The latest U.S. Drought Monitor revealed not only contracting drought coverage across the nation, but also shrinking levels we haven’t seen in years.
And that is ringing true for many of the country’s top commodities. USDA Meteorologist, Brad Rippey, breaks down the numbers.
“Coverage of the corn production area in drought for the U.S. is just 19% at the end of April, down five points from the beginning of the month, pretty much the same with soybeans, 17% drought coverage, soybean production area at the end of April, down also five points from the beginning of the month. And then as we shift to the South, news for the cotton belt at this time just 8% of the U.S. cotton belt in drought at the end of April. No change from the beginning of the month our current. For for the U.S. hay production area in drought is just 12% at the end of April. That’s down two points from the beginning of April and also down from last autumn’s peak of 42% of the hay production area and drought.”
Brad Rippey, USDA Meteorologist
It’s a very similar picture for cattle producing areas. Just 17% of the U.S. cattle inventory is in drought. That’s up slightly from April where we saw 13%, but this is a major improvement from last fall when almost half of the nation’s herd was in a drought.
Related Stories
China’s grain expansion model may be hitting its limit. Lower prices, high rents, and policy fatigue threaten future output — with ripple effects across global feed and oilseed markets.
Market analyst and friend of the show, Shawn Hackett, says Brazil’s shifting use of crops for biofuel production is a significant factor.
Caleb Ragland, president of the American Soybean Association (ASA), shares his reaction to news of soybean sales to China, which is considered both “welcome news” and a return to near-normal trade relations.
Farm CPA Paul Neiffer joined us on Thursday’s Market Day Report to discuss the implications for farmers.
Chris Bliley with Growth Energy discusses ongoing concerns about U.S. ethanol exports and the expansion of market access promised under the Phase One deal between the U.S. and China.
“It does not extinguish right away here — in any sort of sense — the real profitability concerns and people’s ability to pay bills and get to the other side of this in the very short term. This is where the skepticism builds.”
