The June USDA acreage report showed a slight decrease in sugar beet plantings compared to the March intentions report. That coupled with the lack of rain and developing drought are an equal weather concern worth paying attention to as we now head into the peak summer months.
Intense heat in the Pacific NW is expected to shift east posing a risk for the upper Midwest in coming weeks. The farmers in the Red River Valley could certainly use some moisture, but at this point, the weather map and forecast do not seem to be cooperating. The small drop in acreage coupled with dry weather may well see a downgrade to the beet crop in the upcoming July USDA WASDE report. Buyers would do well to remember that we are clearly in weather markets presently.