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The Mississippi River is at record low levels along a 270-mile stretch, with a short bump expected from Hurricane Roslyn's rains. Drought across the US has cost more than $9 billion this year, and a third La Niña winter is forecast to keep the watershed dry.
Low water restricts barge drafts and capacity on the key grain export corridor, raising freight costs and widening Gulf-versus-interior basis, which weighs on farm-gate corn and soybean prices.
yaleclimateconnections.orgJeff Masters, Bob HensonOct 24, 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.
