skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Crop Demand and Price Development


Key factors affecting the crop protection market are farmer wealth and confidence, 
which are greatly affected by the crop prices and margins that farmers achieve from their crops. Profitability of each crop in a given year influences not only farm solvency, optimal input decisions and preferences on technology, but also the choice of crops that a farmer will produce the next season. Therefore, the development of crop markets and price trends in a season can give a good indication of how the market will progress in the next year.


Crop demand and price development | Agri Futura August 2018

 

One of the widely used indicators for price determination is the stock-to-use ratio (STU), which measures the level of carryover stocks as a percentage of the total consumption. STU has inverse correlation with the price, meaning that if STU goes down, the price goes up. The chart above displays the most recent STU estimates from Informa Economics Group (IEG), a sister organisation to Phillips McDougall, as well as historical data.


Despite higher production, in 2018 STU of maize is expected to decrease sharply, driven by increased industrial and feed consumption significantly outpacing the production growth. Wheat and cotton STU are also forecast to decline, mainly due to lower production along with growing consumption, while rice and soybean STU show a moderate increase. During 2019/20 and 2020/21 the STU for all major crops, except for cotton, are forecast to decline, resulting in higher crop prices...

Login to access the August issue of AgriFutura

Agri Futura is the monthly publication to inform you about the hot topics facing the crop protection and seed industry.

AgriFutura is the newsletter of AgriService, part of Phillips McDougall. If you are not a subscriber, you can take a free demo here.

Crop protection and seed industry | August 2018

What do you need to know? Speak to our team today.

Receive a free demo tailored to your information needs. See how our solutions and expertise give you an advantage.
If you have any questions about our services or would like to know how we can assist your business, please request a callback via the button below. See how our solutions and expertise gives you an advantage.
See how we help organizations around the world gain a competitive advantage through our broad yet expert coverage of the Agribusiness value chain.
If you currently subscribe to any of our services, you can login via the link below and find more information about our full range of services.