Record US grain harvest strains storage, soy exports lag – CoBank

The US is bracing for a record grain harvest totalling 21.5 billion bushels of corn, soybeans and grain sorghum this fall, according to a recent market report from CoBank. The bumper crop arrives during a period of heightened uncertainty surrounding the future of the US trade relationship with China, low export market demand for US soybeans and depressed crop prices. Meanwhile, grain storage and transportation logistics are shaping up to be much more complicated than usual. According to a new report from CoBank’s Knowledge Exchange, grain storage space will be extraordinarily tight this fall with grain merchandisers charging higher fees due to limited capacity and strained infrastructure. While grain elevators stand to benefit from buying cheaper basis and capturing wider carries in the futures markets, the profit opportunities are not without risk. “The challenge for elevators will be prioritizing scarce grain storage,” said Tanner Ehmke, grains and oilseeds economist with ...