Friday, June 30, 2023

Friday Market Watch - Corn Plummets and Sends Cattle Back Over the Moon

LIVESTOCK:

If you feel like your little hometown is singing the National anthem next week, stronger than you've ever heard it before, you're probably not wrong as cattlemen are beaming with excitement over this market. Normally, Fridays ahead of a holiday are mundane and boring, but, this Friday, the market couldn't have been further from that, with the sharp increase in corn plantings sending cattle back over the moon! Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $3.04 with a weighted average price of $90.96 on 2,281 head. 

From Friday to Friday, livestock futures scored the following changes: June live cattle up $4.00, August live cattle up $6.40; August feeder cattle up $13.63, September feeder cattle up $13.13; July lean hogs up $4.38, August lean hogs up $2.93; July corn down $0.76, September corn down $0.96.

Friday's slaughter is estimated at 123,000 head, 3,000 head more than a week ago and 1,000 head more than a year ago. Saturday's slaughter is projected to be around 19,000 head. This week's slaughter is estimated at 644,000 head, 5,000 head less than a week ago but 3,000 head more than a year ago.

Boxed beef prices closed lower: choice down $0.33 ($327.72) and select down $3.55 ($293.63) with a movement of 98 loads (57.71 loads of choice, 20.20 loads of select, 9.67 loads of trim and 10.51 loads of ground beef).

More: Friday Closing Livestock Market Update - Corn Plummets and Sends Cattle Back Over the Moon


GRAINS:

July corn closed down 26 1/2 cents and December corn was down 33 3/4 cents. July soybeans closed up 74 1/4 cents and November soybeans were up 77 1/2 cents. September KC wheat closed unchanged, September Chicago wheat was down 16 1/2 cents and September Minneapolis wheat was down 8 1/2 cents.

For the week:

July corn closed down 76 1/4 cents and December corn was down 93 1/4 cents. July soybeans closed up 62 3/4 cents and November soybeans were up 33 1/4 cents. September KC wheat closed down 61 3/4 cents, September Chicago wheat was down 95 1/2 cents and September Minneapolis wheat was down 56 3/4 cents.


DAIRY:

Block cheese price increased 0.50 cents, closing at $1.3350 with 10 loads. Barrel cheese price decreased 0.50 cents, closing at $1.3450 with 10 loads traded. This leaves futures mixed with light trading activity. Dry whey increased 0.75 cent, closing at 24 cents with 10 loads traded. Class III futures are mixed, ranging from 9 cents lower to 9 cents higher. Butter price remained steady at $2.44 with no loads traded. Grade A nonfat dry milk price slipped $0.25, closing at $1.1175 with three loads traded. Class IV futures are 4 cents lower to 8 cents higher. Butter futures are 0.50 lower to 0.62 higher. Dry whey futures have not yet traded.

More: Friday Closing Dairy Market Summary - Prices Decreased in the Month of May


FORAGE: This Week's Hay Markets (Forage Fodder Blog)


OUTSIDE MARKETS:

The U.S. Dollar Index is down 0.45 at 102.89. August crude oil is up $0.78 per barrel at $70.64. The Dow Jones Industrial Average is up 285 points at 34,408 with the NASDAQ up 197 points at 13,788. August gold is up $9.30 at $1,927.20, September silver is up $0.17 at $22.97 and September copper is up $0.0620. August ultra-low sulfur diesel is up $0.0358, August RBOB gasoline is up $0.0410 and August natural gas is up $0.097.





Thursday, June 29, 2023

This Week's Drought Summary (6/29)

Widespread changes were made across the country, with many degradations and improvements occurring. In the eastern U.S., mostly widespread improvements occurred following widespread heavy rains, though parts of New Jersey and Long Island that missed out on these rains saw conditions worsen. The Midwest and east-central Great Plains saw mostly worsening conditions and widespread crop stress and low streamflows after another week of mostly dry weather. A mix of improvements and degradations occurred in Texas, where recent precipitation amounts have varied widely. The northern Great Plains received widespread heavy rainfall this week, leading to large-scale improvements to ongoing drought and abnormal dryness. In the Pacific Northwest, a few areas saw above-normal precipitation and improving conditions, but larger parts of the region saw increasing evaporative demand, continued dry weather and lowering streamflows, leading to worsening conditions.



Northeast

Heavy rains fell in parts of the Northeast this week, bringing localized relief to areas of drought and abnormal dryness. Moderate and severe drought coverage lessened over large sections of Pennsylvania, Maryland and West Virginia, where recent heavy rains improved streamflows and alleviated some of the short-term precipitation deficits. Conditions also improved in parts of New York, Maine, Massachusetts, western New Jersey and Virginia due to scattered heavy rains in the last week. Moderate drought increased in coverage in eastern Long Island, where short-term precipitation deficits grew and streamflow rates dwindled.

Southeast

This week, heavy rains fell across parts of Virginia, the Carolinas, Georgia and the Florida Peninsula, exceeding 2 inches in many locations. Combined with temperatures ranging from near normal to 6 degrees below normal in a large part of the region, this resulted in widespread improvements in areas experiencing moderate drought and abnormal dryness. Large sections of moderate drought in northern Virginia shrank in coverage due to improving conditions with the heavy rains.

South

Much warmer than normal temperatures covered the western half of the region, especially across southwest Texas, where temperatures were at least 9 degrees above normal in many locations. Farther east, temperatures were near normal or cooler than normal, with readings coming in from 3 to 6 degrees below normal in eastern Tennessee. Recent rains in central Louisiana led to a shifting of a small area of moderate drought as short-term precipitation deficits shifted to the northeast. Short-term moderate drought developed in parts of northeast Arkansas and eastern Oklahoma, where short-term precipitation deficits grew and streamflow decreased. In north-central, central and southeast Texas, soil moisture and streamflow decreased amid growing precipitation deficits, leading to localized worsening in drought conditions or introduction of abnormal dryness. Farther west in Texas, a combination of precipitation this week and a re-evaluation of precipitation from recent weeks led to more improvements in the Texas Panhandle and in adjacent western Oklahoma, as well as improvements in a severe drought area south of Lubbock.

