While Hurricane Katrina's human toll is tragic, there certainly are wide sweeping economic consequences. Among those impacted will be Corn Belt and other farmers, says Darrel Good,
Although no soybeans can leave the port, this is not the time of year when exports are heaviest, he adds.
About 3 million to 5 million bushels are shipped weekly at this time of year. But, later in the fall, especially as we get to the heart of harvest, that jumps to 25 to 30 million bushels weekly.
"From a buyer's standpoint, there are other places to get soybeans now with adequate supplies in
With corn, however, the impact is immediate and dramatic.
"Corn is the real story in terms of agricultural impact," he notes. "Upwards of 35 million bushels of corn are exported from the
Because there's no place for the corn to go, cash bids for corn up and down the rivers' system feeding into the Port of New Orleans will be bleak. "Cash bids have collapsed. Nobody wants to buy corn they can't ship and sell," says Good.
Many corn producers are facing a double-whammy.
In many areas hardest hit by this summer's drought are the same ones that rely heavily on the
It is difficult to predict when the
"The Port operators may be able to get the electrical system restored but the real problem becomes one of traffic. There may well be a significant amount of damage and debris," he says. "Some are saying it could be a month before the Port is functioning. If they can get it going that soon, they'd be doing pretty well."