Congestion Problems In Rouen
The port of Rouen handled 6.35 MMT of grain in 2008, according to it's website (here), but congestion is causing problems in France's leading grain port I hear.
The recent decision by the world's leading wheat importer, Egypt, to only accept vessels of 60,000 MT panamax size is a major problem for Rouen as it can't accommodate vessels that large.
Things have got so bad that the leading grain storage facility at the port, the Senalia silo, is full and has stopped taking further deliveries of grain.
That potentially leaves the grain trade with a major headache, as Senalia is the sole delivery point for Euronext milling wheat futures.
What happens if you want to make delivery but they haven't got the room? That certainly might cause some erratic behavior with the January future over the next few weeks until the situation is resolved.
The recent decision by the world's leading wheat importer, Egypt, to only accept vessels of 60,000 MT panamax size is a major problem for Rouen as it can't accommodate vessels that large.
Things have got so bad that the leading grain storage facility at the port, the Senalia silo, is full and has stopped taking further deliveries of grain.
That potentially leaves the grain trade with a major headache, as Senalia is the sole delivery point for Euronext milling wheat futures.
What happens if you want to make delivery but they haven't got the room? That certainly might cause some erratic behavior with the January future over the next few weeks until the situation is resolved.
