Headlines:

  • From Sugar Mills to Hog Farms, U.S. Agriculture Braces for Irma
    Hurricane Irma sent farmers and food companies scrambling to protect processing facilities, farm fields, and animal herds in the South and Southeastern parts of the U.S. on Wednesday. Florida sugar and citrus processors rushed to secure railcars and equipment that could be crushed, blocked, or turned into flying projectiles. Cattle producers opened up their fences and moved animals to higher ground and wooded areas, which can offer some relief from high winds. To the north, cotton farmers in North and South Carolina fretted their fields might be facing a fate similar to their Texas counterparts. Late last month, Hurricane Harvey, which became a tropical storm after making landfall in Texas, destroyed an estimated $150 million worth of cotton, ripping the bolls off plants and leaving white fiber strewn across fields.
  • Brazil’s Soybean Exports Seen Surging Even Higher
    Brazilian exports of soybeans are surprising the market during this harvest. According to a study by National Supply Company (CONAB), Brazil exported around 44 million tons of grain from January to June 2017, a record volume for the period. “In the second half of 2017, Brazilian exports should remain heated. In this way, exports to 2017 are estimated at 63 million tons, 22% higher than the total exported in 2016,” CONAB said in a study released September 6. CONAB said in the study that Brazilian soybean exports could grow even more if there were weather problems in the U.S. If this occurs, Brazil can continue with high exports after the American harvest, from September to December 2017, before the end of the Brazilian exports year calendar.

 

Summary:

As we had previously discussed the corrective bounce in Corn, Wheat and Soybeans may have run its course. The recent concern over past and pending hurricanes have been at the heart of bounce in the grain and oil seed markets. Our time factors near September 5-7 may signify a return to weakness for the respective markets. Today December Corn was down 6 cents, Wheat lost 8.50 cents and Beans were down 2 cents. The grains were due for a bounce after having been in oversold mode. We are eyeing a potential low in Corn to hit some time in the middle of September and mid to late October for Soybean. It is possible that Beans could mount a bit of support as a biproduct of a weaker US Dollar and strength in the Soybean Oil complex. Crude Oil futures rallied off of support after basing near 47. It was down slightly today and its next major resistance obstacle rests at 51. The US Dollar broke to new lows eclipsing the August 29th low at 91.62.