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A Mississippi River grain cooperative manager says record low water has forced fewer and lighter loaded barges, requiring 20-25% more barges to move the same grain. Shipping grain from Illinois to the Gulf now costs more than shipping from the Gulf to China.
Rain is projected to raise the river about a foot, but normal levels will take more.
Higher barge requirements and costs widen interior basis and push buyers to other origins, while the extended low-water outlook keeps logistics costs elevated into the winter.
brownfieldagnews.comOct 25, 2022Not 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.
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.
