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Mississippi River gage heights at St. Louis and Memphis in October and November 2022 fell to the lowest levels in five years. Barges are being loaded below normal to keep navigable, raising freight costs.
Barge rates spiked to about $96 a ton at the peak, far above the typical range.
Higher barge freight costs widen the gap between Gulf and interior prices, cutting farm-gate corn and soybean basis and reducing the competitiveness of US grain in export markets.
ag.purdue.eduSarah E ZahnNov 23, 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.
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.
