Grain merchandisers face challenging year ahead

Low volatility, ample inventories and other factors combining to pressure profit margins for grain merchandisers, according to CoBank report.

U.S. grain merchandisers are beginning the new-crop growing season facing significant challenges, according to a new research report by CoBank. Low price volatility, ample grain and oilseed inventories, slow farmer selling and an anemic export program suggest elevators are in for a difficult 2016-2017 season.
 
“With no relief immediately in sight, grain merchandisers will undergo further belt-tightening in the year ahead,” said Tanner Ehmke, senior economist with CoBank’s Knowledg

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