Commercial Grain Stock

AAA

DEFINITION of 'Commercial Grain Stock'

The current amount of harvested grain crops stored domestically, including both on-farm and off-farm storage sites. The USDA reports quarterly on the amount of grain stocks in storage and includes corn, soybeans and wheat. The amount of commercial grain stock is relevant for the supply of these grains, which are used in a large array of food products. Even meat products can be affected by the supply of grains, since grains are often used in animal feed.

INVESTOPEDIA EXPLAINS 'Commercial Grain Stock'

It is nearly impossible to actually measure the inventory of grain stock stored throughout the nation, so the figures reported by the USDA are estimated based on a variety of data inputs. The USDA also analyzes the grain stocks of other countries, so as to develop a worldwide view of grain supply which can then be matched with demand.

RELATED TERMS
  1. Basis Grade

    The minimum accepted standard that a deliverable commodity must ...
  2. Public Elevator

    A grain elevator that, for an associated fee, stores the bulk ...
  3. Approved Delivery Facility

    A facility authorized by an exchange to be used as a location ...
  4. Terminal Elevator

    A large pulley system, typically found at distribution centers, ...
  5. Certificated Stock

    The stock of a commodity that has been inspected by qualified ...
  6. Exchange Traded Derivative

    A financial instrument whose value is based on the value of another ...
RELATED FAQS
  1. How is fair value calculated in the futures market?

    The fair value is the theoretical calculation of how a futures stock index contract should be valued considering the current ... Read Full Answer >>
  2. What are the major types of insurance policies that insurance companies will offer?

    The principal commodities used in producing chemicals are oil, natural gas, coal and a wide variety of metals and minerals. ... Read Full Answer >>
  3. What is the difference between speculation and hedging?

    Speculators and hedgers are different terms that describe traders and investors. Speculation involves trying to make a profit ... Read Full Answer >>
  4. What is the difference between underwriting and investment income for an insurance ...

    Underwriting and investing are two different methods an insurance company uses to generate income. The underwriting income ... Read Full Answer >>
  5. What are the benefits of using open interest as an indicator?

    Open interest is a good technical indicator of trends and trend reversals for derivative securities markets. The open interest ... Read Full Answer >>
  6. How can I profit from a decline of stock prices in the insurance sector?

    Some of the methods of profiting from a decline in the insurance sector are shorting insurance stocks, shorting insurance ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Harvesting Crop Production Reports

    Find out what grain investors need to know to analyze USDA reports.
  2. Active Trading

    Grow Your Finances In The Grain Markets

    Hedging with futures can protect those who buy and sell commodities from adverse price movements.
  3. Options & Futures

    Trading Calendar Spreads In Grain Markets

    Futures investors flock to spreads because they hold true to fundamental market factors.
  4. Investing Basics

    Understanding Non-Deliverable Forward (NDF)

    A foreign exchange hedging strategy where the parties agree to settle the profit or loss in a foreign currency futures contract before the expiration date.
  5. Investing Basics

    Explaining Currency Swaps

    A swap that involves the exchange of principal and interest in one currency for the same in another currency.
  6. Investing News

    Technology: Increasing Indoor Farming's Efficiency

    Indoor farming has gone high-tech. An increasing number of investors are now sitting up and taking notice.
  7. Investing Basics

    Understanding Notional Value

    This term is commonly used in the options, futures and currency markets because a very small amount of invested money can control a large position.
  8. Mutual Funds & ETFs

    Are These 3 Agricultural ETFs, ETNs a Good Bet?

    Three top tier agriculture ETFs and ETNs to consider when the time is right.
  9. Options & Futures

    How & Why Interest Rates Affect Futures

    There are at least four factors that affect change in futures prices, including risk free-interest rates, particularly in a no-arbitrage environment.
  10. Options & Futures

    An Introduction To Trading Silver Futures

    Silver Futures are becoming popular trading instruments. Here is a primer on how to trade them.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center