PANAMA CANAL FURTHER LIMITS DAILY VESSEL TRANSITS
Due to unprecedented low levels on Gatun Lake, the Panama Canal Authority (PCA) is further limiting the number of daily vessel transits, reaching a low of 18 vessels per day by February 2024. The maximum sustainable capacity on the canal is 38-40 transits. The PCA took several water-saving and conservation measures including reducing transit capacity to 32 vessels since July 30. Additional reductions were announced on Sept. 29. “The recorded precipitation for October has been the lowest on record since 1950 (41% below), and so far, 2023 ranks as the second driest year for the same period”, the PCA said.
As a result, the number of transits will be reduced on the following schedule:
• 25 from Nov. 3-6
• 24 from Nov. 7-30
• 22 from Dec. 1-31
• 20 from Jan. 1-31, 2024
• 18 starting Feb. 1, 2024, until further notice
USDA noted that the reduction in transits coincides with the US grain harvest and rising transportation demand. Reduced capacity on the canal may force the diversion of grain exports from the US Gulf to other routes such as the Suez Canal. The PCA said it encourages vessels to make use of the Transit Reservation system to guarantee a transit date and to reduce the possibility of delays.
(Link: WorldGrain)
FAO CEREAL PRICE INDEX DECLINES
FAO reported on Nov. 3 that its Cereal Price Index declined in October by 1% from the previous month. International rice prices dropped by 2% amid generally passive global import demand, while those of wheat dropped by 1.9%, weighed on by strong supplies from the United States and strong competition among exporters. By contrast, quotations for coarse grains rose slightly, led by maize due to thinning supplies in Argentina. The Vegetable Oil Price Index decreased by 0.7% from September. Soy oil prices rose owing to a robust demand from the biodiesel sector.
(Link: WorldGrain)
