Grain Barges

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Chuckie

Chuckie

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We are being told that 3/4 of the grain barges are stored on the Gulf Coast and they either were washed out to sea or have gone under. They are telling the buyers not to take any corn over 17% moisture since they do not have a way to ship it. This might make corn cheaper in areas that it is grown since there will be a shortage of barges to haul it from place to place.
 
They will come up with a way to keepthe price up or even higher. wait till the price of building materials go out of sight from katrina and im thinking way out of sight :(
 
I always wonder if someone is setting up for a price gouge. It is hard to believe that the corn would go down, but that is what is being said. It may stay the same, but not down. Poor farmer always has to take the cut if anyone is cutting.
 
I actually expect corn and grain to go up. Barge traffic is closed for 4 -8 weeks, so grain companies will have to use much more expensive trucks and trains to ship. This will also increase the demand for fuel.
 
Corn isn't headed up. There has to be a market for it which with the port at N.O. being shut down there is none. Believe me my dad is extremely worried because shipping grain out that port is what he makes his living at.
 
Hurricane Katrina Disrupts Grain Marketing System



Hurricane Katrina has delivered a serious blow to the smooth functioning, U.S. grain marketing system by reducing the capability to export. Normally, about 62% of U.S. grain and soybean exports move through the Port of New Orleans. After Hurricane Katrina, it may be some time before normal times return. At this writing, assessment of damage to port facilities is still underway. Early reports indicate that export facilities sustained only light damage. However, the facilities are now shut down and it is unclear when they will be back in operation. The greater concern is damage to the transportation infrastructure. All rail car movement into the port area has been suspended. Ocean vessels are lying offshore until ship channels can be examined and cleared if necessary before unloading and loading operations can be resumed. Even then, electrical power must be restored before grain and soybeans can be loaded on vessels.

The biggest question mark is barge traffic. Limited movement of barges is being allowed, however it is believed the movement is to reposition barges that were scattered by the storm. Some barges were left high and dry - well, maybe not so dry, after being deposited in unlikely locations by the storm surge. It is unknown how many, if any, sank. Sunken craft could block shipping lanes until clearing operations are completed.

here is the rest of the article:
http://www.cattlenetwork.com/content.asp?contentid=8744
 
Yesterday I heard that the barges that are still in New Orleans are full of grain, but no one is there to unload them. They cannot be sent back until the ports are repaired and people come back to work. I guess all of the problems exsist that we have listed.
 

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