Home > News > April and May Margin Calls Create Grain Elevator Panic

Grain elevators experienced challenges in April and May — at one point with corn prices increasing $1 in just two weeks. Reports state as prices continued to climb, some elevators were left in a more dire situation when margin calls started. According to some marketing analysts, some elevators faced margins in the millions, leading to some banks considering not extending lines of credit. CME continued to raise the margin requirements, which meant more capital was required with little to no banking options willing to back it. The market has shown signs of calming and the situation has improved, but another upswing could cause similar issues for elevators. See how analysts predict this situation could impact fall harvest.

Subscribe

Be among the first to learn about the ever-changing crop insurance industry by subscribing to the ProAgMessaging system.