Thursday, July 14, 2016

Grain exports should be high this year

The railroads should need to move a lot of grain this year. Since oil and coal are down and BNSF has been adding track, hopefully the North Dakota railroads won't have the meltdown that they had in 2014. They gave priority to oil and screwed the farmers and elevators. I read an article that farmers in that area are trying to get grain processing plants built in their area so that they are not depending on the railroads to get their grain to some markets. Of course ethanol plants normally need a railroad to handle their tank cars of product. But an ethanol plant probably ships fewer tank cars than covered hoppers of corn to make that ethanol. And dumping dried distilled grains on the ground to rot would be less loss than leaving corn in the field to rot.

The increase in exports is also good news for elevator operators because I read an article that they are worried about where they will store the third bumper crop in a row. I have been posting examples in the other blog of elevators expanding with ground piles to handle two years of bumper crops.

TGM Grain
For example: Andersons Grain, Cargillan ethanol plant, another ethanol plant, CGB1CGB2.

No comments:

Post a Comment