Low Mississippi River Levels Pressure Grain Barge Movement

Farmers face tighter barge capacity and higher freight costs during peak harvest.

Mississippi river MS _adobe stock

Adobe Stock

NASHVILLE, Tenn. (RFD-TV) — Low water on the Mississippi River System is once again disrupting harvest logistics, reducing barge capacity at a critical time for U.S. grain exports. Following an unusually dry August in the Ohio River Basin—the driest on record—tributary flow into the lower Mississippi has dropped sharply.

Gauges at Cairo, IL, and Memphis, TN, are hovering just above low-water thresholds, prompting restrictions by the U.S. Coast Guard and dredging operations by the Army Corps of Engineers to keep navigation open. Restrictions now limit tow sizes and draft depths, cutting efficiency for both southbound grain and northbound fertilizer shipments.

The USDA projects record U.S. corn production this fall at 427 million metric tons, with exports expected to reach 75.6 mmt. Year-to-date sales are running 46 percent above average, with Mexico, Japan, and Colombia leading buyers. By contrast, soybean export sales are down sharply, as China has yet to finalize purchases, although soybean meal exports are expected to reach record levels.

Barge freight rates out of Cairo and Memphis have risen 31 percent over the past month but remain well below the extreme highs of 2022. Analysts note that lessons learned since then, combined with lower soybean export volumes, have tempered rate spikes. Still, strong corn exports and any rebound in soybean demand could add pressure if river conditions deteriorate further.

Farm-Level Takeaway: Farmers face tighter barge capacity and higher freight costs during peak harvest. Strong corn exports may further strain logistics if low water levels persist, although weaker soybean exports are currently tempering rate spikes.
Related Stories
A fast-moving series of trade signals from the White House and key partners is resetting the near-term outlook for U.S. agriculture.
Stay alert for trade announcements—especially border reopening timelines, tariff threats, and developments in Brazil’s export flows.
Margin Protection and the new MCO add county-level margin tools — with earlier price discovery, input cost triggers, and high subsidy rates — to complement on-farm risk plans for 2026.
Set targets and use forwards, futures, or options to manage downside while preserving room for rallies.
Bangladesh’s buying surge offers temporary relief for U.S. farmers facing weaker Chinese demand, highlighting how global politics can reshape export outlets overnight.
American Farm Bureau Federation (AFBF) economist Bernt Nelson provides an updated outlook on the current U.S. cattle market.
Sen. Roger Marshall explains which types of beef are imported into the United States, how there’s room for new imports, and logical reasons for current high prices.
Record Australian exports and rising U.S. imports reflect continued tight domestic cattle supplies — a reminder that herd recovery remains key to balancing future beef prices.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Fair market value shapes taxes, transitions, lending, and sales, making accurate valuation essential for long-term planning.
SDRP Stage 2 now helps producers recover shallow, uninsured losses from major 2023–2024 disasters, with streamlined sign-ups open through April 30.
Tyson’s capacity cuts weaken local basis, tighten kill space, and heighten dependence on imports, signaling more volatility for producers.
Low farmer shares reflect deep consolidation across the food chain, keeping producer returns thin even as retail food prices remain high.
Strong yields and higher cattle prices helped stabilize conditions, but weak crop prices and rising carryover debt remain major challenges for Eleventh District farmers.
Corn exports remain strong, while soybeans and wheat shift week to week on river conditions and global demand.