Baltimore opens third temporary shipping channel
A third temporary shipping channel has opened at the Port of Baltimore to allow more vessel traffic around the collapsed Francis Scott Key Bridge.
Located on the northeast side of the main channel, the new passage has a controlling depth of 20-ft, a 300-ft horizontal clearance, and a vertical clearance of 135-ft.
When combined with two other temporary channels opened earlier this month the port should be able to handle "... approximately 15 percent of pre-collapse commercial activity," said David O'Connell, the federal on-scene coordinator.
The main shipping channel of the Port of Baltimore — a key conduit for US vehicle imports and coal exports — is expected to be reopened by the end of May, the Maryland Port Administration said earlier this month.
The bridge collapsed into the water late last month when the 116,851dwt container ship Dali lost power and crashed into one of its support columns. Salvage teams have been working ever since to remove debris from the water and containers from the ship in order to clear the main channel.
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Texas barge collision shuts GIWW section: Correction
Texas barge collision shuts GIWW section: Correction
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Sinking crop values weigh on US farmer profits in 2024
Sinking crop values weigh on US farmer profits in 2024
Houston, 16 May (Argus) — The cycle of above-average profits that has defined the US agricultural economy in recent seasons is fraying this year as crop prices slacken against elevated expenses. The domestic agricultural sector is forecast to endure a 24pc drop in net cash income this season — the sharpest year-over-year decline in the last decade — underpinned by a 6pc slump in crop sales revenue and modest growth in projected expenses, according to the US Department of Agriculture's (USDA) latest industry income statement. This retraction, which kicked off in 2023, forced many growers in key agricultural districts this season to augment non-real estate loans, slow debt repayment and restructure existing loans to meet liquidity requirements thanks in part to sliding global grain and oilseed prices. Lenders within the seventh and 10th Federal Reserve districts, which represent farmers across major growing regions, reported stronger loan demand and tightened working capital during the first quarter — signaling deteriorating farm finances. Working capital is measured as the difference between the value of assets that can be easily converted to cash and debt due within the next 12 months. Lower working capital valuation signals the ability to pay down debt could be challenged. Domestic agricultural working capital this year is estimated 17pc lower from 2023 and 6pc lower than the five-year average, according to USDA data. "Conditions in the US farm economy have tightened alongside lower prices for many key products and higher financing costs," the Federal Reserve Bank of Kansas City reported in its quarterly Ag Credit Survey . "Many lenders highlighted growing concerns about deterioration in working capital as a result of low prices, particularly for crop producers." US row-crop growers are expected to endure another season of price deterioration as global markets adjust to supply shocks stemming from the ongoing war in Ukraine that rattled wheat values and key input prices for corn and soybeans. Domestic corn, soybean and wheat farm cash prices are projected to slump for a second consecutive season by 5pc, 11pc and 15pc, respectively, according to the latest projections from the USDA's World Agricultural Supply and Demand (WASDE) report. Corn growers, specifically, face losses this season amid a 4.6mn-acre cut in planted area from last season in tandem with sinking crop values. Margins are estimated -$65.75/acre, based on the latest new-crop contract close and early-season production volume estimates, after benefiting from peak earnings at $242.33/acre in 2022. Corn is a fertilizer-intensive crop, and changes in farmer profitability can erode input prices. Urea, the most widely traded fertilizer globally, is strongly tied to front-month corn futures and domestic barge prices have sunk to levels last seen in January 2021, tracking lower front-month corn futures since the start of the 2023-24 fertilizer season. Fertilizer expenses account for nearly 40pc of annual operating costs for domestic corn growers on a per-acre basis, with seed costs comprising an average 25pc, according to Argus analysis of USDA data. Plant nutrition expenses, though, surged in 2022 and remained above average in 2023 — reflecting historically elevated fertilizer prices during the same period. The USDA forecasts a 15pc dip in fertilizer costs in 2024 for corn growers, providing some reprieve compared with the last two years despite higher seed and various overhead expenses. "Factors like the rising costs of seeds, fertilizers and other inputs as well as more strict environmental regulations, specifically on water usage, have added to the financial and administrative burden for farmers," said Donnie Taylor, Agricultural Retailers Association senior vice-president of membership and corporate relations. By Connor Hyde Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