Midwest

Heavy rains in parts of Ohio and Kentucky led to some improvements in ongoing short-term drought. Otherwise, much of the region saw conditions stay the same or worsen this week, especially in central Indiana, Illinois, Missouri, southwest Wisconsin, southeast Minnesota and southeast Iowa. Almost completely dry weather in Missouri and the southern two-thirds of Illinois led to widespread degradations, where streamflow and soil moisture continued to decrease amid mounting precipitation deficits, creating potential problems for corn and soybean production this growing season. In Missouri, cold weather in December and April have combined with the ongoing drought to lead to a 70% reduction in wine production. Hay production in Missouri was also reported to be one-third of normal. In southeast Iowa, producers reported rolling corn leaves and stunted soybean plants. In the Upper Midwest states, strawberry production was also struggling.

High Plains

This week’s weather varied substantially across the High Plains region. Much of the Great Plains portion of the region, with the exception of eastern Nebraska and eastern Kansas, saw widespread precipitation, some of it heavy. Much of northwest Nebraska, eastern Wyoming, northeast Colorado, South Dakota and the southern half of North Dakota saw rainfall of at least 2 inches over the last week. In western Nebraska, eastern Wyoming and the Dakotas, this led to widespread improvements to the drought depiction in areas where the heaviest rains fell. Isolated heavy rains in central and western Kansas also led to localized improvements to ongoing drought areas. Meanwhile, conditions continued to worsen in southeast Nebraska, northeast Kansas and the Kansas City area, where mostly dry weather continued. Given continued decreases in soil moisture and groundwater, and growing short- and long-term precipitation deficits, exceptional drought was introduced in parts of the Omaha metropolitan area. North of Lincoln, Nebraska, hay production was reported to be about a third of normal for this time of year. Stress to other vegetation, including trees, also continued in southeast Nebraska this week.



West

With the exception of western portions of Washington and Oregon, much of the West region experienced near- or cooler-than-normal temperatures this week. Heavy rains fell in parts of southeast Montana, northwest Wyoming and adjacent portions of central Idaho and southwest Montana. These rains helped to alleviate long-term precipitation deficits and increase streamflows in these areas, leading to a reduction in coverage of ongoing drought and abnormal dryness. Adjacent to improvements in the Texas Panhandle, recent precipitation in northeast New Mexico has also helped to improve conditions there. Continued above-normal precipitation in parts of central and south-central Oregon has helped to alleviate long-term precipitation deficits and increase soil moisture, leading to localized shrinking of drought coverage. In southeastern and western portions of Washington, and in western Oregon, recent dry weather, low streamflows and increasing evaporative demand led to an expansion of drought and abnormal dryness in parts of these areas.



Caribbean

No changes were made to the Drought Monitor depiction for Puerto Rico this week.

In stark contrast to the U.S.-affiliated Pacific Islands, drought has become entrenched throughout the U.S. Virgin Islands. Rohlsen Airport (St. Croix), King Airport (St. Thomas), and Windswept Beach (St. John) all reported several tenths of an inch of rain last week. While the last two weeks have seen a slight increase in shower activity, totals were still below normal, and so brought no tangible relief to drought conditions.

St. Croix has been hardest hit by the drought and remains in D4 this week – the most intense Drought Monitor designation. The past 2 weeks have been the only weeks with D4 covering any part of the U.S. Virgin Islands. Over 11 inches of rain fell on the island last September (2022), and above-normal amounts were again observed during early November. But since then, rainfall has been scarce. During November 9, 2022 to June 26, 2023 [230 days], Rohlsen Airport has recorded only 7.32 inches of rain, less than 38 percent of normal (over 19.5 inches), a shortfall exceeding one foot. With 4 days left to go in June 2023, the 6-month January – June rainfall total of 5.75 inches is the lowest on record (since 1951; 73 years). Less than an inch has fallen in the past 2 months (since April 25) – just 17 percent of the normal (5.66 inches). Furthermore, conditions have been made worse by unusually hot weather. June 2023 will probably be the third-hottest June since records began in 1951. Looking much longer-term, periods of subnormal rainfall and associated impacts have occurred frequently on St. Croix over the past 3.5 years. From September 2019 through June 2023 to date, 102.2 inches of rainfall has accumulated. This is just 71 percent of normal for the period, which is just under 144 inches. Thus the aggregate rainfall deficit during this time is almost 3.5 feet.

Conditions have been marginally better on St. Thomas, and drought impacts have been mitigated somewhat by a very wet autumn last year [2022]. But for November 16, 2022 to date [223 days], just 9.56 inches of rain has fallen, less than half the normal of over 19.6 inches, resulting in an accumulated deficit of over 10 inches. Starting December 2022, no month has seen more than 1.5 inches of rain.

Drought has not affected St. John for as long, but the past 5 months have been acutely dry. From February through June to date, Windswept Beach reported 8.66 inches of rain, which is 63 percent of normal (13.78 inches), building a deficit of over 5 inches. During the most recent 64 days (April 24 – June 26), only 3.43 inches of rain fell on St. John, less than 47 percent of normal (7.41 inches). Since late March, only 7 days of the last 92 brought rainfall totals of more than a quarter-inch (0.25 inch).

Pacific

Recent warm and dry weather in the Yukon Flats region led to a small expansion of abnormal dryness and the introduction of a small area of short-term moderate drought.

Shower activity on the windward sides of the islands has been near normal this week, so no changes were made to the current Drought Monitor depiction.

Across the U.S. Affiliated Pacific Islands, the Drought Monitor again kept all sites out of any dryness or drought designation.

This is a wet time of year in Palau, but even so, May rainfall was well above normal (approaching 20 inches). Rains eased up during June; less than 65 percent of normal rain has fallen to date. But because of the wet climatology, that amounts to over 11 inches. No impacts from dryness or drought are expected for the foreseeable future.

