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Storm Causes Elevators, Grain Barges to Stop

China Agriculture Report By CnAgri2012-08-28 19:33:26China Agriculture Report Print

U.S. grain elevators on the Gulf coast were shut and barges carrying grain and other goods on the lower Mississippi River were halted in preparation for Tropical Storm Isaac, which was due to make landfall either late Tuesday or early Wednesday. According to Reuters, Archer Daniels Midland closed four elevators in New Orleans, while Cargill said elevators in Westwego and Reserve, Louisiana, will be closed.

Isaac, if it stays on its current track, is due to slam into the Gulf Coast between Florida and Louisiana by Tuesday night or early Wednesday, the seventh anniversary of Hurricane Katrina hitting New Orleans, according to the U.S. National Hurricane Center.

The Mississippi River is a major channel for the movement of grain produced in the Midwest farm belt to export terminals at the Gulf of Mexico for shipment across the world. Grain movement is set to pick up in the coming weeks as farmers in the Midwest -- where 75 percent of the country's corn and soy crops are grown -- begin harvesting in earnest.

Meanwhile, the harvest is already underway in southern areas of the United States, the world's top grain exporter, increasing supplies available for export.

Grain shipments and barge transportation on the Mississippi River were disrupted in 2005 by Katrina.

The suspension of barge traffic costs facilities that move cargo on the river system $300 million a day.


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