U.S. farmers face mounting pressure to deal with rising grain prices as drought conditions expand throughout key grain producing regions.
As temperatures continue to rise, drought conditions in the West have already been an indicator that growers will face higher prices.
With worrying conditions on the horizon, what does the current data tell us about the situation?
FBN®'s US corn drought index is now at 13%, trending above the 5% norm for this time of year and up from 11% last week.
Key states of IA, MN, SD and ND are seeing the worst drought index reading for this time of year based on 21 years of data.
For spring wheat, 5 of the top 6 producing states are also at all-time high drought readings for this time of year.
Some relief could be on the way from a Tropical Storm system developing in the Gulf of Mexico, and expected to reach the Midwest June 25-26th.
However, weather models are in disagreement about how much rain will fall as well as the location of the rain, making the next week highly volatile for grain prices.
Looking ahead into July, weather is expected to bring above normal temperatures and below normal rains to drought parched areas in the Northern Plains and Western US providing few signs of relief.
FBN® Market Advisory provides personalized tools and reports to support your grain marketing efforts along with market news, recommendations, trend insights and weather reports.
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