• AFP
The bed of the Mississippi has fallen to levels not seen in several years following a long period of low rainfall, which is disrupting river transport to the Gulf of Mexico, a key axis for the US economy and exports.
About two-thirds of the grain exported by sea from the United States was from the Gulf last year (©Pixabay)
According to data from the United States Geological Survey (USGS), legendary river depth in Memphis (Tennessee) is weaker than it has been since the USGS released information for this region in 2011.
This situation is mainly due to the lack of rainespecially in the states of Kansas, Nebraska, South and North Dakota, where the Missouri, one of the main tributaries of the Mississippi, flows.
Dangerously low water levels in the Mississippi River are causing barges, tug boats, and recreational boaters to be stuck in the mud and sand. Take a look:pic.twitter.com/aVHJZHDOG7
— Steve Hanke (@steve_hanke) October 8, 2022
The US Army Engineer Division carried out emergency dredging operations to allow the barges to pass.
“It is a very delicate period with the harvests in progress, the worst to face a very low level” of the waters of the river, explained Deb Calhoun, vice-president of the Waterways Council, which promotes the good management of the courses of water, dams and locks.
Harvesting winter wheat was in fact completed at the beginning of August and that of maize is in full swing, which increases, as every year, the quantities to be transported.
According to figures from the United States Department of Agriculture (USDA), approximately two-thirds of exported cereals by sea from the United States were from the Gulf last year, most often following transport on the Mississippi.
A barge can carry a volume equivalent to 15 rail freight cars and 60 semi-trailers, according to American Waterways Operators, which represents the industry.
“At this time of year, you usually see 40 or more barges lined up, pushed by a tug,” said Deb Calhoun. “But right now it’s more like 24 or 25 at a time, depending on the level of the river. “At this point, we are just hoping very much that the rain will come,” she added. Some precipitation was expected this weekend in Arkansas, Tennessee and Mississippi.
Update on the Lower Mississippi as more than 180 boats (north and southbound combined) pushing nearly 2900 barges wait in an epic traffic jam near Stack Island MS
Keep an eye on export inspections bc the logjam is regarding to become very apparent??https://t.co/WJD6hEzcCd pic.twitter.com/bWTIVctsnj
— Susan David (@SusanNOBULL) October 7, 2022
Tensions on agricultural markets
« The low level Mississippi will clearly affect exports,” warns Virginia McGathey of McGathey Commodities Group.
According to the USDA, the price of transporting agricultural raw materials by barge has quadrupled since the end of August. “We are in the process of excluding ourselves from the export market with these prices”, indicates Michael Zuzolo, of Global Commodity Analytics and Consulting, according to which corn is particularly affected, with traffic by barge reduced by half.
The drop in Mississippi waters comes as production and yields of wheat, corn and soybeans are expected to be lower than expected, according to the USDA.
The ministry notably revised its estimate for the wheat harvest down 7% on Wednesday, compared to its previous forecast, published in September.
Winter wheat suffered in places from persistent drought, particularly in Texas, Oklahoma, Nebraska, Kansas and Colorado, which account for more than 50% of US production.
According to the analyst, due to the disturbances on the Mississippi, the market is currently under tension, and in certain regions, the spot prices (for immediate delivery) of agricultural commodities are significantly lower than those of futures contracts (for immediate delivery). deferred), for lack of outlets.
“And it will start to affect the middle of the country, which is not close to waterways, simply because storage will become more and more tense because it is not going to export by river”, he details.
This bad patch is reminiscent of a similar episode that occurred in 2012 and evokes, for some, a historic crisis in 1988.
In 2012, says Deb Calhoun, rocks had become apparent with the drop in water level, preventing the movement of ships. It had taken the intervention of the US Army Engineer Division to blast those rocky points and clear the way.
“We are not there this year,” she said. “But if the rain doesn’t come and everything stops, we will study the possibility of releasing water from Missouri or from reservoirs in the north. »
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