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Low Mississippi River levels have pushed grain barge freight at New Madrid near Memphis to an October average of 2400 percent of tariff, or $75.36 per ton, versus a typical 400 percent. Reduced barge drafts mean fewer bushels per barge, so local elevators are cutting bids.
The article explains the mechanics of how draft loss raises barge rates and lowers soybean basis.
Higher barge rates widen the gap between farm prices and Gulf export prices, pressuring soybean basis at interior elevators. Feed buyers face higher delivered costs for grain sourced from river-served regions.
southernagtoday.orgHunter BiramOct 31, 2022Not enough comparable past events yet for a historical read.
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.
