The Shifting Market for Corn in the United States

The Shifting Market for Corn in the United States

By all accounts, the corn industry is shifting in the United States. Commodity investors would be wise to lend an ear.

Two main drivers have made the biggest impact: ethanol subsidies and a movement to genetically modified strains of the seed. Ethanol subsidies have largely contributed to a skyrocketing price. Another big change over the last fifteen years is that corn has moved from being 25% non-genetically engineered to about 90%.

While the last year of data is not represented here, it would be interesting to see the impact that the oil price collapse has had on corn producers. It may not be fully represented, as the government has a strong mandate on biofuel and provides big subsidies to the sector.

Original graphic from: Flapjack Media