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January 16, 2021 Weather Impacts On Economic Activity – NASS Executive Briefing

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9월 6, 2021
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Written by Sig Silber

There is so much to cover this week that I thought of publishing Part I and Part II but decided that there is too much going on to ask people to read two weather economics articles. Plus I am not ready to discuss the energy aspect. USDA-NASS published their Executive Briefing and it is very important as for many crops this will be the last report on production for this growing season (but there will be subsequent reports on remaining stocks and prices). It is a positive report but not as positive as it seemed two months ago.


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This is the week that NOAA updates their ENSO forecast which will be used next week to guide the update of their four-season outlook and we have provided that report. And of course, this article contains the intermediate-term weather forecast. It looks like we will have a week or so of weather more characteristic of winter. It may be short-lived but we will know more about that when NOAA issues their Early Outlook for February next Thursday. We will publish that on Thursday night or Friday night. If you are interested in crops, you will want to read the NASS Executive Briefing which we have included in full in this article.

From Friday’s 6 – 10 Day Forecast.

Increased chances of below normal temperatures are forecast for much of the western half of the CONUS associated with the troughing forecast over the region. Below normal temperature probabilities are also elevated across parts of the Northern Plains and Upper Mississippi Valley, where although relatively warmer temperatures are forecast early in the period, a trend toward cooler temperatures is forecast by day-10. Increased probabilities for below normal temperatures are also forecast across parts of the Northeast, supported by teleconnection analysis with the mid-level height anomaly center over the western Atlantic. Above normal temperature probabilities are elevated across parts of the south-central and southeastern CONUS underneath above normal heights and consistent with the ECMWF and GEFS reforecast tools. Enhanced probabilities of above normal temperatures are forecast over much of Mainland Alaska and the Aleutians due to predicted southerly surface flow and underneath above normal 500-hPa heights. Surface high pressure forecast across western Canada favors enhanced easterly flow and elevated chances for below normal temperatures over the Alaska Panhandle.

Several shortwave disturbances are forecast to propagate through the mean trough axis across the west and eject into the Plains. While none of these disturbances look to become particularly strong, they will bring elevated chances of precipitation, resulting in the increased probabilities for above normal precipitation over much of the CONUS. The highest probabilities (>60%) are over parts of the Southwest, supported by the ECMWF and GEFS reforecast tools as well as teleconnection analysis with the negative height anomaly center over the western CONUS. Below normal precipitation is favored for parts of the Northeast and the Florida Peninsula, far enough displaced from the mean storm track and consistent with the consolidation forecast tool. Weak troughing is predicted over the western Bering Sea which is likely to result in southerly to southwesterly onshore flow throughout much of Mainland Alaska and parts of the Aleutians, where enhanced probabilities of above normal precipitation are forecast. Below normal precipitation is favored for parts of southeastern Mainland Alaska and the Panhandle underneath above normal mid-level heights.

Now let us look at the NOAA ENSO Update

More information can be found here.

NOAA depends a lot on the IRI-CPC analysis.

600

It is useful to see how the view has changed if at all which is shown below

This compares the new forecast to the one made last month. The first forecast in each month is based on a survey of meteorologists and the second is based on climate models so they are not totally comparable. But there is not much change through MAM but AMJ is more evenly balanced between La Nina and ENSO Neutral than the forecast in Mid-December and the chances of an El Nino getting started soon have been reduced.

And here is one more graphic that I created from a different NOAA source. It is a cross-section of the Pacific Equator from the surface down to 450 meters. What is shown in this graphic is the temperature anomalies not the absolute temperature. ENSO is measured at the surface since only the surface interacts with the atmosphere. But the future of the surface often is impacted by the water below the surface. At some point, NOAA will update the normal values for this area as they do that every five years but I do not think they have done so yet.

We now no longer see any -4C anomalies and we see small pods of warm water at the surface mostly east of where ENSO is measured at least in the U.S. We still see the cool water westerly displaced. It is still clearly La Nina but the warm water anomaly to the west may soon really undercut the warm anomaly. Warm water rises but a warm anomaly may not. It may be warmer than usual but still colder than the water above it. So it is not easy to figure out how the transition from one ENSO phase to another will play out and it is difficult to forecast.

Now let us look at the NASS Executive Briefing.

As you can see this briefing covers a lot of ground.

Provides information on the data sources.

Shows the survey sample size by state.

The list of crops is shown in the legend. So this is a summary. There were more acres planted and more harvested than the prior year. So it is clearly an improvement but the prior year was subject to many negative weather issues.

You can see the recovery from last year but you can also see a downward trend in acres planted and a steeper trend in acres harvested. That could be important or simply that more crops are consumed in place by animals that will go to market. Generally speaking, yields have improved. So it takes fewer acres but not necessarily less water. That is a topic for future discussion.

