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Food Business News reports that COVID-19 has disrupted US food transportation, with ocean freight and rail shipments tumbling while truck tonnage surged then plunged. Freight rates for grain and other products are down from a year ago, and fuel prices have fallen sharply.
Ethanol plant shutdowns have cut corn deliveries to those facilities.
Lower freight rates and reduced ethanol-related corn demand weigh on feed grain basis and transport costs, while cheaper fuel reduces hauling expenses for feed buyers.
foodbusinessnews.netRon SterkMay 22, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
After 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 19 past bearish logistics events, Crude Oil (WTI) moved a median -1.5% over 5 sessions (37% higher; middle half -6.6% to +2.3%), and +5.3% 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.
