Correct! For CME corn meal prices to rise above $5, a bushel “stock to use ratio” needs to drop below 10%.
At the current 12.5% ratio, it would require an increase in demand by 4.1 billion bushels of corn or a reduction in supply by 407 million bushels of corn to adjust the stock to use ratio.
Mike North of Ever.Ag covered this recently during our lunch & learn meetings in January.
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