Much needed moisture
Plenty of rain helped state moisture levels this past week. According to the Iowa Crop Progress report there were about four days good for fieldwork as farmers focused on spraying and harvesting hay. Topsoil moisture levels are 42 % short to very short, an improvement of 22 points from last week. Meanwhile, subsoil moisture improved nine points to 60% short to very short.
Farmers reported the crops were helped out by rain, but more is needed – especially the northern two thirds of the state. Combined with some reports of damaging hail and high winds, Iowa’s corn condition is at 60% good to excellent – 4% better than last week.
Soybeans are mostly poking out of the ground, with 19 percent of the crop in the blooming stage – six days ahead of normal with a few scattered reports of beans setting pods. Soybean conditions are at 58% good or excellent, up a point from last week.
Cattle processing plant
There’s a new cattle plant in the works in Iowa. Cattlemen’s Heritage plans to build a $325 million beef processing plant in the southwest part of the state. By the end of 2023, the group says it will employ around 750 people. They ultimately hope to process as much as 400,000 cows per year – which is around 1,500 head a day.
The Iowa Cattlemen’s Association says they look forward to the plant which they say will give more market access to Iowa producers.
A look at the markets
Grains are in the green headed into the report. Analyst Don Roose has more:
“The grain market is just choppy here today, yesterday a strong day to the upside, the market had a new news to the marketplace and that was some frost, freeze damage in south Brazil, argentina, the figures say they could have lost 75 to 150 million bushels of corn just from that, so that gave us a push to the upside, but the other side is watching the weather, weather looks like the heat we had in early May, June tried to come back in the six to 15 day forecast. The cattle market is trying to firm up here. The fundamentals on the cattle appear to be more positive if you look out into the futures, really into mid-July on the numbers start to shrink, maybe the feedlots are back in a better position versus the packer, packer margins continue to be in these lofty levels up around 570 dollars a head. The hog market just deeply oversold going into the hog and pig report, which was basically a neutral report. So we’re bouncing back again today off of the oversold conditions that press lower if you will the hogs in China last week were down 10 percent. They made new lows going back to 2019 so the issue with the hogs is as we move forward is China going to take the amount of pork from us as they have in the past.”