -- Hay producers in the Northwest benefitted from strong hay prices in 2012. Hay prices met resistance from dairy buyers throughout the year, but tight supplies of hay and high-cost alternatives limited the dairy industry’s market influence. Export market growth helped to offset lower demand from dairies. Despite higher input costs, hay growers generally had a profitable season. Exports should continue to support hay prices, but the market outlook will be strongly influenced by overall supplies, the price of alternative feeds and dairy industry profitability in 2013.

Wheat -- Strong yields and markets resulted in an outstanding year for most wheat producers. Eastern and southern Montana are outliers, where drought reduced yields. 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.