Ag Clips

Ahoy There!

During the week ending December 22, 39 ocean-going grain vessels were loaded in the Gulf, down 11 percent from this week last year. Forty-six vessels are expected to be loaded within the next 10 days, unchanged from the same period last year.

During the week ending December 23, the ocean freight rate for shipping bulk grain from the Gulf to Japan was $57 per metric ton (mt), 1 percent less than the previous week. The cost of shipping from the Pacific Northwest to Japan was $29 per mt, 3 percent less than the previous week.

Excess dry-bulk vessel capacity resulted in average 2011 Gulf to Japan ocean rates dropping 14.4

percent from 2010; PNW to Japan ocean rates dropping 15.7 percent in 2011.

Demand for corn from the ethanol industry is not expected to increase significantly because corn ethanol production is close to reaching the RFS cap of 15 billion gallons per year.

Happy New Year!

Dave