Harvest activity across the Corn Belt, along with transportation issues on Midwest rivers have combined to create a perfect storm of seasonal price pressure in the corn and soybean markets. Seasonal-related hedge pressure is expected every year as harvest activity picks up. But this year’s low water levels on the Mississippi and Illinois rivers due to a lack of summer rainfall and a temporary closure of the Ohio River for emergency lock repairs added to the seasonal pressure. The result has been a surge in barge freight and a plunge in interior corn and soybean basis.
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