CFS'S ROLE IN GRAIN SUPPLY AND EXPORT SUCCESS
Kevin Schweer, Lead Grain Merchandiser
For the past four years, the western corn belt has faced tight corn supplies due to droughts, flooding, and strong demand from Canada and Mexico. Fortunately, Southern MN and Northern IA have consistently produced good crops during this time, allowing them to provide grain to areas in short supply. CFS is well connected to the world marketplace with access to the UP and Canadian Pacific railroads, enabling us to be part of the solution to their supply problems. Three years ago, Delavan and Welcome grain locations shipped corn trains on the Canadian Pacific Railroad to Alberta, Canada, after the region experienced its worst drought in over 30 years. Due to droughts in Nebraska and Mexico for the past two years, Randolph and St. James grain locations have sent trains to Mexico and the Western United States. These rail connections create a marketplace for exportable grain surplus and help maintain competitive grain prices. Corn and soybean processing plants must keep their bids high enough to prevent excessive grain exports, ensuring grain stays in the area to meet local demand.
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