Shifting Variables Poised to Impact the Market

By Jon Scheve, Superior Feed Ingredients, LLC

Currently, there are a lot of upcoming variables that could have a big impact on the market.

Chinese Built Ships and Port Fees

Perhaps the biggest concern facing grain trading participants is the potential $1 million fee on any Chinese built ships docking at an American port.  While this could threaten US imports, it is also scaring many bulk commodity exporters.

Several trade groups, from coal to corn, will be in Washington D.C. next week to express concern that this could stifle American exports.  The coal industry is already having issues lining up vessels after May.  If this fee is enacted, it could make US grains less competitive globally.

Right now, US corn is the most competitively priced in the world, which is keeping a floor under prices.  However, any change in shipping costs could push US grain prices lower and affect the global grain supply and feed demand.… Continue reading