Market Morsel: Corn to fight wheat.

Market Morsel

In Australia, there isn’t a public stock recording of grain like there remains in the United States. In the United States, they launch quarterly stock details on grains for both on and off-farm.

The chart listed below programs the United States corn stocks from 2000 to today. The United States corn stocks are at 12.16 bn bushels. This is up 12.5% from the exact same duration in 2015. This is a big boost in stocks, positioning them at the greatest level considering that 2018 and the 3rd biggest on record.

We grow really little corn in Australia, so why does it matter what occurs with corn stocks?

Product markets do not run in seclusion. What takes place in one product can have an influence on another. This is particularly the case with corn and wheat.

Taking a look at the charts listed below, we can see the cost of wheat and corn. The truth is that they follow one another really carefully. This is since corn and wheat have comparable use.

What do these high corn stocks imply? If stocks of corn stay high, then that can have an unfavorable effect on wheat rates.

As we move into 2024, corn will continue to have a significant effect on wheat rates.

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