Hurricane Ida damages grain terminal, disrupts exports – business insurance
(Reuters) – Hurricane Ida damaged a grain export elevator in Louisiana owned by global grain trader Cargill Inc.
Cargill said its reservation, Louisiana, terminal, one of two the company operates along the Mississippi River near the Gulf of Mexico, "suffered significant damage" from the storm that crashed ashore as a major Category 4 hurricane .
The rival grain traders Bunge Ltd. and Archer-Daniels-Midland Co. said they were working to assess the damage to their export facilities in the region.
The storm disrupted grain and soybean shipments from the Mississippi Gulf Coast, which accounts for about 60% of US exports, at a time when global supply is scarce and demand from China is strong.
Images of the damaged Cargill terminal with a twisted and partially collapsed grain conveyor system circulated on Twitter and shared among grain traders and barge shippers.
“There are still significant safety concerns and power outages in this area of SE Louisiana, so we are only just beginning to assess the impact of the storm on the river system. We currently do not have a timeframe for resumption of operations, ”Cargill said in a statement.
Cash premiums for grain barge-shipped to golf terminals for export fell sharply on Monday as traders feared a continued recovery from the storm.
Bunge plans to reopen an export elevator in Destrehan, Louisiana, on Tuesday, which is the only port-based crushing facility in the central Gulf export corridor, said spokeswoman Deb Seidel. The facility will resume operations after it closes on Saturday, "provided the evacuation order for the community is lifted and there is no significant damage," she said in an email.
Destrehan is one of Bunge's busiest docks, handling soybeans, corn, wheat and sorghum from over 50 grain elevators along the Mississippi, according to the company's website.
Power went out in Louisiana and Mississippi after Ida fell ashore.
Archer-Daniels-Midland will assess the damage to four New Orleans grain elevators and port operations that closed over the weekend in preparation for the hurricane, said spokeswoman Jackie Anderson.
"ADM has a huge transportation network and we are making alternative shipping arrangements if necessary to meet customer needs while we handle this difficult situation," she said in an email.