Oct 11, 2021

Grain Industry Adapting to Supply Disruptions

CoBank reports businesses of all sizes and are wrestling with worst supply chain bottlenecks to date

source: CoBank

Entering the final quarter of 2021, the U.S. economy and rural industries seem to be transitioning into yet another phase of the COVID pandemic.

As the delta variant surge subsides, and the economic recovery continues at a healthy pace, businesses of all sizes and across most industries are wrestling with perhaps the worst supply chain bottlenecks to date.

Supply chain disruptions and labor shortages are adding significant costs to business operations, and consumers will feel these effects through higher prices for months to come.

Rapidly rising input costs and product shortages are hitting agriculture particularly hard, as ag commodity prices have flattened and inflation compresses margins.

Robust agricultural exports have kept much of agriculture in the black, however, and credit conditions remain strong as harvest season enters full swing.

Persistent drought in the West and Northern Plains regions pose challenges for the water, power, and agricultural sectors as water shortages have threatened power generation in some areas.

Natural gas prices have also soared, rising more than 150% since April, adding significant costs to many power generators.

And the communications sector continues wrestling with the multi-billion dollar question of who should pay for the necessary investments in rural broadband infrastructure. Wireless users and big tech companies are being called on to contribute more.

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Recently Added to Buyer's Guide

Q-Sage Air Screen Cleaners

  • Separates grain by length and size to specifications
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Vertical Blender

  • For reliable, gentle mixing of friable solids, abrasive materials and shear-sensitive products
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IE-Node

  • Industrial Ethernet Node offers remote monitoring interface
  • Provides sensor data to PLCs or other automation and control systems

GAC® 2700-UGMA

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  • Field proven to work with all leading scale systems

PDDM Planetary Dual Disperser

  • Robust mixer offers unmatched shear intensity, rapid dispersion of dry powders into viscous batches
  • Two stainless-steel high-viscosity “HV” stirrer blades

InSight™

  • Designed to sort grain lots, kernel by kernel, at industrial speed
  • Sorts up to 15 metric tons/hour, which is equivalent to about 125,000 kernels analyzed per second

Magazine

Marketwatch: Aug, 14

US Corn Price Idx: ZCPAUS.CM

open: 6.894
high: 6.9955
low: 6.7606
close: 6.9734

US Soybean Price Idx: ZSPAUS.CM

open: 14.9677
high: 15.1495
low: 14.6316
close: 14.9849

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 8.3063
high: 8.4762
low: 8.1366
close: 8.432

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 7.4954
high: 7.5664
low: 7.3014
close: 7.5356