There is no doubt the situation in Ukraine is serious, but most analysts believe weather is the main market driver right now.
USDA Meteorologist Brad Ruippey says heat in the Midwest is something producers need to keep a close eye on.
“It is critical that we try to keep the temperatures down in the Midwest, but unfortunately, it looks like some of that heat will be building at least into the corners or the edges of the Midwest as we move into late July. So certainly something to watch given the tenuous moisture situation in parts of the Midwest and the fact that to this point, we’ve kept temperatures down, which has certainly been a benefit for corn and soybeans. But some signs that we could get into a less favorable situation with temperatures as we head into the latter part of July.”
While corn and soybeans have seen some relief, rangelands have as well. Rain in the central and eastern parts of the country over the last several weeks have given those conditions a boost, but Rippey says there are a few areas that are seeing some poor conditions.
“Your very poor to poor ratings are pretty limited. We still have that drive belt across the Midwest, kind of extending from the middle Mississippi Valley into the Great Lakes region. Missouri leads the country on July 16th, 72% very poor to poor, and then elsewhere in the Midwest, we have Illinois at 43%, Michigan 41% very poor to poor. So, find the other stressed range lands. You have to go really to the desert southwest in Texas, where the heat and drought have come back in full force over the last several weeks. We have Texas 49% very poor to poor, and Arizona at 39%. But on the flip side, so many areas of the country are doing well. We even have a few states in the West still 70% good to excellent or greater on the range land and pastures: Colorado at 74%, California at 70%, and that lush green situation extends into the southeast, where Alabama has 90% good to excellent. Then, pretty much on up the East Coast, Vermont 100% good to excellent this week, and New Jersey at 95%.
