September 4, 2008

 

Hurricane Gustav barely dents US grain shipments
 

 

Billed as "the Mother of all storms" by state authorities, Hurricane Gustav barely made a dent on US grain shipments after it made landfall in the southern US this week.

 

Although US grain exports from the Mississippi River near the Gulf of Mexico remained stranded, grain companies ADM and Cargill said they expect to have shipments resume later in the week.

 

Grain shipments are currently on elevators on the lower Mississippi River in Louisiana.

 

Although, shipments are likely to be delayed as authorities have cut power supply and closed river channels before the onset of the hurricane, grain companies are optimistic that the hurricane would wrack minimal damage.

 

The Category 4 storm which killed dozens when it was in the Caribbean had slowed to Category 2 levels when it reached the US.

 

ADM reports that there was minimal damage to grain elevators so far, but barges have been washed onto banks by the strong waves.

 

Elevators in the Mississippi Gulf shipped more than 56 million tonnes of grain last year, making it the top location for US grain shipments.

 

US grains are also exported from off the coast of Texas, Mississippi and Alabama at the Gulf of Mexico.

 

The storm had minimal impact on grain futures on the CBOT as prices fell 5-percent due to a drop in oil prices, traders said.

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