The Midwest is witnessing a challenging time for its soybean crops. Prolonged drought and record heat are causing problems, especially during the crucial pod-setting phase in August, which needs moisture. With these adverse conditions, there are now doubts about the soybean supply's stability.
During a recent exploration by the Pro Framer Crop Tour, variable yields for soybeans and corn were discovered. Unfortunately, August's dry conditions and high temperatures haven't been kind to these crops. Out of the two, soybeans seem to be at a higher risk of yield loss from the ongoing heat.
A recent study from CoBank’s Knowledge Exchange has brought to light that soybeans are facing a tighter supply than corn. This is mainly because of a decrease in planted areas. In fact, this year, the planted soybean areas have seen a drop of 4.6%, which is the lowest since 2020.
Tanner Ehmke, a CoBank expert in grains and oilseeds, warns that hot, dry conditions could cause a shrinking soybean supply, potentially affecting cash basis and exports. Ehmke observed soybean pods aborting due to intense heat, and if the current weather persists, more pods may face similar issues. Other crop issues include sudden death syndrome and white mold.
But there's a silver lining. Hot conditions can increase the oil content in soybeans. This is beneficial, especially now, when soybean oil prices are rising due to the demand for renewable diesel. Even if hot conditions cause soybeans to have lower protein levels, the rising oil prices will be a boon for processors, as explained by Ehmke.
For a detailed insight, consider reading the research brief titled Tour Reveals Risk to Soybean Crop, but Greater Potential for Soybean Oil.
Photo Credit: gettyimages-neenawat555
Categories: Minnesota, Crops, Soybeans