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Low Mississippi River could bring market shift

The deputy ag director at the Missouri Agriculture Department says domestic markets might offer greater potential for grain producers along the Mississippi River after harvest.

The Mississippi River is low again with limited barge movement anticipated and a wider basis for ag commodities. Chris Klenklen says farmers might find domestic markets more competitive.

“Typically, the Bootheel of Missouri has the best basis, they’re the closest to New Orleans. But if they’re having trouble getting barges loaded in New Orleans, the elevators down there won’t post a good price,” he says. “This may be a year where they wish they had more chicken feeders than ethanol plants down there, because they might be setting the price for grain.”

Klenklen says Missouri benefits from market diversity in tough times.

“We have a fair amount of grain that goes straight to ethanol plants, biodiesel plants, chicken and pork feeders. We have a great deal of it that can go on a railcar. We have at least 10, high speed loading facilities and we ship a lot of grain to Mexico.”

Klenklen attended the Missouri Drought Assessment Committee’s meeting on Wednesday.