Market Matters Blog
Mary Kennedy DTN Basis Analyst

Thursday 09/20/12

Barge Freight Rates Rise

Barge freight on the lower Mississippi rose to 750% over tariff -- its highest price this year on Sept. 18, according to USDA's weekly grain transportation report.

Although grain barge movement was 47% higher than the previous week, it was 24% lower than last year at this time, even with an early start to harvest this year. This is obviously due to traffic problems as water levels on the river remain low. While freight levels have dropped a little this week, we could see them rise again as the latest barge stoppage due to the closure of Lock 27 in Granite City, Ill., will slow traffic considerably.

The secondary rail freight market doubled in price from the previous week for grain shuttles due to the early harvest as farmer selling continues at a steady pace thanks to high prices for all grains. With a record harvest of wheat crops in the Northern Plains, farmers had no room at home to store all their new crop and moved it to market. A promising corn and bean harvest also left the farmer wanting to keep some room for the fall harvest and there have been reports of farmers installing more bin space in North Dakota in recent weeks.

Posted at 11:28AM CDT 09/20/12 by Mary Kennedy
Comments (3)
Sounds bad. Please translate into $/bu. Indiana doesn't tariff just dock! Thank you.
Posted by Sid Paul at 10:36AM CDT 09/24/12
Bin room is not going to be a problem here in the tri state area! Yields really stink. Thought beans would be decent,they are very bad.
Posted by Raymond Simpkins at 7:40PM CDT 09/24/12
The weekly change for the lower Ohio would be $0.042 for corn and $0.045 for soybeans and wheat.
Posted by Freeport IL at 3:10PM CDT 09/25/12
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