The cold spell that hit the country in early January has slowed barge traffic on rivers in the Midwest, says Harvest Public Media. In the first two weeks of the month, barges moved about 60 percent less grain than in the same period in 2017 due to heavy ice buildups, according to USDA.
The icy weather hit at an important moment for farmers and for exporters now that a record-large soybean crop and the second-largest corn crop are in the bin. The Soy Transportation Coalition told Harvest Media that 80 percent of U.S. soybean exports occur in the six months between September and February. If grain doesn’t reach port soon enough, customers like China could turn to U.S. competitors.
Besides the slowdown on the river, Harvest Media said rail shipments are down by 9 percent compared to a year ago and the price of diesel fuel for semi trucks is up.