4
CapitalPress.com
March 17, 2017
USDA supply and demand report a ‘wash’ for wheat prices
By MATTHEW WEAVER
Capital Press
U.S. wheat acres harvested
The USDA estimates less
U.S. wheat production this
year but more production
worldwide.
That won’t send wheat
prices higher anytime soon,
market experts say.
The USDA World Agri-
cultural Supply and Demand
Estimates report found
a total U.S. wheat sup-
ply of 92.5 million metric
tons, up 16.2 percent from
79.7 million metric tons in
2016.
Global production pro-
jections increased from
February’s estimate by
2.8 million tons to 751.1
million tons due to larg-
er crops in Argentina and
Australia.
Total world supply is
991.4 million metric tons,
up 4.1 percent from 952.8
million metric tons in
2016.
“We still have a cum-
bersome supply, projecting
over a billion bushels,” said
Darin Newsom, senior an-
alyst for DTN in Omaha,
Neb. “It’s mostly a wash in
the wheat market, given the
abundance of wheat avail-
able.”
The season average
(Millions of acres)
43.9 million: Down 7.2% from 2015
56
51
49.8
46.8
46.9 45.7
48.8
45.3 46.4 47.3
’12
’14
Source: USDA NASS
Alan Kenaga/Capital Press
2006
’08
’10
World wheat supply
(Millions of metric tons)
*Estimate **March projection
Source: USDA
Capital Press graphic
952.8
923.2
991.4
Up
4.1%
from
2015-
2016
Capital Press File
A new USDA supply and demand report indicates the worldwide wheat supply will remain stable, with
less U.S. production and more in the southern hemisphere.
wheat price for U.S. grow-
ers remains at $3.85 per
bushel from February. Soft
white winter wheat ranged
from $4.50 to $4.65 per
bushel this week on the
Portland market.
“This was about the
most boring USDA re-
port we’ve ever had,” Dan
Steiner, grain merchant
at Morrow County Grain
2014-15
2015-16*
2016-17**
Growers in Boardman, Ore.
“Which is good: The mar-
ket was well-anticipated.
2016
There simply wasn’t any
surprise.”
Marketers will begin
looking at weather reports,
which will impact the di-
rection of wheat prices,
said Byron Behne, market-
ing manager for Northwest
Grain Growers in Walla
Walla, Wash.
“If the Southern Plains
continues to be hot and
dry, the market will start to
take notice of that at some
point,” Behne said. “Weath-
er scares somewhere in the
Northern Hemisphere over
the next few months will
probably provide some sell-
ing opportunities at some
point.”
Wheat farmers seek ways to wait out low prices Gala prices fall as marketers
Capital Press
Mark Sheffels doesn’t
plant as much wheat as he
once did.
Sheffels, who farms west
of Spokane near Davenport
and Wilbur, Wash., started
reducing his wheat acreage
several years ago in favor of
winter peas.
He made the move be-
cause of low wheat prices
Matthew Weaver/Capital Press
and the high costs of raising
Mark Sheffels stands in a winter pea fi eld near Davenport, Wash.,
it.
“Even when markets sug- in May 2016. Sheffels says switching to peas from spring crops
gest we ought to do some- has helped him reduce costs and remain profi table.
thing else, agronomically it’s
pretty hard to fi nd replace- do,” Cochran said. “We’re between $4.50 and $4.65 per
ments,” Sheffels said. “But wheat farmers.”
bushel this week. The ex-
we’re getting there, little by
Growers have reacted in a port price is typically 60 to
little.”
variety of ways, from switch- 80 cents lower than that, be-
Colfax, Wash., grower ing to new primary crops to cause farmers have to pay to
Larry Cochran spreads his diversifying what they raise, get the wheat to Portland to
risk by planting alternative as they look for ways to wait ship it overseas.
crops, including dry peas, out wheat prices that are low-
“That’s why you hear guys
lentils, chickpeas and barley. er than the cost of produc- saying they’re at $4 wheat, or
But wheat is still his primary tion.
a little below,” Squires said.
crop.
