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Louisiana flooding could impact markets
An agriculture economist with Louisiana State University’s Ag Center says the flooding in southern Louisiana could impact grain markets as commodities are delayed moving down the river for export.
Kurt Guidry says they haven’t experienced a significant backlog yet – but they can estimate the potential impact by comparing it to times of recent disasters when delays have been a problem. “Certainly when we have situations like that, it does impact producers,” he says. “It impacts the basis levels that producers see. Basis levels being the difference between futures prices and the local cash price that producers are receiving.”
He tells Brownfield when there is a disruption in the movement of grain – cash prices for commodities typically move lower.
AUDIO: Kurt Guidry, LSU Ag Center
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