Crop Conditions as of 6/7/2021
|Past Weeks Rainfall||Spotty and limited.|
|Soil Moisture||This area remains similar to our previous report. The Drought Monitor says most of this area is “abnormally dry” with most of Monona County showing up as normal.|
|Temperature||Warm temps in the 80’s and 90’s. Night-time in the 60’s and 70’s.|
|Crop Progress||Normal for both crops.|
|Crop Stage||Mostly 8-15″ tall||Crop Stage||Mostly 2-5″ tall|
|Yield Potential||Trendline or better||Yield Potential||Trendline or better|
|Current Prices||$6.91||Current Prices||$15.52|
|New crop (Oct 2021)||$5.73||Fall Price||$13.75|
|Past Weeks Trend||Steady to higher||Past Weeks Trend||Higher|
Cool weather during much of May slowed crop growth, particularly corn which emerged well but sat nearly dormant in growth for several weeks. Memorial Day weekend saw a real dip in temps with the overnight low on the 28th dropping into the 30’s. Some even reported frost damage in low-lying areas. Since then, temps have been rising into the 90’s this week. Rainfall was spotty but with a general rain of less than 1” received over Memorial Day weekend. Generally, this area is several inches behind normal in rainfall this spring. Small crops don’t need a lot of moisture so current needs are being met. The Little Sioux River continues to register about 20% of its average flow for this time of year.
Crop markets are now in summer weather mode. Each forecast and weather model can move the markets. South America is in a historic drought, so their contribution to the global gain supply is affected. Most of northern Iowa, Minnesota, and the major crop areas of Wisconsin and Michigan are in some stage of dryness or drought. The situation worsens considerably in the Dakotas, particularly North Dakota. Since they are #6 in corn and soybean production, it does make a difference.
Bids for October 2022 are at profitable levels, assuming normal yields. Selling that far ahead is hard to do at this point, but it is something to watch closely.
Land prices are very strong. Each sale is registering remarkable results. Reports that land values are approaching the highs of 2012-2013 are true. We expect land will show continued strength through 2021.
Dennis Reyman, AFM, ARA
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