Farmers estimate the cost
Cochran said he’s planting
“Because that’s what we of production at roughly the same amount of wheat
$5.50 to $6 per bushel, said despite lower prices.
Glen Squires, CEO of the
“I’m trying to raise a
LEGAL
Washington Grain Commis- wheat crop as cheaply as I
CHERRY AVENUE STORAGE
sion.
can,” he said. “Our input
2680 Cherry Ave. NE
The market price hovered costs have come down some.
Salem, OR 97301
I just hope I get a good, big
(503) 399-7454
crop that makes up for some
Sat., April 1st • 10 A.M.
LEGAL
of the loss of price.”
PURSUANT TO ORS CHAPTER 98
• Unit 29 - Luis Aguilar
Notice is hereby given that the
U.S. winter wheat acre-
• Unit 41 - Kimberly Rivas
following vehicle will be sold,
age has dropped to one of the
• Unit 64 - Kristen McDonnell
for cash to the highest bidder,
lowest levels ever, accord-
on 3/27/2017. The sale will be
• Unit 142 -
held at 10:00 am by
ing to USDA. The USDA
Angelique Goldschmidt
PARKING ENFORCEMENT
projects 50.2 million acres
• Unit 196 -
SERVICES
of wheat planted this winter,
Debra or Josh Ireland
1768 13TH ST. SE SALEM, OR
down 8.7 percent from 55
Cherry Avenue Storage
2006 Mirage Trailer
million acres in 2016.
reserves the right to refuse
VIN = 5M3BE142561018024
any and all bids
Spring wheat acres are
Amount
due
on
lien
$2924.00
legal-11-2-1/#4
still to be determined, but
Reputed owner(s)
Dan Steiner, grain merchant
JOHN C. PINARD
legal-11-2-1/#4
LEGAL
11-1/#4x
Attorney:
DAVID B. BECKHAM
319 Sixth Avenue SW
Albany, OR 97321
legal-9-3-1/#4
IN THE CIRCUIT COURT
OF THE STATE OF OREGON
FOR THE COUNTY
OF MARION
Probate Department
IN THE MATTER OF THE
ESTATE OF
Daniel R. McGowan, Deceased
No. 17PB00512
NOTICE TO
INTERESTED PERSONS
NOTICE IS HEREBY GIVEN
that the undersigned has
been appointed Personal
Representative of the above
estate. All persons having
claims against the estate are
required to present them to
the undersigned Personal
Representative in care of the
undersigned attorney at: 319
Sixth Street SW, Albany, OR
97321 within four months
after the date of the first
publication of this notice, as
stated below, or such claims
may be barred.
All persons whose rights
may be affected by the
proceedings in this estate
may obtain additional infor-
mation from the records of
the Court, the Personal Rep-
resentative, or the attorney
for the Personal Represen-
tative.
DATED and first published
March 3, 2017.
Personal Representative:
JOSHUA R. MCGOWAN
62020 Quail Run Place
Bend, OR 97701
for Morrow County Grain
Growers in Boardman, Ore.,
expects them to be relatively
high.
“Wheat acres in the Unit-
ed States are defi nitely down,
but wheat production across
the world is going to be high-
er,” Steiner said.
Several factors have
contributed to the burgeon-
ing world supply, including
more Russian production and
China boosting production
through farm subsidies, fur-
ther depressing prices.
“Supply has been relat-
ed to great weather around
the world for four years in a
row, which is unusual,” said
Steve Mercer, vice president
of communications for U.S.
Wheat Associates.
The global stocks-to-use
ratio would be signifi cantly
lower if China is factored
out, and is declining, Mercer
said.
“If we see a reduction in
planting, weather and yields
that are more normal or
weather problems anywhere,
we’re going to start cleaning
out that supply pretty quick-
ly,” he said. “There should be
a correlated increase in de-
mand, and therefore prices.”
In the meantime, Cochran
will continue to spread his
risk by diversifi cation.
“All it takes is one disas-
ter in the world somewhere
and the price can change,”
Cochran said.
