Weather permitting, it's gonna be a big, BIG, BIIIIIIG year for corn in the fields of America.
U.S. farmers plan to plant their biggest corn acreage in eight years this spring, saying the grain is the best option in a tough farm economy despite weak demand from the biofuel industry as the coronavirus spreads. The U.S. Agriculture Department in its annual prospective plantings report, which is based on a survey of about 80,000 farmers taken during the first two weeks of March, on Tuesday forecast corn plantings of 96.990 million acres, topping already robust market expectations.
That means the U.S. market could be flooded with corn at a time American ethanol plants, which normally account for some 40% of U.S. corn usage, are closing. There is little demand for the biofuel that is blended into gasoline as Americans stay home.
Although the survey was taken before the rippling effects of the coronavirus pushed corn futures to 3-1/2-year lows due to demand destruction in the ethanol sector, growers said they do not intend to change their plans.
The ethanol market may be in the toilet right now, but the wet corn milling industry is looking strong:
Corn Wet-Milling market worldwide is projected to grow by US$25.1 Billion, driven by a compounded growth of 4.8%. Starch, one of the segments analyzed and sized in this study, displays the potential to grow at over 5.5%. The shifting dynamics supporting this growth makes it critical for businesses in this space to keep abreast of the changing pulse of the market. Poised to reach over US$14.7 Billion by the year 2025, Starch will bring in healthy gains adding significant momentum to global growth.
(https://finance.yahoo.com/news/global-corn-wet-milling-industry-152000728.html)
Food. Feed. Consumer goods. Industrial purposes.
Corn is king. And the U.S. (and world) needs a whole lot of it!
Grace & Peace & Love to you all -
Matt
p.s. A couple of good reads with more info on the usage of corn:
https://www.agdaily.com/insights/grow-much-corn/
https://www.hoosieragtoday.com/why-do-we-grow-all-this-corn/
http://www.worldofcorn.com/
Corn Wet-Milling market worldwide is projected to grow by US$25.1 Billion, driven by a compounded growth of 4.8%. Starch, one of the segments analyzed and sized in this study, displays the potential to grow at over 5.5%. The shifting dynamics supporting this growth makes it critical for businesses in this space to keep abreast of the changing pulse of the market. Poised to reach over US$14.7 Billion by the year 2025, Starch will bring in healthy gains adding significant momentum to global growth.
(https://finance.yahoo.com/news/global-corn-wet-milling-industry-152000728.html)
Food. Feed. Consumer goods. Industrial purposes.
Corn is king. And the U.S. (and world) needs a whole lot of it!
Grace & Peace & Love to you all -
Matt
p.s. A couple of good reads with more info on the usage of corn:
https://www.agdaily.com/insights/grow-much-corn/
https://www.hoosieragtoday.com/why-do-we-grow-all-this-corn/
http://www.worldofcorn.com/