Quarterly Wheat and Beef Market Snapshots

With third quarter’s Market Snapshots for wheat here is Northwest Farm Credit Services Michael Stolp.
Stolp: “Northwest wheat producers’ yields are bursting bins, but low prices are squelching profits. Year over year, U.S. wheat supplies are up 17 percent and global wheat supplies are a record 745 million metric tons. The USDA projects 2016-17 all-wheat prices at $3.30 to $3.90 per bushel, at or below producers’ cost of production. Bright spots include millers’ price premiums for high-quality wheat.
Both Washington and Colorado had record winter wheat yields this harvest.
Stolp continues with the beef market snapshot
Stolp: “Current and projected cattle markets are volatile and trending down. Bearish market forces include increasing herd numbers and beef production, sluggish beef exports and a relative decrease in poultry and pork prices. The USDA’s recent decision to allow Brazilian beef imports is significant, but the net effect to U.S. markets is limited due to the Other Country Tariff Rate Quota system. (The quota caps beef exports from Brazil and other named countries at 64,000 metric tons).”
The Snapshot also states the total U.S. cattle inventory has increased 2.9 million head from Jan. 1, 2015, to Jan. 1, 2016. Overall, herd expansion is expected to plateau in 2017. Aggressive herd growth is unlikely in 2016 due to higher cow slaughter rates and heifer placements in feedlots. Rising beef supplies have been met with rising beef demand.