My previous articles have mentioned the drought scenarios that are
affecting the Midwest and the Southern Plains U.S. and potentially
impact the current winter wheat and corn & soybean planting next
spring. We have also been monitoring that this same drought
scenario could impact long-term transportation issues for U.S grain and
other commodity supplies as well as consumer prices.
The
Mississippi River is very close to historical lows between the cities of
St. Louis and Cairo, Ill. Barge traffic is already mandated to have
lighter loads than usual, and the middle of the river could be closed to
barge traffic if the water level at St. Louis get under minus-5 feet.
The record low in St. Louis was minus-6.1 feet in January 1940,
according to the National Weather Service. The river was at minus-1.49
feet at 1:30 p.m. on Nov. 26, and may drop to minus-5 or even minus-6
feet as measured by the river gauge in about two weeks if the weather
doesn't change and the Army Corps of Engineers drawdown of the Missouri
River takes place as planned, according to a spokesman at U.S. North
Central River Forecast Center in Chanhassen, Minnesota.
According
to the U.S. Climate Prediction Center, the worst U.S. drought
since 1956, which affected farmland from Ohio to Nebraska, will possibly
last through February in most areas. Mississippi River barges handle
about 60 per cent of the nation's grain exports entering the Gulf of
Mexico through New Orleans, as well as 22 per cent of its petroleum and
20 per cent of its coal. According to AEP River Operations spokesman,
approximately 8 million tons of grain, coal, steel, petroleum and other
goods travel each month between St. Louis and Cairo.
Several
business organizations including the National Association of
Manufacturers, the U.S. Chamber of Commerce, and the American Petroleum
Institute in a letter yesterday to President Barack Obama urged him to
declare an emergency in the region, calling for "immediate assistance in
averting an economic catastrophe in the heartland" of the U.S.
The below chart shows a better depiction of how bad this scenario is.
This
graph shows the river stage at Chester, IL, from January 2011 to
present. The river was actually above flood stage for much of May-July
2011. It dropped from almost 40 feet during that time to 5 feet in
November 2011. Then it fluctuated between 5 and 25 feet, until this
summer when it dropped below 5 feet and into negative numbers in late
September. The latest forecast from the NWS has the river stage reaching
-2 feet by December 10, (more)
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