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Rail could delay grain exports

U.S. farmers may have a problem exporting this year’s record corn and soybean crops.  The U.S. shale oil boom is tying-up rail lines.  The Association of American Railroads says crude moved by rail has almost doubled since last year and the Energy Department is predicting the most U.S. oil output in 45 years in 2015.

As a result, RS Platou Markets, a Norwegian bank specializing in shipping tells Bloomberg they expect U.S. grain exports in the fourth quarter will be down 15 percent compared to a year ago.  The bank says the expected delays will cause a glut of available grain ships pushing the rates for Panamaxes, the most commonly used grain vessels, to the lowest levels since at least 1999.

The grain will get shipped eventually and there will probably be plenty of ships available to haul it.