Hurricane Ida’s impact on exports out of the Gulf Coast continues to unfold. Two key grain elevators along the Gulf took a direct hit from the hurricane, but that’s only part of the problem. Barges are also on the loose, crashing into one another and piling up. And power outages are expected to last nearly a month.
Reuters reported Wednesday that grain shippers on the U.S. Gulf Coast reported more damage from Hurricane Ida to their terminals on Wednesday. Cargill Inc. confirmed damage to a second facility, while power outages across southern Louisiana kept all others shuttered. And as September welcomes what’s typically the start to a busy soybean export season, hiccups are already underway.
The export concerns did partially pressure prices this week, with Brian Splitt of AgMarket.Net pointing out on Tuesday, corn futures took out the last couple of week’s lows.
“So, the market has not only gotten the idea that the crops got a little bit bigger, but we’re also seeing concern about the ability to export out of the Gulf and how long it might take to bring everything back online now,” Splitt told Clinton Griffiths on AgDay. “I think they’ll probably overdo it. This is probably an opportunity for some bull spreading in the market right now.”
As the recovery continues along the Gulf Coast, Splitt says the Gulf is a key export port, and as soybeans enter a key export time frame, he thinks companies will put in overtime to make needed repairs.
“I do believe that’s probably one of the components of why these ports will not be down as long as what some are advertising. And it’s probably one of those things where maybe you say, ‘Hey, it’ll take us four weeks, and then you’re going to shoot for two and under promise and over deliver. But I think this time of the year also, we are getting to that point where we’re going to have a fresh crop available, and the exporters want to be able to get out of the country quickly.”
