Corn is the most-produced grain on Earth—global output exceeds 1.2 billion metric tonnes annually (USDA, 2024/25 estimate). This versatile commodity is divided among animal feed (~36%), ethanol production (~34%), food products (~14%), and industrial starch/exports (~16%). Traded on the Chicago Board of Trade (CBOT), corn futures are among the most liquid agricultural contracts in the world.

Why It Matters

Corn is the backbone of the global food supply chain. As the primary feed grain, its price directly flows through to meat, poultry, dairy, and egg prices—accounting for 50–70% of livestock feed costs. The U.S. Renewable Fuel Standard (RFS) mandates roughly 15 billion gallons of corn-based ethanol annually, tying corn prices to energy markets.

Production & Trade

The U.S. produces ~32% of global corn (USDA), followed by China (~23%), Brazil (~10%), and the EU (~5%). The U.S. Corn Belt—Iowa, Illinois, Indiana, Nebraska—is the world's most productive agricultural region. Brazil's safrinha (second-crop) corn has emerged as a major export competitor since the 2010s, fundamentally reshaping global trade flows.

Key Price Drivers

Historical Events

Market Impact

Corn price spikes raise food inflation globally—the World Bank estimates a 1% increase in corn prices adds 0.2% to food price inflation in developing countries. Corn is central to the "food vs. fuel" debate: at $7+/bushel, ethanol production becomes less economically viable, pressuring blending margins. The corn-soybean price ratio (~2.4:1 historically) influences U.S. planting decisions each spring, creating inter-commodity dynamics.