Returning from a recent trip to the Panama Canal, an Indiana farmer says drought in Central America continues to impact global trade. Carey McKibben told Brownfield Ag News that the lower water levels are slowing business with some of the United States’ largest trade partners.
The slowdown is impacting both imports and exports since domestic producers export a lot of corn and soybeans to Peru and Chile. And, in return, those countries send fruits, vegetables, and aquaculture back to the U.S.
This year is the second-driest year on record in the Canal’s history and ultimately became the first year to require trade restrictions due to extremely low water levels.
Currently, only 22 ships are allowed to pass through the waterway each day. The Panama Canal Authority is set to increase that number to 24 on January 16 if weather conditions are favorable.
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Expect choppier basis and wider bids — hedge earlier, keep logistics flexible, and watch Argentina and India headlines for near-term opportunities.
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New U.S. fees on Chinese-owned and built ships took effect overnight, marking the latest escalation in maritime trade tensions between Washington and Beijing.
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President Trump is expected to press Argentina to take a tougher stance on China in exchange for political and economic support.
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Treat storage as risk management and logistics, and budget to break even since export growth is unlikely to absorb bigger U.S. corn and soybean crops.
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“Good flies? Is that like a good fire ant?” Miller said. “I don’t know what a good fly is. I don’t know if they’re afraid to kill house flies or stable flies, but I’m ready to kill the screwworm fly.”
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