Power outages, sunken barges and obstructed navigation on the US Gulf Coast due to Hurricane Ida strengthened international grain prices last week.
The region accounts for around 60% of US exports.
However, strong US export sales dampened market gains. For the week ending 26 August, net US maize sales for 2021/22 totalled 1.16m tonnes.
Net sales of wheat for 2021/22 totalled 295,300t which is up 15% from the previous four-week average. However, news emerged on Friday of China cancelling barley shipments due to positive news regarding domestic maize production.
The latest Agricultural Market Information System (AMIS) crop monitoring report was released last week. In terms of maize, the US, parts of northeast China and southeast Europe were watch points, though Chinese maize conditions look positive overall.
In terms of wheat, Russian, Canadian and US crops continue to be highlighted as poor. In contrast, Australia’s crop looks to be experiencing "favourable to exceptional" conditions.
Russia’s agriculture consultancy group Sovecon cut its wheat forecast by 800,000t to 75.4m tonnes last week.
In contrast, widespread rain in Argentina (30-50mm in key areas) has given a boost to the 2021/22 wheat harvest outlook. The Argentinian wheat harvest, due to begin in November, is forecast at 19m tonnes.
Traders are eagerly awaiting the USDA's World Agricultural Supply and Demand Estimates (WASDE) report which is due on Friday (10 September).
Weather in midwestern US states has been favourable recently, though yield estimates are varying. US maize area figures are offered one month ahead of last year due to data availability.