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Home Uncategorized

July 2, 2021 Weather Impacts On Economic Activity – Drought Rotation Impacts

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9월 6, 2021
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Written by Sig Silber

When the weather pattern changes, the pattern of related economic impacts also changes. Because this is being written immediately after the end-of-month forecast update the amount of impact assessment is limited here. But we have all the normal features of this article. We took a good look at the Crop Progress Report and some other metrics – it looks a bit better but the rotation of the drought into the Northern Tier will have impacts even if we are not able to really assess them right now. We cover all our regular topics including the intermediate-term weather forecast. Because the topic of alfalfa came up today unrelated to this article, I included a Utah State University YouTube on Alfalfa price forecasting. The approach* can be applied to other agricultural commodities.

* I would not have constructed the price forecasting model the way they have at Utah State University. My price forecasts have supply and stocks/inventories in the denominator. But my experience is with predicting the prices of metals not agricultural products. What I like about their model is the tie-in with other agricultural commodities.


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Executive Briefings

This caught me by surprise. We did not have the time to process this 72 page report this week. We will next week hopefully. For those who can not wait, You can access it here.

But I thought I would present one of the 72 slides that I found very interesting.

Obviously the sector is placing some big bets on the export market for soybeans, winter wheat, corn and Sorghum. We will see how that works out.

Regional Conditions

Regional Reports.

I have a lot of them. But there are too many of them to include them in this article.

I am trying not to write a book each week and I doubt that many want to read a book each week.

Reservoir Conditions

We might as well show the situation for the California Reservoirs here.

A number of reservoirs are in less than good shape and the recharge projections are not good. A third full is not good. Here is updated information for a larger number of reservoirs.

Here is what the SNOTEL data is telling us about Spring runoff. I am just showing the basin view.

Updates are available here. This is another route to obtain updated maps. Red and orange are not good. That is the point. There is a lot of red shown. Black and Blue is good and we see some of that. It gets to a point where this type of reporting becomes less useful in many areas since when the snow is mostly melted, the expected SWE is low so it does not take much to have a large deviation from normal.
We will still show this graphic for a few more weeks I guess. It is now fairly insignificant in terms of runoff.

And it is always useful to look at the last seven days.

You can see where the green and blue are. There is a lot of blue showing. Part of the rotation.

I think we have all gotten sick at looking at the water year to date which by now does not change unless there was a Noah’s Ark event. So I am not showing it.

This is the old fashioned way to determine how thirsty the atmosphere is. Really high numbers could be spurious.

Let’s look at the current drought situation.

https://droughtmonitor.unl.edu/data/png/20210629/20210629_conus_trd.png

Some slight worsening is shown.

https://droughtmonitor.unl.edu/data/chng/png/20210629/20210629_conus_chng_1W.png

I do not like the new format but you can see perhaps more yellow than green indicating that on balance there was degradation. Notice a lot of it is along the northern tier. People laughed when I said look for rotation.
More information can be found here.

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

The new format of showing county boundaries which I hate now applies to all time periods. They may have been able to reduce the brightness of the county boundaries so that the change in drought is easier to see than it was last week. So perhaps I will get to like the new graphics.
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 year. It also shows that some places have less drought than a year ago or even six months or even three months ago. It is good to look at data rather than depending on the Media to tell you what is going on.

Drought Discussion (The Regional links are live and will take you to the drought map for that Region)

This Week’s Drought Summary

This week’s U.S. Drought Monitor saw changes to over 30 states this week. Record-breaking heat in the Northwest, Great Basin, and Northeast led to expansions of drought conditions. Meanwhile, multiple rounds of heavy rain across the Central U.S. led to large-scale improvements, and intense rainfall along the Gulf Coast led to the reduction or removal of lingering pockets of abnormal dryness.

Northeast

Warm, dry weather across New England led to the expansion of moderate (D1) and severe (D2) drought where year-to-date precipitation is down more than 6 inches below normal. Multiple high temperature records were broken over the last couple of days and values have consistently ranked in the top 10 warmest over the last 90 days. The lack of rainfall, combined with the excess heat, has dried soils and lowered streamflows. Water conservation measures are in effect in parts of Maine, New Hampshire, and Vermont.

