Escalating interest rates are impacting elevators. This results from actions of the Federal Reserve Bank FOMC that has raised the benchmark interest rate by 25 basis points over ten consecutive monthly meetings.  The cost of storage is proportionately higher since the initiation of anti-inflation measures.  Currently, the futures market for major commodities is inverted, further stressing holders of grain. 

Cooperatives are obliged to buy, store and market corn, wheat and soybeans irrespective of market conditions.  Merchandizers are eager to move inventory while customers are reluctant to take delivery until the product is needed to avoid holding charges.

CoBank forecasts that the impact of financing inventory will be evident for the 2023/2024 crop with all three major commodities subject to higher holding costs for both elevators and users.