Thursday, July 26, 2012

Don't Expect Any Relief in Grain Prices

Notice that most of the bread basket is under some type of drought warning right now.  Here's the report from the NOAA:
The Great Plains to Midwest:   Unrelenting heat and lack of rain continued the downward spiral of drought conditions.  D0 to D2 expanded across parts of the Plains from Texas to North Dakota, from Missouri to Minnesota, and in the southern Great Lakes.  Extreme drought (D3) was introduced in Nebraska, Missouri, and Wisconsin, and D3 expanded in Arkansas, Oklahoma, Kansas, and Indiana.  The city of Indianapolis, Indiana, implemented mandatory water restrictions for the first time ever with many trees dropping their leaves and going dormant months early.  Exceptional drought (D4) expanded in Arkansas and was introduced in western Kansas.