It was a drier-than-normal week across the Marianas, with most sites receiving 0.5 to 1.2 inches of rain, and subnormal totals date back at least a few weeks. June to date has been drier than normal in many areas. Guam and Agat report abundant rainfall (7.5 to 8.7 inches to date), but other sites recorded 4 inches or less. Onloy 1.7 to 2.7 inches have fallen on Saipan and Tinian, which is under 45 percent of normal at the latter location. But despite below-normal June rainfall to date, sufficient to excessive rainfall during the prior 2 months has kept any notable impacts at bay. For April through June to date, all observing sites reported rainfall totals at least in the upper 33 percent of the historic distribution, including the wettest such period on record at Agat. No impacts are expected in the immediate future, but the Nation will need to be monitored if unfavorably low rainfall continues through the next few weeks.

June to date has brought abundant rainfall throughout the Federated States of Micronesia. The ten primary, reliable sites all report over 10 inches of rain for the 26-day period. Kapingamarangi has been impacted by drought frequently over the last few years, but the 19.2 inches that has fallen June to date brought the 4-month March-June total to over 68 inches. Even during this wet time of year, that’s almost 20 inches more than normal. This is the wettest 4 months there since May-August 2019, when almost 70 inches fell. As in the Marshall Islands, April-June featured sufficient to exceptionally heavy rainfall at most locations. Kapingamarangi, Pohnpei, and Chuuk all recorded April-June rainfall above the 90th percentile in the historical distribution. Ulithi was one site with recent concerns about subnormal rainfall, but after 3 months where rainfall was not sufficient to keep up with demand (February-April, with less than 13.5 inches total), there has been a significant uptick in rainfall amounts since May, which coincides with the beginning of Ulithi’s wetter time of year. Over 20 inches have fallen for May and June to date – well above the amount needed to keep pace with demand.

Farther east, rainfall was far more scarce across the Republic of the Marshall Islands last week. Jaluit and Wotje recorded only a few tenths of an inch at best while Kwajalein, Ailinglapalap, and Majuro received 1.2 to 3.1 inches. June rainfall has been a mixed bag, with Kwajalein, Ailinglapalap, and Majuro reporting at least slightly above normal amounts (9.6 to 11.1 inches) While Jaluit and Wotje have received subnormal totals of 6.9 and 4.8 inches, respectively. Jaluit has been drier than normal for the past several months, putting them more at risk of dryness-related impacts than most other sites. For the past 11 months (August 2022 – June 2023), 86.3 inches of rain has fallen – about 75 percent of normal (over 113 inches); but during this period, rainfall has averaged over 7.8 inches per month. This is less than ideal, but has been enough to keep dryness-related impacts at bay so far. Wotje is also vulnerable to dryness-related impacts; even when not drier than normal, typical rainfall totals are lower than in other parts of the Nation, leaving them more at risk in general.

A few tenths of an inch of rainfall pushed June to date totals at Pago Pago to about 5.8 inches, or slightly below normal. Abundant rains were reported during April and May, so no dryness-related impacts are expected in the foreseeable future.

Looking Ahead

Through the evening of Monday, July 3, the National Weather Service Weather Prediction Center is forecasting widespread rain, locally heavy, to fall from southeast Wyoming and northeast Colorado eastward across Nebraska and northern Kansas, southern Iowa and northern Missouri, and farther east into the Midwest and Ohio River Valley. Rainfall amounts in central Illinois may exceed 3 inches locally. Widespread moderate and locally heavy rainfall amounts are forecast in parts of the Appalachian Mountains as well. Locally heavy rains are forecast in southern Florida during this period as well. West of the Continental Divide, mostly dry weather is expected.

Looking ahead to the period from July 4-8, the National Weather Service Climate Prediction Center forecast favors above-normal precipitation across much of the contiguous U.S., especially from eastern Idaho through Nebraska and northern Kansas. Below-normal precipitation is favored in Arizona and in western Washington and northwest Oregon. Below- or near-normal temperatures are favored in the northwestern Great Plains, while above-normal temperatures are likely in the south-central U.S., south Florida and the eastern Great Lakes, with warmer-than-normal temperatures slightly favored across much of the eastern and southern U.S., excluding southern California and the southern Appalachians. Warmer-than-normal temperatures are also strongly favored in the Pacific Northwest. Wetter-than-normal weather is favored across Alaska, except for the Panhandle, where below-normal rainfall is slightly favored. Warmer-than-normal temperatures are slightly favored in the north slope and Arctic Coast regions of Alaska, and in the far southeastern Alaska Panhandle. Cooler-than-normal conditions are favored across roughly the southwestern half of Alaska.




Monday, June 26, 2023

USDA Crop Progress Report - Corn Condition Falls Another 5 Points During Week Ended June 25

OMAHA (DTN) -- U.S. corn and soybean conditions declined for the third week in a row during the week ended Sunday, June 25, according to USDA NASS' weekly Crop Progress report released Monday.

A system that moved across the country over the weekend brought some good rainfall coverage, but most areas saw near- or below-normal amounts for the week. And some key dry areas were missed in Kansas, Missouri and much of Illinois. Despite the good rain coverage, it appears to have come too late to have an impact on crop conditions for last week, said DTN Ag Meteorologist John Baranick.

Scattered showers and thunderstorms are again in the forecast for this week, but again are likely to be hit or miss, Baranick said.

CORN

-- Crop progress: 4% of corn was silking, equal to both last year and the five-year average.

-- Crop condition: Nationally, corn was rated 50% good to excellent, down another 5 percentage points from 55% the previous week and below last year's rating at this time of 67%. The current rating is the lowest for the crop at this time of year since 1988, said DTN Lead Analyst Todd Hultman. Double-digit declines were seen in corn ratings in Missouri, Illinois and Minnesota last week, he noted.

