Saturday, September 25

Corn, soybeans firm as damage from Hurricane Ida raises supply worries


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SINGAPORE — Chicago corn futures rose on Tuesday after the market recovered from a one-week low touched in the previous session, as Hurricane Ida damaged US grain export facilities, stoking worries over supply in the world’s largest exporter.

Soybeans and wheat firmed.

“Hurricane Ida has done considerable damage in the area around New Orleans and Baton Rouge,” Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia said.

“What specific damage has been to US crop export facilities is unclear for now. As is the period of shipping delays.”

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Ida damaged a grain export elevator owned by global grain trader Cargill Inc, and rival shipper CHS Inc warned on Monday its grain facility may lack power for weeks after the storm tore though the busiest US grains port.

Cargill said its Reserve, Louisiana, terminal, one of two the company operates along the Mississippi River near the Gulf of Mexico, had “sustained significant damage” when the storm roared ashore.

The most-active corn contract on the Chicago Board Of Trade (CBOT) was up 0.4% at $5.45 a bushel, as of 0142 GMT, having closed 2% lower in the previous session when prices hit an Aug. 24 low of $5.37 a bushel .

Soybeans were up 0.5% at $13.09-3/4 a bushel and wheat gained 0.2% at $7.25-1/4 a bushel.

The USDA rated 60% of the US corn crop in good-to-excellent condition in its weekly crop progress report on Monday, unchanged from the previous week.

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Analysts surveyed by Reuters on average had expected a 1-point decline.

For soybeans, the USDA rated 56% of the crop as good-to-excellent, steady with the prior week and matching trade expectations.

The US spring wheat harvest was 88% complete, the government said, up from 77% the previous week and ahead of the five-year average of 71%. Analysts surveyed by Reuters on average had estimated harvest progress at 89%.

Drought shriveled Canada’s wheat crop to its smallest in 14 years, and its canola harvest to a nine-year low, a government report showed on Monday.

Commodity funds were net sellers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Monday, traders said. (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)

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