The credit crisis is spilling over into the grain industry as international buyers find themselves unable to come up with payment, forcing sellers to shoulder the losses.
Before cargoes can be loaded at port, buyers typically must produce proof they are good for the money. More deals are falling through as sellers decide they don’t trust the financial institution named in the buyer’s letter of credit.
“There’s all kinds of stuff stacked up on docks right now that can’t be shipped because people can’t get letters of credit,” said Bill Gary, president of Commodity Information Systems in Oklahoma City. “The problem is not demand, and it’s not supply because we have plenty of supply. It’s finding anyone who can come up with the credit to buy.”
So far the problem is mostly being felt in U. S. and South American ports, but observers say it is only a matter of time before it hits Canada.
[Read](http://www.financialpost.com/story.html?id=866522 “Read the Article”) (The Financial Post)
