Post

Market strength hinges on abundance, transportation

Commodity prices come under significant pressure when transportation issues complicate getting the crop to the market.  Illinois Corn Growers Executive Director Rod Weinzierl says there’s a possible twenty percent spread in the price of corn when comparing central and southern Illinois to the rail-strapped Dakotas.

“There is a shortage of power, or locomotives, there’s a shortage of train crews, there is a shortage of rail cars, be it tanker cars or hopper bottom cars, which are used in the grain industry,” Weinzierl told Brownfield Ag News, “and there’s a shortage of track.”

Upper Midwest rail issues have a limited impact on Illinois growers, especially those who are a reasonable distance from barge shipping.

“Transportation is a big deal,” said Weinzierl, “and when there are problems, those who are affected are paying for it, or in this case, not being paid for their product.”

Weinzierl anticipates that the rail service issues may be a market factor for several years.

AUDIO: Rod Weinzierl (3 min. MP3)

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!