Sheffels has a couple
thousand acres of winter peas
and 1,300 acres of winter
wheat this year. He grows a
rotation of winter wheat, fal-
low, winter peas and fallow
under direct-seed production.
Sheffels says his fi elds
look good, with a good snow
cover easing his concerns
about any problems caused
by the cold winter.
He plans to maintain his
rotation for the foreseeable
future, and doesn’t think
he’ll go back to wheat as his
primary crop.
“It’s unlikely that’s going
to happen, honestly,” he said.
struggle with huge crop
By DAN WHEAT
Capital Press
WENATCHEE, Wash. —
Wholesale prices of Washing-
ton’s Gala apples fell dramat-
ically in February after prices
of Red Delicious did the same
in January as companies con-
tinued to shrink their second
largest crop in history by
diverting more apples from
fresh to processing markets.
The average asking price
for extra fancy (standard)
grade, medium size (80 to
88 apples per 40-pound box)
Gala in Wenatchee and Yaki-
ma was $15.90 to $18.90 on
March 7, according to USDA
tracking. That’s down $3 on
the low end and $4 on the
high end from Feb. 8.
Red Delicious, same
grades and sizes, was holding
steady at $12.90 to $16.90 af-
ter falling $3 on the low end
and $2 on the high end in Jan-
uary.
“I think Reds have lev-
eled out and will stay there
awhile and I think Gala has
also found bottom,” said Tom
Riggan, general manager of
Chelan Fresh Marketing, one
of the state’s larger tree fruit
marketers.
At the start of the sales
season in September, Riggan
had predicted Reds and Gala
would have a tough ride on
price because of the size of
the crop in the state and na-
tionally. Washington makes
up about 65 percent of the na-
tional fresh crop.
Washington’s total fresh
crop was estimated at 134
million, 40-pound boxes on
March 1, down 1.7 million
from a month earlier. The
crop shrank 1.3 million boxes
during January.
With total U.S. fresh ap-
ple holdings of 69.7 million
boxes on March 1, up 12
percent from a year ago and
8 percent from a fi ve-year
average, Washington’s shrink
is a diversion of more fruit
to processing for juice, sauce
and baking ingredients, Rig-
gan said.
“I think we will see sim-
ilar shrink over the next six
months, which normally we
don’t. It can be condition is-
sues or that certain sizes and
grades just aren’t selling,” he
said.
As of the March 1 season
mid-point, Washington had
shipped 70.7 million boxes of
apples and had 63.2 million
left to ship. That compares to
62.8 million shipped and 53.8
million left to go a year ago
with a smaller total crop of
116.2 million. Reds and Gala
make up 56 percent of what’s
left to sell and 51 percent of
what’s been sold, Riggan said.
There were 23.3 million
Reds left on hand March 1 out
of 38.6 million for the year,
according to industry reports.
Gala was 12.7 million left out
of 31.1 million.
Reds made up the larg-
est amount of the 1.7-mil-
lion-box crop shrink in
the past month at 395,000,
followed by Grannies at
362,000, Gala at 295,000,
Fuji at 262,000 and Golden
Delicious at 200,000.
Produce safety water
rule reconsidered
YAKIMA, Wash. —
Any federal water testing
requirements imposed on
farms need to be risk-based
and reasonable to imple-
ROP-9-3-1/#4x
By MATTHEW WEAVER
ment, a Yakima tree fruit
grower told a congressio-
nal subcommittee. The
federal agency that will
implement the new rule is
reviewing it.
Sean Gilbert, general
manager of Gilbert Orchards
Inc. in Yakima, was among
the farmers who testified
before the Biotechnology,
Horticulture and Research
subcommittee of the House
Agriculture Committee on
March 9.
Water testing require-
ments of the Produce Safe-
ty rule of the Food Safety
Modernization Act “are un-
necessarily burdensome, cost-
ly and not based on risk,” said
Gilbert.
Gilbert said he’s pleased
Stephen Ostroff, acting com-
missioner of the Food and
Drug Administration, told in-
dustry representatives Feb. 16
that the agency is reconsid-
ering the entire water quality
section of the rule in light of
industry opposition.
— Dan Wheat