Oil Slick Could Impact Grain Shipments

By Rudy Ruitenberg and Luzi Ann Javier (Bloomberg)

Wheat and corn fell last week in Chicago on speculation that the oil spill in the Gulf of Mexico will hamper U.S. grain exports and hurt domestic prices.

Wheat for July delivery dropped 0.8 percent to $4.9775 a bushel on the Chicago Board of Trade at 2:14 p.m. Paris time. Corn for delivery in the same month declined 0.7 percent to $3.69 a bushel.

More than half of the grain inspected for export from the U.S. is shipped from the mouth of the Mississippi River, according to the Port of New Orleans. The oil slick from the spill at a BP Plc well stayed away from the main deepwater entrance to the river through May 6.

“The market is concerned that exports from the Gulf will stop entirely,” economist Dennis Gartman said in his daily newsletter. “The problems in the Gulf because of the oil slick have shuttered nearly all grain movements in New Orleans.”

Last year the U.S. shipped 54.469 million metric tons of corn, soybeans, and wheat through export terminals located at the mouth of the Mississippi, representing more than 56% of the total grain inspected for shipment in 2009, according to data from the USDA.

“Operators are expressing their concern about logistical difficulties for export if the oil slick spreads in the Gulf of Mexico,” Paris-based farm adviser Agritel said.

(Source: Bloomberg)

Leave a Reply

Latest News
Stewardship‘Gonna Fly Now’ with Environmental Respect
July 20, 2017
One of the most memorable moments in movie history occurred in the Academy Award-winning 1976 film “Rocky.” Haven gotten his Read More
StewardshipEnvironmental Respect: Grand Grounds, Posters Parade
July 19, 2017
To celebrate their accomplishments in the area of environmental stewardship, award recipients at the 2017 Environmental Respect week spent much Read More
StewardshipHarden’s Message to ERA Winners: Do Tell Your Good Stor…
July 19, 2017
As the daughter of a peanut farmer, Krysta Harden, Chief Sustainability Officer for DuPont Crop Protection, understands the importance the Read More
StewardshipFarming Smarter Hinges on 4R Best Management Practices
July 18, 2017
Preserving water quality while feeding another 2 billion people by 2050 is the challenge facing North America’s farmers and its Read More
StewardshipEnvironmental Respect 2017 Kicks Off Enjoying an Americ…
July 18, 2017
Following months of planning and scheduling, the 2017 Environmental Respect Awards (ERA) celebration kicked off in fine fashion as more Read More
Soybean Field Sunset
OpinionPicking Partners in the Crop Protection Market
July 17, 2017
Agriculture is a market awash in highs, lows, and everything in between. This is certainly true in the world of Read More
TMX-2050-In-Cab-Display-Launch-Run-Screen
EquipmentGPS Auto Steer: Innovating in a Mature Market
July 17, 2017
In the world of Big IRON, GPS auto steer has closely mirrored the evolutionary path of consumer GPS Navigation systems Read More
MFA-Centralia-MO
Eric SfiligojThe Resilience of Ag Retailers
July 17, 2017
After covering the ag retail market for 17 years, I think one of the most impressive character traits I’ve seen Read More
SERA-meeting
Stewardship4R Event Explores How to Minimize Phosphorus Losses
July 17, 2017
This year the Southern Extension and Research Activity (SERA) – 17; will be meeting in Oregon, OH, from August 14-17. Read More
Students Soybean Field
StewardshipCCA 4R Study Guide Available
July 17, 2017
In June the International Plant Nutrition Institute (IPNI) released the Certified Crop Advisor (CCA) 4R Nutrient Management Specialist (4R NMS) Read More
Soil soybean closeup
FertilizerThe 4Rs and Potassium
July 17, 2017
Are we meeting crop K needs? Using the 4R nutrient stewardship approach of selecting the right source at the right Read More
Soil Young Corn
StewardshipTop 10 Themes from the 2017 4R Nutrient Stewardship Sum…
July 17, 2017
Preserving water quality while feeding another 2 billion people by 2050 is the challenge facing North America’s farmers and its Read More
Soybean Field Sunset
Crop InputsWhich is Better for Soybeans: Fall or Spring Applicatio…
July 17, 2017
There have been many questions about fall versus spring applications of phosphorus (P) and potassium (K) to soybeans, writes Dr. T. Read More
corn-potassium-deficiency-University-of-Minnesota-Extension
Crop InputsRecognizing Potassium Deficiency Symptoms in Crops
July 17, 2017
Some crops exhibit characteristic deficiency symptoms when adequate amounts of K are not available for growth and development, according to Read More
ManagementComplexity in Agriculture: The Rise (and Fall?) of Mons…
July 17, 2017
Sometimes it seems as if the ag world is changing so fast that we can barely keep up with it Read More
Crop InputsMonsanto: Illegal, Improper Use at Root of Drift Proble…
July 14, 2017
Monsanto isn’t backing down from the position that its tool — the Roundup Ready Xtend dicamba-tolerant system for soybeans and Read More
Soybean Closeup
Crop InputsMissouri Lifts Dicamba Ban, Issues Stricter Application…
July 14, 2017
The Missouri Department of Agriculture has lifted its barely week-old ban on new dicamba technologies, which have been at the Read More
Crop InputsCreate a ‘No-Mite Zone’ Around Your Fields
July 13, 2017
Explosive. That’s one way to describe the speed at which mite infestations in crops can develop under the right conditions. Read More