The clock is ticking down for port owners and unions to come to an agreement over labor. The current contract extension expires on January 15th, and a work stoppage could have a major impact on agriculture trade.
Contract negotiations got quite heated back in November. Despite the back-and-forth, the two sides were able to pass a short-term contract until January 15th, but that day is quickly approaching, and the Union is pushing back on automation requests by port owners.
The U.S. Meat Export Federation has been closely watching and says uncertainty is already brewing. Around 45 percent of waterborne U.S. pork exports leave ports that would be impacted by a strike.
Related Stories
Strong rail demand and higher fuel costs raise transportation risk even as barge and export flows stabilize.
Traders say that shift could eventually prompt the USDA to scale back soybean export projections, noting the outlook differs greatly for other grain commodities.
Often overlooked, cotton wholesalers act as stabilizers during market stress, translating fragmented retail demand into workable production programs for mills and manufacturers.
Early indications suggest the U.S. cattle industry may be nearing the end of its liquidation phase. Oklahoma State University livestock economist Dr. Derrell Peel says the industry could be at or near the cyclical low.
Reliable waterways lower costs, protect export demand, and support long-term farm profitability.
USDA Undersecretary for Trade and Foreign Agricultural Affairs Luke Lindberg joined us with a recap of the Malaysia trade mission and a look at USDA’s broader trade strategy moving forward.
