US winter wheat conditions mixed in January

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The USDA released state winter wheat conditions on Wednesday, revealing mixed ratings for crops.

Still in its dormancy period, winter wheat conditions declined in seven of twelve major planted states compared to the November report. Of the seven, in Colorado, Nebraska, Kansas and Ohio the percentage of crops in either good or excellent condition declined by double digits. Colorado conditions dropped the most, down 26 percent to 43 percent good or excellent.

Conversely, Indiana, Illinois, Michigan, Missouri and Montana all increased their percentage of crops in good or excellent condition. Winter wheat has the best conditions in Indiana, with 72 percent of condition reports listing the crop in good or excellent condition, followed by Illinois, Michigan and Missouri with 64 percent in good or excellent condition.

The Southern Plains region experienced below-average precipitation for much of December, leading to increased moisture deficits. The area of U.S. winter wheat under drought increased to 42 percent this week, compared to just 24 percent a year ago, according to the latest Drought Monitor.

The presence of La Niña this winter has been driving expectations of drier weather for the Plains moving through this winter and early spring. The Climate Prediction Center expects the possibility of drought expansion throughout Texas over the next three months, and persistent drought in dry areas of Nebraska and Oklahoma. Moisture conditions could improve in Missouri, Illinois, Indiana, and Ohio during the same time period.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.

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