One major factor that is driving our grain markets is weather conditions. Too much rain, like the 2019 growing season can hamper plant growth. Conversely, drought conditions can be just as catastrophic.
This week was much drier in Ohio allowing farmers to resume harvest. Ohio also witnessed above-average temperatures this week and remained the same on the drought monitor.
Not much changed on the drought monitor for the Midwest. The corn belt is still experiencing some severe (orange) to extreme drought (red) conditions in Iowa. Parts of Indiana, Illinois, and Missouri are still seeing abnormally dry (yellow) to moderate drought (tan) conditions. However, there are also large portions of these states that are not experiencing drought conditions. 
Drought and other weather conditions caused lower yields across the country and in other parts of the world making a significant change to the 2021/2022 supply-side of the soybean balance sheet. 290 million bushels from the 2020/2021 carryover is less than half of this year’s earlier estimates. Weather and drought conditions also caused a smaller 2020 corn crop in the U.S. leading to rallies in the grain market.
The western part of the country is still seeing anywhere from abnormally dry to extreme drought conditions. Extreme drought conditions are spreading into more areas including New Mexico, Texas, and Arizona. Areas in Nevada, Utah, and Colorado are still seeing exceptional drought conditions.
While the west is still experiencing a drought a majority of the south and southeast is not being affected by drought conditions.
This growing season we will be monitoring the weather conditions and keeping you up-to-date on this weather pattern and any other upcoming conditions that may occur. If you have any questions on how this weather may affect our local decision making, please contact our grain department.
More information about the drought monitor:
https://droughtmonitor.unl.edu
Sources:
https://www.agweb.com/article/chip-flory-time-divvy-acres
https://www.farmprogress.com/morning-market-review/morning-market-review-nov-12-2020