SOYBEANS

-- Crop progress: 96% of soybeans were emerged as of Sunday, 7 percentage points ahead of the five-year average of 89%. Ten percent of soybeans were blooming, 4 percentage points ahead of last year and 1 point ahead of the five-year average of 9%.

-- Crop condition: Soybeans were rated 51% good to excellent as of Sunday, down 3 percentage points from 54% last week and below last year's rating at this time of 65%. As with corn, the current rating is the lowest for the crop since 1988, Hultman said. "Missouri's soybean rating lost 12 percentage points, and the three I states lost 8 to 10 points each," he said.

WINTER WHEAT

-- Crop development: 97% of winter wheat was headed nationwide as of Sunday, up 3 percentage points from the previous week and equal to the five-year average.

-- Harvest progress: 24% of the crop was harvested as of Sunday, up 9 points from the previous week but 9 points behind the five-year average pace of 33%. "Oklahoma is 55% harvested versus its average of 79%, and Kansas is 21% complete versus its average of 38%," noted DTN Senior Analyst Dana Mantini.

-- Crop condition: Nationwide, winter wheat was rated 40% good to excellent, up 2 percentage points from 38% the previous week and ahead of last year's rating at this time of 30% good to excellent.

SPRING WHEAT

-- Crop progress: 31% of spring wheat was headed as of Sunday, 6 percentage points ahead of the five-year average of 25%.

-- Crop condition: USDA said 50% of the spring wheat crop was rated good to excellent as of June 25, down 1 percentage point from last week's 51%, and 9 points below the five-year average of 59%. "Four of the six states followed by NASS showed lower ratings on the week with double-digit declines in the Dakotas," said Mantini. "North Dakota's crop is rated 49% good to excellent, down 6 points, while only 69% of the crop in Minnesota is rated good to excellent."

WEATHER OUTLOOK FOR THE WEEK AHEAD

Showers and thunderstorms are in the forecast for much of the U.S. again this week, but as during this past weekend, they will likely hit some areas and miss others, Baranick said. And another short burst of heat in the Southern Plains will likely add more stress to some already dry areas, he said.

"The system that went through over the weekend continues to spin across the Great Lakes early this week with some showers for the eastern Corn Belt but will miss Illinois and most of Wisconsin," Baranick said. "The pattern stays active, though, as there are several disturbances in the West that will make their way through the region this week. Again, it looks like scattered coverage of showers and thunderstorms, and models do not handle thunderstorms well, especially in these types of situations. So, whether an area gets rain or not is mostly in a wait-and-see mode. But chances will occur each day depending on where you are in the region. Unfortunately for some, this is not a good situation to be in: Dry conditions will continue, and crop conditions may decline further. For others, the rain will come at an opportune time as corn is nearing pollination.

"The other concern is heat. Early this week around Texas, temperatures will be up near or over the 100-degree-Farhenheit mark. That will expand into Missouri and nearby Kansas and southern Illinois Wednesday or Thursday. The heat doesn't last all that long, as a front coming from one of the Corn Belt disturbances will push through this weekend and keep those temperatures down toward Texas again. But it will be stressful for those drier areas, which are numerous down there."







Bureau of Reclamation, Pacific Northwest Region - Storage Reservoirs in the Upper Snake River (6/26)

 


Average daily streamflows indicated in cubic feet per second.
Reservoir levels current as of midnight on date indicated.

Upper Snake River system is at 91 % of capacity.
(Jackson Lake,Palisades, Grassy Lake,Island Park,Ririe,American Falls,LakeWalcott)
  
Total space available:350024 AF
Total storage capacity:4045695 AF


Friday, June 23, 2023

Friday Market Watch - Cheaper Corn Drives Livestock Higher; Corn, Soybean Prices Plummet On Hopes For Rain

LIVESTOCK:

For the most part, Friday's market treated the livestock complex favorably as the contracts closed mostly higher. Come Monday, we will see how traders view Friday's Cattle on Feed report, which showed greater placements than expected. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.75 with a weighted average price of $93.04 on 2,096 head. 

From Friday to Friday, livestock futures scored the following changes: June live cattle down $0.85, August live cattle down $0.95; August feeder cattle down $0.97, September feeder cattle down $0.47; July lean hogs down $1.57, August lean hogs down $1.00; July corn down $0.09, September corn down $0.09.

Friday's Cold Storage report shared that total red meat supplies in freezers were down 7% from last month and down 11% from a year ago. Total pounds of beef in freezers were down 6% from last month and down 20% from a year ago. Frozen pork supplies were down 7% from a month ago and down 4% from last year. Stocks of pork bellies were up 2% from last month and up 46% from last year.

Friday's slaughter is estimated at 120,000 head, 2,000 head more than a week ago and 2,000 head less than a year ago. Saturday's slaughter is projected to be around 26,000 head. This week's slaughter is estimated at 649,000 head, 15,000 head more than a week ago and 16,000 head less than a year ago.

Boxed beef prices closed lower: choice down $0.46 ($334.01) and select down $3.84 ($299.96) with a movement of 78 loads (34.95 loads of choice, 26.53 loads of select, zero loads of trim and 17.00 loads of ground beef).

More: Friday Closing Livestock Market Update - Cheaper Corn Drives Complex Higher


GRAINS:

July corn closed down 29 3/4 cents and December corn was down 32 3/4 cents. July soybeans closed down 6 cents and November soybeans were down 29 1/2 cents. September KC wheat closed down 10 3/4 cents, September Chicago wheat was down 6 1/4 cents and September Minneapolis wheat was down 10 3/4 cents.

For the week:

July corn closed down 9 1/2 cents and December corn was down 9 1/2 cents. July soybeans closed up 28 cents and November soybeans were down 32 1/4 cents. September KC wheat closed up 17 cents, September Chicago wheat was up 45 1/4 cents and September Minneapolis wheat was up 17 3/4 cents.


