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Ice impeding inland waterway transportation, hurting cash basis

Ice accumulations hampering transportation on inland waterways are negatively impacting local prices for farmers.

Soy Transportation Coalition executive director Mike Steenhoek says grain barge tonnage along the Mississippi, Illinois, and Ohio Rivers has been reduced more than 60 percent the first two weeks of January.

“Eighty percent of soybean exports depart this country between the months of September and February, so this is when we really are the supplier for the international market.  So any kind of impediment really is felt by our industry.”

He tells Brownfield there’s an elevator along the Illinois River with both rail and barge loading capacity that’s only accepting deliveries to be loaded on trains while river transportation remains closed.

“Normally basis in that particular area of Illinois would be minus seven cents.  But now for farmers that are delivering to feed into the rail channel at that facility, it’s minus 20 (cents).  So all of a sudden, farmers are receiving 13 cents less per-bushel.”

Although Steenhoek welcomes warmer weather, he says soybean and grain shippers will be dealing with the effects of ice accumulation for weeks.

 

 

 

 

 

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