06 November, 2019
RALEIGH, North Carolina, Nov 6, 2019 - The global supply of corn has been growing at a CAGR of 5.3 percent over the past few years and is expected to soon reach 1,626.7 MMT, according to Beroe Inc, a procurement intelligence firm. The growth of the global corn market is driven by increasing demand from end-user industries, such as animal feed and corn-starch and supported by consecutive record production in the U.S. and China.
The U.S. is the largest producer of corn, accounting for 32 percent of total production, followed by China for 23 percent, and Brazil for 9 percent. The U.S. is also the biggest consumer, responsible for 27 percent of total consumption, followed by China for 25 percent and the E.U. for 7 percent. The US and China are the top consumers of corn because major corn processing end-use segments are based in these countries. The US consumption of corn has risen by about 8.8 percent over a five-year period, while for China, the increase is by 15 percent.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The market for corn is being driven by its end-user applications after processing, namely sorbitol, the global market of which is growing by a CAGR of 3.6 percent, and corn starch, with an expected market growth of CAGR of 4.8 percent. Feed and residual uses of corn account for 61 percent of the demand while food, seed, industrial applications for 39 percent of the demand. The global corn market is facing constraints in the form of rising prices, due to which suppliers are switching to other crops to use for animal feedstock.
Innovation plays a key role in the corn industry for developing new varieties for pest, insect, and disease resistance. End-use segments, like ethanol, polyols, and sweetener industries, also apply innovation for high profitability. Research is being conducted into the possibility of increasing HFCS production efficiency. For corn ethanol, the focus is to improve energy efficiency, reduce water use, and implement new technologies for low-cost operations.
The research methodology adopted for the report included:
The CBOT price is the global benchmark for international trade of corn and to this price, transport price and basis are added to arrive at the final price. Prices could trend upward by approximately 0-2 percent, owing to the unfavorable climatic condition during the planting season. A cost-saving of approximately 2-4 percent is possible with 3–6 months contracts as compared to spot buying.
The report also includes:
Beroe's unique business model involves providing market intelligence and analytics to the procurement teams of businesses across the globe. Beroe leverages its deep domain expertise in 300 + categories across 14 industries. It boasts of more than 80 of the Fortune 500 companies as its clients.
To learn more about Beroe Inc, please visit http://www.beroeinc.com
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