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Barge rates on the Mississippi River reached a record $49.88 per ton on Tuesday, up nearly 50% from a year ago, according to a government report. Drought has reduced the river's water levels, limiting how much corn and soybeans each vessel can carry.
Record freight costs cut the net price US farmers receive for grain sold to Gulf export markets, which pressures US corn and soybean basis. Limited barge capacity also slows export loadings.
bloomberg.comKim Chipman, Dominic Carey, Michael HirtzerSep 28, 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.
