Corn Processing Price Trend and Forecast

Corn Processing Regional Price Overview

Get the latest insights on price movement and trend analysis of Corn Processing in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Corn Processing Price Trend for the First Half of 2024

In the first half of 2024, the corn processing industry faced a challenging market, marked by a steady decline in corn prices across key global regions. Corn processing, essential for producing products like starch, ethanol, and sweeteners, felt the impact of this downturn as the market struggled with lower global exports and high carryover stocks from the previous year.
 

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Despite reduced corn production in major countries like the U.S., Brazil, and Argentina, the surplus from previous seasons kept prices subdued, particularly in markets like India and China. In the U.S., farmers hesitated to sell their large stocks, anticipating better future prices, creating a standoff that added to market uncertainty. This hesitation disrupted the normal flow of corn supplies, affecting the processing industry, which relies on stable input costs to maintain profitability.

In Brazil, similar market dynamics led to a subdued performance in the corn sector, with the overall market reflecting cautious sentiment. The declining corn prices in these major regions directly impacted the processing industry, challenging its ability to sustain margins and meet the demands of subsidiary industries. As H2'24 approaches, the industry remains in a state of cautious watchfulness, adapting to the evolving market conditions.

Analyst Insight

According to Procurement Resource, the Corn Processing industry is likely to see some corrections in the second half of the year; an optimistic market outlook is projected.
 

Corn Processing Price Trend for the Second Half of 2023

In the second half of 2023, the corn processing industry faced significant challenges due to rising input costs and fluctuating demand. Corn processing, which converts raw corn into products like starch, ethanol, and sweeteners, is vital for industries such as food, pharmaceuticals, and biofuels. During this period, global demand for corn-based products, particularly in Asia, surged, straining U.S. corn supplies. Adverse weather conditions and the increased use of corn for ethanol production further tightened supply, leading to higher processing costs.

Corn starch, a key derivative, saw unprecedented price increases due to these supply constraints. In Brazil, conflicting corn production estimates added uncertainty to the market. Conab's conservative forecasts, influenced by adverse weather, suggested a decline in Brazil's output, contributing to a bullish outlook for corn prices despite temporary stabilization in H2'23.

The impact on the corn processing industry was notable; strong international demand kept the industry active, although under pressure.

Analyst Insight

According to Procurement Resource, with the fluctuations in raw material corn prices, the processing costs are also likely to fluctuate going forward in the year 2024.
 

Corn Processing Price Trend for the First Half of 2023

The costs of corn processing inclined in the first quarter of 2023 with support from the food industries. The supply of corn was also adversely affected by the ongoing Russia-Ukraine crisis, as Russia is one of the major exporters of corn. The market was further supported by the rising rates of inflation in the first quarter.

In the second quarter, however, the price trend declined due to the import of high quantities of corn and poor demand from the domestic and international sectors. The trend faced downwards as the market was flooded with surplus supply from Argentina and Brazil; the second quarter followed this trajectory till the last months when the prices began to improve slowly. Further, the weak performance of the global economy led to a rise in rates of inflation and interest, declining the costs of corn processing.

Analyst Insight

According to Procurement Resource, the price trend of Corn Processing is estimated to fall gradually in the upcoming months as the market sentiments seem to be suffering from the feeble movement of the global economy and low demand from the end-user sectors.

Procurement Resource provides latest prices of Corn Processing. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.