Market Matters Blog

For the week ended March 30, 250 grain barges moved down river, according to USDA's Grain Transportation report. That's up 1% from last week. However, 363 grain barges unloaded in New Orleans, which was down 8.6% from the previous week. For the week ending March 28, total grain inspections for export were above the 4-week average of the total amount of grain, corn, wheat, and soybeans that were inspected for export from all the major U.S. ports. In the Gulf region, inspections for corn and wheat were slightly higher, but soybean inspections were almost 75% lower than the prior week. Logistics may have played a part in the slowdown as winter weather conditions in the Upper Midwest slowed truck movement to end-users due to poor road conditions. Barge freight cost did not affect the delay as the average freight price through the end of last week was lower and barge companies deemed barge demand as "slow" for the week. Freight in the Illinois corridor through the week ending April 2 was down 11% from the prior week, 19% lower than last year and 30% lower than the 3-year average.

Also hampering movement is the late start to the opening of the Upper Mississippi River season due to ice problems at some of the locks, especially in Lake Pepin. USDA stated that the Army Corps of Engineers considers the season opened when barges are able to pass through Lock and Dam #2 near Hastings, Minn. Standing in the way of traffic through Lock and Dam #2 is Lake Pepin, which is located south of Hastings. As of the end of last week, the ice in Lake Pepin was 20 inches thick, making it impossible for ice breakers to move through the lake to ready it for shipping season. The Corps measures the ice to decide if passage will be safe for barges and until the ice is 8 to 12 inches thick, barges and tows cannot move through the lake. According to USDA, "The opening date varies, but the average for the last 10 years has been March 22. The earliest date was March 4 (in 1984, 2000, and 2001) and the latest date was April 7 (1978)." According to reports in the Winona, Minn., area Thursday morning, the areas south of Lake Pepin are open for business, but elevators north of Hastings will have to wait for the thaw in Lake Pepin to receive any barges. As the accompanying chart shows, 469 total barges moved up river, down 89 barges from the prior week and 30.7% lower than the 3-year average