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Purdue economist Nathan Thompson says Mississippi River gage height at St. Louis was between -2 and +3 feet in October and November 2022, the lowest in five years and well below the normal +10 to +16 feet. At Memphis, levels fell to between -10 and 0 feet.
Barges are loaded below normal levels to improve draft, which raises grain transport costs.
Lower barge loads raise transport costs and widen corn and soybean basis levels, pushing down the local prices farmers receive. Export competitiveness suffers while the river stays low.
michiganfarmnews.comDennis Rudat, Farm News MediaNov 30, 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.
