December 16, 2010

Russia's grain drain bolsters US grain

A drought that hit the Russian grain crop last summer has strengthened American grain demand and with it, traffic at the Port of Albany.

Cargill Inc. maintains a large elevator at the Port of Albany that stores grain until it is shipped overseas.

In all of last year, just 56,000 tonnes of grain were exported from Albany. This year, 181,000 tonnes have been shipped, including 25,000 tonnes being loaded Tuesday (Dec 14) on a ship bound for Portugal, said Terrence Hurley, the port's chief financial officer.

And with two more ships expected, that figure likely will top 200,000 tonnes, he said.

Overall, US exports are expected to rise by 369 million bushels – a little more than 10 million tonnes – over year-earlier levels, in part because of lower production in Russia and other exporting countries, the Economic Research Service of USDA reported Tuesday (Dec 14).

Russia put limits on its grain exports following the drought, forcing its customers to look elsewhere.

Grain is one of the two biggest exports from the Port of Albany during what had been a relatively slow year due to the recession.

But business has picked up as the economy recovers, and overall tonnage handled by the port is expected to be roughly double last year's total.

"Things are ending this year on a positive" note, Hurley observed.