There is growing concern that storage capacity for fall-harvested crops will fall well short of the need. University of Illinois Extension marketing specialist Darrel Good estimates Sept. 1 stocks of the six major crops at about 3.91 billion bushels. Add to it the USDA forecasts of 16.154 billion bushels of corn, soybeans and sorghum and it totals a bulging 20.064 billion bushels.
Good adds that the USDA-estimated total on-farm and commercial storage capacity as of Dec. 1, 2006 is 20.4 billion bushels. Even with the additional shortage added this season, it projects total national storage to be at 98 percent of capacity come harvest. And, that’s assuming there is a near perfect match-up between where the stocks are and where the storage space is, which hardly ever happens. Storage will likely be at a very stiff premium this fall.
Source: Doane’s Agricultural Report