July 2022 Market Briefing: Region 3
Crop conditions across this region continue to vary but considering what the crop has been through in this area this growing season things look relatively good. I’ll start by noting that the US Drought Monitor for the week of June 28th shows no change in drought improvement throughout most of the Western Midwest and Southwest, except for nearly all of New Mexico and a small portion of southwest and south central Colorado which improved marginally. A slight degradation was noted in portions of eastern Texas, southwestern and south central Missouri, and northern Arkansas and portions of Mississippi. No improvement was seen in Nebraska’s drought conditions or the driest areas of western Iowa.
Throughout the month of June, I have traveled across parts of central and east central Iowa (along I-80 and highway 30 east & west) and down I-35. Crops look good across most of this area of Iowa, although it is evident, they were planted later than normal. Northwest Missouri, Southwest Iowa, Southeast Nebraska, and Northeast Kansas crops look the best of anywhere I have traveled this month. On average the area planted later than normal, but the crop has made great progress and is in great condition. Northcentral Missouri and east experienced wetter conditions early in the planting season and that crop is not as mature and many soybeans were still being planted the last week of June. Lincoln, NE to Grand Island, NE is an area that has been hard hit with high winds and hail damage. Many irrigation systems and properties have been damaged in addition to the crop. As of June 24th, much of the corn crop was once again emerging and nearly all fields had been replanted, but irrigation repairs were far from complete.
Traveling to eastern New Mexico in mid-June confirmed the extremely hot and dry conditions across the panhandle and southwest. Wheat harvest was well underway, but producers in Oklahoma, Texas, western Kansas, and eastern Colorado confirmed a poor yielding wheat crop. Portions of this area did receive some beneficial rains in late June, but the area is still moisture deficit, and any wind and high temps will take an additional toll on those crops if they persist into July.
Basis for corn in the region has remained strong, especially for old crop corn. Feedlots in western Kansas have been reporting $2.00+ versus the July, with some trades near $3.00 over. Even in western Missouri and northern Arkansas we have seen old crop corn basis values at $1.50 or better. New crop corn basis has remained steady in most areas with some areas like the Arkansas feed market working slightly higher. Soybean basis remains steady to slightly higher in the Kansas and western Missouri areas as well, although not as spicy as the corn market. Wheat basis has lost some ground during harvest as expected. With a short HRW crop and futures down significantly I would expect basis levels for wheat delivered post-harvest to improve.
Check out these upcoming events in our region. For more details click here.
Oklahoma Cattlemen's Association - Norman, OK, July 22-23
Arkansas Cattlemen's Association - Hot Springs, AR, July 28-30
Texas A&M Beef Short Course - College Station, TX, August 1-3
Coming County Fair (stop by our booth!) - West Point, NE, August 11-14
Community Builder events in the following locations:
Fort Dodge, IA, July 12
Huxley, IA, July 13
Keystone, IA, July 14
Anita, IA, July 19
Independence, IA, July 20
Monticello, IA, July 28
Perry, IA, August 4
Marshalltown, IA, August 9
Grinnell, IA, August 10
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