Corn market recap: By 2030, the Global Wet-Milling Corn Market is Expected to Reach $7.5 Billion.

The world economy is at a critical turning point as a number of interconnected problems and crises develop jointly. The issue on the inflation front is not yet over due to the uncertainty about how Russia’s conflict on Ukraine will play out this year and the war’s role in causing global instability.

Inflation of goods and services will continue to be a concern for the economy. Consumer spending and consumer confidence will be impacted by higher retail inflation. New job creation will slacken and have an influence on economic activity and growth as governments raise interest rates to battle inflation. 

As businesses delay investments due to concerns about inflation and weakened demand, capital expenditure will likely decline. The developed markets are in a perfect position to experience a recession due to weaker growth and excessive inflation. 

The likelihood that the globe will experience more severe supply chain pain and manufacturing interruptions this year is increased by worries about additional COVID outbreaks and China’s already uncertain post-pandemic path.

By 2030, the Global Wet-Milling Corn Market is Expected to Reach $7.5 Billion.

The global market for corn wet-milling, which was previously anticipated to be worth US$6.1 billion in 2022 but is now expected to reach US$7.5 billion by 2030 with the implementation of COVID-19, is expected to expand at a CAGR of 2.6% from 2022 to 2030. 

One of the segments examined in the study, Milling Equipment, is anticipated to grow at a 3.1% CAGR and reach US$2.5 billion by the conclusion of the analysis period. 

Growth in the Steeping Equipment segment is readjusted to a revised 2% CAGR over the following 8 years in order to account for the ongoing post-pandemic recovery.

The U.S. market is predicted to reach $1.7 billion, while China will expand at a 4.4% CAGR.

In the United States, the market for corn wet milling is anticipated to be US$1.7 billion in 2022. China, the second-largest economy in the world, is expected to reach a projected market size of US$1.4 billion by 2030, growing at a CAGR of 4.4% from 2022 to 2030. 

Japan and Canada are two more prominent geographic markets, with growth rates of 1.4% and 2.2%, respectively, predicted for each for the years 2022–2030. Germany is expected to have growth in Europe at a CAGR of roughly 1.8%. 

By 2030, it is anticipated that the market in Asia-Pacific would reach US$950.5 million, with nations like Australia, India, and South Korea leading the way.

Other grain markets

Soybeans from major suppliers Brazil and the US are seasonally exported to China. Given that harvest has begun, origins are changing from US to Brazilian at this moment. 

Brazil is expected to produce a significant crop, and Refinitiv projects considerable pressure on US soybean prices and sales from March through August as a result. In order to replenish its depleted stocks, it is also anticipated that China may import a record number of soybeans in March and April.

The news that Chinese demand may start to recover may have an impact on maize prices as well.

Brazil and China decided on phytosanitary requirements in November for Brazilian maize entering China. Since that time, Brazilian maize has begun to enter China (Soybean & Corn Advisor). We can observe that Brazilian exports to China have significantly increased using Refinitiv data. 

The upward trend is the most important item to note, even though there are minor differences between statistics for Chinese imports and Brazilian exports.

Weather patterns play a role

The markets for soybeans and maize will probably continue to respond to information about the weather in South America and the demand in China. We might have some pressure on soybean prices when the Brazilian soybean harvest is in full swing. 

This will consequently have an effect on domestic values by spreading to larger grain and oilseed markets.

Over the following two weeks, Brazil is expected to get more rain, which might further postpone harvest in some regions. Rain is forecast for Argentina over the next seven days, but the amount is below average.

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