Crop Giant ADM Says Work at Key Grain-Export Terminal Is Delayed

Isis Almeida

(Bloomberg) -- Archer-Daniels-Midland Co., one of the top agricultural commodity traders, said one of its key U.S. grain-export terminals won’t be back online until next year after work to repair the facility was delayed.

Construction at the Reserve terminal in Louisiana, one of the three ADM owns in the Gulf of Mexico region, will be completed in early 2021, the company said in response to questions. Repairs were needed after a third party vessel collision damaged the facility last year.

“High water conditions have impacted the construction time line at our export terminal in Reserve,” ADM said. “We informed customers several months ago that we expect the repairs to be complete in early 2021, and we remain on track to have the terminal back online during that time frame.”

Scroll to continue with content
Ad

The delay means ADM’s Reserve terminal will miss some key months for the American crop-cargo season, with most U.S. soybeans exported from November through January. Gulf ports usually ship about 2 billion bushels a year, according to the U.S. Department of Agriculture.

ADM has two other export elevators in the Gulf region as well as facilities in Texas and the Pacific Northwest “to help us manage export volumes,” the company said, adding that the facilities handle soybeans and other agriculture products including corn and wheat.

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.

View Reactions0