By Tom Polansek
CHICAGO, Aug 31 (Reuters) – U.S. grain and soybean futures touched their lowest costs in weeks on Tuesday as energy outages and harm to export services from Hurricane Ida stoked considerations in regards to the potential for prolonged disruptions to shipments, analysts stated.
Uncertainty over the size of facility closures on the Gulf Coast, which accounts for about 60% of U.S. exports, rattled markets at a time when world grain provides are tight and demand from China is robust.
Grain dealer Archer-Daniels-Midland ADM.N just isn’t discovering vital structural harm to elevators and port operations it closed in New Orleans, however energy stays out within the space, in line with an announcement.
Elsewhere in Louisiana, Ida broken a Cargill Inc CARG.UL grain export elevator whereas CHS Inc CHSCP.O warned a facility might lack energy for weeks.
“There’s loads of uncertainty in regards to the Gulf,” stated Jim Gerlach, president of brokerage A/C Buying and selling. “No one is aware of if it is one thing that is going to final for days, weeks or months.”
Most-active soybean futures Sv1 fell 10-3/four cents to $12.92-1/2 per bushel on the Chicago Board of Commerce and touched their lowest worth since Aug. 20.
Corn Cv1 slid 8-1/2 cents to $5.34-1/four per bushel and set its lowest worth since July 12. Wheat Wv1 slipped 1-1/four cents to $7.22-1/four per bushel and hit its lowest worth since Aug. 2.
Crop shipments are being rerouted from the Gulf of Mexico the place potential following the hurricane, stated Arlan Suderman, chief commodities economist for dealer StoneX. Nonetheless, there may be “no stock to talk of at different services to ship forward of this yr’s harvest,” he stated.
Suderman nonetheless predicted no “considerable misplaced export demand because of the present shutdown.”
U.S. corn and soybean provides are set to extend as farmers start harvests within the coming weeks.
“Higher climate will assist end the soybean crop,” stated Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage.
In different motion, merchants adjusted positions on the final day of the month, brokers stated.
Hurricane Ida damages Louisiana grain terminal, disrupts exports
(Reporting by Tom Polansek in Chicago, Naveen Thukral in Singapore and Sybille de La Hamaide in Paris; Enhancing by Sherry Jacob-Phillips, Bernadette Baum and Jonathan Oatis)
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