June 8, 2010
Texas producers disappointed by low wheat prices
As West Texas wheat farmers celebrate the first bumper crop in years, their moods suddenly turn gloomy when reaching the elevators with harvested grain and receive the latest price quotes.
Friday's (June 4) daily cash market wheat price closed at US$2.70 per bushel.
''I can't believe we are getting 1970 prices in 2010. It is very heartbreaking to see the best crop ever be priced as low as it is,'' said Barbara Hoffman of Paint Rock, 30 miles east of San Angelo.
David Holubec, who farms near Melvin, about 60 miles southeast of San Angelo, said farmers need at least US$5-US$6 per bushel just to break even.
''The bottom line is our buyers are looking for a 12% protein content and most of the wheat in West Texas is averaging 11% or below,'' said Jason Jacoby, a stock farmer and owner of Jacoby Feed & Seed at Melvin.
''If the protein is 11% or below, they are discounting it anywhere from 50 cents to 60 cents per bushel.''
To get 50-bushel wheat cut, the cost starting from the combine to delivery at a grain elevator is approximately 72 cents per bushel for the farmer, Jacoby said. As a result, some stockfarmers in Concho and McCulloch counties have decided to leave their crop in the fields rather then lose more money by hiring a custom farm operator and to truck harvested grain to grain elevators.
More than 60% of the wheat has been harvested in the Melvin and Salt Gap areas near the Concho-McCulloch county line. The yields are averaging from 40 bushels to 50 bushels per acre with test weights running 62-63 pounds per bushel, Jacoby said.
At least 70% of the wheat has been harvested in southwest Runnels County and northern parts of Tom Green and Concho counties serviced by Kasberg Grain Co. in Miles, 17 miles northeast of San Angelo.
