Wednesday, July 3, 2024

This Week's Drought Summary (7/3)

East of the Rocky Mountains, there was a mixture of worsening and improving drought conditions this week. With the passage of a couple of frontal boundaries across the eastern contiguous U.S. (CONUS), in addition to a steady moisture flow from the southwestern CONUS into parts of the Central Plains, several areas across the eastern two-thirds of the U.S. received heavy precipitation. However, heavier amounts varied greatly from region to region and were highly localized east of the Mississippi River. Rates of evaporation of moisture from land and vegetation (known as evapotranspiration) are high across the eastern CONUS, due in large part to several days of excessive heat. Therefore, targeted improvements are depicted in regions picking up above normal precipitation (at least 1 inch above normal rainfall for the week) and where improvements to soil moisture and stream flows were apparent. Given the very dry and hot antecedent conditions leading up to this week, drought degradation is merely halted in most other areas receiving above normal rainfall, as indicators did not show marked improvements. Conversely, for locations receiving below normal rainfall, another week of degradation is warranted. In the West, the Four Corners region was the beneficiary of yet another wet week, aided by a couple of low pressure systems bringing an influx of moisture into the region. Elsewhere in the West, conditions worsened, with several pockets of abnormal dryness (D0) popping up and the expansion of drought conditions, particularly across the northern Rockies. A slight westward expansion of abnormal dryness and moderate drought (D1) in the Alaska Mainland and the introduction of abnormal dryness near the Kenai Peninsula is warranted, supported by short-term derived drought indicators and precipitation deficits. A status-quo drought depiction is depicted in Hawaii this week, but stream flows are slowly falling as the trade winds continue to lack meaningful moisture. Puerto Rico continues to remain drought-free.



Northeast

On average, much of the Northeast experienced seasonal temperatures this week, due in large part to the passage of a couple of storm systems bringing precipitation and helping to usher in cooler air in their wake. In areas receiving the heaviest rainfall, targeted improvements to moderate drought (D1) and abnormal dryness (D0) are warranted. However, in parts of West Virginia, southern Pennsylvania, and northern Maryland that experienced both above normal temperatures and below normal precipitation again this week, conditions continued to worsen, with severe drought (D2) being introduced to parts of northern Maryland and eastern West Virginia, where soil moisture and stream flows continue to decline and derived drought indices show a strong drying trend over the past 90 days.

Southeast

Rainfall in the Southeast was very hit-and-miss this week for most areas. Even in areas where heavy rainfall was more widespread, the drought indicators did not respond adequately to reverse the drying trend, warranting a status-quo depiction this week. However, there are some targeted areas of improvement across parts of the Coastal Plain of the Southeast, southern Alabama, and parts of Florida, where in excess of 2.5 inches of rain fell. Rates of evapotranspiration (the evaporation of moisture from land and vegetation) are very high across much of the Southeast, so well above normal rainfall is necessary to make up for weekly losses of soil moisture due to hot temperatures, and for conditions to improve. Elsewhere, stream flows and soil moisture conditions continued to worsen in areas receiving near to below normal weekly rainfall, warranting another week of degradations for many locations. Parts of the Tennessee Valley, northern Gulf Coast States, and the central and southern Appalacians have only seen trace amounts of rainfall since the beginning of June.

South

Expansion of drought and abnormal dryness is warranted this week in the South, as much of the region experienced another week of hot and dry conditions, and this has been the case since the start of June for many locations. The only areas where improving conditions were observed is across northern Oklahoma, extending into Kansas, where another week of heavy rain fell (locally more than 3 inches in north-central Oklahoma). After a very wet May, precipitation has been lacking entirely across large parts of central and eastern Texas, extending eastward into Louisiana. Indicators have shown a drying trend and topsoil moisture has really started to dry out. These areas will bear watching in the coming weeks.

Midwest

Precipitation has mainly been confined to the Upper Midwest and Great Lakes due to high pressure dominating the eastern U.S. in recent weeks and keeping the storm track displaced farther northward. This week a strong storm system moving across the eastern U.S. over the weekend brought some heavy precipitation farther southward to parts of the Ohio Valley, where conditions have rapidly worsened in the weeks leading up to this week. However, despite receiving some rainfall, weekly totals were below normal across southern parts of Illinois, Indiana, and Ohio, extending into northern Kentucky. Elsewhere, weekly rainfall in excess of 3 inches was widespread, leading to improvements across parts of northern Ohio, Indiana, and Illinois, extending into the central Corn Belt. The Upper Midwest and central Corn Belt remain very wet, with ongoing flooding along the Lower Missouri and Upper Mississippi Rivers and nearby tributaries.

