Corn Market Trends and Related Dynamics

This blog encompasses information on Corn, including its classification, manufacturing process, industrial usage, price trends, and important players in the market.

Corn: Definition

Corn can be defined as a tall cereal plant of the grass family known as Zea mays or Poaceae which is extensively grown every year for its big, firm, solid and lengthened stem of starchy seeds. These seeds are also called corn which is utilised in the form of food for humans and livestock and as a supply for biofuel and several other useful chemicals.

Corn is also called Indian corn or maise. It is a domesticated crop which originated in the Americas and is one of the most extensively spread-out food crops in the world. The widespread cultivation and demand for corn influence the corn price trend globally.

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The big slender leaves of corn have wavy margins and are spaced consecutively on either side of the stem. In addition, types of yellow and white corn are highly popular products consumed as food items, although there are variations with red, blue, pink, and black kernels that are generally lined, marked, or banded.

Based primarily on the texture of the kernel, commercial categorisations are decided. The basis of the groupings consists of dent corn, flint corn, flour corn, sweet corn, and popcorn. Moreover, corn is the most productive and dominant crop in the world and is rich in dietary fiber and antioxidants.

Corn Production Process

Corn is one of the most resourceful products and has a very high demand across the world, which influences corn production costs. Corn is a tropical and short-day plant (needs 6 to 8 hours of direct sun every day) and grows well in warm, humid weather. The plant is highly susceptible to surplus or shortage of soil moisture and cannot resist frost at any stage of plant development.

In other words, corn plants require just enough water to grow, too much water in the soil can spoil the roots of the plants, and too little water can result in the plants' drying, making it hard for them to produce ears. The soil should have a pH ranging between 5.5 and 7. Corn can develop plants that grow best at 60° to 95°F (16-35°C) temperature.

It may take around 60 to 100 days to attain the harvest based on the variety and the extent of heat it receives during the cultivation season. Corn is an annual crop and a member of the grass family, which grows from 4 to 12 feet tall. In addition, the right fertilisers support the plants to get the required nutrients to thrive; hence, three pounds of fertiliser is used for every 100 square feet of the plant.

Prior to planting corn, the soil is prepared by removing weeds and big stones or other kinds of debris. This process loosens up the soil helping in the germination and strengthening of the roots. Furthermore, the harvesting process depends on the size of the field. In a large field, the harvesting process is done with the help of a combine, while in smaller lands, the corn is harvested by hand with the use of a sickle or pruners.

Industrial Uses of Corn

Owing to their physical properties, corn cobs, after being grounded in the powder form, are extensively used for industrial applications such as fillers for explosives to produce plastics, glues, adhesives, rayon, resin, vinegar, and artificial leather and as diluents and carrier in the preparation of insecticides and pesticides.

Processed corn, based on its chemical properties, is utilised in the production of furfurol, fermentable sugars, diluents, liquid fuels, charcoal gas, and other chemicals by destructive purification. They are also used in the manufacturing of pulp, paper, and hard boards. Additionally, corn is one of the largest plant-based food products found globally and is rich in dietary fiber and antioxidants.

Moreover, corn oil is commercially made using corn germ isolated by wet milling or dry milling. Besides, the main product of corn kernel milling is starch which is suitable for various industrial applications such as unmodified starch, acid-modified starch, maltodextrins and pyrodextins, oxidised starch, pregelatinised starch, waxy starch, etc.

There is a huge demand for corn for its direct use as a food item and in several end-use industries, which is affecting the international Corn price. Furthermore, there is a lot of dependency of the fermentation sector on corn since all microorganisms need carbohydrates as an energy source for developing further. Hence, corn is the primary source of carbohydrates for distilled liquors, including sprits, corn whiskey and bourbon.

Corn Prices: Market Trend and Forecast

North America

As per the USDA, corn prices in North America are becoming stable because of the enhanced weather conditions supporting the main pollination stages needed for brilliant output. Corn production in the United States has increased with the expansion of the land under corn farming, which in turn is propelling the export stocks further. There has been a recent dip in the United States' domestic corn prices.

Asia Pacific

The corn market in China is operating firmly, even with some fluctuations. There was an all-time high in corn prices; however, the prices have become steady recently. The reduction in the price trend for corn was because of the opening of new trade subjects, and several traders centred their interest on freshly opened wheat. Alongside the United States increasing its land area under con cultivation and Indonesia also practising persistent exports after the ban, there has been a dip in the worldwide prices of corn and other food grains.

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Europe

Parallel to the Asian market, per tonne corn prices consistently reduced in the European market. During 2022-2023 Europe deviated from nearly all the supply disturbance impacted by drought-induced corn production losses in France and Romania by expanding imports from Ukraine.

Key Industry Players

• DuPont de Nemours, Inc
• The Archer Daniels Midland Company
• KWS SAAT SE & Co. KGaA
• Limagrain UK Ltd
• Cargill Incorporated
• Bunge Milling, Inc.

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