Agricultural Products:

Grains and Oilseeds > Corn / Maize

Corn / Maize

Canadian production is forecast to increase by 24% to a new record, as area shifts into corn from wheat and other crops of abundance. (Agri-Canada)

The dramatic increase is largely based upon two primary factors. One being the increased demand from the livestock industry for corn ingredient animal feed, the other being an ever increasing demand from the biofuel (ethanol) industry.

As corn production for human consumption and animal feed increases, with higher demands being placed upon it, add the market demand for biofuel (ethanol), and the prediction is that corn shall see an expectant rise in cost into the short to medium term. CanAsia suggests inventory build up of supply to offset rising market conditions and pressure on price.