High Plains

The High Plains region experienced a mixture of both deteriorating and improving drought conditions this week, which has also predominantly been the case over at least the last month. A couple of troughs of low pressure moved across the western and central U.S. this week, helping to tap into some moisture from the Pacific Ocean and draw it into the region. This resulted in heavy rainfall across parts of the Four Corners and extending eastward into the Central and Eastern Plains. Parts of Kansas and eastern Nebraska received well in excess of 3 inches of rainfall. Unfortunately, several locations across the western High Plains region were not so lucky and received below normal weekly rainfall. Temperatures were also unseasonably warm, running anywhere from 4°F to 8°F above average for the week in many areas, helping to exacerbate worsening conditions.



West

In the Western U.S., drought improvements were limited to southern parts of the region, where a couple of troughs of low pressure were able to bring some moisture from the Pacific Ocean northward into the Desert Southwest and Four Corners. Elsewhere across the West, conditions have slowly dried out in recent weeks. With another week of below normal precipitation and above normal temperatures, with much of the Great Basin running 4°F to 8°F above average for the week, conditions worsened.



Caribbean

This week was predominantly dry across much of Puerto Rico, with the exception of northwestern parts of the island. Despite also experiencing warmer than normal conditions, antecedent wetness leading up this week has allowed for a bit of breathing room to survive these short dry spells. Therefore, Puerto Rico remains drought-free this week.

For the U.S. Virgin Islands, much of the 7-day drought monitoring period featured widely scattered showers and periods of Saharan dust. As July began, however, Hurricane Beryl passed through the eastern Caribbean Sea, clipping the U.S. Virgin Islands with some outer rain bands. Beryl, the earliest Category 5 hurricane in the Atlantic Basin, supplanted the record set by Emily on July 16, 2005, by 15 days. Weekly reports from a network of about a dozen volunteer (CoCoRaHS) observers noted rainfall totaling 0.26 to 0.65 inch on St. Thomas; 0.46 to 0.73 inch on St. John; and 0.15 to 0.49 inch on St. Croix. Vegetation remains relatively lush across the territory, based on the Vegetation Health Index and visual reports, and depth to water at three U.S. Geological Survey wells – one per each major island – has improved (decreased) significantly compared to the summer and autumn of 2023. Finally, the Standardized Precipitation Index continued to indicate drought-free conditions at all time scales.

Pacific

Expansion of abnormal dryness (D0) and moderate drought (D1) across more of the Yukon Flats is warranted, as this week was yet another warm and dry week across much of the state. Short-term dryness has also popped up along the South Coast, warranting the introduction of abnormal dryness across western parts of the Kenai Peninsula extending northward to include Anchorage. Fire concerns remain elevated, as Alaska is in the midst of its fire season.

No changes in Hawaii this week. However, the trades continue not to provide any meaningful moisture to the islands, so stream flows are slowly falling across the islands.

With the demise of El NiƱo, regular rains continued to ease or eradicate any lingering drought in the U.S.-Affiliated Pacific Islands. For the drought-monitoring period ending July 2, there was neither dryness nor drought in American Samoa and the Republic of Palau. At Pago Pago International Airport in American Samoa, June rainfall totaled 9.91 inches (156% of normal). Similarly, Palau International Airport received a June total of 17.16 inches (106% of normal).

However, pockets of drought persisted in the Federated States of Micronesia. For Yap, the June rainfall total of 6.61 inches was just 54% of normal, perpetuating a dry spell that began in autumn 2023. Yap remained in severe drought (D2-SL). However, neighboring Ulithi saw some additional improvement, with 2 to 5 inches or rain falling during 5 of the last 6 weeks. Ulithi’s designation was improved to moderate drought (D1-L). Rainfall data for Woleai, Fananu, Pingelap, and Kosrae was insufficient for analysis.

In the Republic of the Marshall Islands, drought was limited to Wotje (severe drought, or D2-SL). With a fifth consecutive week featuring less than an inch of rain, drought recovery on Wotje has stalled. Meanwhile, Jaluit received more than 3.5 inches of rain during the drought-monitoring period, eliminating abnormal dryness (D0-S). At Majuro, where June rainfall totaled 10.92 inches, reservoir storage at the end of June stood at a robust 31.9 million gallons, 89% of capacity. No data was reported for Mili and Utirik.

