Rail Crunch Leaves Oil, Wheat Stranded on Canada's Prairies
- Farmers wait months to deliver shipments to elevators
- Not enough rail cars amid growing demand from other sectors
Photographer: Brent Lewin/Bloomberg
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A shortage of rail cars in Canada is leaving grain and oil shipments stranded on the Prairies, sending crude prices plummeting and leaving farmers in a cash crunch.
The nation’s biggest railways haven’t been able to deliver enough cars after harsh winter conditions and as a sudden boom in energy production sparked a swell of demand. Some farmers have been waiting for months to deliver wheat and canola to elevators before they can get paid. The squeeze also means that crude supplies are piling up in Alberta, pushing prices to the biggest discount relative to New York futures in more than four years.