Jeff Leber of Umapine, Oregon, stands in the baking sun. He listens to the hiss of his grain getting sucked up into the bins, at the Northwest Grain Growers co-op.
Today, Leber is getting a bit more money for his fall-planted, soft, white wheat than even days ago. Still, he鈥檚 spent more on this crop 鈥� his fuel, seed and fertilizer have been set at the highest prices he鈥檚 ever seen.
鈥淭here鈥檚 not much I can do, except for taking care of the farm the best I can,鈥� Leber said. 鈥淭hen, our government and everyone else takes care of the pricing. We get what we get.鈥�
This week, Russia bombed key Ukrainian ports 鈥� crippling major wheat exports. It also pulled out of a key agreement that allowed the export of Ukrainian grain. That鈥檚 spiking U.S. wheat futures prices on soft red winter wheat 鈥� they were up 20 cents Tuesday and up 55 cents most of Wednesday. On Thursday, early trading was both up and down, showing signs of high volatility. The local wheat price has ticked up too 鈥� just as the Northwest starts to harvest.
Down-yield
Many Northwest farmers are harvesting a this year, and harvest is about 6% complete in Washington, 15%in Oregon and 5%in Idaho, as of July 16, .
This year鈥檚 hot spring, that brought little, if any, rain has left the wheat heads light in grain, with few or weazened/shriveled kernels. Some Northwest wheat is stressed 鈥� and may have too much protein to meet market demand. Most of the Northwest鈥檚 wheat is ultimately sold to Asian bakers 鈥� who like low-protein, and low-gluten wheat for cakes, cookies, noodles and crackers.
War money
The war-fueled jump in price could help offset higher-priced fuel, seed and fertilizer in the Northwest. But higher prices could also disrupt the world wheat market.
Cory Christensen is a grain merchant for Northwest Grain Growers. He said some say there isn鈥檛 enough grain in the world to feed everyone.
鈥淭ypically, there is actually enough grain in the world. It鈥檚 just in places that are too hard to get out of or it鈥檚 just too expensive to go to the places that truly need it,鈥� Christensen said.
Christensen said Northwest farmers may get a bit higher price because of the war in Ukraine. But they will still have to account for the local demand, and the cost to get it to market from some remote areas.
Across the Northwest, grain is piling up in bins and in giant, golden pyramids near barging points. Much of the growing, and market, is out of farmers鈥� hands with this worldwide commodity.
Back outside of the massive steely bins in Walla Walla, farmer Jeff Leber said he doesn鈥檛 have a lot of time to worry. He already has fall planting in mind 鈥� after harvest, he鈥檒l need some serious rain.
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