Grain Balance Sheets
The grain balance sheets can be thought of as a commodity counter-part to financial balance sheets that center on the supply and demand for money that is available to a business, an individual, or other institution, and how much will be left after all demands for funds are met. The financial balance sheets focus on assets, liabilities, and net worth. In commodities, the focus is on available supplies, various sources of demand, and carryover stocks that are left at the end of the marketing year after all demands have been met.
With the rapid expansion in the ethanol industry, the profitability of converting corn and soybean oil to biofuels depends heavily on available supplies and other demands for these crops. Impacts of biofuels demand growth on other users of corn and soybeans also depends heavily on this same information. With the expansion in the biofuels industry and with government mandates that call for expanding production of corn-based ethanol as well as biodiesel through 2015, it is important to examine grain balance sheets from a multi-year perspective. A multi-year perspective is shown in our latest balance sheets for corn and soybeans. We will monitor supply/usage conditions and keep the balance sheets updated.
Robert Wisner, retired biofuels economist, email@example.com