Back to Journal

Drought Pattern Appears Well-Established

N
Written by
NIBA
Published
Reading time
3 min


» Drought Monitor Presentation

Omaha (DTN) – What a season the crop year 2012 has turned into. A season which began with bright hopes for good production, which were bolstered by rapid planting progress, has instead turned into a nightmare of disastrously hot and dry conditions. The Drought of 2012 has carved itself a huge niche in history--alongside the droughts of 1988, the mid-1950s, and the mid-1930s.

The scope of this drought is mind-boggling. As of July 19, about 80 percent of the U.S. was experiencing some form of drought conditions. This was a stunning reversal of fortune from just a few months earlier, when it looked like corn growers were going to have an historically large harvest and drought was limited to the southern tier of the country. Scientists trace the drought's origins to a combination of factors, ranging from La Niña conditions in the Pacific Ocean, which tend to favor drought in the U.S., to a very mild winter that left little snowpack to help keep soils moist in the spring. Massive heat waves brought blistering heat during March, June and July, turbo-charging the process of evaporating water out of soils and plants, and leading to what meteorologists call a "flash drought." Rather than develop gradually, as is more typical with drought conditions, this drought came on with stunning swiftness.

What's more, almost the entire weather and climate community expects this dry and hot pattern to linger not only through August, but also well into the fall season--at least through October. During this time frame, very few areas of the contiguous U.S. are in line for above normal precipitation. Those areas with the good fortune to have more precipitation than average are the southwestern U.S. along with the central Gulf Coast. For the central U.S., widespread above normal temperatures and below normal precipitation are forecast.

It is also questionable whether there will be much if any jet-stream benefit from the development of El Nino in the Pacific Ocean. El Nino conditions are in effect when the equatorial ocean waters between South America and the International Date Line are warmer than average. And, as of late July, most international weather forecast models call for a weak to moderate El Nino to form during the fall season. However, rainfall patterns associated with El Nino are usually confined to the southern tier of states. Probabilities with an El Nino winter are highest for a dry season from the northern Plains through the central Midwest. In other words, it is possible for the hardest-hit drought areas to enter next year, 2013, in a continued drought stage.

As for crops, the damage has been significant. USDA's World Ag Outlook Board projected the U.S. corn crop to post a yield of 166 bushels per acre back in June, with a soybean yield of just under 44 bushels per acre. But in late July, many private estimates had pulled those numbers back to around 135 bushels per acre for corn, with soybeans in a range of 35 to 40 bushels per acre--an 18 percent decline in the corn projection, and a 14 percent drop in the soybean projected yield size.

Contact Bryce Anderson:
Bryce.anderson@telventdtn.com

 


The Opinions expressed are the opinions of the author. The opinions, the trading styles, trading information and trading programs are not endorsed by the NIBA, but are the individual opinions, styles, information and programs of the author.

Stay Informed

Subscribe to the NIBA Journal for the latest insights and industry updates

Related Articles

View All
Marketing

AI Innovation in Finance, Agriculture, and Marketing

Author: Shane Stiles, President, Gate 39 Media As a marketing and technology agency serving financial and agricultural clients, Gate 39 is witnessing firsthand the transformative impact of artificial intelligence (AI) across these sectors. AI analyzes vast amounts of data to predict commodity prices, uncover patterns, and consider market sentiment, weather, and disruptions to provide a comprehensive market view. AI in Financial Services In finance, AI is revolutionizing risk management, fraud detection, and customer service. Machine learning algorithms swiftly analyze transaction data to identify suspicious activities, safeguarding the financial system's integrity. AI-powered chatbots are transforming customer service by offering personalized advice and support, enhancing satisfaction, and building long-term client relationships. Early AI tools in finance focus on simple reporting, summarizing data...

Marketing

AI and Email Marketing

Written by: Adam Aronoff, Founder & CEO, GlossyDev In the fast-paced digital era, staying ahead of the curve is paramount for successful businesses. The advent of Artificial Intelligence (AI) has sparked a revolution across industries, and email marketing is no exception. If you're ready to take your email campaigns to new heights, it's time to embrace the potential of AI. In this article, we'll walk you through the basics of AI and how you can leverage it to supercharge your email marketing strategies. Demystifying AI: A Quick Overview At its core, AI involves the creation of intelligent machines that can simulate human-like thinking and decision-making processes. In the context of email marketing, AI can analyze vast amounts of data, predict...

Marketing

How To Build A Personal Brand (and Why You Should)

By, Jessica Darmoni, The Title Connection In a world where everyone has control of their own narrative, it is important to have a handle on what people think when they think of you. When there is a cool job opportunity and hiring managers are thinking of the right person to fill the role, how do you get your name in the hat? The answer is a mix of promoting your valued services, knowing the right people and maintaining a level of trust and transparency. This is part of your brand, something that you can create and evolve over time. Below are a few things you should think about when building a personal brand. Promoting Your Skills Self-promotion is a challenge...