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CN rail reports record grain movement

September was a record month for CN when it comes to grain movement in Western Canada.

CN's Vice President of Grain David Przednowek is pleased with the numbers considering they are still working out some of the kinks from the Grain Workers Strike at the Port of Vancouver.

"In spite of the grain workers strike that was on from the 24th to the 27th of September, and in spite of the fact that we didn't have the Port of Thunder Bay is now let effectively for the first 8 days of the month. As we worked on recovering from the bridge outage on the Fort Francis Sub, we still managed to hit a record. Grain movement on the CN grain shipments out of Western Canada's bulk grain and processed grain products, we ended up at 2.82 million metric tons."

He says in grain week 9 they ended up moving about  650,000 tonnes, whereas the previous three weeks they were over 700,000 tonnes.

"Now, why is that? Well, when you reduce terminal throughput and activity, you're not unloading as many rail cars as you typically would in a normal day, right? So now the end is holding trains back that are loaded back in the country, or they're staged along the route. The longer those cars sit and can't advance, well it's going to effect how many empty hopper cars you can get back into the country  for the next week's load."

He notes its important to realize that  the strike had an impact on the end to end supply chain capacity and overall grain order fulfillment.

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Agricultural Market Update: Grain Prices, Crop Conditions, and Weather Impacts

Welcome back to our channel where we provide comprehensive updates on the latest trends and changes in the agricultural sector. This week, we're looking at significant movements in grain prices, crop conditions, and the effects of weather patterns. Let's dive into the details:

Grain Price Decline Grain prices have fallen to their lowest levels since 2020, with December corn down 4.3% and November soybeans losing 3.1%. This decline is partly due to the beneficial moisture brought by Hurricane Beryl to the Midwest, which has improved crop conditions significantly. The USDA reported that corn and soybean crops are in their best condition in four years, contributing to the downward pressure on prices.

Record Short Positions and Market Sentiment Fund traders have increased their net short positions in the corn market to a record level, with a net short of 347,000 contracts of corn. This reflects a bearish sentiment in the market, further influencing grain price dynamics. Similar selling trends were observed in soybeans and SRW wheat, indicating broad market caution.

Weather Impact and Forecast Hurricane Beryl has brought significant rainfall across Arkansas, Missouri, western Tennessee, western Kentucky, and southern Illinois, with more expected over Missouri, Illinois, and Indiana in the coming days. Despite this, the market is currently more focused on the moisture benefits rather than potential heat risks forecasted in the 6-10 and 8-14 day periods.

US Crop Conditions Corn and soybean conditions have shown slight improvements last week, with corn rated 68% good to excellent and soybeans at 68%. These are among the best ratings for this time of year since 2020, suggesting robust crop health that could continue to influence grain prices.

Winter Wheat Harvest and Spring Wheat Conditions The US winter wheat harvest is progressing well, ahead of schedule with significant portions already harvested in Kansas and Texas. Spring wheat conditions are also favorable, with 75% rated good to excellent, although there have been some declines in states like Idaho, South Dakota, and Washington. Brazil's Corn Harvest and US Exports Brazil's second corn crop harvest is advancing rapidly due to favorable hot and dry conditions, with 63% of the crop already harvested. Meanwhile, US corn shipments saw a substantial increase last week, indicating strong export demand, which contrasts with the recent drop in domestic grain prices.

Ongoing Developments Lastly, the USDA reported a flash sale of corn, with significant quantities sold to unknown destinations, scheduled for delivery over the next two marketing years. This could signal ongoing international demand for US corn despite lower prices.

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