Flooding Cripples Grain Barge Shipments in U.S. Midwest
Grain barge shipping came to a near standstill in parts of the U.S. Midwest on Thursday as recent heavy rain and melting snow swelled rivers, halted barge loading and sidelined the towboats that haul farm belt crops to Gulf Coast export terminals. The flooded waterways sent cash premiums for corn barges delivered to Gulf Coast terminals soaring. Rates hit peaks on Thursday that have not been seen in 18 months, as exporters scrambled to secure enough grain to top off vessels bound for overseas markets, traders said. Barge lines suspended operations on northern sections of the Illinois River, with water levels already near record crests, or forecast to reach those levels by the weekend, according to National Weather Service river forecasts.
CME Lifts 'Force Majeure' at Some Illinois River Locales
The CME Group Inc on Thursday said it lifted the majority of force majeure conditions invoked at corn and soybean shipping stations on the Illinois River earlier this month. Force majeure conditions continue to exist at some exchange-approved corn and soybean shipping stations, which may prevent these facilities from loading, the CME said. Corn and soybean futures are traded on the CME's Chicago Board of Trade. On May 4, the CME declared force majeure due to load-out impossibility at a majority of the exchange-approved regular facilities on the Illinois River due to high water levels and flooding. Reporting by Apeksha Nair
ICE to Offer First US Gulf Coast LNG Futures Contract
With the United States about to become a net exporter of natural gas for the first time in 60 years, Intercontinental Exchange Inc said on Wednesday it would begin trading the first-ever U.S. liquefied natural gas futures contract in May. ICE said the contracts would be cash-settled against the Platts LNG Gulf Coast Marker price assessment and use Platts-derived U.S. GCM LNG forward curves for daily settlement purposes. The curves will have an initial term of 48 months. "Domestic and international market participants now have a risk-management solution that lays the foundation for a more effective means of hedging their spot and forward exposure," J.C. Kneale, ICE's vice president, North American power and natural gas markets, said in a statement. U.S.
CME: Force Majeure for Shipping Stations Due to Floods
CME declares force majeure for corn, soy shipping stations due to floods CME Group Inc declared force majeure for all corn and soybean shipping stations because of flooding on the Illinois River, according to a notice from the exchange operator on Wednesday. A majority of facilities on the river, which are delivery points for crops traded on CME's Chicago Board of Trade, are unable to load crops due to high water levels, the notice said. (Reporting by Tom Polansek; Editing by Marguerita Choy)
