By MICHELE F. MIHALJEVICH

Indiana Correspondent

CHICAGO, Ill. — Flooding along the Illinois River has disrupted shipments of corn, leading the Chicago Board of Trade’s (CBOT) parent group to declare a force majeure until further notice.

The CME Group announced this on Feb. 22, saying the move was needed “due to load-out impossibility at a majority of corn regular shipping stations on the Illinois River. Such shipping stations are unable to load due to high water levels and/or flooding.”

A force majeure – a legal term deriving from French meaning “superior force” – is any circumstance “which is beyond the control of the buyer or seller and precludes either party from making or taking delivery of a product or precludes the Exchange from determining a final settlement as provided for in Exchange rules,” according to the CBOT rule book.

Circumstances include an act of God, strike, lockout, blockage, embargo, governmental action or terrorist activity.

According to CBOT rules, shippers should load at the shipping station designated in the shipping certificate. If loading at the designated station becomes impossible for three consecutive business days due to circumstances beyond the control of the shipping station, the shipper may opt to load at another regular shipping station.

If a majority of other shipping stations are also unavailable, shipment may be delayed for the number of days loading is impossible at a majority of regular shipping stations.

The high water along the Illinois River halted barge loading and sidelined the towboats that haul Farm Belt crops to Gulf Coast export terminals, said Matt Connelly, a grain analyst with The Hightower Report of Chicago.

“The flooded waterways sent cash premiums for corn barges delivered to Gulf Coast terminals soaring,” he said on Feb. 23. “Rates hit peaks (Feb. 22) that have not been seen in 18 months, as exporters scrambled to secure enough grain to top off vessels bound for overseas markets.

“Barge lines suspended operations on northern sections of the Illinois River, with water levels already near record crests or forecast to reach those levels by the weekend.”

The National Weather Service (NWS) issued flood warnings last week for several counties along the Illinois River. The river was 24 feet Saturday evening at Peoria; flood stage is 18 feet. The river was expected to crest near 25 feet Monday afternoon, the NWS said.

West of Springfield, the river was at 19.4 feet at the La Grange Lock and Dam Saturday evening. The river was forecast to crest to near 26 feet later this week; flood stage is 23 feet.

The flood warnings were expected to continue into this week.