Well, it's official.
The latest USDA WASDE report now reports that the world corn stocks-to-use ratio will fall to its lowest levels ever.
Global ending stocks for the 2018/19 season are pegged at 151.96 million metric tons, down 2.73 million from the June estimate and are off 39.8 million or 20.7% from year ago levels and a stunning 75.7 million or 33.3% from stocks two years ago that at 227.66 million was the highest ever.
This new low on the world corn stocks-to-use ratio of 13.97% takes out the previous low of 14.19% seen back in the 2010/11 marketing year.
The U.S. corn stocks-to-use ratio is pegged at 12.4% which is the lowest in five years when it was 10.7%, with the lowest U.S. ratio seen back in the 1995/96 season at 6.7%.
The foreign corn stocks-to-use ratio for the upcoming season is pegged at 14.6% which is the lowest ratio in this regard since the 1973/74 season when they were 12.7%.
The tight global corn stocks-to-use ratio is attributable to a 23 million or 16.5% decline in combined Brazilian and Argentine production and 12.6% drop in combined corn output from Russia and the Ukraine.
Meanwhile global corn usage is estimated at 1.088 billion metric tons, a new all-time high that is 22.0 million or 2.1% above 2017/18 levels.
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