Stocks-to-use ratio
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The stocks-to-use ratio (S/U) is a convenient measure of supply and demand interrelationships of commodities. This ratio indicates the level of carryover stock for any given commodity as a percentage of the total use of the commodity.
It is typically used for grain commodity stocks such as corn (wheat, barley, oats, maize etc) and soybeans where it can be used to compare both the ending stock, along with the stocks-to-use ratio against previous years, this percentage number is a good indicator of whether current ending stock levels are at historically small amounts to justification for higher prices or plentiful amounts resulting in lower prices.
