Counties of: Woodbury, Ida, Sac, Monona, Crawford, Harrison, Shelby
Both crops are behind normal growth. The rain last weekend provided a brief growth spurt but 90-degree highs all week have used that moisture. Lawns have browned up again. First cutting hay was anywhere from average to half-crop. Second cutting will probably be similar.
All of Iowa (except Okoboji area) is in some stage of dryness or drought. Of the entire eastern Corn Belt (nine states), only south-central Minnesota and west-central Ohio are not in dryness or drought. The western Corn Belt is as bad or worse. Eastern Nebraska and central Kansas have large areas of Extreme to Exceptional drought. Basically, everything in the Central Time Zone north of the Ozarks is way too dry. This is now the 4th year for most of our area. Subsoil moisture is depleted. The daily water needs of crops really starts increasing now.
Grain markets rallied considerably since Memorial Day based upon realization of the expanding situation. Old-crop corn was enjoying nearly record-strong basis but that slipped once the market moved higher. That was not surprising. Cash corn rallied to near its winter highs, not quite reaching back to $7 but close, before falling hard today (Friday) based on improved weather forecasts. Monday’s prices will move according to how much rain coverage actually occurred. Soybeans are pretty well following suit.
Most likely, this is another pricing opportunity. The drought may continue and intensify which could drive prices to all-time highs. The challenge to that is that US grains are the most expensive in the world right now.
Generally, weather rallies should be sold.
Please click on the links on the right to view the past pdf’s of our Southwest Crop Conditions reports.
1705 N Lake Ave
Storm Lake, IA 50588
Real Estate Licensed in Iowa, Minnesota, Nebraska and South Dakota.
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