Dakotas central to U.S. crop production potential
Analysts forecasting eventual U.S. corn and soybean production are connecting expanded acreage with drought in the Dakotas.
Iowa State University Extension ag economist Chad Hart points out a lot of the increased acres in USDA’s June 30th planting report came out of the Northern Plains.
“I’m talking about the Dakotas and Minnesota. Now look at the Drought Monitor, and where do you see some of the biggest impacts due to drought? That same area when it comes to production, especially on the corn side.”
He tells Brownfield while recent rains have benefited several regions of the Corn Belt, areas that need precipitation the most continue to miss out.
“So I think we still do have another shoe to drop as we move forward in July, trying to figure out just how big a bite the Western drought will have on this crop.”
Karl Setzer with AgriVisor says risk premium is being added to the market on forecasts for warmer and drier conditions going into August.