Hurricane Ida cripples US exports
According to Bloomberg, the US authorities reduced soybean exports by 96% due to Hurricane Ida.
At the end of August, after Ida hit Louisiana (USA), US exports declined sharply. First of all, it affected soybean shipments, which fell by 96%, to 68 thousand tons. In this situation, Terry Reilly, analyst at Futures International, downgraded his export forecast concerning US soybean. However, Jacqueline Holland, Farm Futures expert, holds opposing views. She is confident that US soybean exports will rebound in the coming weeks.
The situation is pessimistic, concerning shipments of a number of crops. Corn futures have hit their lowest level in 7 months. Producers have been storing cereals as it is impossible to deliver them to ports and export to other countries. Logistics disruptions have affected CF Industries, a leading producer and distributor of agricultural fertilizers. It was unable to fulfill orders from its nitrogen complex located in Louisiana. Consequently, nitrogen fertilizer prices skyrocketed. The facility, owned by CF Industries, closed before Hurricane Ida. However, later it resumed production.
Bloomberg analysts focus on the US serious economic fallout from Hurricane Ida. After the rampant natural disaster, about 1 million people in Louisiana lacked the power. Damage to infrastructure led to huge costs for US insurers. Their payments to the affected population will total $18 billion.