River system issues offer mixed marketings
Mississippi River backlogs have divided opportunities for farmers within the Corn Belt.
Ag consultant Angie Setzer with Consus tells Brownfield basis levels have widened and are weaker than normal as low water levels along the river system have pressured grain markets.
“You’re seeing a huge dichotomy kind of set up west versus east,” she says. “The Eastern Corn Belt is likely to stay reduced especially if we don’t see this uptick in soybean export demand out of the Gulf going beyond December.”
She says delays have reduced confidence among buyers and added to export costs.
“Chinese buyers have been hesitant to purchase U.S. supplies because they are concerned over whether or not they’ll be able to get access to them,” she explains. “There’s a lot of conversations about what our exports will look December into January.”
She says recent dredging along the Mississippi has increased river movement but offers into the global pipeline at this time aren’t competitive for February and beyond.
Brownfield interviewed Setzer during the Michigan Ag Credit Conference in East Lansing.