Finally, drought was eliminated from Marianas, although abnormally dry conditions (D0-S) were still observed for Guam, Rota, and Saipan. Guam International Airport received June rainfall totaling exactly 8 inches, 123% of normal. Rota’s third consecutive week with more than 1.5 inches or rain resulted in improvement from moderate drought (D1-S) to abnormal dryness.

Looking Ahead

During the next five days (July 3 - July 7), High pressure is likely to build over the western U.S., leading to hot, potentially record-breaking temperatures and below normal precipitation. Farther eastward, East of the Rockies, temperatures are forecast to become more seasonal for the most part. In addition, parts of the Middle and Upper Mississippi Valley are likely to experience a couple of rounds of heavy rainfall. Rainfall in excess of 1 inch is favored across parts of the Ohio Valley, Mid-Atlantic, and Southeast.

The Climate Prediction Center’s 6-10 day outlook (valid July 8 - 12), favors enhanced chances of above average, potentially record-breaking, temperatures across parts of the Intermountain West, with above normal temperatures changes extending into the Western Plains, along the Gulf Coast, and into the eastern U.S. Below normal temperatures are favored in the interior central U.S. Near and below normal precipitation is likeliest across the western and north-central U.S., with above normal precipitation favored elsewhere. Eyes will be on the tropics over the next 6 to 10 days, with enhanced chances for above normal precipitation across southern Texas and the western Gulf Coast. Near to below normal temperatures and above normal precipitation is favored in Alaska and Hawaii.



Farmer Sentiment Drifts Lower on Weaker Future Expectations

Farmer sentiment drifted lower in June as the Purdue University-CME Group Ag Economy Barometer reading of 105 was 3 points lower than a month earlier. A five-point decline in the Index of Future Expectations to 112 was responsible for the overall sentiment decline, as the June Current Conditions Index of 90 was one point above the May index value. High input costs and the risk of lower prices for the products they produce continue to weigh on farmer sentiment, along with concerns about rising interest rates. This month’s Ag Economy Barometer survey was conducted from June 17-21, 2024.


The Farm Financial Performance Index rose three points in June to a reading of 85. There’s been a tendency in recent years for producers’ financial performance expectations to bottom out in spring and improve as the spring crop growing season progresses. This year seems to be following that pattern as the index has risen 9 points over the last two months. Last year, producers’ farm financial expectations improved from spring into summer and then again from summer into fall. The index’s improvement in 2023 was driven by improving revenue expectations arising from good crop yields and a fall price rally. It remains to be seen if those conditions will be repeated in 2024.

The capital investment outlook weakened slightly in June as the Farm Capital Investment Index fell 3 points to a reading of 32, which leaves the index just one point higher than its all-time low. More producers this month said now is a bad time to make large investments than in May, with no change in the percentage of producers who said it’s a good time to invest. Interest rate concerns appear to be affecting farmers’ investment outlook. Over the last several months, the percentage of producers citing rising interest rates as a top concern for their farm operation has been rising. In February, 18% of survey respondents chose rising interest rates as a top concern. That percentage has been rising every month since then, reaching 23% in the June survey. 

The Short-Term Farmland Value Expectations Index reading in June of 115 was unchanged from a month earlier. However, producers’ longer-term outlook on farmland values did shift as the Long-Term Farmland Values Index value of 152 was 7 points below May’s reading. Fewer producers this month said they expect farmland values to rise over the next five years, with a concurrent rise in the percentage of producers who think values will remain unchanged. Among those producers who expect a long-term increase in farmland values, most (57%) respondents continue to point to non-farm investor demand as a key driver, followed by inflation, which was chosen by 16% of respondents. June marked the third month that the survey instrument included “Energy Production” as a possible driver of farmland values, and this month, 10% of respondents with a bullish outlook chose it as a key factor. 

Once again, this month’s survey asked respondents if they or one of their landowners had been approached about a possible Carbon Capture and Storage (CCS) project from an ethanol plant. This month, 8% of respondents said they had been in contact about a CCS project. The vast majority (93%) of respondents who had contact with a company about a CCS project reported that payment rates offered were less than $25 per acre, with just 8% of producers reporting payment rate offers of $50 or more per acre. 

