Grain Elevators Facing Tighter Margins, Revenue Pressures in 2020

Dec 05, 2019 at 02:42 PM CST
Grain elevators face significant challenges in the year ahead as they buy basis on corn, soybeans and wheat at the highest levels seen in years, according to a new report. CoBank reports basis for the three major grains is significantly tighter across the country from strong end-user bids, limited pipeline supplies, and lack of farmer selling amid an uncertain fall harvest. A CoBank researcher says, “grain elevators are being compelled to offer farmers a range of incentives to sell bushels,” including lower rates on storage, free delayed pricing and free grain drying, all cutting into elevator margins.

Dec 05, 2019 at 02:42 PM CST

Grain elevators face significant challenges in the year ahead as they buy basis on corn, soybeans and wheat at the highest levels seen in years, according to a new report. CoBank reports basis for the three major grains is significantly tighter across the country from strong end-user bids, limited pipeline supplies, and lack of farmer selling amid an uncertain fall harvest. A CoBank researcher says, “grain elevators are being compelled to offer farmers a range of incentives to sell bushels,” including lower rates on storage, free delayed pricing and free grain drying, all cutting into elevator margins.