Hurricane damage and the grain markets

As of September 8, several Louisiana port export elevators were beginning to handle grain and the basis (price difference vs. futures markets) was beginning to strengthen along the lower Mississippi River. A number of the elevators are north of New Orleans and were beyond the worst part of the storm. Reports on September 8 indicated the shipping capacity was up to about 50 to 63 percent of full capacity. After the large number of barges tied up in the Memphis area are moved down and unloaded, Iowa river elevators may begin loading out some grain. However, it appears likely that capacity will be somewhat restricted for at least another month, and possibly longer

The Next Generation Of U.S. Farm Policies

Clearly U.S. agriculture has excess capacity. U.S. consumption plus foreign sales were 5-10% less than production in 1981 and 82. Except for massive and expensive supply control, 1983 production would similarly exceed the weak current demand. Stocks of corn and rice at the end of the current marketing year will be about 50% of this year\u27s utilization. For wheat and cotton the carryover into next year will be about 70% of this years\u27 disappearance..

Hurricane damage and the grain markets

As of September 8, several Louisiana port export elevators were beginning to handle grain and the basis (price difference vs. futures markets) was beginning to strengthen along the lower Mississippi River. A number of the elevators are north of New Orleans and were beyond the worst part of the storm. Reports on September 8 indicated the shipping capacity was up to about 50 to 63 percent of full capacity. After the large number of barges tied up in the Memphis area are moved down and unloaded, Iowa river elevators may begin loading out some grain. However, it appears likely that capacity will be somewhat restricted for at least another month, and possibly longer.</p