DAIRY: 

Block cheese price declined 0.50 cent closing at $1.4050 with three loads traded. There was an unfilled bid and uncovered offer remaining at the close. Barrel cheese price declined 0.75 cent closing at $1.50 with no loads traded. There was an unfilled bid and uncovered offer remaining at the close. The bids remaining after spot trading yesterday gave the impression buyers might be looking more aggressively for loads today, but such was not the case. Dry whey price remained unchanged at 26.50 cents with no loads traded. Buyers were ready to purchase if price would have declined as there were six unfilled bids remaining at the close. Class III futures are mixed with contracts ranging from 9 cents lower to 6 cents higher. Butter price increased 4 cents closing at $2.42 with one load traded. Grade A nonfat dry milk price declined a penny to $1.1325 with one load traded. The recent weakness could indicate price may fall back to the low of mid-April. Class IV futures are mixed with July up 13 cents and March down 9 cents. Butter futures are 1.00–2.47 cents higher. Dry whey futures are unchanged to 0.30 cent higher. USDA will release the May Cold Storage report this afternoon. Butter stocks are expected to be higher than a year ago. Cheese stocks could go either way. So far, they have been holding near the levels of a year ago.

More: Friday Closing Dairy Market Update - Cold Storage Data Neutral for Butter, Friendly for Cheese


FORAGE: This Week's Hay Markets (Forage Fodder Blog)


OUTSIDE MARKETS:

The U.S. Dollar Index is up 0.50 at 102.89. T August crude oil is down $0.35 per barrel at $69.16. The Dow Jones Industrial Average is down 219 points at 33727 with the NASDAQ is down 138 points at 13,493. August gold is up $6.60 at $1,930.30, July silver is down $0.05 at $22.42 and July copper is down $0.0810. August ultra-low sulfur diesel is down $0.0282, August RBOB gasoline is down $0.0274 and August natural gas is up $0.128.




Thursday, June 22, 2023

This Week's Drought Summary (6/22)

Much of the lower 48 states experienced near to below normal temperatures this week, with the exception of parts of the northern Great Plains, Upper Midwest, southern Texas, and parts of the Lower Mississippi Valley. Large portions of southern Texas experienced excessive heat this week, with daytime high temperatures averaging well above 100°F for several locations. A mean frontal boundary draped across much of the lower 48 states resulted in periods of heavy rainfall across portions of the western Great Plains and Intermountain West, leading to improvements to drought conditions across much of the western half of the lower 48 states. The only exception was in the northern Cascades in Washington, where below-normal precipitation led to worsening drought conditions. Heavy rain also fell across parts of the Southeast, with many locations across the Deep South receiving in excess of 5 inches of rainfall, leading to improvements to abnormally dry and moderate drought conditions from central Mississippi southeastward to Florida. Toward the end of the weekend, a slow-moving storm system traversing eastward across the Middle Mississippi and Ohio Valleys resulted in additional periods of heavy rainfall across portions of the eastern U.S. However, much of the Mississippi and Ohio Valleys and the Northeast experienced a mix of worsening and improving drought conditions based on antecedent dryness and where the heaviest rain fell, respectively. Another round of deterioration was warranted again this week across much of the Midwest and eastern Great Plains, where below average precipitation continued to add to precipitation deficits that go back several months.



Northeast

Much of the Northeast experienced below average daytime high temperatures this week. Several locations in interior portions of the Northeast also received well above normal rainfall totals, leading to improvements in the drought depiction, particularly across northern New England and parts of Upstate New York. Some locations in southeastern Pennsylvania and northern West Virginia also experienced improving drought conditions, associated with a couple of rounds of heavy rainfall, totaling in excess of 2 inches for the week. Unfortunately, short-term dryness leading up to this week warranted further degradation of drought and abnormal dryness (D0) across southern New England and the Mid-Atlantic from the I-95 corridor eastward to the Atlantic Coast.

Southeast

Several rounds of heavy rainfall associated with clusters of thunderstorms warranted improvement to abnormal dryness (D0) and moderate drought (D1) across southern portions of the Deep South from Mississippi to Georgia and into northern Florida. Many areas received more than 5 inches of rainfall as these thunderstorm clusters moved southeastward along a mean frontal boundary. In the days leading up the the end of the week (Tuesday, 6/20), an area of low pressure developed across the Middle Mississippi Valley and began slowly moving eastward, leading to periods of additional rainfall across some of these same areas, in addition to interior and upstate portions of the Carolinas and Virginia. The late-week rainfall helped to stave off further degradation of drought in upstate areas of the Carolinas and Virginia; however, another round of deterioration was warranted across the Coastal Plain of North Carolina and the Virginia Tidewater, as short-term precipitation and soil moisture deficits continue to increase and average stream flows continue to decline.

South

Several rounds of heavy rainfall associated with clusters of thunderstorms traversed portions of the Southern region from Oklahoma to Mississippi, leading to targeted improvements to abnormal dryness (D0) and drought conditions. Additional improvements to the drought depiction are also warranted across portions of the Texas Panhandle, where drought indicators have continued to improve due to well above average (in some cases record) rainfall over the past 60 days. Conversely, targeted degradations are warranted across parts of the Lower Mississippi and Tennessee Valleys, where short-term dryness continues to increase. Excessive heat, especially during the latter portions of the week, helped to exacerbate dryness across portions of southern Louisiana and coastal areas of eastern Texas, where 30-day rainfall deficits continue to increase.

Midwest

Despite predominantly near to below normal temperatures across much of the Midwest, excluding the Upper Midwest and the western Corn Belt, much of the region did not see appreciable rainfall. As a result, short-term (30 to 90 day) dryness continued to worsen, leading to widespread deterioration. The exception to this was across the eastern Corn Belt and into parts of Kentucky, where 7-day rainfall totals helped to improve drought conditions, or at least halt further degradation. Ohio is the greatest beneficiary of the heavy rains this week and saw the most improvement, with several areas receiving more than 2 inches of rainfall.

