Drought
Much of the eastern Corn Belt is currently experiencing drought. Dry conditions have been parked in the western region even longer. Low subsoil moisture is a concern, and short-term dryness is compounding the issue.
After consecutive years of drought, some areas of Texas are now breaking records for the wettest May ever. With most of their crop left to plant, it’s forcing farmers to make some tough decisions and crop changes.
It was blood bath in the grain markets with soybeans hitting multi-year lows to start the week, but growing drought concerns then sent markets higher. Dan Basse and Ben Brown explain what the trade is now watching.
The U.S. Drought Monitor says 26% of corn acres, 20% of soybean acres and 47% of winter wheat acres are in drought. The wheat crop has little chance of revival, but corn and soybeans have a long runway ahead of them.
California wastes water, hindering farmers’ ability to grow crops. Farmers are ready to conserve, but we need officials who prioritize the future.
A quick planting pace and the possible return of El Nino meant traders have not been focusing on any weather issues. However, with drought continuing to expand, a U.S. weather market might be back in play.
The signs of El Niño grew even strong this month, and as the weather event looks to make its grand return, significant weather changes could be on deck for U.S. farmers this year.
Seven U.S. states along the drought-starved Colorado River have reached a deal with the Biden administration to conserve water in a “historic consensus” to prevent supply problems for big cities as well as farmers.
The 2023 Wheat Quality Council’s Wheat Tour across Kansas found low yields and higher abandonment than what USDA currently has penciled in with one economist on tour warning abandonment could climb even higher.
USDA’s pasture and range conditions shows 33% is rated good/excellent and 37% is poor/very poor. While the picture is improved from last year, a deeper dive shows one state is worse than 2013.