Iowa Public Television

 

Markets Mull Impact of Dry Weather

posted on July 8, 2005


Early data on the Kansas wheat crop shows that 63 percent of the state's signature crop is of the highest quality. That's a big improvement over last year when, thanks to drought, only about half of the state's wheat crop attained the top rating.

Dry weather is a problem again this year but not in wheat country. Now it's a concern for farmers in the eastern Grain Belt ... and a situation drawing scrutiny in the markets.

Markets Mull Impact of Dry Weather Weather has become the main topic of concern this week on both the trading floor and in farm country.

Hot, dry conditions continue to plague the eastern Grain Belt. The government's most recent drought monitor illustrates the severity of the problem in places like Illinois, Indiana and Ohio.

On the ground, USDA's latest crop progress report shows 37 percent of the Illinois corn crop rated poor or very poor, compared to only 4 percent in neighboring Iowa. Seventy-five percent of the Illinois soybean crop is rated no better than fair.

Officials now are warning growers in the hot, dry areas to watch for an increase in insect problems. Soybean aphids and spider mites are of special concern.

In the trading pits, the weather concerns helped move commodity prices higher ... after retreating sharply a week ago.


Tags: agriculture drought markets news weather