Demand and the dollar help spike wheat prices

| Print |  Email
Saturday, March 01, 2008

wheat.jpg

PENDLETON After a rough 12-year slog with more drought than profit, Oregon wheat growers are finally back in the black, thanks to record wheat prices that are not expected to drop any time soon.

After years of selling their harvest at $5 a bushel, less than it cost to produce, growers watched with amazement over the winter as the price soared to $16 a bushel, buoyed by the weak dollar and unprecedented global demand for grain brought on by crop failure in Australia and a relentless ethanol market.

Growers now have the opportunity of pre-selling next year’s harvest at a healthy $9 per bushel, says Tammmy Dennee, with the Oregon Wheat Growers League. It currently costs $6.62 per bushel to produce. “This is going to be a great year for profit in wheat country,” says Dennee.

The whopping price increase should overshadow more modest price increases in diesel fuel and fertilizer, boosting Oregon wheat growers with cash to invest in deferred maintenance and overdue equipment upgrades.

“Those investments are going to create new wealth in our communities,” says Dennee. “We’re seeing smiles that we haven’t seen in a very long time.”                                           

BEN JACKLET


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

Free Falling

Contributed Blogs
Thursday, December 18, 2014
121714-oilprice-thumbBY JASON NORRIS | OB CONTRIBUTOR

The implosion of the energy complex: The best thing for low oil prices is low oil prices.


Read more...

LEED for weed

News
Wednesday, January 28, 2015
012815-potcarbon-thumbBY LINDA BAKER | OB EDITOR

What is the impact of the legal pot industry on carbon emissions? An NEBC energy forum breakfast makes the case for taking the new industry’s emissions impacts very seriously.


Read more...

Corner Office: Timothy Mitchell

January-Powerbook 2015
Saturday, December 13, 2014

A look-in on the life of Norris & Stevens' president, plus an abridged Powerlist for the best commercial real estate firms.


Read more...

The city as startup

Guest Blog
Wednesday, January 14, 2015
011415 citystartup-thumbBY NISHANT BHAJARIA | OP-ED CONTRIBUTOR

Startups in the growth phase are associated with a fresh infusion of capital — human and financial — a curiosity factor and products to disrupt the market and drive demand. Portland’s economy gives off the same aroma.


Read more...

Light Moves

February 2015
Monday, January 26, 2015
BY JACOB PALMER

Fittingly, Light at Play — a business whose sole purpose is to create mesmerizing ambience — was conceived at Burning Man.


Read more...

Corner Office: Marv LaPorte

January-Powerbook 2015
Saturday, December 13, 2014

The president of LaPorte & Associates lets us in on his day-to-day life.


Read more...

Crowdfunding 2.0

News
Tuesday, December 02, 2014
120214-crowdfund-thumbBY LINDA BAKER

A conversation with attorney Erich Merrill about the latest way to raise money from large groups of people.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS