As the battle to contain the oil spill in the Gulf of Mexico are now likely to stretch into the fall, concerns are being raised that the situation could delay grain exports, according to Iowa State University grain markets specialist Chad Hart.
“If the oil slick got into what is called the Southwes Passage – which is a canal that goes from New Orleans out to the Gulf of Mexico – we would be looking at severe delays in getting our corn and soybeans shipped overseas,” said Hart.
Ships can sail through the oily water, but would need to be cleaned when they enter port. “When a ship comes into port, it would have to be cleaned if it went through the oil slick,” said Hart. “And then when it goes to their destination, it would have to be cleaned again when it arrives.” The result would be much slower movement of grain out of the Midwest to foreign markets....Hat Tip: the Daily Bread blog at The Big Money