Southwest Iowa Crop Conditions

Growing conditions have improved immensely over the past two weeks. After a month of continual heavy rainfall,
crops are responding to normal summer weather in mid-July. Crops on rolling hill ground look as good as ever.
Approximately half the corn fields are tasseled. Unofficial reports of up to 35” fell in some areas along the Missouri
River between June 1 and early July. Corn fields range from excellent on the best, most well-drained soils, to
drowned-out or very poor on heavy soils which were not able to drain. Many fields had water standing for several
weeks as drainage ditches, rivers, and creeks ran bank full. It’s amazing that many fields looks as good as they
do, although yield potential is likely severely compromised. Soybeans, being a short-statured crop, did not survive
in parts or all of many fields. Surviving beans are short for this time of year but may make relatively decent yields
since pod development has not yet started. One thing is for sure – yields won’t duplicate 2013 in that area, but
crops in the hills have great potential at this time.

Prices are on the biggest summertime slide in ten years. Outstanding growing conditions across the country in
2004 are being duplicated in 2014. The price charts are nearly identical – straight down since late spring. At this
point, it seems prices should be low enough to accommodate potential production. Last week’s price action
indicated a potential bottom, but today’s losses don’t look good on the charts as we’re at the lowest corn prices in 4
½ years. Beans continue downward as well. Record US production is being forecast as well as huge global
stocks. The good news is that livestock feeders are enjoying record profits and ethanol is doing well. Low prices
stimulate demand so we’re looking for better pricing opportunities later in the marketing year for the 2014 crop.