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Crop Weather Outlook 2012
   What Follows A Strong La Niña?
                  Elwynn Taylor
           www.twitter.com/elwynntaylor


1/12/2012 US Corn 147.2 BPA (9.24K/ha)   soy 41.5BPA (2.79K/ha)
http://www1.ncdc.noaa.gov/pub/data/cmb/extremes/summer-2011-days-over-100.png
Madden-Julian




• Contributing to the weather today
• wattsupwiththat.com/2010/12/22/the-madden-julian-oscillation/
Daily T Deviation from Average
    Dec 2010 to Aug 2011, Dec 2011 to now
               17 Mar




•   It was not hot all the time
•   It was La Niña
•   La Niña T is more extreme
•   Last year (2011) we did not have+30
• Central Iowa corn yield trend (+2.05Bu/yr) exceeds the
  National (+1.87Bu/yr), but lags the state (+2.10 Bu/yr).
WC IA




• West Central Iowa trend = 2.35Bu/yr.
200



180



160



140
                -- 18 yrs --                        -- 16 yrs --
120



100



 80



 60



 40



 20



  0
  1940   1950     1960         1970   1980   1990   2000           2010   2020
7.00
                         Iowa Corn Prices vs. Costs
                  6.50
                  6.00
                  5.50
                  5.00
   $ per bushel




                  4.50
                  4.00
                  3.50
                  3.00
                  2.50
                  2.00
                  1.50
                  1.00
                     2

                           5

                                  8

                                         1

                                                4

                                                       7

                                                              0

                                                                     3

                                                                            6

                                                                                   9

                                                                                          2

                                                                                                 5

                                                                                                        8

                                                                                                               1
                     7

                            7

                                   7

                                          8

                                                 8

                                                        8

                                                               9

                                                                      9

                                                                             9

                                                                                    9

                                                                                           0

                                                                                                  0

                                                                                                         0

                                                                                                                1
                  19

                         19

                                19

                                       19

                                              19

                                                     19

                                                            19

                                                                   19

                                                                          19

                                                                                 19

                                                                                        20

                                                                                               20

                                                                                                      20

                                                                                                             20
                                              Season-average Price               Cost per Bushel
                                                                                                        Chad E Heart

Extension and Outreach/Department of Economics
stable period 2   stable period 3   stable period 4
Reminder: All crop forecasts in this report are based on conditions
on August 1 and do not reflect weather effects since that time. The
next district corn and soybean production forecasts, based on
conditions as of September 1, will be released on September 12.




                                                                        157.5


                                                                        172


    http://www.nass.usda.gov/Statistics_by_State/Iowa/index.asp#.html
Record
 year 2011




• Edging records of mid-teens &50s for old stations
Weather Stations Near You
• Sheldon: Hot July & normal rain to mid-July
• http://mesonet.agron.iastate.edu
Normal is 10.06 inch



Normal is 12.06inch




                                      Normal is 14.55 inch
   • Iowa: Precipitation between dates (2012 to date)
   • http://mesonet.agron.iastate.edu
When I was a kid




       1947      1983

Iowa State University Extension
COLD




       WARM




              Warm Winters   Cold Winters
Sea Surface Anomaly 2012




• http://www.osdpd.noaa.gov/ml/ocean/sst/anomaly.html
• Past 3 La Niña peaked below 15
• Past 3 dropped to negative values
• World weather stayed La Niña this time
http://www.esrl.noaa.gov/psd/enso/mei/
http://www.bom.gov.au/climate/current//soi-1977-1984.shtml
Some relief
•
Roots could be very important
I Remember Algona 2002




•   Our creek is dry for the 1st time in 100+ years !
•   Heat stress was normal after silking, Gdd got bhind, rain was ample in Aug
La Niña
• La Niña began June 2010
• La Niña peaked Nov 1, 2010
• 2nd strongest since 1950 by time & strength.
• Weakened (but did not establish neutral
  condition) 14 June - 9 Sep 2011
• Strengthened to Moderate La Niña 1 Oct
  2011
• Ended (likely) 22 Apr 2012…. Then ?
11-month outlook based on
           Risk Wheel Decision Tool
           persistent climate anomalies




