Northwest Iowa Crop Conditions

Warm and dry weather continues. The northern part of this territory received spotty rain, but most areas in our
Northwest territory have been dry for about 2 weeks. This week is a little cooler than last week, which is helping reduce heat stress on the crops.

Corn is showing stress from lack of moisture and too much heat. Farms with quality soil still have good reserve
moisture, but in many cases the roots are not keeping up. It’s not unusual to see root issues when wet springs
are followed by hot, dry summers. The wet and possibly compacted soil gets very hard when dried fast. If we get
some rain and normal temps in July, I think we still have a lot of potential for this corn crop.

Soybeans are also showing some stress, but I don’t think it will have major yield impacts yet. Weather in July and August will determine the soybean crop. Fields that were able to be planted on time have good yield potential.

Grain markets are lower due to a more favorable weather outlook in most of the Corn Belt (especially farther
east). USDA crop ratings remain mostly good to excellent. The United Kingdom vote to exit the European Union
could strengthen the dollar for some time which is bearish toward U.S. exports