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Low Mississippi River levels are limiting how much grain barges can carry in Ballard County, Kentucky, during harvest. Granaries pass the added cost to farmers, and one row-crop farmer estimates a 10-cent bean discount would cost him $6,000 on 1,000 acres.
The Soybean Transportation Coalition is pushing for dredging.
Shallower drafts mean more barges are needed per cargo, which raises freight costs and widens basis discounts for farmers. This weighs on farm-gate soybean and corn values even when futures are firm.
wpsdlocal6.comThomas Capps, Jason ThomasonOct 10, 2020Not 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.
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.
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.
