Maize getting cheaper across the Ocean
The latest news from Chicago exchange is that maize is the cheapest in the last three years. At the end of October, the price fell below the technical support level at 177 USD per tonne.
A new low
The drop in prices results from this year’s plentiful crops of maize in the USA. The Department of Agriculture has published information that this year sweetcorn was sown on 95.3 million acres, which are expected to bring 13.99 billion bushels during autumn harvest. The figure is 2% higher than the previous estimation of 13.8 billion bushels. Therefore, this season might bring record crops. The previous record, from 2009, was 13.1 billion bushels.
A popular sweetener in the food manufacturing sector, glucose-fructose syrup, is produced from maize. The syrup was popularized in the USA in the 1970′, mainly by corporations manufacturing sweet carbonated beverages. However, the consumption of the syrup has fallen by 16% in the last 5 years, while sugar consumption rose by 0,7%. Such trend followed a campaign against obesity, which is linked to consumption of fructose, and a fall in sugar prices. This year’s harvest might help out syrup manufacturers. However, potential consumers also have the option to buy equally cheap sucrose, thus they are likely to try and negotiate prices down.
Good news for breeders
The forecast plentiful harvest will mean that the price of corn used as fodder will also decrease. Consequently, the cost of breeding cows and pigs is set to fall, bringing cheaper meat and making it more available and affordable. A similar situation concerns dairy manufacturers, who will benefit from using cheaper maize fodder for dairy cows.