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Tariff War Scrambles Trade Routes

Pacific Northwest route replaced by southern flow to Gulf

Current trade tensions are shifting the flow of crops within the U.S., changing pricing patterns and boosting how much of this season’s bumper crop needs to be stored, reports Bloomberg.

Traders shipping soybeans through the Pacific Northwest, a key export hub to China, are now diverting supply from that route south to the Gulf of Mexico, where the product can be shipped to countries including Iran and the European Union.

Corn flows are also changing, with some elevator owners shipping more of the grain to make space for soybeans.

Soybeans that usually get sent by rail to the Pacific Northwest ports for export are now moving by train to areas near the Mississippi river, where they get put on a barge to the Gulf.

Read the full report at Bloomberg.

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