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Several days of heavy Midwest rain pushed the Mississippi and Ohio rivers above flood stage. Shippers have cut barge tow sizes or sidelined vessels because of fast currents, halting grain barge movement from much of the farm belt to Gulf export terminals that handle about 60% of US corn, soybean and wheat exports.
Stalled barge traffic delays grain reaching Gulf export positions, which widens Gulf basis and raises barge freight. Interior cash bids tend to weaken while the backlog persists.
reuters.comKarl PlumeApr 7, 2017Not enough comparable past events yet for a historical read.
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.
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.
