Cash Market Moves

Every year, around the end of November, all the empty barges have been previously moved out of downtown St. Paul as the shipping season ends for the winter. For those of us who are "river rats," it is always a sad time knowing they won't be back until spring in downtown St. Paul.

On Dec. 2, the U.S. Army Corps of Engineers, St. Paul District, noted on their website they saw the last barge of the year, the Motor Vessel Ashley Danielson, depart Lock and Dam 2, Dec. 1, at 11:48 a.m. CST, ending the 2024 navigation season on the far Upper Mississippi River (UMR).

"While we say goodbye to the 2024 navigation season, St. Paul District staff are busy this winter with maintenance projects scheduled at Locks and Dams 7 and 9 for miter gate anchorage bar replacement, Lock and Dam 2 for guidewall repairs and Locks and Dams 5 and 5A for gate maintenance," said the Corps.

The St. Paul District navigation program provides a safe, reliable, cost-effective and environmentally sustainable waterborne transportation system on the Upper Mississippi River for the movement of commercial goods and for national security needs. To do this, the district maintains a 9-foot navigation channel and 13 locks and dams from Minneapolis to Guttenberg, Iowa.

American Commercial Barge Line notes in their winter closure schedule the final loading date at Dubuque -- South (UMR 580-521) was Sunday, Dec. 1. At Clinton, Iowa -- South (UMR 520-240), final loading date was Sunday, Dec. 8. They also said, "Lock 25, mile 241, will sustain a total river closure for repairs 1/1/25-2/28/25. This will only impact Lock 25 -- North on the Upper Miss above St. Louis. The Illinois River mouth is below Lock 25 so no impact to Illinois River. Additional full lock closures for remediation may be scheduled for the last-half of December, TBA."

USACE Rock Island said on their website that Lock & Dams 16, 18, 19 and 20 are scheduled to close Dec. 30 for the winter.

During the winter months, there is little to no traffic moving upriver from St. Louis. In the far UMR St. Paul District, the winter shutdown is always the first as ice starts to form and especially in Lake Pepin, located between the Minnesota cities of Red Wing and Wabasha. It is the last part of the river to break up (ice) in the spring because the river is wider, and subsequently, the current is slower there than it is in other parts of the river.

In 2023, the navigation season started on March 16 when the Motor Vessel Joseph Patrick Eckstein pushing 12 barges passed through Lock and Dam 2. The weather was unseasonably warm in Minnesota last year and in fact, the Corps didn't hold their annual ice measurement because Lake Pepin ice was less compared to recent years.

LOWER MISSISSIPPI RIVER FALLING

Meanwhile, in the Lower Mississippi River (LMR), river levels are falling again. On Sunday, Dec. 8 levels at St. Louis are at -2.86 feet below zero gauge and at Memphis, the river level is at -4.04 feet below zero gauge. As for current forecasts, those levels at both cities are expected to hover around current levels for the next week.

However, some draft restrictions have been put in place with some placing 10'0' drafts from St. Louis to Cairo and 9'6' in the St. Louis harbor. So far, barge rates have been steady in most segments with most of the interest showing for January 2025, forward.

CIF soybean basis has been strong recently and shows a slight carry to January, with CIF corn basis not doing much, but does show a carry into January. Basis at St. Louis for soybeans is pretty flat, and one exporter is showing St. Louis corn basis with a carry from Dec. to Jan. and Jan. to February 2025.

That could all change if river levels get lower and barge freight goes higher because of it.

Mary Kennedy can be reached at Mary.Kennedy@dtn.com

Follow her on social platform X @MaryCKenn

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