The Agriculture Department’s dramatic 9 percent cut in the estimate of corn stocks puts the stocks-to-use ratio at the lowest level since the Great Depression, but Agriculture Secretary Tom Vilsack said he believes there will be enough corn for food, feed, fuel and exports.
Joe Glauber, USDA’s chief economist, said corn stocks will remain tight until 2012 and it will take time to rebuild. The stocks-to-use ratio for the 2010-2011 marketing year, which runs through Aug. 31, is estimated at 5 percent, the lowest since 1995-1996. In 1936-1937, during the Great Depression, the stocks-to-use ratio was the lowest ever at 4.5 percent. The average ratio is 13 percent.