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Grain to market

J

john in la

Well-known Member
Location
What part of in La do you not understand
Just as harvest season has started the coast guard has closed a 550 mile stretch of the Mississippi river due to drought and low river levels. The only barges making it south of Memphis are short loaded. This will increase shipping cost and while the corp is dredging the area if this persist I can see it effecting grain prices as draft has been limited to 9.5 feet.



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This is the first year corn isn't piling up at a local gravel pit. They stored corn on the ground and covered it with plastic because of shipping issues.
Corn and beans harvest started early this year.
All grains are shipped by rail in Terre Haute.
Some corn is trucked to an ethanol plant in South west Indiana.
 
With closed pipelines the rail is pretty busy and costly. Add in the still not totally settled strike issues, and rail is as questionable and shaky as the barges.

End users get to pay a lot, farmers are seeing basis grow hugely.

Wonderful.

Paul
 
Some corn here is barge loaded out on the Ohio River. To go to New Orleans. Likely this will hold up shipping from south Indiana. This time of year the barges here usually are loaded to 9 ft draft. Another kink in supply export chain.
 
Dont worry about the railroads,a very unlikely strike at this point would not last but a few hours.congress would put an end to it real quick
 
I dont really know what congress will do anymore, they havent done anything in years, and what little they do I dont understand.

Unhappy rail workers can slow down work, if ordered back to work.

I agree with you its unlikely at this time.

But just the the shadow of even an unlikely work stoppage on the rail lines can have a negative effect on transportation of bulk commodities.

Paul
 
Its going to be tough for the current congress to buck the union, especially just before an election. The ruling part gets a lot of money from them.
 
Preacher man says its the end of times,oil prices up,stock market down and the Mississippi River is a going dry.Only get mugged when you go downtown............
 
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