December 2022 > Grain Update

Grain Update

December 13, 2022
United Cooperative has already handled a record amount of corn and soybeans this harvest, and there is a small amount yet to be harvested. We currently have several million bushels of corn on the ground, and with the bean harvest coming in so fast, we also put soybeans outside for the first time as we waited for freight. Wisconsin has been fortunate to produce excellent yields and quality in the past couple of years, while other states and areas have not been as lucky; this gives Wisconsin an opportunity to ship to places it would usually not ship to. Last year, Canada was a common destination for corn; this year, we have seen movement to the southwest. With the Mississippi river water levels at all-time lows, barge freight was traded at record levels. That made for very low river bids at times, and as a result, demand for rail beans was good, and United has been able to move a considerable amount of soybeans to the gulf. 

United Cooperative continues to look for opportunities for new markets and ways to upgrade facilities to handle the crop. We plan to add eight million bushels of new storage next year with additional trackage to handle more cars and larger units. United Cooperative expects these infrastructure investments to add flexibility and much-needed market access to new markets. 

The soybean and corn carryout continue to be tight, and USDA expects corn and bean prices to remain in the current trading range. We see signs that this may not hold as other countries are planning to grow record crops of soybeans and corn to compete in the export arena. Domestic soybean demand will continue to grow as the US builds additional crush capacity to supply the ever-expanding market for Sustainable Aviation Fuel. 

Thank you for your business and the opportunity to serve you. 
 

Al Jentz

Vice President - Grain


 
Posted: 12/13/2022 10:04:04 PM by Samantha Schade | with 0 comments
Filed under: Corn, Grain, Harvest, Soybeans


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