International Corn Market
16-Jul-2025 08:39 AM
International Corn Market
★ In the U.S., 74% of the corn crop is rated good to excellent.
★ According to ANEC, Brazil exported 4.3 million tonnes of corn in July, compared to 3.55 million tonnes during the same period last year.
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Domestic Corn Market
★ Corn production has reached record levels over the past two years. In the last financial year, corn imports reached 980,000 tonnes, up from just 120,000 tonnes in 2023–24, indicating a sharp rise in imports.
★ Despite increased production and imports, prices have risen, clearly indicating strong demand for corn.
★ Corn prices in mandis across the country are currently ranging between ₹2200 and ₹2500 per quintal, while the new MSP is ₹2400 per quintal.
★ The main reason for higher corn prices is its increased use in ethanol production.
★ Last year, the government had imposed restrictions on ethanol production from sugar and molasses, which have now been lifted. Additionally, ethanol is now being produced from rice as well.
★ So far, FCI has sold around 1.7 million tonnes of rice under OMSS.
★ Ethanol producers have urged the government to increase the procurement price of ethanol made from corn. They say that only if prices are increased will ethanol production rise; otherwise, it will not be viable.
★ Meanwhile, there are various speculations about the potential import of corn from the U.S.
★ If corn imports from the U.S. are allowed, it could pose a major threat to both the ethanol and feed industries.
★ Therefore, caution is advised while trading in corn.
★ In the current Kharif season, corn sowing has seen a significant increase, and production is expected to rise.
★ Considering all these factors, one should proceed carefully in the corn market.
Important Disclaimer:
This report is for informational purposes only I-Grain India does not take any responsibility for profits or losses and does not promote any specific market movement (bullish or bearish). *Please make decisions based on your own judgment and understanding.