Grain futures recover overnight losses to end with a mixed trade.

Unlike the last several nights that were grains started firm and then declined into the early morning hours, grain futures were under pressure overnight, with corn and wheat bumping Wednesday's lows and soybeans holding those before a moderate bounce surfaced in the morning hours. Damage assessments are coming out with Cargill reporting damage to its Westwego facility, which is on top of structural damage they reported to their Reserve facility. Bunge is still assessing their facilities for structural damage. In 2005, Hurricane Katrina also produced considerable damage that required several weeks to restart the US Gulf grain export business. Yet, in 2005 no export business was lost, other than that rolling forward some old crop and new crop.

US grain export demand will be pushed backwards in time, not canceled as importers seek to execute sales contracts. Some exporters like CHS are diverting their cargoes to other facilities like the PNW. Yet, the coming weekly US export inspections and sales data will show the impact of Ida with FOB/CIF offers unavailable from the Gulf in recent days. US grain export demand will be pushed backwards in time, not canceled as importers seek to execute sales contracts. Some exporters like CHS are diverting their cargoes to other facilities like the PNW. The coming weekly US export inspections and sales data will show the impact of Ida with FOB/CIF offers unavailable from the Gulf in recent days. For the next few weeks, the loss of exports will be fulfilled at other ports and completed over time. The 2021/22 crop year for US corn/soy is just starting. As damage assessments are completed, Gulf exporters will return with FOB/CIF offers.

World wheat demand is robust with Turkey tendering, Iran is considered a follow-up tender, and Russia is likely to raise its export tax by $5/MT/week. Rumors abound that the Russian Gov't may further slow their wheat export pace due to record high interior wheat/flour prices. This past week has seen panic liquidation in grain futures as US Gulf export facilities were damaged. Nothing changes a likely upcoming global grain shortage which looks to rally values into 2022. Current depressed prices are opportunities for end-users to lock in feed needs into the new year.

Heavy rainfall associated with the remains of Ida produced widespread flooding across the NE US, including New York City, which called for an emergency amid the widespread flooding. Ida's remains will exit the US later this morning and head out into the Atlantic. A progressive weather pattern is indicated for the US with a high-pressure Ridge to hold across the Western US for a few days before pushing eastward and expanding into the Central US. This will produce an above-normal Plains and Western US temperature pattern with more limited rainfall chances. The GFS model offers diminished rainfall for the Central US into mid-September. A storm system is pushing across the Plains, which will dissipate later today. The Midwest will hold in a mostly dry weather flow. There is no evidence of any frost risk for Central US crops into September 15th, with the S Midwest corn/soybean harvest to get underway in a few weeks. The warm/ dry flow will push crop maturity while enough rain falls for wheat seed germination.

After six days of decline on the October cattle contract, a higher close was found on short covering with major moving average support holding the decline. Feeder cattle were mostly firm, with $1 gains realized in 2022 feeder contracts. A firm outlook is offered for early trade today. Cash markets on Wednesday were inactive. Light sales were quoted in Nebraska $203 on a dressed basis or $1 lower from last week. Offers are quoted at $125, and limited trade is expected this week.