8-1 IAT Sugar beets and Apples

 Every quarter I call Michael Stolp, who is V.P. Market Research and Development for Northwest Farm Credit Services. Michael’s a genius at market analysis in the ag sector and is always kind enough to provide us with his quarterly Market Snapshots. Today it’s sugar beets and apples. 

 “Sugar Beets -- Despite a cold spring, sugar beet crops look promising for most growers. Eastern Montana and Southern Oregon growers expect average to favorable crops, while heat stress is impacting the outlook for crops in the Nampa, Idaho area. Cold weather and wind forced sugar beet farmers to replant a high percentage of their crops this spring, which will impact profit margins. Projected returns for sugar beet growers continue to decline as the result of excess national sugar supply and depressed global sugar prices. Northwest FCS projects growers’ breakeven sugar beet price between $32 and $36 per ton. With 2013 prices expected to remain above $40 a ton, producers should profit, but not at the levels seen the previous three years.

Apples -- Profitable prices and record sales are the hallmark of the Northwest’s 2012/13 fresh apple crop. A short Northern Hemisphere apple crop is driving strong markets and record movement of the Northwest crop. The industry should finish the current marketing year strong and with good profits. Looking ahead to the 2013/14 season, a large Northwest apple crop coupled with a larger national crop is likely to weaken prices.”