Western Corn Belt Faces Grain Storage Crunch
Some elevators aren't bidding, others have stopped writing deferred pricing contracts
Storage is at a premium in the western Corn Belt this harvest with a record crop, low grain prices and poor basis due to the ongoing trade war, reports Ag Week.
Basis normally runs 70 cents to $1 per bushel for soybeans in Nebraska, but it is now historically wide and expected to get worse at harvest.
Since most of the soybeans in Nebraska are sold to China, some elevators aren't even bidding because of the uncertainty of the trade war.
Meanwhile, other elevators have stopped writing deferred pricing contracts.
According to the report, grain storage will be at a premium until something changes to improve grain prices