Mississippi water levels are so low that barges with reduced loads are still running aground. This is the third consecutive year that limited rainfall has created shipping challenges on the river. This adds shipping costs, making competing in overseas markets more difficult. Nearly two-thirds of U.S. crop exports are shipped down the Mississippi River.

The current shipping costs are about 55% above the average for the past five years. This could become an issue when farmers in Brazil start their harvest in early 2025. Due to a rush of purchases ahead of the November 5 presidential elections, shippers can pass along the extra cost. U.S. corn in the Gulf of Mexico currently averages $197 per metric ton. This is slightly below the price charged at the Brazilian port of Santos.

Current draft restrictions on the Mississippi River translate into barges that have 27% less than a full load. More barges are therefore needed to transport the crops. The water levels tend to be cyclical. However, one rain will not solve the current water level problems.

Read more on how low Mississippi water levels are affecting grain prices here.