Canadian Pacific-Kansas City Rail Deal Boosting Grain Sales
USAgNet - 03/25/2021
Canadian Pacific's $29 billion deal to buy Kansas City Southern will create a rail network from Canada to Mexico that farm groups say could smooth the flow of their goods to market.
Reuters reported that the deal, subject to approval by the U.S. Surface Transportation Board, would combine CP's cross-Canada network, which stretches as far south as Kansas City, MO, with its U.S. rival's network, which extends south into Mexico.
Mike Steenhoek, executive director of the Iowa-based Soy Transportation Coalition, said the deal could increase market access for customers of each railway.
"Many current Canadian Pacific customers currently only have access to export terminals in the Pacific Northwest," Steenhoek said in a statement. "Similarly, current Kansas City Southern customers may enjoy new access to markets served by the Canadian Pacific network."
Mexico is a major buyer of U.S. corn and Canadian canola.
- Drought Monitor: West Gets Relief; Dryness Grows in Midwest, High Plains
- Grains Council Reinforces U.S. Quality to Defend Markets in Southeast Asia
- U.S. Dairy Exports Hit All-Time Record in March
- Analysts Explains How Deere Stock Tripled in Past Year
- National FFA Awards $1.5 Million in Scholarships to 974 Students
- Record-Breaking Performance for U.S. Beef and Pork Exports in March
- CME Group Closes Most Open Outcry Trading Pits