70% risk of below trend   53% risk of above   70% risk of above
• Chance of U.S. Corn yield <90% of trend yield
  (Red),      90-100% (Blue), 100-110% (yellow), >110%
  (Green) for (left to right) La Niña, neutral, El Niño
  summers.
• Like analysis was done for ENSO+PDO+NAO combinations.
• Corn buyers/sellers can manage the risk of crop yield
  exceeding or falling below government determined      IS   U
  demand levels.
TWW Corn-Soy Outlook
•   TWW (Taylor, Wisner, Wolter)
•   Taylor likely crop yield per acre
•   Wisner likely Dec price at harvest time
•   Wolter likely El Niño/La Niña summer condition
La Niña Outlook                                9 May 2012
• 30% Chance La Niña persists into Summer
• 20% Chance El Niño begins immediately
• 50% Chance of Neutral ? ?

•   Minimal chance of Neutral SOI
•   30% Chance of La Niña with US Yield < 148 BPA $6.60
•   20% Chance of El Niño with US Yield > 168 BPA $5.00
•   50% Chance of neutral with US Trend+ 164 BPA $5.15
•                                    $ from Wisner 2/9/2012
•   http://www.extension.iastate.edu/agdm/crops/outlook/cornbalancesheet.pdf
                              Soy 41bpa $11.95, 43.5bpa $10.60, 45.5bpa $10.35


                                Based on the evolution of recent atmosphere-
                                ocean conditions, I am dropping the odds from
                                50/50 to less than 30% for continued La Niña
                                conditions into the upcoming summer. In
                                fact, there is a distinct possibility that we could
                                see a switch to El Niño by mid-2012. …
                                 (Klaus.Wolter@noaa.gov), (303) 497-6340
                                 Today DEC corn $5.18         Nov Soy $13.29
Preliminary 2012 Corn Risk
                               8 Mar 2012
                               130    180




           22%     145

            148 $6.60
                                                   177      29%



                                           168 $5.00
                              161    164.2 $5.15
                            DEC12 518 ½ 10:30am 5/9/12
•   ENSO odds: Wolter, Contract $: Wisner, Yield odds: Taylor
•   Wolter: www.esrl.noaa.gov/psd/enso/mei/
•   Taylor: twitter.com/elwynntaylor
•   Wisner:
    www.extension.iastate.edu/agdm/crops/outlook/cornbalancesheet.pdf
Recovery of La Nina (termed a recovery as the historically mandatory 90-day period
of neutral [blue zone] was not achieved). This is the 90-day moving average plot that
serves as the forecast for the behavior of the “official” 152-day centered moving
average. The 152-day entered neutral on 13 June 2011 & recovered to La Nina 9 Sep
2011, as the neutral period was less than 90 days the standard for a neutral
condition was not achieved.
• An Important storm has helped but not corrected the dryness in S
  Brazil & in Argentina (dry since Nov).
• http://www.ssec.wisc.edu/data/comp/latest_cmoll.gif
Next 10 days: Warmish
SOI
The sea surface warming off Argentina has been significant over the past 20 days
Mar 19, 2012 0.82 (SOI tending, as of now, toward neutral )

           http://www.osdpd.noaa.gov/ml/ocean/sst/anomaly.html

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Dr. Elwynn Taylor - Weather Outlook

