Mike Steenhoek: Low Mississippi River levels are causing headaches for farmers and could disrupt trade
Cash soybean prices are sitting much lower than just one year ago.
Historically low water levels along the Mississippi River are causing a number of issues for farmers and this market as harvest season pushes on.
With America’s major shipping corridor severely handicapped by low water levels, USDA reports soybean exports are down 32 percent from last year.
Mike Zuzulo, a frequent Market Day Report guest, says the Memphis basis for that crop has collapsed. He is seeing daily moves of around $0.60 because of it, and he has found that demand will be slim. In turn, markets further away from the Mississippi River are also seeing a weaker-than-normal basis during harvest season.
Executive Director of the Soy Transportation Coalition, Mike Steenhoek joined us for a closer look at the situation. He talked to RFD-TV’s own Christina Loren about how this year’s situation compares to last year, the importance of the river for trade, and what farmers can expect moving forward.