After a spring that was loaded with moisture that busted our multi-year drought and slowed down some of the plantings, it is hard to believe that we are talking about dry conditions and low rivers once again. Low rainfalls around the Midwest have contributed again to low levels on the Mississippi River. The highway to the gulf is important not only for getting grains to the gulf ports but also for bringing fertilizers and other supplies back to the corn belt.
Mike Steenhoek is Executive Director of Soy Transportation Coalition, and he talks about the issue as he sees it right now. The impact is two-fold according to him.
This cannot come at a worse time, when we are gearing up for the harvest season and will be relying heavily on the father of waterways to bring our grains to port.
To put it into perspective, roughly 55% of our soybeans travel to the gulf via the Mississippi River. Steenhoek says he is keeping a close eye on freight rates. These always rise when barge and shipping space become prime commodities.
We rely on lower rates to help us out price our major competitor, Brazil, in the global market. The low prices we have had for grains lately were starting to make us competitive once again.
Steenhoek laments that low-cost options are going to be few and far between.
