Mississippi River Grain Freight Rates Fall

Downbound Mississippi River grain barge freight rates were 29 percent below the five-year seasonal average as of October 18, with improved river conditions supporting grain movements toward Gulf export terminals, according to Precision Feed, a data-driven feed ingredient procurement platform that helps producers, nutritionists and suppliers optimize animal feed sourcing, formulation and procurement decisions.

Rates out of St. Louis, Mo., reached $28.86 per ton, down $1.42 from the previous week and below the five-year seasonal average of $40.69 per ton, according to U.S. Department of Agriculture Agricultural Marketing Service data.

The report attributed the softer market to fall rains that helped stabilize river levels and reduce the risk of low-water navigation restrictions, along with an ample supply of empty barges. Rates also declined at other points across the inland waterway system. South of Cairo, Ill., freight fell $3.14 per ton to $19.51.

Lower freight costs can decrease the cost of moving grain to Gulf export terminals, potentially increasing competition between exporters and interior grain processors for supplies. Precision Feed also pointed to potential effects on dried distillers grains with solubles (DDGS), a feed ingredient produced by ethanol plants. The report said softer barge freight rates and export demand could influence regional co-product availability and prices.

Market participants continued to monitor river conditions and seasonal navigation constraints, particularly on the Upper Mississippi River, where winter conditions can limit navigation later in the year.