Southeast

Intense rainfall this past week left much of the region virtually drought-free. In areas that missed out on the heaviest rainfall, such as Virginia and North Carolina, pockets of moderate drought (D1) remain and areas of abnormal dryness (D0) expanded. Rainfall deficits of 2 to 8 inches in areas of those two states still exist over the past 90 days. State drought monitoring teams commented that ag reports continue to note moderately dry fields, which is apparent on satellite-based indicators of vegetation health, and that lake levels remain low.

South

A band of substantial rain (6 to 10-plus inches) fell from West Texas to northeast Oklahoma, leading to large areas of one-category improvements as well as some smaller areas of two-category improvements as short-term rainfall deficits, soil moisture, and streamflow improved. Drought and abnormal dryness remain in areas where indicators still show dryness at longer timescales. A re-evaluation next week will help determine the full effect of the rainfall.

Midwest

A stalled frontal boundary brought widespread, heavy rain (3 to 10-plus inches) and flash flooding to parts of the lower Midwest. The excess moisture led to a general one-category improvement to drought conditions as short-term rainfall deficits decreased and streamflow and soil moisture improved. In the Upper Midwest, which mostly missed out on the heaviest rain, drought remains a concern. In Minnesota, the U.S. Department of Agriculture (USDA) reports as of June 27, that 75% of the state’s topsoil moisture is short to very short, meaning that it’s significantly less than what is required for normal plant development. While crops can still improve with additional rain, the damage has already been done to pastures. Abnormal dryness (D0) expanded in Minnesota and moderate drought (D1) expanded in northern Illinois.

High Plains

The same stalled frontal boundary that affected the Lower Midwest this week also brought widespread rain to the region with the largest totals (2 to 8-plus inches) falling over eastern Kansas and eastern Nebraska. One-category improvements were made in southeast Kansas, eastern and north central Nebraska, and parts of North Dakota as short-term rainfall deficits decreased and streamflow and soil moisture improved. In Colorado, improvements were made to small areas of exceptional (D4) and extreme (D3) drought as recent rainfall has helped chip away at shorter term deficits. Hydrological and ecological drought, which generally occur on longer time scales, remain a concern. In areas which missed out on the heaviest rain, drought continues to impact the region with cattle producers feeling the brunt of the impacts. The USDA reports that 90% of South Dakota and 66% of North Dakota’s topsoil moisture is short to very short, leading to forage shortages. Producers from Wyoming eastward across the Dakotas are having to make tough decisions as to what to do with cattle, with many selling entire herds. In response to the worsening conditions, extreme drought (D3) expanded in South Dakota and parts of Wyoming where supported by increasing rainfall deficits, declining soil moisture and streamflow, and vegetation stress.

West

Unprecedented heat in the Northwest, combined with another week of dry weather, led to worsening drought conditions across the region. This week, high temperatures ranged from 20 to 30 degrees above normal, breaking multiple records. The excess heat greatly increased evaporative demand, further drying out soils and vegetation, and worsening conditions. Many areas in the Northwest saw one-category degradations, including expansions of severe (D2) and extreme (D3) drought. Conditions in the Southwest remained unchanged, except for the expansion of D3 in central Arizona. Much of the West is classified as severe drought or worse. Notable impacts include increased wildlife encounters in California, Nevada, and Utah, as drought has driven snakes and/or bears in search of food and water into urban areas in those states. In Montana, fishing restrictions have been put in place on many rivers due to low flows and warm waters. Drought-stricken ranchers are selling cattle due to poor forage conditions and a lack of feed. On top of this, grasshoppers have been denuding trees and competing with cattle for food. So far, at least eight national forests in the West now have fire restrictions.

Caribbean

In Puerto Rico, beneficial rains decreased deficits and improved drought conditions across the central and eastern parts of the Island. Meanwhile, rainfall deficits continued to build along the southern coast, leading to increases in abnormal dryness (D0) and moderate drought (D1).

The Cyril E. King airport in St. Thomas had 1.71 inches of rain and a month-to-date total that was 195.1% of normal. CoCoRaHS stations had a weekly rainfall total between 1.0-2.50 inches, with month-to-date totals between 4.0-6.0 inches. Year-to-date rainfall total at the airport was 88.2% of normal. SPI values for all timescales indicate drought free conditions. This week, a one-category drought improvement was made to St. Thomas.

Weekly rainfall totals for St. John were between 1.0-1.40 inches, depending on the CoCoRaHS station. Month-to-date rainfall totals were a little over 4 inches. Year-to-date rainfall total at the Windswept Beach was 70% of normal. SPI values for 6 (-0.89), 9 (-0.69) and 12-month (-0.64) were indicative of abnormally dry to moderate drought conditions. All other timescales were indicative of drought free conditions. Moderate drought continued across St. John.

