By the time you read this we will know how much snow was deposited by a blizzard expected to hit Kansas Feb. 1.
We will have assessments about the impact of the storm in our daily market reports at Producer. com and Producermobile. com.
Analysts were not sure if the storm would be a net benefit or net loss for the southern plains wheat crop. The forecast was for as much as 30 centimetres of snow, which would bring much needed moisture to the dry soil of the hard red winter wheat belt.
Read Also
Food vs. fuel debate simmers in the background
The OECD/FAO are forecasting that 27% of the global cereals crop will go to biofuels and other industrial purposes by 2034.
However, the storm was also expected to deliver strong winds and temperatures well below freezing. The cold and ice could cause damage if some areas do not get a blanket of snow first.
The region has been dry all winter and although the crop is in winter dormancy, concerns are mounting. The La Nina trend that has kept the southern plains dry is expected to last into spring, so although this storm might bring moisture, the dry trend is still in place.
On the other side of the world, part of China’s winter wheat crop is also suffering from drought, as I reported last week.
Water resources minister Chen Lei said Jan. 31 that 80 percent of the winter wheat fields have access to irrigation, so it is the remaining 20 percent that is in the most danger.
The critical point will be late February and March, when the crop begins to grow again and its need for water increases.
Moisture is also a factor in the oilseed market. Argentina received much needed rain in the last two weeks.
It appears this has for now stopped the deterioration in the soybean crop there.
However, damage has been done. The Buenos Aires grain exchange expects a 47 million tonne crop, down from 55 million last year.
Brazil’s crop is expected to be close to last year’s 69 million tonnes.
The result of these weather developments, coupled with panic wheat buying by politically unstable North African countries, has caused wheat to move into the driver’s seat in the crop futures complex.
But the good thing about the agricultural market rally this winter is that all crops are rising.
There is no major crop that buyers are comfortable about, which supports the idea that the battle for acres leading up to spring seeding could push prices of all crops another leg higher.
