Wheat Farmers Finally Get Their Due
Author: Bruce Kelly
Date: 12-18-2007 - 07:19
This year's skyrocketing prices for wheat is already old news. And we've all been discussing how railroads, barges, ports, etc., are needing to ramp up to meet the demand. But did anyone notice the chain of major events just in the past two or three days which should really lock in (hopefully!) a bright future for our farmers? Yesterday, the UN (yeah, I know)declared that world food supplies are dwindling rapidly, noting specifically that "world wheat stores declined 11 percent this year, the lowest level since 1980." Then we have Washington's governor announcing support for that controversial plan to increase management (translatation: harnessing) of the Columbia River and Columbia Basin drainages to ensure water supplies for eastern Washington's farmers and small towns. And just this morning, the news out of Chicago trading is that wheat futures gained on expectations demand is increasing at a time of shrinking global stockpiles. "Wheat for March delivery, which reached a record $10.095 a bushel yesterday before settling at $9.66, today rose as much as 1.1 percent to $9.77 in after-hours electronic trading on the Chicago Board of Trade." Wasn't it just a year or so ago that wheat was flowing out the Northwest ports at barely $3 a bushel? This is of course good news for the state and private owners running our beloved Inland Northwest branch lines. Wonder how good it has to get, and for how long, in order for hoppers to start loading again up on the Camas Prairie.