Severe drought persisted across St. Croix as it received meager rain this week. The Henry Rohlsen airport had 0.48 inch of rain and a month-to-date rainfall total that was 91.9%. Year-to-date rainfall at the airport was 62.3% of normal. The CoCoRaHS weekly rainfall totals were between 0.09-0.17 inch, with a month-to-date between 0.96-1.94 inches. SPI values at the 3 (-0.65), 6 (-1.16), 9 (-1.44), and 12-months (-1.13) were indicative of abnormally dry to severe drought.

Pacific

In Alaska, no changes were made to the map this week.

In Hawaii, lighter than normal winds and lower than normal rainfall occurred over the past weeks. Rainfall totals along the windward slopes are below 50% of the June average and streamflows are declining. As a result, abnormal dryness (D0) expanded on Molokai and moderate drought (D1) expanded on the Big Island. Above normal rainfall on the southeast side of the Big Island led to the reduction of D0.

The weather features across the U.S.-Affiliated Pacific Islands (USAPI) during this USDM week (06/23/21-06/29/21) included a series of surface troughs that moved from east to west across Micronesia, accompanied at times by a couple weak circulations. An ITCZ (Inter-Tropical Convergence Zone) meandered at times across parts of central to eastern Micronesia. Upper-level lows and troughs (Tropical Upper Tropospheric Troughs, or TUTT cells) migrated east to west across northern parts of the region, mostly north of 10 degrees North latitude. Early in the week, Tropical Storm Champi (06W) spread rain across the Marianas as it exited the region, then later in the week surface troughs coupled with upper-level divergence to bring additional rain to the Marianas. South of the equator, a surface trough spread moisture across the Samoan Islands.

Satellite-based estimates of 7-day precipitation (QPE) are available from two products: one using mainly infrared (IR) sensors (NESDIS GOES-R AHI) and the other incorporating microwave sensors (GPM IMERG). These QPE products showed a band of precipitation stretching from Indonesia southeastward to the Samoan Islands and beyond (South Pacific Convergence Zone, or SPCZ) and areas of precipitation over Micronesia. The QPE indicated areas of 2+ inches of rain across American Samoa; southern Portions of Chuuk, Pohnpei, and Kosrae States in the Federated States of Micronesia (FSM) and southern portions of the Marshall Islands (RMI); Palau and western Yap State; and much of the central and northern portions of the Marianas.

Palau IAP had 2.98 inches of rain this week and 9.46 inches for the month-to-date, surpassing the weekly (2 inches) and monthly (8 inches) thresholds to meet most water needs. Drought free conditions continued across Palau.

Across the Marianas, Guam had the least rain this week at 0.63 inches. However, Guam’s month-to-date rainfall total was 4.80 inches, surpassing the monthly threshold of 4 inches to meet most water needs. Meanwhile, Saipan had the most rain with rainfall totals surpassing 2 inches and a month-to-date total that was over 5 inches. Both Guam and Saipan continued in drought free conditions. Rota had its fourth consecutive week with rainfall totals below the weekly threshold of 1 inch at 0.69 inch. Rota’s month-to-date is only 1.98 inches of rain, which is less than the threshold of 4 inches to meet most water needs. For this week, drought free conditions continued for Rota since no notable drought impacts were reported.

For the FSM, Yap, Kosrae, Chuuk Lagoon, Kapingamarangi, Nukuoro, and Pingelap had over 2 inches of rain this week, securing another week of drought free conditions. Meanwhile, Pohnpei, Lukunor, and Woleai had less than 2 inches of rain for the week. Most of these locations had a month-to-date rainfall total that surpassed the threshold of 8 inches or were close to the threshold. For this reason, drought free conditions continued as drought is not a concern at the moment for these locations.

Fananu and Ulithi had no data, so they were set to be missing.

Across the Marshall Islands, Ailinglaplap and Mili had the most rain this week, with rainfall totals over 2 inches. Majuro had a little less than 2 inches of rain this week. However, all three locations continued to be drought free. Kwajalein and Jaluit had the least rain at 0.46 and 0.42 inch, respectively. Jaluit’s month-to-date was over 11 inches, so drought free conditions persisted. Kwajalein’s month-to-date was a little less than 5 inches. However, since there were no notable drought impacts reported, drought free conditions will remain. Wotje continued to be abnormally dry this week as it only had 1.03 inches of rain and a month-to-date rainfall total of 2.49 inches. As of last week, no notable drought impacts were reported and it was stated that vegetation was green.

