10-17 IAN Wheat and Spud Outlook

Today, Northwest Farm Credit Services VP - Market Research and Development, Michael Stolp takes a look at wheat and potato Northwest wheat producers face a changing marketplace. Wheat markets face downside pressure from a record 2013-14 U.S. corn crop that will generally pressure grain prices, and reduce the amount of wheat used as feed. Although U.S. wheat supplies are forecast lower for the season, a record-breaking world wheat crop is expected to increase competition for exports from nearly all major foreign wheat exporters. Overall, Northwest wheat producers are expected to be profitable in 2013. Exceptions include producers not mitigating losses with crop insurance or those with quality issues not covered by insurance.

 

The Northwest potato harvest is underway. Quality is good. Crops in Eastern Idaho are mostly top grade. In the Columbia Basin, high temperatures reduced potato sizes and yields, but quality remains above average. Across the Northwest, contract prices for processor potatoes are up slightly from last year, while acreage is slightly down. Fresh potato prices have improved considerably from last year, and producers should see profits for potatoes sold in the open market. However, fresh potatoes prices may decrease once harvest is complete and more potatoes enter the market.