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Grain supply to clash with rail demand this fall

28/10/2014

The basic business principles of supply and demand are going to be facing South Dakota farmers and grain elevators this fall. A record crop outlook and a shortage of railcars are set to collide in the next few months. Some blame increased production along the North Dakota oil fields for the railroad congestion. Another theory is train traffic is backlogged because of last year's harsh winter. Others claim the problem can be traced back to a reduction in train traffic during the recession.