Blue is good, red is not. One sees some correlation with the drought here.

Now we will look at individual crops with more emphasis on corn, soybeans, cotton, and wheat.

The estimate is down from the prior estimate but still substantially higher than last year.

You can see the recovery in yield from last year but it is below the trend. That is important to watch. Corn is a C4 crop. More information can be found here.

This shows yield by state and change from the previous year. Blue is good, red is not good.

Total production is on a slight decline.

This shows the NASS forecast versus industry forecasts. The actual might turn out a little better.

Soybeans are way above last year. But they are down slightly from the prior estimate.

It is above a rising trend. So from that perspective, it was a good year for soybeans.

Almost all states did better than last year. Again blue is good, red is not good.

Soybean production is much improved over last year but off trend.

Here the NASS forecast is in the middle of the pack

Cotton is way down from last year and the prior forecast.

The cotton yield is below the trend and about the same as last year. We think tropical storms were the problem this year.

The dry areas did better than the wet areas. I am assuming the dry areas were irrigated and the wet areas had weather damage from too much precipitation at the wrong time.

It was not the worst year in recent history but not a good year

Now we switch to more summary information.

Some thought there was a demand for dry edible beans.

Hay was off a bit. Where I live it is scarce or at least quite expensive. Lentils are plentiful.

Lots of peanuts but not many sports venues where you can sit and enjoy them.

Some up and some down.

Sunflowers were really down last year so that is no surprise. The Pandemic may have increased the demand for sugar.

Winter wheat planted is up.

Remember Winter Wheat is on a different schedule than the other crops reported on here. So we know what was planted but not what was harvested. The planting was up from last year and the declining trend.

It looks like the mild winter might have favored certain states. Again blue is good and red is bad. But a percentage change with respect to a state that is a small producer may not impact the total very much.

This is the first NASS forecast and it is at the high end of the range of the various industry forecasts. Are they too optimistic?.

Now we shift from production to stocks (inventory).

Wheat stocks are down. Notice the division between on-farm and off-farm stocks.

This shows the trend by the start of each quarter within the year. It makes sense that farmers will either sell based on the market or deliver based on contracts or futures. I am not sure how that works. When I was in the copper industry there was almost no delivery against futures but those contracts were closed out and were only used to protect the sales price. I would assume that the wheat is sold to the next stage of value-added or the farms may be owned by the next stage of value-added. The farmer may hold their production off the market in hopes of higher prices. That is likely to happen when there is a bumper crop as in 2017-2018.

Here is the first NASS forecast and they are pretty much in the middle of the pack.

Not a lot of change from last year.

Similar to last year.

This is the forecast for corn stocks. NASS is low compared to industry forecasts so perhaps the stocks will be higher. Unless it is caused by higher production, higher stocks is not a good thing in general.

Soybean stocks are down. I believe that may have to do with demand from China but I am not sure of what the delivery dates were.

You can see that here. If you look at prior years you can I think see that there is no tendency to carry over stocks to the following year.

The NASS estimate of current stocks is in the middle of the range. The size of the range is important. You can read that off the Y-Axis. It ranges from just above 3.2 billion bushels to just under 2.7 billion bushels. That is over 40 billion bushels. That is a lot of soybeans.

Rice stocks are up.

It was a good year for rice but now they have to find buyers for it.

Hay stocks seem to be about average.

A lot of variation in where there are stocks and the change from last year. In some cases, it is easy to relate this to the drought.

It would help if we also had price trends. We will have that information later this month.

Oranges are the largest part of this group and this is a production graphic here in the stocks section.

More reports coming. Most likely we will cover the ag prices report at a minimum.

Here is the link to register

That is where you go for information.

Severe Weather

There is some snow. But looking ahead to Spring runoff it does not look good

Blue and green are good and orange and red are not.

And there have also been high temperatures

This shows how the storms have tended to follow the jet stream which has stayed mostly to the north.

600

But here is a storm that impacted Texas and provided much-needed precipitation.

This is a different part of the U.S.

Here is more information on atmospheric rivers.

Let’s look at the current drought situation.

https://droughtmonitor.unl.edu/data/png/20210112/20210112_conus_trd.png

And the week to week change

https://droughtmonitor.unl.edu/data/chng/png/20210112/20210112_conus_chng_PW.png

There actually was some slight reduction in the drought this past week.

Here we look at four-time periods: one week, one month, six months, and a full year.

You kind of have to look at this 4-Plex in reverse. The lower right map shows the situation today as compared to a year ago. This set of graphics shows that this drought has materialized over the past six months.

The result is very dry soil conditions

Fire risk is high in some areas and there are and will be environmental negative impacts.

