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U.S. Customs and Border Protection suspended operations at the Eagle Pass and El Paso rail bridges on December 18, citing a resurgence of smuggling organizations moving migrants on freight trains. The closure affects two of the three main U.S. rail grain gateways to Mexico, and Union Pacific said its other gateways cannot absorb the extra traffic.
A separate proposal for a new short line and bridge at Eagle Pass was also noted.
Losing two of three main rail grain gateways to Mexico reduces U.S. export capacity to a key buyer. Export basis and cash prices for corn, soybeans and wheat are likely to come under pressure while the closure lasts.
doi.orgDec 21, 2023After 359 past bearish logistics events, Corn moved a median -0.3% over 5 sessions (44% higher; middle half -1.5% to +1.5%), and -0.5% over 20.
After 297 past bearish logistics events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.5% to +1.8%), and +0.7% over 20.
After 137 past bearish logistics events, Wheat (SRW) moved a median -0.3% over 5 sessions (44% higher; middle half -2.2% to +1.0%), and +0.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
