April 25 (Bloomberg) -- CME Group Inc., the world’s biggest agricultural futures exchange, set a condition for canceling corn and soybean shipments from most terminals along the Illinois River following flooding and a barge accident.
Loading may be delayed for a number of days under exchange rules, Chicago-based CME Group said today in a statement. The first day to announce plans to deliver corn and soybeans against May futures contacts at locations on the River is April 30. There were no grain or oilseed supplies registered for delivery as of yesterday, according to a report from the Chicago Board of Trade report, a CME unit.
The CME declaration "will not make a difference for supply or demand, since no deliveries were expected," said Dale Durchholz, the senior market analyst at AgriVisor LLC in Bloomington, Illinois. "It’s not a big surprise. Most grain merchants had already shifted to price cash corn and soybeans off the July futures, so it should not have a big impact."
As many as four locks had been closed on the Illinois River, and the U.S. Coast Guard closed marine traffic because of flood risk. The Marseilles, Illinois, lock was damaged by a barge accident on April 19.
A record amount rain fell in parts of Illinois this month. Last year, the worst drought since the 1930s forced barge companies to idle ships in December and January because of low water levels along the Mississippi River, the busiest U.S. waterway.
--Editors: Patrick McKiernan, Thomas Galatola
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