Winter storm cripples cash grain markets

The worst winter storm to hit the central United States in at least a decade crippled agricultural operations across the Midwest and southern Plains and threatened the wheat crop and livestock on Wednesday. Transportation of grains and livestock in the multi-billion-dollar cash markets ground to a virtual halt amid icy road conditions and up to two feet of snow in the worst-hit areas since the storm started on Tuesday.

Grain exports from the United States, the world's top supplier of corn, soybeans and wheat, remained largely unhindered at the Gulf of Mexico and Pacific Northwest - ensuring on-time arrival of grains and oilseeds. The top five corn and soybean states are located in the Midwest and account for about 62 percent of U.S. corn production and about 55 percent of soybean output.

Pit trading of futures at the Chicago Board of Trade, the world's largest grain exchange, suffered a 30-minute delay but it was business as usual on the Globex electronic platform. Here are some of the ramifications on commodities markets due to the storm:

Grain Elevators/Processors

Grain elevators and processors in several states belonging to major companies such as Cargill Inc and Archer Daniels Midland Co were shut because of the storm, which made travel for employees and customers difficult, while frigid conditions made equipment hard to operate. Read more...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.