La Nina outlook offers boost to Australian agriculture
La Nina outlook offers boost to Australian agriculture
Sydney, 16 May (Argus) — The outlook for Australia's crop and beef production is turning more positive in 2024-25, with the country's Bureau of Meteorology (BoM) updating its climate forecast towards a La Nina weather trend forming at the end of this year. BoM updated its El Nino-Southern Oscillation (Enso) outlook to a La Nina Watch alert on 14 May, with indicators suggesting this phase developing in late 2024. Approximately half of all watch alerts have followed with the projected Enso event occurring. Crop production and grazing conditions will likely benefit from increased rainfall should the weather trend eventuate. La Nina is associated with higher than average winter-spring rainfall from the northwest to southeast of Australia. Grain yields and production in Australia's eastern cropping regions typically increase with a La Nina. Australia experienced record production during La Nina events that occurred during 2020-23. Winter crop production peaked at 69mn t and 63mn t in the 2022-23 and 2021-22 fiscal year respectively, according to Australian Bureau of Agricultural and Resource Economics (Abares) data. The La Nina Watch alert comes as the US Department of Agriculture projected Australia's wheat production to increase by 3mn t from a year earlier to 29mn t in the 2024-25 marketing year, according to data released in its World Agricultural Supply and Demand Estimates on 10 May. Coarse grain production is also projected to rise by 4pc to 14.87mn t. But Enso weather events have limited impact on southwest Western Australia (WA). A potential La Nina is unlikely to aid WA cropping zones currently experiencing very low soil moisture levels . Increased rainfall from a La Nina developing in late 2024 may not coincide with the growing season of east Australia's wheat crops, which are typically sown during April-June and harvested in November–January. Too much rain around the harvest can damage crops and degrade quality. Floods in late 2022 damaged harvests in New South Wales, resulting in Abares at the time downgrading the state's production projections by 2mn t. Increased rainfall in east Australia will boost pasture availability for cattle producers. Increased capacity of feed may encourage producers to increase herd sizes, potentially supporting future slaughter and beef production. But the agriculture industry may be wary of the BoM's latest outlook. BoM was widely criticised after last year's El Nino declaration in September, which promoted some producers to pre-emptively destock at low prices in fear of dry conditions that did not occur. By Edward Dunlop Australia winter-spring rainfall during La Nina years (deciles) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s live cattle exports slip back in April
Australia’s live cattle exports slip back in April
Sydney, 16 May (Argus) — Australian cattle exports fell in April from a month earlier as demand from Indonesia waned, Department of Agriculture Fisheries and Forestry (DAFF) data show. Live cattle exports fell by 20pc to 60,521 head in April, as Indonesian demand dropped by 16pc but still made up 86pc of the monthly total. Indonesian imports rose , likely in preparation for the end of Islamic fasting month Ramadan celebrations in early April. Total exports may have also been affected by the continued wet season in northern Australia, supporting domestic prices and motivating producers to retain stock. The fall was partially offset by increased exports to Vietnam that rose by 37pc in April from March and comprised a 14pc share of shipments. January-April exports were 20pc higher than the same period of 2023. Australia as at 3 May has used 16pc of the total quota of 672,669 head of live male cattle under the Indonesia-Australia Comprehensive Economic Partnership Agreement, according to DAFF. By Edward Dunlop Australia live cattle exports (head) Apr '24 Mar '24 Apr '23 Apr '22 Apr '21 Jan-Apr '24 Jan-Apr '23 Jan-Apr '22 Jan-Apr '21 Indonesia 51,941 62,041 26,926 35,936 39,659 129,381 97,170 102,860 138,384 Vietnam 8,290 6,041 9,580 4,688 3,713 32,037 20,721 7,730 44,367 China 0 3,500 7,160 1,609 7,061 32,306 27,003 41,439 34,600 Malaysia 290 0 0 59 1,893 1,490 1,749 879 6,667 Israel 0 501 9,252 1,596 0 2,728 19,798 13,041 11,909 Total 60,521 75,704 55,611 45,288 59,396 209,592 175,299 171,482 250,100 Source: DAFF Totals include all destinations not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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