Fall harvests of corn, sorghum and soybean are expected to be high, leaving the Midwest with storage concerns, according to reports. A lackluster demand for the abundant winter wheat crop is causing storage problems as overseas buyers watch and wait as prices fall. With a strong fall harvest on the way, storage will be difficult to come by.
Some grain will be “placed on the ground in some areas,” said Tom Tunnell, executive director of the Kansas Grain and Feed Association. This leads to problems for elevator operators as crops stored in this manner typically have much higher rates of spoilage.
Some winter crops have been stored in Oklahoma where crops have been poor, making storage space available.
Wheat futures on the Chicago Board of Trade are trading around $4.5575 a bushel, down from August’s $5.7725.