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Veteran Advisor

U.S. Grain Storage Shortage Explodes

We all have been talking about it, a lot of even witnessed it this fall. The small, yellow ski slopes that are popping up around the Corn Belt are getting bigger.

Jessie Scott, Agriculture.com editor, lays it all out in this nice piece.

 

Full Story:   Grain Storage Shortage Expands

 

What are you seeing (provide pics if you have them) in your neighborhood? More importantly, what's  being said about your local basis?

 

Thanks,

 

Mike

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6 Replies
Veteran Advisor

Re: U.S. Grain Storage Shortage Explodes

This is a good overview by Jessie with lots of convincing input from our own Ray Jenkins.  What Ray says is what I saw flying over the western half of Iowa a couple of weeks ago.

 

His explanation of the storage problem in Kansas is clear and simple to understand.  No fancy math needed when farmers both grow a huge wheat crop and switch from 50 bushel wheat to 150 bushel corn.  When one is on the back side of that power curve it is not hard to understand why one can be at full power and still dropping like a rock.

 

It doesn't take long for farmers to learn to build bins, but it may take longer for them to learn to market from their bins.  

 

 

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Advisor

Re: U.S. Grain Storage Shortage Explodes

there is no storage shortage.

if folks want to store more over production perhaps they should build more bins.

 

maybe if production was Less, users would operate "hand to Mouth " thus markets just are better then because production is CURRENT to USE.

 

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Veteran Advisor

Re: U.S. Grain Storage Shortage Explodes

Sounds like you are advocating sell off the combine at harvest.

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Veteran Advisor

Re: U.S. Grain Storage Shortage Explodes

Pop !!

That is me letting the air out of the story

First, there are areas where dumping
On the ground is "normal"

Second don't know where you are finding a significant amount of 150 bu plus. OEM
In Kansas

Lastly, they can use a bunker system rather than just
Doing

Maybe we shouldn't be so hard on the traders, look at the dribble they are being fed.
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Honored Advisor

Re: U.S. Grain Storage Shortage Explodes

over simplification......

 

 

lets see     10.50 soybeans and 2.80 corn   -------- beans approach $12 and problem is solved..

 

Also a question ....... what grain is displaced by DDG storage??

 

second question........ How many bushels of storage has OSHA forced out of service in the last 10 years??

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Honored Advisor

Re: U.S. Grain Storage Shortage Explodes

Thanks for the input on that article Ray J.

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