Latest WASDE Projections Could Affect Transportation Demand and Ocean Freight Rates

In the March World Agricultural Supply and Demand Estimates (WASDE), USDA’s World Agriculture Outlook Board (WAOB) released its adjusted projections for marketing year (MY) 2020/21.

According to the report, since February, estimated MY 2020/21 U.S. soft white wheat exports rose and estimated hard red winter wheat exports fell.

If these adjusted totals are realized, they can incrementally reduce demand for rail and ocean vessels in the Texas Gulf region, while supporting western rail and barge volumes.

Also, since February, estimated MY 2020/21 U.S. corn exports — as well as U.S. soybean and soybean derivative exports — remain unchanged.

WAOB estimates Brazil corn and soybean exports at record levels, which could hasten the seasonal demand for ocean transportation from Brazil, and consequently put upward pressure on ocean freight rates for shipping bulk grain.

This article comes from U.S. Department of Agriculture's March 11, 2021, Grain Transportation Report.

Related Articles:

Sign up here for Grain E-News delivered to your inbox each Thursday.

March WASDE: Wheat, Course Grains, and Oilseeds Projections Mostly Unchanged From February

USDA Holds Corn, Soybean Supply Forecast at Seven-Year Low