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Economists at the University of Arkansas System Division of Agriculture say Hurricanes Harvey and Irma damaged harvested crops, disrupted commodity movement and slowed exports. Union Pacific reported most of its affected rail track was back in service by mid-September, and Gulf Coast shipping reopened on September 1.
Fuel and nitrogen fertilizer prices rose as a result.
Export and rail disruption from the Gulf hurricanes slows grain shipments and lifts diesel and fertilizer costs, which raises the cost of moving and producing feed ingredients. Recovery is underway, so the impact should fade over coming weeks.
pbcommercial.comNewsSep 16, 2017After 113 past bullish logistics events, ULSD / Diesel moved a median +0.6% over 5 sessions (54% higher; middle half -2.8% to +4.2%), and +0.2% over 20.
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.