January Drought Outlook

New January 2021 Drought Outlook

The forecast is for dry. But not all La Nina’s are dry. There is a lot of variation.

More fires this week.

Recent weather has made the east coast quite wet and now also the area impacted by Gulf of Mexico storms and recently the Northwest.

Intermediate-Term Weather Forecast

Showing from left to right, Days 1- 5, 6 – 10, 8 – 14, and Weeks 3 – 4 You can click on these maps to have them enlarge. Also, the discussions that go with these forecast maps can be found here (first two weeks) and here (Weeks 3 and 4).

First Temperature

Day 3 Max Temperature

6 - 10 Day Forecast Temperature

8 - 14 Day Temperature

3 - 4 Week Temperature

And then Precipitation

Five day QPF

6 - 10 Day Forecast Precipitation

8 - 14 Day Precipitation

3 - 4 Week Precipitation

A short burst of winter perhaps.

The Week 3-4 Discussion is always interesting.

Week 3-4 Forecast Discussion Valid Sat Jan 30 2021-Fri Feb 12 2021

This week’s forecast is based on a blend of dynamical guidance and expected La Nina conditions. The Madden Julian Oscillation (MJO) is weak and most guidance predicts it to remain weak throughout the next couple of weeks. La Nina, however, remains strong. Persistent negative OLR anomalies, corresponding to anomalous convection, have been present over the Maritime Continent for months now. The anomalous convection has resulted in positive height anomalies to its northwest, which forms the basis of a Rossby wave that extends from southeastern Asia northeast over North America. This pattern resembles a typical La Nina, though isn’t a direct match to a climatological La Nina composite, particularly since the anomalous trough and ridge couplet over central Pacific are more zonally oriented than in the composites. Still, dynamical model forecasts feature strong height anomalies over the Pacific and northwestern North America.

The CFS, ECMWF, JMA, and GEFSv12 operational models all forecast a wide swath of anomalous ridging centered over the Central Pacific, a relatively small anomalous trough over the northwestern U.S., and anomalous ridging over the southern U.S. and Northeast for both Weeks 3 and 4. The largest discrepancy lies in the anomalous ridge over the Northeast during Week-3. The CFS forecasts anomalous ridging along the East Coast, whereas the GEFSv12, ECMWF, and JMA both predict near-normal to negative height anomalies throughout Northeast. All three models are in agreement with anomalous ridging over the Northeast during Week-4.

Today’s Week 3-4 forecast features below normal temperatures favored throughout most of Alaska and the Pacific Northwest and aligns well with the aforementioned predicted troughing. Increased chances for above normal temperatures are forecast throughout the Southwest and Southcentral U.S., which resembles a climatological La Nina pattern and matches the forecast anomalous ridging. The forecast throughout the Eastern U.S. is especially uncertain with significant model disagreement regarding the sign of temperature anomalies, leading to an equal chances forecast.

Negative precipitation anomalies are forecast over all of Alaska, with the highest probabilities found along the South Coast and Aleutians where nearly every piece of model guidance predicts anomalous dryness. Negative precipitation anomalies also extend from southern California throughout the southern third of the country to Florida. Anomalous precipitation is expected throughout the northern tier of the CONUS, with the highest probabilities over the Pacific Northwest and Great Lakes regions. There is some evidence in the SubX models that there will be an active storm track throughout the Eastern CONUS during Weeks 3-4, but there is not much support for this in our operational model suite. This was also the region that exhibited the most variance among 500-hPa height anomaly forecasts.

Sea surface temperature anomalies are above normal surrounding Hawaii, resulting in elevated probabilities of above-normal temperatures during the Week 3-4 period. Dynamical models also agree on a forecast of slightly above-median precipitation values.

I am no expert but it sounds like a westerly displaced Walker Circulation as in a La Nina Modoki.

International

This week we do have a map.

Generally favorable for agriculture except for southern South America and Turkey.

In the box are shown the major resources we use. We will not be using them all each week but the reader is welcome to refer to these resources.

Major Sources of Information Used in this Weekly Report

  • The U.S. Drought Monitor (the full report can be accessed here)
  • Selected graphics from our other Weather and Climate Reports are repeated in this report. These reports can be accessed by referencing the Directory here
  • Selections from the Tuesday USD Weather and Crop Bulletin (the full report can be accessed here). Selections from the USDA Office of the Chief Economist can be found here. NASS Executive Briefings can be found here. A wide range of NASS Reports can be found here. USDA Foreign Agriculture Service Briefs can be found here and here. Other useful sources of information that I regularly utilize are the National Integrated Drought Information System (NIDIS) which can be accessed here and the USDA NRCS Weekly and Weather Climate Update which can be accessed here. A glossary of terms can be found here.

.

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