Sixteen percent of respondents this month said that, within the last six months, they had discussed with a company a farmland lease for solar energy production. That’s down slightly compared to April and May, when 19 and 20 percent of respondents, respectively, reported solar leasing discussions taking place. Lease rates have been rising since we first collected data on solar leasing in 2021. This month, 69% of respondents said they were offered a long-term lease rate of $1,000 per acre or more, up from just 27% in June 2021. This month’s survey included a more detailed list of lease rate options for respondents to choose from, and 27% of respondents said they were offered a lease rate of $1,500 per acre or more. Fifty-eight percent of respondents said the lease contract they discussed included an annual escalator clause. Among those respondents who reported discussing an escalator clause, the most common escalator range was from 2 to 3 percent per year.

Wrapping Up

Weaker expectations for the future were responsible for a modest decline in this month’s Ag Economy Barometersentiment index. Farmers long-term farmland value outlook weakened slightly in June after approaching an all-time high last month. The percentage of farmers reporting that they are concerned about rising interest rates has been increasing, which could be one reason why farmers’ future expectations, along with their outlook on capital investments and long-term farmland values, all dipped compared to a month earlier. In areas of the country where leasing of farmland for solar energy production is taking place, lease rates being offered continue to rise. This month, 69% of respondents who reported a solar leasing discussion said they were offered a long-term solar lease rate of $1,000 per acre or more.




Monday, July 1, 2024

USDA Crop Progress - Corn 67% Good to Excellent, Soybeans 67% Good to Excellent as of June 30

OMAHA (DTN) -- Corn conditions fell for the fourth consecutive week last week, USDA NASS reported in its weekly Crop Progress on Monday. The crop's good-to-excellent rating has now dropped 8 percentage points from its initial rating of 75% good to excellent.

CORN

-- Crop development: Corn silking was pegged at 11%, 4 percentage points ahead of last year's 7% and 5 points ahead of the five-year average of 6%.

-- Crop condition: NASS estimated that 67% of the crop was in good-to-excellent condition, down 2 points from 69% the previous week but still ahead of last year's 51%. Nine percent of the crop was rated very poor to poor, up 2 points from 7% the previous week but lower than 15% last year. "Iowa corn is rated 73% good to excellent, and Illinois is at 65% good to excellent," noted DTN Lead Analyst Todd Hultman.

SOYBEANS

-- Crop development: 95% of soybeans had emerged as of Sunday, 2 points behind last year's 97% but 2 points ahead of the five-year average of 93%. Soybeans blooming was pegged at 20%, equal to last year but 5 points ahead of the five-year average of 15%. Soybeans setting pods was estimated at 3%, also equal to last year and near the five-year average of 2%.

-- Crop condition: NASS estimated that 67% of soybeans were in good-to-excellent condition, unchanged from the previous week but still well above 50% last year. "Sixty-four percent of soybeans in Illinois were rated good to excellent, while Iowa was at 72% and Minnesota was at 62%," Hultman said.

WINTER WHEAT

-- Harvest progress: Harvest maintained a steady pace last week, moving ahead 14 percentage points to reach 54% complete nationwide as of Sunday. That was 21 points ahead of last year's 33% and 15 points ahead of the five-year average pace of 39%. "Kansas winter wheat is 80% harvested, much quicker than average, and Illinois is 89% harvested, much further along than its five-year average of 49% for this date," said DTN Senior Analyst Dana Mantini. "Arkansas is 94% done, Missouri 92% and Oklahoma 95% -- all well ahead of average."

-- Crop condition: 51% of the crop remaining in fields was rated in good-to-excellent condition, down 1 point from 52% the previous week and still up considerably from 40% a year ago.

SPRING WHEAT

-- Crop development: 38% of spring wheat was headed, 7 percentage points behind last year's 45% but slightly ahead of the five-year average of 37%.

-- Crop condition: NASS estimated that 72% of the crop was in good-to-excellent condition nationwide, up 1 percentage point from 71% the previous week. That remains ahead of last year's rating of 48% good to excellent. "The good-to-excellent rating for North Dakota rose 6 percentage points to 78%, while South Dakota jumped 3 percentage points to 81%," Mantini said. "Minnesota had the highest rating of 86% -- up 5% on the week."

THE WEEK AHEAD IN WEATHER

Two forecast storm systems will likely bring widespread rain to the Corn Belt this week -- good news for thirsty crops but possibly bad news for Fourth of July celebrations on Thursday, according to DTN Ag Meteorologist John Baranick.

