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Two University of Tennessee studies, one commissioned by USDA AMS, model the impact of possible closures at Lock and Dam 25 on the Mississippi and LaGrange Lock on the Illinois Waterway. A fall-quarter closure at Lock 25 would cut corn and soybean exports at Gulf ports by up to 5 million tons, or 9 percent.
A full-year closure would cut them by 8 million tons, or 13 percent.
Lock closures would back up interior corn and soybean supplies and widen basis while cutting Gulf export demand, which is bearish for Midwest cash prices. These are scenario studies, so the price effect remains hypothetical.
waterwaysjournal.netDavid MurrayJan 10, 2020After 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.
