Low Mississippi River levels impede grain exports from the U.S. Gulf

According to data issued by the United States Department of Agriculture (USDA) on Tuesday, crop exports from Louisiana Gulf Coast terminals reached their lowest level in nine years during the first week of October, a period when export shipments typically grow.

Due to low water levels in the southern sections of the Mississippi River, the vital shipping route was closed for days last week, blocking the flow of grain ships from Midwest farmers to the nation's largest grain shipping port.

The late shipping disruption has exporters scrambling for supplies at the start of the busiest period of the year for agricultural exports from the United States.

The USDA indicated in a weekly report that 976,255 tonnes of corn, soybeans, and wheat were inspected for export along the Mississippi River Gulf Coast for the week ending October 6. This is the lowest result for the first week of October in at least nine years, and a 22% decline from the five-year normal.

Two closed segments of the Mississippi River were reopened over the weekend, allowing a backlog of stalled barges to begin moving again. However, shippers continue to be concerned about low water levels due to the forecasted dry weather.

To prevent vessels from becoming stuck in the drought-parched river, shippers are loading less grain per barge, and towboats are transporting fewer barges per tow in order to traverse the narrowed channel width.

During the fourth quarter, when a third or more of the year's exports are typically loaded and sent, traders anticipate a delay in the exports' launch.

"In the next few weeks, I anticipate below-average inspections, followed by a considerable increase. It does not take long to enhance Gulf exports if ships are available. "Terry Reilly, senior commodities analyst with Futures International, stated.