July 2022 Market Briefing: Region 3

Diana DeHart

Jul 05, 2022

Crop conditions

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.  

Upcoming events

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

FBN Market Advisory services are offered by FBN BR LLC, dba FBN Brokerage, FBN BR and FBN Market Advisory - NFA ID: 0508695

Disclaimer: The views and opinions are solely those of the author as of the date of publication, are subject to change at any time due to market or economic conditions, will not be updated or supplemented after the date hereof and may not necessarily come to pass. The views and opinions expressed herein do not reflect those of all personnel at FBN BR LLC (FBN) or the views of the Farmer's Business Network Inc. as a whole. FBN makes no representations, warranties, or guarantees as to this content.

Any charts and graphs provided are for illustrative purposes only. Any performance quoted represents past performance. Past performance does not guarantee future results. All investments involve risks, including the possible loss of principal.

Commodity trading, including futures, hedging and speculating, involves substantial risk of loss and may not be suitable for everyone. Past performance is not necessarily indicative of future results. All information, publications, and reports, including this specific material, used and distributed by FBN BR LLC shall be construed as a solicitation. The information and data provided comes from sources believed to be reliable but FBN BR LLC does not guarantee its accuracy or completeness. 

Copyright © 2014-2022 Farmer's Business Network, Inc. The sprout logo, "Farmers Business Network," "FBN," and "Farmers First" are registered trademarks of Farmer's Business Network, Inc. All other trademarks are the property of their respective owners.

Diana DeHart

Jul 05, 2022

You Need It. We Got It.
Shop online & get crop protection delivered direct.
Get the 2022 U.S. Planting Report
Gain insight with an outlook on American farmers’ planting plans for the year.