Commodities

This year, U.S. supplies of corn are expected to fall for the first time in three years. This decline is a result of fewer planted acres, yields that have retreated from the record set last year and lackluster old-crop demand because of large global supplies. While recent yield projections have moved lower, only a select few states are expected to see a reduction from trend yield in 2015. Wheat producers close out their 2015 harvest facing headwinds including: 1) Varying yields and quality: Drought limited production in many areas throughout the Northwest. Protein levels either too high (soft white wheat) or too low (hard red wheat) further reduce growers' returns.

"2015 is shaping up to be another strong year of financial performance for our organization," CFO Tom Nakano. "However, we're seeing greater commodity price volatility and economic stress Is due to the globalization of the commodity markets and the impact this can have on the US economy. Commodity prices are impacted by supply and demand trends that are both international like the impact of the weak markets by the turmoil in the Ukraine or the impact of other commodities by the economic slowdowns in China. There are also pressures from weather-related events throughout the Northwest. As we work with our customers to prepare for the next growing season, we anticipate seeing more challenging operating situations for some. Overall, producers are in relatively strong financial positions due to several recent good years for agriculture."