NWFCS Wheat and Potatoes

2015 was a year marked by the fact that most commodities were battered. Soft Commodities Prices Ended 2015 mostly higher but Idaho agriculture enters 2016 facing some serious challenges when it comes to commodities. According to industry analysts at Northwest Farm Credit Services. Michael Stolp, Northwest FCS Vice President – Customer Insights told me that lower prices certainly challenge wheat producers' bottom lines, where prices are pressured by large supplies and slowed exports. Potato exports are a contrast to other commodity export slowdowns, up more than 4 percent from 2014. 

 

Wheat – Wheat producers entered 2016 celebrating weather, but lamenting markets with prices below most producers' breakeven points. Late fall and early winter precipitation exceed the prior year's levels, setting the stage for a positive start to spring. However, record global production and ending stocks leave usable world wheat stocks at 32 percent, their highest since 2001-2002. With a world flush in wheat, U.S. wheat exports are their lowest since 1971-1972, constrained by fierce foreign competition and a strong dollar.

Potatoes – Although Northwest potato growers harvested more acres in 2015, production was down almost 3 percent due to lower yields. A smaller crop is matched with quality challenges associated with an unseasonably warm growing season. Notwithstanding these challenges, U.S. potato exports are up 4.3 percent, while frozen potato stocks are down 4.5 percent.