High Plains

Much of the Northern Plains received below average rainfall this week, adding to short-term precipitation deficits. In conjunction with the below average weekly rainfall, above normal temperatures and high winds (typical for this region) only acted to exacerbate worsening drought conditions by increasing evaporation from soils and vegetation. As a result, widespread degradation of abnormal dryness (D0) and drought was warranted this week across the Dakotas. Degradation was also warranted farther southward, extending across the eastern Great Plains all the way to Kansas, despite more seasonal daytime high temperatures this week. Conversely, across western portions of the High Plains region, another round of improvements is warranted, as yet another week of above normal rainfall (with many areas receiving upwards of 2 inches of rainfall, with locally higher amounts) was observed across many areas, leading to improvements to long-term drought conditions.



West

Another week of above normal rainfall across many areas of the Intermountain West resulted in widespread, yet targeted improvements to long-term drought conditions, assisted by near and below normal average high temperatures for the week. The only area that experienced worsening drought conditions was across parts of the northern Cascades in Washington, where year-to-date precipitation deficits have continued to climb (in excess of 12 inch deficits), and this is following a predominantly below average 2022-2023 winter rainy season. Soil moisture, groundwater levels, and stream flows continue to decline.



Caribbean

Drought conditions worsened across Puerto Rico this week, as short-term precipitation deficits continued to increase and stream flows have rapidly declined in recent weeks. Only northwestern parts of Puerto Rico experienced above normal 7-day rainfall totals, but most of these locations were not depicted in drought or abnormal dryness leading up to this week, so no improvements are warranted.

A tropical wave brought light showers to the U.S. Virgin Islands (USVI) early in this USDM week (June 14-20), while patches of low-level moisture fueled showers later in the week. Otherwise, upper-level and surface ridges of high pressure dominated the region. The high pressure and dry air mass, mixed at times with Saharan dust, generally inhibited showers. Unusually hot temperatures accompanied the dry weather. High temperatures persistently in the 90s with heat indices reaching into the 110s characterized the week over the USVI; an Excessive Heat Watch was in effect for part of the week. Tropical Storm Bret is expected to pass south of the region during the next few days.

Rainfall totals were below normal for the week across the islands, continuing a pattern that has lasted for several months. Weekly totals ranged from 0.21 inch to 0.86 inch on St. Croix, but were mostly less than half an inch. On St. Thomas, totals were a third of an inch or less, while on St. John rainfall totals ranged from 0.02 to 0.21 inch. Month-to-date totals for June were mostly half an inch or less across the islands; the three exceptions were King Airport (0.65 inch), Christiansted 4.1 ESE (1.03 inches), and Christiansted 1.6 E (1.04 inches). The Rohlsen Airport on St. Croix measured 0.28 inch for June so far, or 24% of normal, while the 0.65 inch at King Airport on St. Thomas was 45% of normal and the 0.21 inch at Windswept Beach on St. John was 12% of the long-term average. At Rohlsen AP, December 1, 2022-June 19, 2023 ranked as the driest such period in the 1951-2023 record, not counting years with too much missing data. At King AP, December 1, 2022-June 19, 2023 (the last 7 months) ranked as the fourth driest such period in the 1953-2023 record, not counting years with too much missing data.

Standardized Precipitation Index (SPI) values at the 6-month time scale were at D4 levels on St. Croix and D3 levels on St. Thomas. The SPI showed some level of drought or abnormal dryness on St. Croix for the last 1 to 12 months, and on St. Thomas for the last 1 to 9 months.

The groundwater level at the Grade School 3 well on St. Thomas rose then fell this week, with a declining trend the last 3 weeks. The groundwater levels at the Susannaberg DPW-3 well on St. John and the Adventure 28 well on St. Croix continued to decline this week, with a declining trend at both wells since December of last year. The VHI data, showing vegetative health determined from satellite observations, for the Virgin Islands was not available this week.

At the Rohlsen AP, daily high temperatures were 91 degrees F on each day from June 13 to the 17th, with 89 on the 18th and 90 on the 19th, and daily low temperatures ranged from 77 to 82. At King AP, daily high temperatures ranged from 88 to 91 degrees F and daily lows ranged from 78 to 83. At Rohlsen AP, June 1-19, 2023, ranked as the fourth warmest June 1-19 in the 1951-2023 record for maximum temperatures, third warmest for minimum temperatures, and warmest on record for average temperatures. At King AP, June 1-19, 2023 ranked as the 16th warmest June 1-19 for maximum temperatures in the 1953-2023 record, second warmest for minimum temperatures, and seventh warmest for average temperatures. The excessive heat and breezy conditions increased evapotranspiration, which made the drought conditions worse.

St. Croix continued with exceptional drought (D4-SL) and St. John continued with severe drought (D2-S). St. Thomas continued with severe drought (D2-SL), except the impacts status was changed to SL to reflect dry conditions at longer (more than 6 months) time scales.

Pacific

In Alaska, a small area in the Yukon Flats was degraded to depict abnormal dryness due to a localized increase in the dryness of potential fuel sources for fires brought on by below normal precipitation in recent weeks.

In Hawaii, mounting rainfall deficits continue across the lower leeward slopes of Oahu, leading to abnormal dryness (D0) across southern and western portions of the island. Rainfall deficits also continue to increase across northern parts of the Big Island leading to declining pasture conditions and dropping water levels in stock ponds, consistent with vegetation indices in the region, and resulting in moderate drought (D1) conditions.

Features typical of the western tropical Pacific characterized the weather pattern over the USAPI during this USAPI week. The main features included a near-equatorial trough/monsoon trough in western Micronesia and the Inter-Tropical Convergence Zone (ITCZ) in eastern Micronesia that brought rain to the southern half of the Micronesia region. A typical seasonal trade-wind pattern kept northern portions drier for the week. South of the equator, a low-pressure trough (South Pacific Convergence Zone) brought rain to American Samoa.