"It's another active week across the Corn Belt," Baranick said. "We should see two solid storm systems move through the northern tier of the U.S. or southern Canada this week, and their cold fronts will sweep through the Corn Belt. It may take a couple of days to get into the Eastern Corn Belt, but widespread precipitation is expected this week, quite possibly ruining the fireworks celebrations for millions of us.

"A couple more disturbances will move through this weekend with more showers and thunderstorms but much less potential for heavy rain. Those in the heavily saturated areas in the northwestern Corn Belt probably do not like the forecast, but those that are across the southern and Eastern Corn Belt probably do.

"Last week's Drought Monitor showed a widespread increase in drought across the Eastern Corn Belt, Southeast and Mid-Atlantic, but many of these areas have seen rain since, which should be beneficial, and we should see more this week.

"Temperatures will be moderate or even cool in the Northern Plains this week, while it remains much hotter across the South and Southeast where we could see some triple-digit readings. Areas in between should see temperatures waffling around as systems pass through, but nothing extreme is in the forecast for this week."

National Crop Progress Summary
This Last Last 5-Year
Week Week Year Avg.
Corn Silking 11 4 7 6
Soybeans Emerged 95 90 97 93
Soybeans Blooming 20 8 20 15
Soybeans Setting Pods 3 NA 3 2
Winter Wheat Harvested 54 40 33 39
Spring Wheat Headed 38 18 45 37
Cotton Planted 97 94 98 99
Cotton Squaring 43 30 38 38
Cotton Setting Bolls 11 8 9 9
Sorghum Planted 96 90 90 94
Sorghum Headed 19 17 20 20
Sorghum Coloring 12 NA 11 11
Oats Headed 74 61 76 71
Barley Headed 38 12 32 38
Rice Headed 18 13 18 13

**

National Crop Condition Summary
(VP=Very Poor; P=Poor; F=Fair; G=Good; E=Excellent)
This Week Last Week Last Year
VP P F G E VP P F G E VP P F G E
Corn 3 6 24 52 15 2 5 24 55 14 4 11 34 43 8
Soybeans 2 6 25 55 12 2 6 25 56 11 4 11 35 44 6
Winter Wheat 5 10 34 41 10 5 10 33 42 10 12 17 31 34 6
Spring Wheat 1 3 24 61 11 1 3 25 64 7 3 9 40 46 2
Sorghum 3 5 34 50 8 2 4 33 54 7 2 6 37 49 6
Cotton 8 9 33 44 6 5 9 30 51 5 7 14 31 41 7
Rice 1 2 15 67 15 1 1 15 67 16 1 4 25 59 11
Oat 6 5 22 57 10 6 5 22 57 10 7 9 39 42 3
Barley 1 4 31 60 4 1 2 29 65 3 1 6 42 49 2




May Ag Prices Received Index Up 0.9 Percent; Prices Paid Index Down 0.2 Percent

May Prices Received Index Up 0.9 Percent  

The May Prices Received Index 2011 Base (Agricultural Production), at 123.6, increased 0.9 percent from April but decreased 2.7 percent from May 2023. At 103.2, the Crop Production Index was up 1.8 percent from last month but down 15 percent from the previous year. The Livestock Production Index, at 143.0, increased 0.3 percent from April and 7.5 percent from May last year. Producers received higher prices during May for milk, corn, oranges, and cattle but lower prices for market eggs, strawberries, onions, and broccoli. In addition to prices, the volume change of commodities marketed also influences the indexes. In May, there was increased monthly movement for cattle, hay, broilers, and lettuce and decreased marketing of soybeans, calves, hogs, and apples.  

May Prices Paid Index Down 0.2 Percent  

The May Prices Paid Index for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 139.9, is down 0.2 percent from April 2024 and 0.2 percent from May 2023. Lower prices in May for feeder pigs, diesel, LP gas, and potash & phosphate more than offset higher prices for hay & forages, concentrates, feeder cattle, and mixed fertilizer. 






Bureau of Reclamation, Pacific Northwest Region - Storage Reservoirs in the Upper Snake River (7/1)



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

Upper Snake River system is at 95 % of capacity.
(Jackson Lake,Palisades, Grassy Lake,Island Park,Ririe,American Falls,LakeWalcott)
  
Total space available:197331 AF
Total storage capacity:4045695 AF




This Week's Drought Summary (7/3)

East of the Rocky Mountains, there was a mixture of worsening and improving drought conditions this week. With the passage of a couple of fr...