Elevators expected to see record cost of carry in ‘23

A new report from CoBank shows that the cost of storing grain for elevators has hit record highs and that’s a mixed bag for the ag industry.

Economist Tanner Ehmke tells Brownfield higher interest rates, in addition to more expensive labor, transportation and energy will force elevators to lower bids and widen basis. “Although you may see for instance rising prices on the CME in futures markets, what you may see in your local cash market is your local basis may be slow to follow any rise in futures markets.

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