By Paulo Trevisani

--Corn for December delivery fell 2.2% to $5.22 3/4 a bushel on the Chicago Board of Trade Wednesday as some Gulf of Mexico exporting facilities looked severely damaged.

--Soybean for November delivery fell 1.1% to $12.77 3/4 a bushel.

--Wheat for December delivery fell 1.1% to $7.14 1/4 a bushel.

HIGHLIGHTS

Assessing The Damage: Grain futures extended losses as markets zeroed in on trade disruptions caused by Tropical Storm Ida. "The market's focus is on the Gulf export corridor and when electricity will be restored to start a process of fixing damaged facilities and restarting operations," AgResource said. "No offers of US grain or soy were available from the Gulf on Tuesday as damage assessments are ongoing."

More Pressure For Corn: Corn futures slid further as the EIA reported an expected decline in ethanol production for last week. The corn-based fuel's production was 905K barrels a day, the lowest level since the week ending on June 26 2020, when it bottomed at 900K. The decline was coupled with concerns about damage from Ida halting U.S. grain exports.

INSIGHT

Weather Worries Continue: Concerns about Gulf exporting facilities are expected to continue to weigh on grain futures. RJ O'Brien said vessels were already being diverted to Brazil because elevators were expected to be down for several weeks, while daily sales flashes have been absent. On top of that, "weather leans negative with more rains slated for western Midwest this weekend reducing dry areas to less than 10% of belt," RJO said.

Export Hit: The Gulf exporting infrastructure could take quite some time to be back, according to early estimates. AgResource said even structures that went unharmed by Ida still need power to be restored, which will likely take a few days. The most damaged facilities could take months to be fixed, AgResource said. "No one knows for sure when SE Louisiana power will be coming back on, or when employees can safely return to their homes and work," AgResource said, adding China is buying soybeans from the Pacific Northwest.

AHEAD

--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.

--The CFTC will release its weekly commitment of traders report at 3:30 p.m. ET Friday.

Write to Paulo Trevisani at paulo.trevisani@wsj.com

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09-01-21 1536ET