Another drought could cause the global grain market to collapse

The drought of the Panama Canal is expected to delay the movement of grain ships in 2024. Grain shippers carrying grain from the U.S. export hub in the Gulf of Mexico to Asia are taking longer routes and paying higher shipping costs to avoid vessel congestion and record transit fees in the drought-stricken Panama Canal. The shipping chaos on one of the world's main sea trade routes comes during the peak season for U.S. crop exports, and higher costs threaten to dampen demand for U.S. corn and soybeans. In recent years, Brazil's attack on American market share has also been a problem. Ships carrying produce have had to wait up to three weeks to transit the canal, as container ships and other more regularly scheduled ships are given the few transit slots available. Analysts say the restrictions could hamper grain shipments until 2024, when the region's wet season could begin to fill reservoirs and normalize shipments in April or May. “This situation is causing significant disruption ...