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Issue 23 |
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Prairie Grains is the official publication of the Minnesota Association of Wheat Growers, North Dakota Grain Growers Association, South Dakota Wheat, Inc. and the Minnesota Barley Growers Assocation. |
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Copyright Prairie |
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Historical trends clear: Grain stocks loom large on price
These charts, courtesy of NDSU extension crops economist George Flaskerud, pretty much indicate the same story: When grain stocks increase, grain prices decrease. These charts illustrate the historical effects of the stocks-to-use ratio (grain supply measured against grain demand) and marketing-year ending stocks. The grain-marketing year in the US ends each year on May 31. The amount of grain left unsold and unused is carried over into statistics for the new marketing year that begins on June 1 of each year. Grain stocks that are too large are referred to in the grain trade as "burdensome." And as you might guess, that word is not synonymous with the word "bullish."
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