  • 1. Crop Weather Outlook 2012 What Follows A Strong La Niña? Elwynn Taylor www.twitter.com/elwynntaylor 1/12/2012 US Corn 147.2 BPA (9.24K/ha) soy 41.5BPA (2.79K/ha)
  • 3.
  • 4. Madden-Julian • Contributing to the weather today • wattsupwiththat.com/2010/12/22/the-madden-julian-oscillation/
  • 5. Daily T Deviation from Average Dec 2010 to Aug 2011, Dec 2011 to now 17 Mar • It was not hot all the time • It was La Niña • La Niña T is more extreme • Last year (2011) we did not have+30
  • 6. • Central Iowa corn yield trend (+2.05Bu/yr) exceeds the National (+1.87Bu/yr), but lags the state (+2.10 Bu/yr).
  • 7. WC IA • West Central Iowa trend = 2.35Bu/yr.
  • 8. 200 180 160 140 -- 18 yrs -- -- 16 yrs -- 120 100 80 60 40 20 0 1940 1950 1960 1970 1980 1990 2000 2010 2020
  • 9. 7.00 Iowa Corn Prices vs. Costs 6.50 6.00 5.50 5.00 $ per bushel 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 2 5 8 1 4 7 0 3 6 9 2 5 8 1 7 7 7 8 8 8 9 9 9 9 0 0 0 1 19 19 19 19 19 19 19 19 19 19 20 20 20 20 Season-average Price Cost per Bushel Chad E Heart Extension and Outreach/Department of Economics
  • 10. stable period 2 stable period 3 stable period 4
  • 11.
  • 12. Reminder: All crop forecasts in this report are based on conditions on August 1 and do not reflect weather effects since that time. The next district corn and soybean production forecasts, based on conditions as of September 1, will be released on September 12. 157.5 172 http://www.nass.usda.gov/Statistics_by_State/Iowa/index.asp#.html
  • 13.
  • 14. Record year 2011 • Edging records of mid-teens &50s for old stations
  • 16. • Sheldon: Hot July & normal rain to mid-July • http://mesonet.agron.iastate.edu
  • 17. Normal is 10.06 inch Normal is 12.06inch Normal is 14.55 inch • Iowa: Precipitation between dates (2012 to date) • http://mesonet.agron.iastate.edu
  • 18.
  • 19. When I was a kid 1947 1983 Iowa State University Extension
  • 20.
  • 21. COLD WARM Warm Winters Cold Winters
  • 22. Sea Surface Anomaly 2012 • http://www.osdpd.noaa.gov/ml/ocean/sst/anomaly.html
  • 23. • Past 3 La Niña peaked below 15 • Past 3 dropped to negative values • World weather stayed La Niña this time
  • 25.
  • 27.
  • 28. Roots could be very important
  • 29. I Remember Algona 2002 • Our creek is dry for the 1st time in 100+ years ! • Heat stress was normal after silking, Gdd got bhind, rain was ample in Aug
  • 30. La Niña • La Niña began June 2010 • La Niña peaked Nov 1, 2010 • 2nd strongest since 1950 by time & strength. • Weakened (but did not establish neutral condition) 14 June - 9 Sep 2011 • Strengthened to Moderate La Niña 1 Oct 2011 • Ended (likely) 22 Apr 2012…. Then ?
  • 31. 11-month outlook based on Risk Wheel Decision Tool persistent climate anomalies 70% risk of below trend 53% risk of above 70% risk of above • Chance of U.S. Corn yield <90% of trend yield (Red), 90-100% (Blue), 100-110% (yellow), >110% (Green) for (left to right) La Niña, neutral, El Niño summers. • Like analysis was done for ENSO+PDO+NAO combinations. • Corn buyers/sellers can manage the risk of crop yield exceeding or falling below government determined IS U demand levels.
  • 32. TWW Corn-Soy Outlook • TWW (Taylor, Wisner, Wolter) • Taylor likely crop yield per acre • Wisner likely Dec price at harvest time • Wolter likely El Niño/La Niña summer condition
  • 33. La Niña Outlook 9 May 2012 • 30% Chance La Niña persists into Summer • 20% Chance El Niño begins immediately • 50% Chance of Neutral ? ? • Minimal chance of Neutral SOI • 30% Chance of La Niña with US Yield < 148 BPA $6.60 • 20% Chance of El Niño with US Yield > 168 BPA $5.00 • 50% Chance of neutral with US Trend+ 164 BPA $5.15 • $ from Wisner 2/9/2012 • http://www.extension.iastate.edu/agdm/crops/outlook/cornbalancesheet.pdf Soy 41bpa $11.95, 43.5bpa $10.60, 45.5bpa $10.35 Based on the evolution of recent atmosphere- ocean conditions, I am dropping the odds from 50/50 to less than 30% for continued La Niña conditions into the upcoming summer. In fact, there is a distinct possibility that we could see a switch to El Niño by mid-2012. … (Klaus.Wolter@noaa.gov), (303) 497-6340 Today DEC corn $5.18 Nov Soy $13.29
  • 34. Preliminary 2012 Corn Risk 8 Mar 2012 130 180 22% 145 148 $6.60 177 29% 168 $5.00 161 164.2 $5.15 DEC12 518 ½ 10:30am 5/9/12 • ENSO odds: Wolter, Contract $: Wisner, Yield odds: Taylor • Wolter: www.esrl.noaa.gov/psd/enso/mei/ • Taylor: twitter.com/elwynntaylor • Wisner: www.extension.iastate.edu/agdm/crops/outlook/cornbalancesheet.pdf
  • 35. Recovery of La Nina (termed a recovery as the historically mandatory 90-day period of neutral [blue zone] was not achieved). This is the 90-day moving average plot that serves as the forecast for the behavior of the “official” 152-day centered moving average. The 152-day entered neutral on 13 June 2011 & recovered to La Nina 9 Sep 2011, as the neutral period was less than 90 days the standard for a neutral condition was not achieved.
  • 36. • An Important storm has helped but not corrected the dryness in S Brazil & in Argentina (dry since Nov).
  • 38. Next 10 days: Warmish
  • 39.
  • 40. SOI The sea surface warming off Argentina has been significant over the past 20 days Mar 19, 2012 0.82 (SOI tending, as of now, toward neutral ) http://www.osdpd.noaa.gov/ml/ocean/sst/anomaly.html