This was a wet week for American Samoa and drought is not a concern as the three locations had over 3 inches of rain this week.

Looking Ahead

The National Weather Service Weather Prediction Center forecast for the next five days (July 1 -4) shows that the prolonged heat wave is expected to continue across the interior sections of the Northwest and Northern Rockies and move into the Northern High Plains. In the East, a cold front is forecast to bring relief from the hot, muggy weather in the Northeast, Mid-Atlantic, and Southeast. As the front moves through the region, these areas can expect moderate to heavy rainfall and an increased chance of severe weather.

Moving into next week, the Climate Prediction Center six-to-10 day outlook (valid July 6-10) favors above normal temperatures across the West, Northern and Central Plains, Midwest, and Northeast. Below normal temperatures are most likely across the South, Southeast, and Alaska. Below normal precipitation is expected to continue across much of the west and Northern Plains, while above normal precipitation is favored across most of the rest of the Lower 48 and Alaska.

Soil Conditions

The result of the drought is very dry soil conditions in some areas. There is also some very wet areas.

But one sees some wet areas. There is not only the green but a lot of yellow. This is a model created analysis as we have limited measurements. But in reality we do not need a lot of measurements unless the goal is to enrich the companies that sell the measurement equipment. Precipitation is highly variable so expecting to be able to have enough measurement equipment is not very realistic. We now have satellite imagery.
It looks slightly improved.

Surface Soil

Three more states in surplus and four less states short. It is difficult to interpret “surplus” as it could be more water than needed or it could be out and out flooding. “Short” is clear it being insufficient water. So this appears to be an improvement.

Subsurface

 https://econintersect.com/images/2021/05/75859753SubsoilShortMay272021.GIF
One state more in surplus and two states less short. I am calling that an improvement.

Drought Outlook

https://www.cpc.ncep.noaa.gov/products/expert_assessment/month_drought.png

You can see some shifting in the location of the drought but the overall intensity is not much changed.

https://www.cpc.ncep.noaa.gov/products/expert_assessment/season_drought.png

The Seasonal Drought Outlook is actually quite a bit better than the prior forecast last month. Notice that it is one month later so it does not cover the same period of time as one month drops out and a later month enters a three month forecast. Actually this forecast is for 3.5 months.

Looks a bit improved compared to last week. Updates can be found here.

Since we are entering fire season it is time to be showing the wildland fire potential outlook. These will update automatically shortly after the month changes.

https://www.predictiveservices.nifc.gov/outlooks/month1_outlook.png

Red is bad, green is good. The wildfire potential has shifted to the north with the rotation of the drought.

https://www.predictiveservices.nifc.gov/outlooks/month2_outlook.png

Again, notice the shift to the north of the fire potential being above normal. That is certainly partly Monsoon related. But my working hypothesis is the drought is rotating clockwise. We will see this Fall if that is the case.

https://www.predictiveservices.nifc.gov/outlooks/month3_outlook.png

A bit better in September.

https://www.predictiveservices.nifc.gov/outlooks/month4_outlook.png

October looks better but still remains a problem or the West Coast.

Flooding is more this week and it shows up where we have graphics that show how many states have surplus water in their soil and are short water. It is not the best way to get it but we needed the water.

At this time of the year, we are looking for areas that are hot. We are beyond frost damage for the most part. But Minnesota is borderline too cool.

Here is another way of looking at it but this is not a weekly analysis but covering a period of April 1 to June 26. Assuming crops are planted according to where they belong and when they should be planted you can see where for corn it has been cooler than usual and where it has been warmer than usual. I am not totally comfortable with the science here so I do not regularly present this sort of graphic. But if you can pin it down it can be very useful.
The pattern of a warmed than usual northern tier and cooler than usual in part of the southern tier makes this graphic useful.

