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University of Tennessee researchers estimate billions of dollars in economic losses if the Upper Mississippi River and Illinois Waterway were disrupted for a lengthy period. The corridor's 36 aging locks and dams add fuel and labor costs for barge operators.
The risk of prolonged waterway disruption raises the prospect of higher transport costs and basis volatility for US corn and soybeans, a hypothetical but relevant supply-chain risk.
phys.orgTina M. JohnsonNov 2, 2016After 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 206 past bullish logistics events, Soybeans moved a median +0.5% over 5 sessions (56% higher; middle half -1.3% to +2.6%), and +1.4% 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.
