# Low Water Levels in the Mississippi River Result in Abnormally Weak Soybean Basis

> 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.

- Date: 2022-10-31 · published 2022-10-31T12:00:00.000Z
- Category: logistics · region US · magnitude medium
- Page: https://feedsoft.ai/events/39337-low-water-levels-in-the-mississippi-river-result-in-abnormally-weak-soybean
- Commodities: [Barge Freight (St. Louis)](https://feedsoft.ai/c/BARGE.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

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.

## Read by commodity

- SOY: bearish ▼
- BARGE: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2022-01-27 | [Low Mississippi River water levels impact river users](https://feedsoft.ai/events/16735-low-mississippi-river-water-levels-impact-river-users.md) | +7.3% | +15.4% |
| SOY | 2024-08-28 | [Ep. 7 Low Water Levels on the Mississippi River: Not the Three-Peat We Want](https://feedsoft.ai/events/16514-ep-7-low-water-levels-on-the-mississippi-river-not-the-three-peat-we-want.md) | +4.0% | +8.9% |
| SOY | 2023-09-07 | [Barge rates pressured by low Mississippi River water levels \| Supply Chain Dive](https://feedsoft.ai/events/34291-barge-rates-pressured-by-low-mississippi-river-water-levels-supply-chain-dive.md) | -1.8% | -6.4% |
| SOY | 2024-08-20 | [Low Mississippi River levels expected  to amplify weaker basis at harvest time](https://feedsoft.ai/events/16518-low-mississippi-river-levels-expected-to-amplify-weaker-basis-at-harvest-time.md) | +0.4% | +5.2% |
| SOY | 2022-10-30 | [The Mississippi River is facing low water levels. It could make inflation worse : NPR](https://feedsoft.ai/events/39335-the-mississippi-river-is-facing-low-water-levels-it-could-make-inflation-worse.md) | +4.6% | +5.0% |

## Sources

- southernagtoday.org: https://southernagtoday.org/2022/10/31/low-water-levels-in-the-mississippi-river-result-in-abnormally-weak-soybean-basis/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.