Crop Progress Reports

CropCrop ProgressCrop Condition
CornPercent Silking too soon to tellBetter last year. Mostly due to the Dakotas.
SoybeansEmerged and Blooming looking very good.Not so great. Mostly due to the Dakotas.
CottonSquaring and setting bolls a bit slow possibly due to LouisianaGood
Winter WheatHarvested slowOK
Spring WheatHeaded very goodVery poor in the Dakotas and Washington State.
SorghumPlanted and Headed OKQuite good
RiceHeaded SlowBetter last year.
OatsHeaded GoodPoor compared to last year in the Dakotas, Texas and Minnesota.
BarleyHeaded very goodVery poor North Dakota and Washington State.
PeanutsPegging a tad slow in the southFine
Sugar BeetsNANA
SunflowersPlanted fineNA
Pasture and RangePoor

Additional Information can be found here. Pretty much it is the same information as shown in the above tables but at the end there is some information on the methodology used.

NASS Reports

Yellow is bad. This week there is one state colored yellow. There is a lot of blue but those farmers would probably prefer some days where it was too wet to do fieldwork.

Agriculture Sustainability Videos

Introduction

Hay Economics

You can read the update here. The price is a lot higher than their original forecast.

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

The southern tier looks cool and wet.

The Week 3-4 Discussion is always interesting so we include it in the article. Similar discussions for the 6 -10 Day and 8 – 14 Day Forecasts are available here.

ENSO-neutral conditions continued across the equatorial Pacific. While the RMM-based MJO index indicates an enhanced signal over the western Indian Ocean, the CPC velocity potential based index is weak and shows evidence of Kelvin wave activity. The incoherent projection observed on the RMM index is likely due to the superposition of various Kelvin waves across the globe. Based on these observations, we do not anticipate ENSO and MJO activity to have substantial impacts on the Week 3-4 pattern. The multiple linear regression (MLR) statistical tool based on contributions from ENSO, MJO, and long term trends almost entirely reflects the long term trends. Therefore, dynamical model consensus plays a greater role in this week’s outlook than the statistical guidance.

Dynamical model 500-hPa anomaly forecasts are characteristically weak as we approach the middle of the summer season. The CFS depicts ridging over the eastern half of the CONUS, while the GEFS, ECMWF, and JMA maintain ridging over the Northwest and northern Plains, which is similar to the forecast Week-2 pattern. The differences in these model height patterns do not appear to result in substantial differences in the surface temperature forecasts, which exhibit fairly remarkable consistency. All of the dynamical models persist the pattern favoring above-normal temperatures for the West and along the Northern Tier, and indicate enhanced chances for above-normal temperatures across New England. It is possible that dry soils in the Northwest may be contributing to a feedback that increases the favorability for hot conditions. Additionally, dynamical model forecasts for Week-3 show enhanced chances for temperatures exceeding the top decile of the 1991-2020 climatology across the interior Northwest and Northern Great Plains, highlighting a risk for excessive heat. In contrast, below-average temperatures are favored across the Central Gulf Coast, with differences in the extent of the enhanced chances for below among the dynamical models. A manual blend of dynamical and statistical model guidance shows enhanced probabilities for below-average temperatures extending from the southern Four Corners states to Florida. Further north, enhanced chances for above-normal temperatures return to New England for Week 3-4 following a period of favored below-normal temperatures during days 6-10. Across Alaska, the outlook slightly favors below-average temperatures across the southern third of the state, with above-average sea surface temperatures aiding a slightly enhanced chance for above-average temperatures along the North Slope region.

The precipitation outlook is also based on dynamical model consensus. Most of the models depict enhanced monsoon precipitation across the Four Corners states and western Texas, while a drier signal persists to the north across the Northwest and northern Plains. Similar to the Week-2 forecast, below-average rainfall is favored for the immediate central Gulf Coast region and the Florida peninsula, but confidence is low due to the potential for tropical activity. The manual blend exhibits a clear signal favoring above-average precipitation extending from the Tennessee Valley northeastward across New England, as well as above-average precipitation for western Alaska. The outlook favors below-average precipitation for southeastern Alaska, including the Panhandle.

Dynamical model guidance from the SubX MME strongly favors above-normal temperatures for Hawaii. The precipitation guidance is more mixed, though slight probabilities for below-average precipitation exist across the northwestern islands.

Energy News

These EIA reports are always late. You can read the full report here. I am showing the summary.

Demand exceeded the supply.

Some sectors up some down.

Exports ups. Good for suppliers, not so good for U.S. consumers.

International

Kind of a mixed bag. But mostly favorable. Updates can be found here.

Science Feature

No Science Feature this week

Environmental News

Nothing to report this week but the Energy News is of course related.

Major Sources of Information Used in this Weekly Report. We will not be using them all each week but the reader is welcome to refer to these resources.

  • 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) or 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 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 or here.

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