It could hit 100˚F in Des Moines next Wednesday.
That in and of itself is not entirely abnormal, but it does help drive home a larger point – extreme heat is descending on large areas of the Corn Belt.
And that heat might bring some grain marketing opportunities with it, according to Joe Vaclavik, founder and president of Standard Grain. That’s because some grain prices are already within pennies of 12-month highs, he says.
“If you’re mad at yourself for missing the marketing opportunities the last couple of times around, this is about as good as you could have done,” he says. “It doesn’t mean the market couldn’t go higher, but we’re sitting pretty close to some 12-month highs, so if you have some old crop bushels that you need to move, maybe this isn’t the worst time to do it.
Vaclavik suggests the row crop markets are reacting to weather forecasts, particularly in the western Corn Belt, where the next one or two weeks should prove to be abnormally hot. Meantime, the market may also be reacting to flooding and planting delays more rampant in the eastern Corn Belt earlier this spring.
“It’s not a full-blown crop scare, but certainly adding some weather premiums,” he says.
According to the U.S. Drought Monitor, only about 22% of the U.S. is experiencing some level of drought. However, several key crop production areas are affected, including significant portions of North Dakota, South Dakota, Nebraska and Iowa.
Historically, the hottest weather of the year occurs in mid to late July, according to NOAA data.