Based on data received as of this writing (with 1 to 4 days missing for the week for some locations), the Marshall Islands, most of the Federated States of Micronesia (FSM), and American Samoa were wet this week (above weekly minimums needed to meet most water needs) and for the month so far (except Wotje, which had 4.79 inches for June to date and below the month-to-date minimum of 5.33 inches for so far in June). The Marianas, Palau, and parts of western and northern FSM were dry this week. The Marianas are below the month-to-date monthly minimums, but they were wet last week; Chuuk and Yap were wet last week; and Ulithi was wet 2 weeks ago and wet for the month to date. Weekly rainfall totals ranged from 0.09 inch to 1.40 inches in the Marianas, 0.42 inch at North Fanif to 10.25 inches at Kapingamarangi in the FSM, and 2.11 to 3.88 inches in the Marshalls. Palau IAP reported 1.23 inches and Pago Pago 3.42 inches. The weekly minimum rainfall needed to meet most water needs is 1 inch for the Marianas and American Samoa, and 2 inches for the rest of the U.S.-Affiliated Pacific Islands (USAPI).

With wet conditions at many locations this week, and wet conditions during previous weeks at most locations, there was no drought or abnormal dryness across the USAPI at this time.

Looking Ahead

According to the Weather Prediction Center (WPC), over the next 6 days (June 22 - 27) above normal temperatures are forecast to dissipate and become more seasonal across the Great Lakes and Middle and Upper Mississippi Valley, and become confined to the south-central U.S. Parts of the Southern Plains could see record heat this week, as temperatures are likely to soar well above 100°F for many locations, with the potential for some locations to exceed 110°F. Much of the remainder of the lower 48 states is likely to experience seasonal to below normal temperatures. WPC predicts above normal precipitation across portions of the Central and Northern Plains and Upper Midwest, with the potential for several areas to receive in excess of 3 inches of rainfall. Above normal rainfall is also expected across much of the Eastern U.S., associated with a lingering storm system helping to usher in moisture from the western Atlantic.

During the next 6 to 10 days (June 27 - July 1), the Climate Prediction Center (CPC) favors near to below normal temperatures across much of California and the central Great Basin. Near to below normal temperatures are also predicted across much of the northern tier states from the Northern Plains to the Great Lakes, and southeastward into the Mid-Atlantic. Above normal temperatures are favored in the Pacific Northwest and New England. Above normal temperatures are strongly favored across the south-central U.S., with the potential for record heat across portions of the Southern Plains and Lower Mississippi Valley. Near and above normal precipitation is favored across much of the lower 48 states. However, below normal precipitation is more likely across the Four Corners region, extending eastward into the Southern Plains and Lower Mississippi Valley.



Tuesday, June 20, 2023

USDA Crop Progress Report - Corn Condition Falls 6 Points During Week Ended June 18

OMAHA (DTN) -- U.S. corn and soybean conditions fell for a second week in a row during the week ended Sunday, June 18, according to USDA NASS' weekly Crop Progress report released Tuesday. The report, which is normally released on Mondays, was delayed this week due to the Juneteenth holiday.

Already stressed crops could see more pressure for at least part of this week, as a couple of ridges of high pressure in the upper atmosphere are combining to bring widespread heat and dryness from Texas through the Great Lakes, according to DTN forecasts.

CORN

-- Crop progress: 96% of corn had emerged as of Sunday, up 3 percentage points from the previous week and 2 percentage points ahead of the five-year average.

-- Crop condition: Nationally, corn was rated 55% good to excellent, down 6 percentage points from 61% the previous week and below last year's rating at this time of 70%. "The poor-to-very-poor portion of the crop rose 4 points to 12%," noted DTN Senior Analyst Dana Mantini. "Corn in Illinois was rated 36% good to excellent, down 12 points from last week. Michigan was also poor, at 32% good to excellent, while Iowa corn condition was rated 59% good to excellent."

SOYBEANS

-- Crop progress: 92% of soybeans were emerged as of Sunday, 11 percentage points ahead of both last year and the five-year average of 81%.

-- Crop condition: Soybeans were rated 54% good to excellent as of Sunday. That's 5 percentage points lower than last week's 59% and 14 points below 68% last year at this time. "As with corn, many of the larger drops in ratings came from Eastern states," Mantini said. "Illinois' crop was just 33% good to excellent, while Michigan was just 23% good to excellent with 32% of that crop poor to very poor. Iowa is at 56% good to excellent, and Nebraska's soybeans were rated 50% good to excellent."

WINTER WHEAT

-- Crop development: 94% of winter wheat was headed nationwide as of Sunday, up 5 percentage points from the previous week and 1 point ahead of the five-year average.

-- Harvest progress: 15% of the crop was harvested as of Sunday, up 7 points from the previous week but 5 points behind the five-year average pace of 20%. Texas was 62% harvested and Kansas was 8% complete, noted DTN Lead Analyst Todd Hultman.

-- Crop condition: Nationwide, winter wheat was rated 38% good to excellent, unchanged from the previous week and ahead of last year's rating at this time of 30% good to excellent.

SPRING WHEAT

-- Crop progress: 98% of spring wheat was emerged as of Sunday, up 8 percentage points from the previous week and 3 percentage points ahead of the five-year average of 95%. Ten percent of spring wheat was headed, even with the five-year average.

-- Crop condition: USDA said 51% of the spring wheat crop was rated good to excellent as of June 18, down 9 percentage points from last week's 60%, and 8 points below the five-year average of 59%. "Four of the six states followed by USDA showed lower ratings on the week with double-digit declines in the Dakotas," Hultman said. "North Dakota crops are 55% good to excellent, while only 32% of crops in South Dakota are considered good to excellent."

WEATHER OUTLOOK FOR THE WEEK AHEAD

Hot, dry conditions will continue to stress crops across a large portion of the U.S. for at least part of this week, according to DTN Ag Meteorologist John Baranick.

