Tuesday, June 5, 2012

Worrying Dryness Out West

Des Moines Register:
Iowa’s corn crop, rating 81 percent good to excellent by the U.S. Department of Agriculture two weeks ago, has slipped to 75 percent good to excellent as the state confronts dry soil conditions over about half of its acres.
The U.S. corn crop conditions slipped as well, falling from 72 percent good to excellent last week to 67 percent good to excellent in the latest survey completed Sunday.
The commodity markets took note of increasingly dry conditions in Iowa and the western half of the corn belt, pushing up crop prices 16 cents per bushel to $5.68 and the December contract up 14 cents to $5.25 per bushel Monday on the Chicago Board of Trade.
Corn prices have fallen by almost 20 percent since March on concerns that farmers are about to produce a surplus-enlarging crop. But the driest conditions seen in Iowa since 2006 have at least temporarily put a floor under prices.
75 percent good to excellent still isn't too bad.  While our corn is looking better, it probably wouldn't be that highly rated.  Overall though, things are looking pretty good here.  We've got all the fertilizer on, and received a couple of nice rain showers last week.  At the home place, I ended up with 1.7 inches between Tuesday and Friday's showers.  There isn't any rain in the forecast for the next week, but what we got should carry us through.

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