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Major river shippers, including ADM's ARTCo unit, warned that low Mississippi River water could again reduce barge capacity and loading this harvest season. The St. Louis gauge was 6 feet above zero stage on August 18 but was forecast to fall below zero.
Reduced barge capacity and smaller tows raise freight costs and can cut export volumes, pressuring Gulf basis and Midwest cash bids while lifting barge freight rates.
farmweeknow.comTIMOTHY EGGERT FarmWeekAug 22, 2023Not enough comparable past events yet for a historical read.
After 359 past bearish logistics events, Corn moved a median -0.3% over 5 sessions (44% higher; middle half -1.5% to +1.5%), and -0.5% over 20.
After 297 past bearish logistics events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.5% to +1.8%), and +0.7% over 20.
After 137 past bearish logistics events, Wheat (SRW) moved a median -0.3% over 5 sessions (44% higher; middle half -2.2% to +1.0%), and +0.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Shipper warnings of reduced barge capacity and forecast of the St. Louis gauge falling below zero raised expectations of scarcer barges ahead of harvest, feeding freight rates.
