Corn futures are around 4 cents lower to start the day, with futures hitting their lowest levels since late May. Soybeans are also under pressure, down 7 to 8 cents, but the market has stopped short of taking out recent lows. Winter and spring wheat futures are 8 to 12 cents lower. The greenback is slightly lower and crude oil futures are firmer.
Due to Monday’s holiday, export sales data for the week ended Sept. 2 will be released on Friday.
Reuters sources say Asian grain and oilseed buyers are likely to face shipping delays of at least one month after Hurricane Ida wiped out power and caused other damage at key export terminals around the Gulf Coast. Export prices are also on the rise in Brazil, with some business also being shifted there.
Nearly 80% of U.S. production in the Gulf of Mexico remains offline, the Wall Street Journal reports, while oil and gas processing plants and other key onshore facilities try to recover from damage and the loss of power that has limited output. Operators have restored about 300,000 barrels of daily oil production, but most remain shut off.
U.S. economic growth “gradually downshifted” to a moderate pace, according to the Federal Reserve’s latest Beige Book report, with price pressures evident across the economy. Much of the economic slowdown came in sectors linked to dining out, travel and tourism.
China’s factory-gate prices in August rose at their fastest pace in 13 years. They were boosted by soaring costs for coal, chemicals and steel.
Lawmakers may need to raise or suspend the statutory debt limit sometime before the end of October in order to avoid missed payments on U.S. financial commitments, which could have sweeping effects throughout the economy, Treasury Secretary Janet Yellen wrote to congressional leaders on Wednesday.
Senate Democratic and GOP aides will hold their first “Byrd bath” on Friday with Parliamentarian Elizabeth MacDonough over the issue of whether immigration-related provisions can be included in the Democrats’ $3.5-trillion reconciliation package.
Beef packers moved 109 loads of beef on Tuesday and 132 loads yesterday, notable increases from ahead of Labor Day. Some of this is replacement buying following the holiday, but it could also signal prices are getting low enough to attract more active retailer buying.
The CME lean hog index will be quoted another 57 cents lower today, extending its slide from the mid-June peak. But the average national direct cash hog price firmed $1.31 on Wednesday, possibly signaling a short-term low could be in the works.