Corn and Soy Tumble With Hurricane Ida Halting Gulf Shipments
(Bloomberg) -- Grain and oilseed futures dropped in Chicago as Hurricane Ida disrupted U.S. shipments.
Stalled barge traffic on the Mississippi River and loss of power in New Orleans is putting exports out of the Gulf of Mexico on hold. There’s cautious optimism that traffic will be able to pick up later in the week, analysts and traders said.
That is “important for keeping soybeans flowing to China to meet its October crush needs,” Arlan Suderman, chief commodities economist at StoneX, said in a note to clients.
Hurricane Ida barreled into the Louisiana coast on Sunday, imperiling U.S. energy supplies as well as key transport routes for soybeans and corn.
Major grain traders have shuttered export terminals and at least one soybean crushing plant on the weekend. The lower Mississippi river is by far the largest export region for soybeans and corn, accounting for more than half of U.S. shipments.
On a positive note, the storm disruptions are hitting as corn and soybean shipping are each near “seasonal low points for the year,” Rich Nelson, chief strategist at Allendale Inc., said in an email.
Corn declined 2.7% to $5.39 a bushel as of 11:55 a.m. in Chicago. Soybean oil futures fell almost 2% and soybeans dropped 1.6% to $13.0125 a bushel. Wheat also tumbled.
- Hurricane Ida Takes Direct Aim at 59% of Key U.S. Ag Exports
- Port of New Orleans Closed With Damage to Dock: Moran Shipping
- U.S. Inspected 563k Tons of Corn for Export, 377k of Soybean
- LATAM CROP WEATHER: Scorching Heat Set for Arabica-Coffee Areas
- CROP TENDER: Egypt Buys 180k Tons of Romanian, Ukraine Wheat
- Ukraine Delays Setting Wheat Export Target Until Sept. 27
- Brazil’s 2021-22 Ethanol Average Price to Jump 8.6%: Trader
- Ethanol Lobby Urges EPA to Expand E15 to Curb Ida ‘Price Spikes’
©2021 Bloomberg L.P.