Year after year of record harvests, combined with less export and ethanol demand could mean elevators won’t have as much space for grain as in previous years.
Ag Professional reports that some isolated areas could even turn grain away, leaving farmers with few options.
On Monday Reuters announced two Iowa ethanol plants will shut down, adding more pressure to those local elevators and farmers who now have fewer options for their grain.
Angie Setzer, vice president of grain for Citizen’s Elevator in Michigan, told Ag Professional she anticipates parts of Illinois, Iowa, Minnesota, North Dakota, Nebraska and South Dakota could have space shortages.
In a related story, the Red River Farm Network reports the lack of an export market out of the Pacific Northwest is causing soybean basis levels in the Northern Plains to widen to $1.50 to $1.70 under November futures.
North Dakota Grain Dealers Association Executive Vice President Stu Letcher told the Farm Network that grain elevators don’t have many options for moving soybeans.
“They have some forward contracted grains they’ve already bought," he says. "They’ll likely take that and move it. The other grain may be a different story. Without a clear road ahead, there’s some hesitation to do more than take the grain they’ve already purchased."
