Improved Market Prospects for U.S. Grain Elevators in 2023-24

Nov 16, 2023

The U.S. grain elevators are poised for a more profitable 2023-24 marketing year, thanks to favorable market shifts. The National Milk Producers Federation's recent annual meeting highlighted the U.S. dairy industry's perseverance and progress, discussing future challenges and opportunities.

Tanner Ehmke, a grains and oilseeds economist at CoBank, notes that despite the current difficulty in acquiring corn and soybean bushels, this challenge is expected to ease early in 2024. Elevated costs and the need for cash for spring planting will likely drive farmers to sell, especially if prices rally.

Inverted futures markets have limited elevator profit-making opportunities in the past two years. As buy basis falls and carries return to futures markets, elevators are considering wider carries and basis levels. Farmers are reluctant to own bushels due to a sharp drop in corn and soybean prices.

CoBank's report also mentions how some elevators are compensating for the lack of bushel ownership through higher storage fees and delayed pricing programs. These strategies have become popular as farmers await price rallies.

The basis for corn and soybeans is expected to appreciate, supported by strong domestic demand and cheaper transportation rates. The global abundance of these grains is likely to limit the rise in basis.

The report highlights the impact of U.S. corn and soybean export programs, international market dynamics, Chinese demand, and South American crop yields on carry and basis.

Video: Dicamba Returns for Georgia Farmers: What the New EPA Ruling Means for Cotton Growers

After being unavailable in 2024 due to registration issues, dicamba products are returning for Georgia farmers this growing season — but under strict new conditions.

In this report from Tifton, Extension Weed Specialist Stanley Culpepper explains the updated EPA ruling, including new application limits, mandatory training requirements, and the need for a restricted use pesticide license. Among the key changes: a cap of two ½-pound applications per year and the required use of an approved volatility reduction agent with every application.

For Georgia cotton producers, the ruling is significant. According to Taylor Sills with the Georgia Cotton Commission, the vast majority of cotton planted in the state carries the dicamba-tolerant trait — meaning farmers had been paying for technology they couldn’t use.

While environmental groups have expressed concerns over spray drift, Georgia growers have reduced off-target pesticide movement by more than 91% over the past decade. Still, this two-year registration period will come with increased scrutiny, making stewardship and compliance more important than ever.