Extreme Drought and Heat Wave - Not a Good Combination

In the previous drought post, it was noted that if upcoming rainfall chances did not materialize, we could be at a tipping point for much worse drought conditions.  Well, as we all know, those weather systems did not materialize and we are seeing increasingly widespread drought effects on crops, lawns, and gardens.  This week's US Drought Monitor report has placed the majority of Spencer County in the the "extreme" category and the 7-day forecast from the National Weather Service indicates 100+ degree temperatures each day with no chance of rain. 

Purdue Extension and the Extension Disaster Education Network have developed a drought information website that compiles drought management tips and resources for consumers, homeowners, and agricultural producers.  This site will continue to be updated with information as long as the drought conditions persist.  I encourage you to check out this this regularly for updates.   

Also, two articles have recently been released addressing the continued drought effects on corn and soybean production.  Links to those publications are listed below:

Hot & Dry: Stress on the Corn Crop Escalates

Signs of Drought Stress in Soybeans

Weekly Outlook - Soybean Fundamentals Remain Strong

Soybean prices began moving higher in July 2010, starting from about $9.50. July 2012 soybean futures reached a high of about $14.70 in late August 2011, declined to a low near $11.25 in mid-December 2011, and reached a high of $15.12 in early May 2012. Prices have been very choppy the past two months, but the July futures contract is now trading within about $.30 of the early May high. November 2012 futures prices have been lower than July futures, but have followed a similar pattern and are now trading at a contract high near $14.30.

U.S. soybean market fundamentals have been strong for an extended period of time. The strong fundamental factors have included record large exports in 2009-10 and 2010-11 as Chinese demand expanded, a reduction in U.S. soybean acreage in 2011, a relatively low U.S. average yield in 2011, intentions to reduce U.S. acreage again in 2012, and a very small soybean harvest in South America this year. These strong market fundamentals continue in the form of a rapid pace of consumption and concerns about the size of the 2012 U.S. crop.  <Read More>