Day by Day Use

Published on: 14:35PM Jun 18, 2010
Fundamentally Allendale Inc could say the world day to day use for corn is trending higher with wheat flat. As you are able to view the chart, corn use looks impressive as it has the largest day to day use and has cracked 2.50 million metric tonnes (98.4 million bushels) projected for the 2010/11 marketing year.  
As you can view the 2008/09 market year had negative growth of 1% for corn vs the year prior but able to pick up 3.4% growth in the 2009-10 market year.
            Impressive is the 7.8% growth in the 2009/10 growth for world soybean use after a disappointing 4% negative growth in the 2008/09 vs year previous. The year to year minimum growth rate for world soybean use has been 4% with exception of 2008/09. Since 2005/06 to 2010/11 marketing year the daily use of soybeans has grown by 20% while corn has gown by 16.6% and wheat by 9%.
            Interesting is how the world population from 2005 to present day has grown by 5.8% according to statistics from the US Census Bureau. Demand for the starches and protein is outstripping world population growth.
            Allendale Inc anticipates the trends most likely to continue for the next five years with the rate of growth annually to favor soybeans and be able to crack the 1 MMT level for the 2013/14 market year. During the same marketing year look for corn demand to be 2.76 MMT. The annual rate of growth for wheat is likely to overshadow by the lack of change in diet even with world population increasing. As a matter of fact there is a college within the northwest which is analyzing with promise to add distiller’s grains within wheat for baking purposes. Just what the wheat does not need at a time when world end stocks to use of 24.7% are at its highest levels since 2001 and USA end stocks to use of 46.8% are at its highest level dating back to 1987.
Allendale Inc believes the long range demand use day by day rest with the soybeans and then corn with wheat coming in a distant third. You will need to analyze your economic return per acre on an annual basis and what ever you do, do not give up complete control of you production and stocks. Allendale Inc can customize the marketing plan which best benefits your particular business.
We welcome your questions.........Joe Victor
Allendale Inc welcomes any questions you may have by calling 800-551-4626 or
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