Written Commentary
MORNING COMMENTS
Geopolitics:
China begins their week long holiday following a couple exciting trading days in their equity market. The Golden Week will end on Sunday evening. Israel notifies the UN of their intent to begin “limited ground incursions into Lebanon.” The Hezbollah spokesman says no Israeli troops have entered Lebanon and that any claims of this are false. Israel is calling the cross-boarder offense “Operation Northern Arrows”. Their officials are saying the movement north are localized raids and are limited in scope and they do not plan to stay in Lebanon long-term.
Macroeconomics:
Helene’s 500 mile path of destruction has taken at least 130 lives, has left 1.5 million without power, and has cost an estimated $15-26 billion in property damage alone. Around 600 people are still not accounted for in Asheville, NC. The silver lining is at least the weather for the next week will allow for rescue teams to continue to search and help the stranded. to total cost of this natural disaster could reach up to 34 billion dollars by some estimates. This event will absolutely highlight the increased costs of building homes, repairing homes, the increased cost of food and shelter in general. The port strike alone the east coast started today as well. This will had additional pressure to those suffering a loss and need supplies depending on how long the strike lasts.
Ag Fundamentals:
Harvest is ahead of pace this year for both corn and beans. Weather for the next 7 days is clear of rain for the majority of the country. Pipelines are widening a bit now that the river is in better shape, keeping the US export program competitive on a global scale. Quality is good from what i have heard so far. Moisture levels are low and this may cut yields back slightly on this month’s WASDE report that will release next Friday at 11:00am CST.
Export & World News
The USDA confirmed privates sales of 116K MT of soybeans to China yesterday. Today The US sold an additional 120K MT of beans to an unknown destination and 195K MT of corn to an unknown destination.
Malaysian palm oil futures were up overnight 14 ringgit, at 4009.
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