Black Sea Blockage: Ag Markets Stuck in Neutral

The Ag commodity markets have been stuck in neutral this week, with traders waiting for direction from the USDA's World Agricultural Supply and Demand Estimates (WASDE) report.

The August WASDE report had some surprises, including a lower-than-expected US corn yield of 180 bu/ac. Despite this, area was increased, resulting in higher production. Wheat was largely unaffected by the supply numbers, but it wasn't immune to the Black Sea's influence.

A drone strike on Russia's Novorossiysk port has forced the closure of all three grain terminals, with nearly 95% of Russia's Black Sea export capacity now halted. The USDA expects exports to be reduced, but still believes grain will eventually flow at a lower pace and volume.