Northwest FCS Small Grains Quarterly Market Snapshot

 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 details from the first quarter results of the small grains Market Snapshot.

Stolp: “Northwest wheat producers are favorably positioned in entering the spring. Growers’ financial position is good, bolstered by favorable prices and crops in 2012. Field work is under way and Northwest growers report adequate spring rains and or soil moisture except areas of Montana and Oregon. Market fundamentals are somewhat bearish with 2013 planning intentions and grain stocks higher than expected, however, crop insurance guarantees are positive.”

Stolp explains that conditions in North Central Oregon are dry, where producers suggest growing degree days are slightly ahead of normal.

The Market Snapshot gives the additional overview: growers’ grain bins are nearly empty. Most took advantage of favorable prices in late 2012 and/or early 2013, selling at prices above break evens. Northwest FCS staff report the results of producers’ profits in ongoing improvement in growers’ financial conditions.

Profitable grain markets are attracting non-traditional buyers in certain agricultural real estate markets. Anecdotal reports include select purchases by investors and out-of-area buyers. Although most real estate market participants are producers, competition for farmland is increasingly diverse.