Wheat Market Snapshot Gives Challenging Outlook

Wheat Market Snapshot Gives Challenging Outlook

Wheat prices are nearly 33 percent lower than a year ago. Northwest Farm Credit Services Knowledge Center’s Matthew Kloes shares an update on the wheat market.
Kloes: “Northwest wheat producers face a challenging outlook. Drought, winter kill and spring frosts lowered yields in Washington and Oregon, while harvest-time rains compromised wheat quality in Montana and Idaho. Wheat prices are near four-year lows and face increasing pressure from bumper U.S. corn and soybean crops. With world wheat production projected at a record-breaking level, a strong U.S. dollar, and abnormally low wheat quality, prospects for U.S. wheat exports are limited. Average wheat prices for the 2014-15 marketing year are expected to reach levels at or below breakeven for all but the most efficient producers.”
Northwest wheat producers’ yields were generally below average. Growing conditions were regularly too dry, too cold and/or too wet. In North Central and Northeast Oregon, yields were 40 to 50 percent below average, pressured by drought. Dry conditions extended into Washington, where crops were 20 to 25 percent below normal in the southeast. Palouse-region wheat producers were the exception, where yields were near historical averages. Southern Idaho received four inches of rain in three days in August, deteriorating many crops value from food to animal feed.
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