NWFCS Expects Profits for Wheat Growers, Forest Products
Continuing with our six part series focused on Northwest Farm Credit Services’ quarterly Market Snapshots, we look at wheat, forest products as well as hay. Starting off with wheat, Bill Perry, Vice President at NWFCS says the outlook calls for slightly profitable returns for growers.
"The USDA’s projected 2020-21 season average farm price for all-wheat is $4.50 per bushel. Current markets are showing a higher average of $4.70 to $4.80 per bushel from the 2019-20 season. High yields and government payments will partially offset otherwise break-even wheat prices."
Perry said when it comes to forest products, NWFCS anticipates profitable operations for both mills and timberland owners.
"Strong demand and tight supplies are leading to favorable log and lumber prices. Robust housing starts will keep demand high, which could increase further as the COVID-19 vaccine improves economic conditions."
Perry added the 12-month outlook for the hay industry calls for slightly profitable returns.
"In 2021, the hay market will focus on modestly optimistic fundamentals. A weaker dollar favors exports, and higher prices for protein substitutes, like soybean meal, will provide tailwinds to hay producers."
Join us Monday as we conclude our series with the fishery and nursery industries.
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