"We've got a couple of ridges of high pressure in the upper atmosphere that are combining to bring heat and dryness to a lot of areas from Texas through the Great Lakes," Baranick said. "But it's not a completely terrible forecast. There is an upper-level low in the Southeast that will be producing showers and thunderstorms all week long. At times, that may bring a few showers into the southeastern Corn Belt, though nothing of much consequence. Cloud cover will help to limit the heat there, though. And in the Northern Plains, a cold front got stuck in the region and will be active for the entire week. We may see some severe weather, and that could extend down the Plains at times this week as well. But the rainfall in North Dakota is sorely needed for developing crops.

"Between the front in the Northern Plains and the system in the Southeast, it's going to be hot with temperatures regularly in the 90s Fahrenheit and, across Texas, well into the triple digits. But this won't last too terribly long, at least away from Texas.

"The two ridges will split apart by the weekend and set up a channel for storms to track, which so happens to be right across the heart of the Corn Belt. We'll see a system bringing widespread showers and thunderstorms over the weekend into early next week. Models are inconsistent with the coverage and intensity of the precipitation, but that's pretty typical. Models don't handle thunderstorms well, especially for several days in the future. But it does point to a good opportunity to spread meaningful rains to the driest parts of the Corn Belt and bring temperatures down a bit as well. This won't be the only opportunity either. The channel remains open next week, and models are bringing another system through with a similar storm track right now. We'll see if they can keep it up going into July."







Idaho And Western United States SNOTEL Water Year (Oct 1) to Date Precipitation % of Normal (6/20)

 







Monday, June 19, 2023

Bureau of Reclamation, Pacific Northwest Region - Storage Reservoirs in the Upper Snake River (6/19)



Average daily streamflows indicated in cubic feet per second.
Reservoir levels current as of midnight on date indicated.

Upper Snake River system is at 92 % of capacity.
(Jackson Lake,Palisades, Grassy Lake,Island Park,Ririe,American Falls,LakeWalcott)
  
Total space available:337743 AF
Total storage capacity:4045695 AF


Friday, June 16, 2023

Friday Market Watch - Cattle Close Higher Despite Witnessing Corn Prices Up Sharply; Grain and Soy Complex Scream Higher Again on Drought Expansion; Soymeal Surges

LIVESTOCK:

The livestock complex was anything but boring to watch as the cattle contracts remained strong throughout the day despite seeing corn prices jump sharply higher. Some trade was finally reported in the South midday on Friday, and prices were marked at mostly $182 which is $3.00 lower than last week's weighted average. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $8.15 with a weighted average price of $85.17 on 1,564 head. 

From Friday to Friday, the livestock futures scored the following changes: June live cattle up $0.13, August live cattle down $0.13; August feeder cattle down $4.07, September feeder cattle down $3.52; July lean hogs up $3.23, August lean hogs up $6.72; July corn up $0.36, September corn up $0.70.

Friday's slaughter is estimated at 118,000 head, 3,000 head more than a week ago but 5,000 head less than a year ago. Saturday's slaughter is projected to be around 16,000 head.

Boxed beef prices closed higher: choice up $1.02 ($343.09) and select up $1.37 ($310.95) with a movement of 74 loads (40.21 loads of choice, 12.51 loads of select, 8.82 loads of trim and 12.71 loads of ground beef). Throughout the week choice cuts averaged $339.93 (up $15.44 from last week) and select cuts averaged $309.90 (up $8.39 from last week) and the week's total movement of cuts, grinds and trim totaled 471 loads.

More: Friday Closing Livestock Market Update - Cattle Close Higher Despite Witnessing Corn Prices Up Sharply


GRAINS:

July corn closed up 17 cents per bushel at 6.40 and December corn was up 23 cents at 5.98. July soybeans closed up 38 1/4 cents at 14.67 and November soybeans were up 50 cents at 13.42. July KC wheat closed up 29 1/4 cents at 8.42, July Chicago wheat was up 26 1/2 cents at 6.88 and September Minneapolis wheat was up 20 3/4 cents at 8.54.

For the Week:

July corn closed up 36 cents and December corn finished up 67 cents. July soybeans closed 80 cents higher, with new-crop November rising by $1.38 for the week. Minneapolis July wheat closed 38 cents higher, Chicago July was up 57 3/4 cents, and Kansas City July ended the week 44 1/4 cents higher.


DAIRY:

Block cheese price declined 1.50 cents, closing at $1.3750 with one load traded. Barrel cheese price slipped 0.25 cent, closing at $1.5250 with one load traded. Buyers and sellers just were not very aggressive Friday. Dry whey price increased 0.25 cent, closing at 27.50 cents with 10 loads traded. Class III futures are mixed, ranging from 7 cents lower to 27 cents higher. A bit more selling pressure is surfacing as the market moves to the end of the day. Butter price declined 0.50 cent, closing at $2.3650 with no loads traded. Grade A nonfat dry milk price gained 0.25 cent, ending at $1.1575 with no loads traded. Spot markets just cannot find any reason to find strength and trend higher. Class IV futures are 1-2 cents lower. Butter futures are 0.35 cent lower to 1.65 cents higher. Dry whey futures have not yet traded. Markets will be closed on Monday for the Juneteenth holiday and reopen Monday night.

More: Friday Closing Dairy Market Update - Traders Show Positive Interest in Differed Months


FORAGE: This Week's Hay Markets (Forage Fodder Blog)


OUTSIDE MARKETS:

The September U.S. Dollar Index is trading up 0.139 at 101.855.July crude oil is up $1.16 per barrel at $71.78. The Dow Jones Industrial Average is down 109 points at 34,299 with the NASDAQ down 93 points at 13,690. August gold is up $0.40 at $1,971.10, July silver is up $0.26 at $24.21 and July copper is down $0.0135 at $3.8875. July heating oil is up $0.0670, August RBOB is up $0.0437 and July natural gas is up $0.095.




This Week's Drought Summary (5/2)

During the late week and weekend, a large severe weather outbreak brought large hail, damaging winds and numerous intense tornadoes to parts...