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California drought to impact northwest agricultural

Northwest agricultural markets are mostly stable to improving this spring. Wheat markets rallied late in the first quarter of 2014, driven in part by the volatile geopolitical situation in Ukraine. Northwest dairy producers are benefitting from near-record milk prices and lower feed costs than in the past three years. However, hay prices are increasing ahead of first cutting in the Northwest. Drought in California is expected to reduce hay yields and forage production in the state, resulting in increased demand for Northwest hay. Irrigation water shortages in California will also impact the qu...

 

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