Concerns rising about US soybean export volumes as the Mississippi River’s water level falls for a second consecutive year

According to market sources, water levels on the Mississippi and Ohio rivers fell significantly over the past week. The Mississippi is a vital transport corridor from grain and oilseed-producing states to the Gulf of Mexico, a major export hub for US sellers. The water level of the Mississippi River hit record lows in October 2022, significantly impacting barge transportation and reducing the quantities of US grains and oilseeds available for export, as barges were only able to transport half loads to stay high enough in the water.  Dryness across the Midwest has negatively impacted this year’s US soybean crop thus far, leading to crop condition ratings lagging last year’s levels.  The CBOT futures soybean price (Jul-23) settled at USc 1,495.6/60 lb bushels on 14th July, falling 1.5% on the day, following a neutral-bearish WASDE report on 12th July. With the river’s water levels falling for the second consecutive year, this has raised concerns about US export volumes and will likely be a watchpoint for soybean prices due to higher transportation costs, in addition to weather patterns and its impact on crop conditions.