Soybean’s stock-to-use ratio
Earlier in this series, we discussed the global stock-to-use ratio for corn and how it impacted global corn prices. In this part, we’ll discuss soybean’s stock-to-use ratio and how it impacted soybean prices in November.
The global soybean stock-to-use ratio for soybeans rose 1.3% to ~24.8% in November—compared to 23.5% in October. Unlike corn, the global soybean stock-to-use ratio is lower compared to the global stock-to-use ratio of 26.5% last year.
The global soybean stock-to-use ratio was also lower compared to the past three consecutive years—as you can see in the above chart. We’ll look at the inventory numbers for deeper insight.
Month-over-month, the soybean inventory in November 2016 rose to 81.5 million metric tons from 77.3 million metric tons in October 2016—a 5.4% increase, according to the U.S. Department of Agriculture. Compared to November 2015, the current inventory levels fell 2% from 82.8 million metric tons.
It’s important to track soybean’s stock-to-use ratio for seed investors. About 15% of Monsanto’s (MON) revenue in 2015 came from soybean seeds and traits and ~39.7% of the revenue came from corn seeds and traits. In 2015, about 12% of Syngenta’s (SYT) revenue came from its corn and soybean seeds business.
In the next part of this series, we’ll discuss soybean prices.