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Hurricane Ida, with 150 mph winds, crippled grain shipping facilities along the lower Mississippi River, including the Port of South Louisiana, which handles more than 50% of US grain exports. The storm left the timeline for resuming export activity unclear.
A barge urea price in New Orleans rose from $450/t to $552/t after the storm, and grain markets fell sharply on export uncertainty.
Shuttered Gulf export capacity disrupts US grain and soybean shipments, pressuring US cash prices while raising barge freight and fertilizer costs. Feed buyers should watch for a longer outage, which would widen basis and increase logistics costs.
thedailyscoop.comAug 30, 2021After 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.
Not enough comparable past events yet for a historical read.
After 49 past bullish logistics events, Urea moved a median -0.3% over 5 sessions (45% higher; middle half -1.3% to +2.2%), and -0.4% 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.
Hurricane Ida's 2021-08-30 shutdown of lower Mississippi shipping and the jump in New Orleans barge urea from $450 to $552/t is a direct supply and logistics shock that fits the 4.32% one-day rise.
Hurricane Ida (landfall Aug 29) crippled Lower Mississippi shipping and drove New Orleans barge urea from $450 to $552/t, a direct supply/logistics shock matching the timing and direction of the one-day jump.
Ida's shutdown of Gulf ports and shipping, with urea barges jumping from $450 to $552/t, shows the storm-driven supply and logistics disruption behind the price surge.
Post-Ida disruption lifted New Orleans urea barge prices sharply (reported $450 to $552/t), a direct supply and logistics shock.
Ida's shutdown of South Louisiana grain export facilities stalled barge unloading and turnaround, creating congestion and a vessel supply squeeze that likely lifted St. Louis barge freight, though the event is dated about a week before the one-day move.
Ida's disruption of Louisiana port and shipping infrastructure drove NOLA urea barge prices up from $450 to $552/t, tightening nearby US Gulf supply.
