Corn: a world leading asset for trading
Corn, also known as maize is a multipurpose and one of the world’s most complex grains alongside with rice and wheat. It is considered to be one of the most staple commodities since it serves a lot of purposes. World consumption of corn has dramatically increased through the years and in fact farmlands are mostly allotted for corn production since this grain has become an essential in the diets of people globally. Aside from being used in feeding humans and animals, corn is also highly considered to be a good alternative to crude oil since it can produce fuel.
Annual production of corn was recorded to have already surpassed 500 million metric tons with the US being the major supplier of more than half of it. China and Brazil comes in second and third spots respectively for being the major producers of this highly versatile grain. And even though corn there has been a number of uses for corn, this grain is still largely used for feeding livestock such as hogs, cattle and chickens. The good nutritional value of corn makes it the ideal feeds for healthier livestock’s which translates to better revenues for ranchers and farmers. This grain is also used for making corn syrup, alcohol and ethanol which is primarily created to generate a cleaner and more economical source of fuel.
Factors affecting the price of corn
There are many factors can affect the price of corn. The discovery of biofuel for example has led to the increase in demand for tropical maize which is a new form of corn that requires little nitrogen. With the rising cost of crude oil, the shift to use corn as an alternative source of fuel can dramatically affect its price especially in the future. Also, most of the corns that have been grown in farms have been genetically enhanced for better resistance on certain viruses and weedkillers so they can yield more crops. It is also listed as a freely traded product in the North American Free Trade Agreement and this has a huge impact on the economy of Mexico since there is a discrepancy between sponsorships and farming complexity. Economic and political tensions could also trigger a change in the price of this highly valued grain.
Corn is primarily traded in the Tokyo Grain Exchange, the Kansai Commodities Exchange, the Chicago Mercantile Exchange Group, the National Commodity and Derivatives Exchange, the Brazilian Mercantile and Futures Exchange, the Mercado a Termino de Buenos Aires and the Dalian Commodity Exchange.
Making profit on corn with binary options
This remarkably versatile grain is notably one of the most in-demand commodities that are primarily used for feeding that is why its price is highly sensitive compared to other assets. An increase in demand or possible shortages will definitely cause the price of corn products to go up but with the help of our highly recommended binary options trading platforms you will be able to make a good analysis on corn futures and determine the best time for trading on these underlying assets.