(Bloomberg) -- Hermine, the first hurricane to strikeFlorida since 2005, has weakened to a tropical storm as itmoves inland, after threatening soy and cotton crops and leavinglarge swaths of the region at risk of blackouts.

Hermine’s top winds were at 70 miles (110 kilometers) an hour onFriday, after weakening from a Category 1 hurricane to atropical storm, the U.S. National HurricaneCenter said in an advisory at 5 a.m. Eastern Daylight Time.

The storm earlier made landfall near Saint Marks, Florida, andits center was about 50 miles northeast of Tallahassee on Fridaymorning, the weather service said.

Hermine is weakening as it moves farther inland across Florida’sPanhandle and southeastern Georgia, after largely sparing energyassets in the Gulf of Mexico. The storm should move into theCarolinas on Friday night and Saturday, according to the NationalHurricane Center. Earlier, frozen concentrated orange-juice futuressurged by the most since June as the weather system neared Florida.Hurricane watches and warnings were discontinued, and a tropicalstorm warning was discontinued west of Indian Pass, Florida.

“Bottom line is that there will be some flooding along the pathof the storm that will cause damage,” said Joel Widenor, co-founderof Commodity Weather Group LLC in Bethesda, Maryland. “The speed ofthe storm’s passage and drier weather to follow will help to limitimpacts.”

Widenor said Hermine will pass too far north to be a majorthreat to citrus. Florida is the second-largest producer of orangejuice behind Brazil.

Terminal closed

When Hermine first entered the Gulf, offshore oil and gas outputfell as companies pulled crews off rigs and platforms. That trendreversed with the storm’s track toward Florida. However on ThursdayChevron announced it would shut its Panama City, Florida, terminalas a precaution, with plans to reopen the next day, Braden Reddall,a company spokesman, said in an email.

There is a danger of life-threatening inundation within the next12 to 24 hours along the Gulf coast of Florida from Indian Pass toLongboat Key, the hurricane center said Friday. The system may dropas much as 10 inches (25 centimeters) of rain across northwestFlorida and parts of Georgia. Some areas could get as much as 15inches.

Florida state offices were scheduled to be closed on Friday in37 counties, according to a statement from Governor Rick Scott.

Power failures

A storm like Hermine could touch off widespread power failures.Duke Energy Corp. has staged about 1,200 repair staff in northFlorida, where the utility owner expects the worst damage to powerlines, spokeswoman Suzanne Grant said by phone Thursday.

On the Florida Panhandle, Southern Co.’s Gulf Power utility wasmoving repair crews to Pensacola, closer to the storm’s expectedlandfall, spokesman Jeff Rogers said by phone. Another 100 staffare headed to the region from Southern’s Mississippi and Alabamautilities, he said.

Related: Residents from Florida to South Carolina preparefor Tropical Storm Hermine

Insurance losses from Hermine’s strike should be “manageable”because it will miss more heavily populated areas, according toMeyer Shields, an analyst at Keefe Bruyette & Woods inRichmond, Virginia.

Through the weekend, a frontal system across the northern U.S.may keep Hermine close to the East Coast, said Ed Vallee, ameteorologist with AccuWeather Inc. in State College, Pennsylvania.Areas along the U.S. East Coast from the Mid-Atlantic states to theNortheast could see high waves and beach erosion.

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