The U.S. is preparing for a record grain harvest this fall, with an estimated 21.5 billion bushels of corn, soybeans, and grain sorghum expected to come in. The massive yield comes amid continued uncertainty over U.S.-China trade relations and slower global demand, creating new challenges for storage, transportation, and marketing across the farm economy.
CoBank’s Knowledge Exchange reports that grain storage space will be under intense pressure this fall, with capacity stretched thin and elevators charging higher fees as infrastructure struggles to keep up with the incoming crop. “Among the top 12 corn-producing states, the U.S. is facing a 1.4-billion-bushel shortage of upright grain storage this year, with elevators relying on bunkers and ground piles,” the report said. That’s a major turnaround from last year, when those same states had 361 million bushels of excess storage capacity.
At the same time, uneven export demand is expected to complicate grain movement, particularly along the Mississippi River, where low water levels have slowed barge traffic and increased freight costs. Rail and trucking networks are also expected to feel pressure as farmers look for alternative ways to move grain.
The combination of record supplies, uncertain exports, and limited storage could add downward pressure to cash grain prices in the near term, especially in regions far from major export terminals. Analysts say the situation highlights the need for investment in U.S. grain-handling and transportation infrastructure as global trade patterns continue to shift.
