Low Water Levels in the Mississippi River Result in Abnormally Weak Soybean Basis

Low Mississippi River levels have pushed grain barge freight at New Madrid near Memphis to an October average of 2400 percent of tariff, or $75.36 per ton, versus a typical 400 percent. Reduced barge drafts mean fewer bushels per barge, so local elevators are cutting bids.

The article explains the mechanics of how draft loss raises barge rates and lowers soybean basis.