NW FARM CREDIT SERVICES 2ND Q MARKET SNAPSHOT

SPOKANE, Wash.—Producers are looking to the sky to determine the success of their respective commodities. Agricultural markets in the Northwest and across the U.S. are volatile; shifting higher or lower with changes in the weather forecast. The Northwest’s mild spring is boosting production in the dairy, wheat, potato and sugarbeet industries while negatively impacting yields for hay, cherry and apple growers.

Grower optimism in the Northwest has faded heading into summer. Potato prices have weakened considerably, reflecting expectations of a large crop for the 2012/13 marketing year. Despite limited acreage expansion, excellent growing conditions are likely to result in increased yields. Weather conditions for the remainder of the growing season will be critical for the price outlook of the Northwest and U.S. potato crops. Optimal conditions through harvest may further dampen market prices.

For more information, visit www.farm-credit.com/resources.