Two-Stage, Two-Belt 2012 Drought?

July 25, 2012 05:10 AM
 

Drought damage to the 2012 corn crop in the eastern Corn Belt has been, and is still being, well documented. The drought started early and has continued to date. But it appears the pattern is changing for the eastern Corn Belt. The latest 6- to 10-day outlook from the National Weather Service calls for above-normal rains in the eastern Belt. While increased rains won't help recover lost corn yield, they would likely help the soybean crop recover some yield potential.

Temps have been hot across the Midwest and are expected to remain above-average. That will continue to make it tough to build a big corn yield.

The problem going forward could be a late-season, on-going drought in the western Corn Belt. That would continue to chew down corn yields on what are expected to be the highest-yielding corn acres this year. But more importantly, a western-Belt drought lasting into August would also limit bean yield potential, making tight soybean supplies a much bigger story for the grain markets moving forward.

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