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Water levels on the Mississippi River have reached historic lows because of drought affecting more than half the country. Some recent rain brought brief relief, but barge shipping costs remain high.
A Kentucky farmer says moving a bushel down the river now costs $2.50 to $2.90, compared with about 80 cents normally.
Higher barge freight makes US corn and soybeans less competitive in export markets and lowers farm-gate bids, especially in river-dependent regions. The Mississippi carries about 60% of US soy and corn exports, so the cost pressure feeds into basis and export pricing.
marketplace.orgLily JamaliNov 15, 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.
