CoachThe WASDE report (World Agricultural Supply and Demand Estimates) is the US Department of Agriculture’s monthly balance sheet of supply, use and ending stocks for the major crops, in the United States and the world. The stocks-to-use ratio is the ending stocks of a marketing year divided by that year’s total use: the buffer the market will carry into the next harvest.
Voorbeelden
Example 9.3 (A stocks-to-use surprise)
A balance sheet with 15.0 billion bushels of use and 1.8 billion of ending stocks has a stocks-to-use ratio of 12.0%. A report that cuts the crop by 300 million bushels, with use unchanged, cuts ending stocks to 1.5 billion: 10.0%. The price must rise until use falls enough to rebuild the buffer the market wants to hold.