Farm Reports

Weather · Politics · Trade

June Report 2018

Below are a couple of relevant articles for the month of June 2018 in relation to farm management.

Weather

The growing season is hitting its stride and the crops look great in most of our area. The hot, early summer made the crops grow very quickly and start maturing on a pace that made up for the slightly late start. The weather pattern in the Midwest through the first half of the summer has been very spotty. We continue to have spells of hot and dry weather which are starting to stress the crops that don’t receive regular moisture. Some areas received record amounts of rain in June while others are now on the verge of a drought. With June’s average temperature being 3.1 degrees warmer than the average for Illinois we will need moisture throughout the summer to keep the crops in good shape. If this model continues yields could be highly variable this fall.

Even though areas of Illinois are looking good for bushel production so far, other areas of the country are not in the same situation. Much of the northern plains have received torrential rains during the last couple months and this has stunted the growth of their crops as well as drowned some out. Many corn and soybean plants are well behind the crops in this area when it comes to maturity. Whether this will contribute to bushel shortages as we get to harvest is yet to be seen. If that scenario ends up happening that should have some positive influence market prices.

Politics

We do have another obstacle to overcome if we are to see better pricing at some point this year. President Trump has followed through on his threats to back out of trade agreements and impose tariffs on goods from some of our major trade partners. His tariffs on Chinese goods has caused China to retaliate by putting tariffs on United States agricultural commodities. This has cause the soybean market to drop over $1.50 per bushel over the last month and corn to follow it with a $.50 drop of their own. There is still hope that these trade issues can be resolved soon. If this happens we will see the market rebound quickly. If not, then these suppressed prices could stick around for a while. Hopefully our administration can get this worked out for the benefit of the American farmer.

Location