Kim Chipman and Megan Durisin
Corn costs in Chicago sank to a seven-week low as damaged grain elevators and energy outages within the U.S.’s busiest agricultural port raised issues about grain provides with nowhere to go.
Hurricane Ida left greater than 1 million properties and companies with out electrical energy in southern Louisiana and in addition shuttered export terminals in New Orleans. Meals provide chains have been already below extreme stress amid the pandemic, with shortages of the whole lot from packaging to truck drivers.
The U.S. is the world’s largest corn provider and about two-thirds of its grain and soy exports exit by ports surrounding the southern metropolis. If disruptions linger, it may trigger a provide glut simply as growers within the Midwest Corn Belt begin harvesting crops.
“Boats, barges, fleets are a large number and can take a while to get any move again working,” Advance Buying and selling Inc.’s Drew Moore mentioned in a Farm Progress post-Tuesday.
The most important U.S. farm cooperative, CHS Inc., mentioned it can divert vessels from a shuttered Louisiana terminal by September, and that energy is probably not restored for so long as 4 weeks.
December corn futures in Chicago dropped as a lot as 3.2 % to $5.2525 a bushel, the bottom since mid-July. November soybeans additionally fell.
Weekly crop rankings from the U.S. authorities on Monday confirmed that soy and corn circumstances held regular from the prior week.
Each commodities are on observe to finish August with a fourth straight month of losses amid an unsure demand outlook and an ease in weather-driven provide issues. That’s the longest such streak in a 12 months for corn and since 2014 for soy.
Wheat futures in Chicago fluctuated. Soybean oil fell for a second day, pulling again as a lot as 3.4 %.
Elsewhere, Canada, the world’s largest canola grower, expects to reap its smallest crop of the oilseed in 9 years after warmth and drought slashed yields. Its wheat output may attain a 14-year low.
Canola futures within the U.S. fell a fourth consecutive day, dropping as a lot as 1.3 %.
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