The 2005/06 South Dakota Grain Marketing Patterns Study: A Grain Elevator Survey Report

Bashir A. Qasmi, Yonas Hamda and Scott Fausti

No 60463, Economics Research Papers from South Dakota State University, Department of Economics

Abstract: This study reports the results of a survey of grain elevators in South Dakota completed in 2007 and focuses on the marketing patterns for spring wheat, winter wheat, oats, barley, corn, soybeans and sunflower seeds for the marketing year 2005/06. During the year, elevators’ market share in South Dakota was 54%, 83%, 91% and 83% for corn, soybeans, spring wheat, and winter wheat, respectively. Contrary to reports for Iowa and Indiana, the increase in ethanol production in the state did not have an adverse impact on elevators’ market share for corn in South Dakota. In terms of volume, cash purchase, delayed pricing, cash forward contracts, and hedge to arrive contracts, collectively, accounted for more than 95% of each of the grain and oilseed purchased by the responding elevators during the year. The three most commonly used methods for grain sales were cash sales, cash forward contracts and basis contracts, collectively, accounting for more than 95% of each of the grain and oilseeds volume handled by the responding elevators during the year. Shipments to out-of-state locations accounted for 38% of the corn and 79% of soybean shipped by all Elevators in South Dakota. Both rail and trucks are important modes of transportation for shipping South Dakota grains.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 63
Date: 2010-02
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sdsurp:60463

DOI: 10.22004/ag.econ.60463

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