Editor's Notes

  1. The 16 year benign interval was met in 2011, will a 25 year volatile phase be demonstrated as it has after the previous 3 benign intervals reached 16 years? Will 2025 be the most stressful year of the century as was 1847, 1936 (there is some indication of an 89 year cycle here, perhaps related to solar activity)?
  2. Dashed line represents the “realized potential Iowa corn yield” since 1932 (when weather is “ideal” for the crop it achieves the dashed line, all other years the yield is reduced below the potential line directly or indirectly by adverse weather. The economists are quick to tell us that the “average $ return for corn is $0” so we see how important volatility is to YOU. This is why we are no better off at 150bpa than we were at 50bpa.
  3. In many cases barely edging the mid 50s and mid-teens (the other strong La Nina years)http://www1.ncdc.noaa.gov/pub/data/cmb/images/us/2011/dec/selected-yearly-records-prelim-2011.pdf
  4. In the mid-1950s the “strongest” La Niña (at least since 1950) was associated a run of several years that exhibited water stress for crops. Although people were well aware of El Niño there was no concept that the El Niño (or its opposite the La Niña) had any significant impact on weather beyond the tropical Pacific. Two events in the 1970s were of like strength and the 2011 La Niña came after an interval of mearly 40 years.
  5. Because both the risk of drought and the risk of near record high yields are both greater than normal the chance for near trend is reduced. It would be reduced to about 15% for the sum of the yellow (trend+) and the blue (trend-) regions if the soil moisture was normal across the corn belt (rather than wet east and dry west), and if there had not been a drought in SC in 2011. Rough computation (quick and dirty) for a 60+% chance of El Nino gives a 29% chance of record yield (green), and a 30% chance La Nina gives a 22% chance of drought where as a 100% chance of La Nina would be a 30+% of drought. Combining these odds with the historical impact on corn yield and yield-price estimates by Wisner, I find the values in the wheel above.
  6. http://water.weather.gov/precip/
  7. http://www.cpc.ncep.noaa.gov/products/global_monitoring/precipitation/sesa_90prec.shtml
  8. http://www.longpaddock.qld.gov.au/seasonalclimateoutlook/southernoscillationindex/30daysoivalues/http://www.osdpd.noaa.gov/ml/ocean/sst/anomaly.html