Markets are lower to start the day with corn and soybeans down 12 and 17 respectively.
Several things are pressing the markets the last few days.
- The longs are liquidating their positions.
- Hurricane Ida is putting pressure on the exports after damaging terminals in LA.
- New crop harvest pressure.
- Covid -Delta variant
All of these are giving the bears reason to move the markets lower and are doing it at a rampant pace. Things may stabilize in the future, but trade appears to be headed lower until one or all of these are resolved.
Three days after the Category 4 hurricane came ashore, more than a million homes and businesses remained without electricity on Wednesday and power utility Entergy Corp warned it may take weeks to restore service in some areas where transmission towers lay in crumpled heaps of metal. The electrical power company is reporting that 216 stations and more the 2,000 miles of transmission lines are without service. Electrical crews from nearby states are making way for New Orleans to help put up towers and lines in order to restore power. The wind damage was estimated to be worse than Katrina, knocking out more trees and towers. (Reuters)
The Cargill elevator damaged by Hurricane Ida in Reserve, Louisiana is responsible for nearly 9% of America’s bulk seaborne exports of corn, soybeans and wheat so far in 2021, according to Bloomberg’s analysis of U.S. Department of Agriculture data.
USDA shipments show a total of 6.45 million tons of agricultural product loaded at the Cargill terminal, with 5.3 million tons of corn topping the list. The primary recipient of crops through the elevator this year has been China, receiving 47% of its output including 2.5 million tons of corn and 485,000 tons of soybeans.
The 7 day forecast looks much the same as yesterday with rain setting up in the West Central US. Amounts will be up to 3 inches in the heaviest areas. This rain event shows up on Friday and Saturday of this week, after which a ridge sets up from Texas North. Its not a big ridge, and temps will warm up in the Western US and leave the East at below normal temps.
Have a safe Day!