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Drought and record-low Mississippi River levels have cut barge loads and forced smaller tows, raising river capacity costs. Barge spot rates in St. Louis reached $106 per ton in mid-October against a historical norm near $20, then eased to $88.
Forward rates also stayed elevated.
Reduced barge capacity and high freight rates lower the net price elevators can pay farmers for soybeans and corn in the Corn Belt. Export competitiveness at the Gulf also suffers.
ajot.comPeter BuxbaumDec 21, 2022Not enough comparable past events yet for a historical read.
After 297 past bearish logistics events, SOY moved a median +0.3% over 5 sessions (54% higher; middle half -1.5% to +1.8%), and +0.7% 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.
