Floods Strike The Corn Belt

As expected, corn and soybeans are expected to rise next week due to worsening crop conditions. Plus, the Chicago Tribune reports via Reuters that the barge terminals at Savage, Minnesota, for CHS Inc and Cargill may not ship at all next week because of the high water levels.

 

More rain will fall next week. The water will flow down the Mississippi next week and flood fields along the Iowa-Illinois border. It will gradually affect Missouri fields prone to flooding.

The heavy rain across the Mississippi River Valley will diminish towards July as heat builds across the Great Plains.

This week's satellite data showed vegetation health was generally on the poor side across Iowa, eastern South Dakota and parts of southern Minnesota. The USDA crop report was very favorable, but it Reuters is correct and next week's subjective USDA report comes in with less favorable crop conditions, it will merge nicely with the objective satellite data.

Corn and soybean prices should move up next week on the weather and slowdown in barge traffic. I expect the flooded fields to be a problem into the middle of July.

Global Weather Notes

The India monsoon is very weak. I am not at all optimistic about it.

El Nino continues to chug along. The warmer sea-surface temperatures continue to flow back to the west. It continues to affect weather across Australia, Asia and South America.

I am watching the Gulf of Mexico and Caribbean Sea. There's a strong system poised to move through the area July 5-15. My newsletter readers will be the first to know (from me, anyway).

I do not have a position in any of the equities in this article and I do not plan to have a position. I the editor of the Daily Extreme Weather Briefing, the Global Extreme Weather Outlook, and also ...

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