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Flooding has trapped dozens of loaded barges on the Mississippi near St. Louis, with river locks shut for weeks and fertilizer unable to reach upper Midwest distribution hubs. Railroads are also delayed by winter weather and western Midwest flooding.
CHS Inc. says rail service may not return to preferred levels until summer, and the disruption threatens corn and wheat planted acreage.
Delayed fertilizer deliveries could reduce corn and wheat plantings, tightening future feed grain supplies, while higher barge and rail costs raise delivered prices. The disruption supports freight rates and fertilizer prices in the short term.
marinelink.comApr 25, 2019Not enough comparable past events yet for a historical read.
After 49 past bullish logistics events, Urea moved a median -0.3% over 5 sessions (45% higher; middle half -1.3% to +2.2%), and -0.4% over 20.
After 285 past bullish logistics events, Corn moved a median +0.1% over 5 sessions (52% higher; middle half -1.5% to +1.5%), and +0.8% over 20.
After 283 past bullish logistics events, Wheat (SRW) moved a median -0.2% over 5 sessions (46% higher; middle half -1.4% to +1.3%), and -0.1% 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.
