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USDA's Grain Transportation Report says costs for all transport modes have risen, with rail performance hurt by extreme weather and labor shortages. Barge rates have jumped amid the Ukraine war and limited barge supply, while ocean freight and diesel have also climbed on Black Sea turmoil.
USDA expects total US exports of corn, soybeans and wheat to fall 10% in MY 2021/22 from the prior year, with corn and soybean exports boosted by the conflict.
Higher freight and fuel costs widen the basis for US grain sold into export markets and can cut farm-gate prices. Rail and barge constraints also slow shipments, which weighs on export competitiveness.
doi.orgApr 14, 2022After 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.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
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.
