Drought forces prices up, yields down.
Spring wheat prices are climbing, but the benefit is for those who have a harvest to sell.
In the last three months, spring wheat prices have rallied from less than $4 per bushel to more than $8 per bushel before dropping slightly this week to $7.63 per bushel.
To put that in perspective that projected yield is about 94 percent less than their proven yield of 64 bushels an acre.
Drought conditions in South Dakota are more intense west of Aberdeen.
As of last week, portions of six counties were experiencing extreme drought conditions, according to the U.S. Drought Monitor.
The new drought map released Thursday showed a second area of extreme drought in South Dakota, this area near the North Dakota border.
Chris Smith, grain marketing manager for North Central Farmers Elevator, said last week’s report that showed a reduction in spring wheat acres has had an effect on wheat prices and drought conditions have only compounded that.
When it comes to corn, Schaunaman said, it’s likely the top yield potential is no longer there, but even though weather will affect the yield, he wouldn’t write it off yet.
He said predictions of 100 degree temperatures, like the Aberdeen area saw Wednesday, are not good for pollination.