In this week’s Market Movers Americas, presented by Katharine De Senne:
• Solar eclipse to reduce solar power output
• Nucor begins weekly steel price update
• Baltimore impact on container rates fails to materialize
• US Soybeans uncompetitive amid Brazilian competition
• US Corn preparing for upcoming planting season
This week, a total solar eclipse will pass over North America, causing substantial drops in solar power output. The greatest impacts will be in the Electric Reliability Council of Texas and PJM Interconnection power markets. ERCOT's solar production is expected to dip to 3 GW during the eclipse, lower than the usual 18 GW on a clear day in April.
US steelmaker Nucor will issue its first steel price update on Monday through its new Weekly Consumer Spot Price report. This signals a new approach for price steel communication in the US, at a time when domestic hot rolled coil prices are recovering from a two-month decline.
Weak import demand continues to pressure the Americas container market, even after the collapse of the Francis Scott Key bridge closed the port in Baltimore. Sources say other East Coast ports can absorb the overflow and are unlikely to be affected.
In agriculture, US soybeans are facing competition from Brazil's abundant supply and from reduced intake from China, the world's largest soybean importer. The US will only regain competitiveness once its harvest begins in early fall. US corn is also struggling to compete against Black Sea and Argentinian product, but exports are currently meeting market expectations.
I’m Katharine De Senne. Thanks for kicking off your Monday with S&P Global Commodity Insights.
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