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NPR interviewed economist Alan Barrett about low Mississippi River water levels, which have reached levels at Memphis below 1988 lows. Barrett said fewer bushels per barge and fewer barges per tow, now about 25 versus a normal 40, are raising freight costs.
He warned this could add to consumer inflation.
Shallower drafts and smaller tows raise the per-bushel barge cost, which pushes down interior grain bids and raises feed ingredient delivery costs. The effect on feed buyers is higher freight-driven costs rather than an outright supply shortfall.
npr.orgAyesha RascoeOct 30, 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.
