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Drought has pushed Argentina's Parana River to its lowest level in decades, forcing ships to carry smaller loads and some vessels to run aground. Officials expect exports from the grains powerhouse to slow through at least September.
Higher transport costs are also squeezing soy crushing margins and soymeal production.
Fewer tonnes per vessel raises freight costs and cuts Argentine soymeal supply to world feed markets, which supports meal prices and ocean freight rates.
reuters.comHugh BronsteinMay 28, 2020After 167 past bullish logistics events, Soybean Meal moved a median +0.5% over 5 sessions (54% higher; middle half -1.8% to +2.9%), and -1.2% over 20.
Not enough comparable past events yet for a historical read.
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.
