Stocks-to-Use Ratio at All-Time Low
With global grain consumption increasing by an estimated 30 million tonnes annually, the growth in demand has continued to outstrip the growth in production. In seven of the last eight crop years, grain production has fallen short of demand. The United States Department of Agriculture projects that the 2007/2008 crop year will extend the string to eight out of nine years and the world's grain to stocks ratio will reach a record-low of 14.1 percent.
Source: USDA January 2008
Consider that in the US, 2007-2008 ending stocks-to-use ratio for corn, soybeans and wheat is down.
The January USDA crop report reduced the global wheat and coarse grain stocks-to-use ratio to 14.1 percent, an all-time low.
Worldwide stocks remain low – with the USDA estimating 2007-2008 ending stocks as follows:
- Corn stocks to fall from 107 to 101 million tonnes
- Soybean stocks to drop from 62 to 46 million tonnes
- Wheat stocks to fall from 124 to 111 million tonnes
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