Warm and dry weather brought “widespread worsening of drought and dryness” to the upper Midwest in the past week, particularly in Iowa and Wisconsin, said the Drought Monitor. By coincidence, soybean and corn futures prices plunged on Thursday because rain was in the forecast for parts of the Midwest.
Futures prices for soybeans for delivery in July fell by nearly $1.19 a bushel, one of the largest one-day drops in decades, and July corn futures fell by 40 cents a bushel — “limit down” under rules that constrain volatility in the market.
Three-quarters of Iowa, the No. 1 corn producer and No. 2 in soybeans, is in “moderate” or “severe” drought, as is nearly 56 percent of both Wisconsin and Minnesota. The ratings for Iowa and Wisconsin soared by 20 percentage points from the preceding week; Minnesota was up by more than 11 points.
“Moderate” and “severe,” in that order, are the first two steps on the four-point Drought Monitor scale. If sustained, the conditions can reduce crop yields, increase fire danger by drying vegetation, and slow water flow in streams and rivers.
Some 46 percent of the continental United States, mostly in the West, is under one of four types of drought, said the weekly report.