CATDOLL : CATDOLL: 2017 corn market survey: Analysis of the reasons behind the sharp drop in prices

background

In 2017, the global corn market experienced a series of changes and prices fluctuated greatly. This article will conduct an in-depth investigation of the corn market in 2017 and analyze the reasons for the price drop.

1. Global corn supply surges

Corn production increased across the world in 2017. The United States, the world's largest corn producer, set a new record in corn production this year.

In addition, corn production in Latin American countries such as Brazil and Argentina has also increased significantly. The global corn market is well supplied, leading to a drop in prices.

2. Advances in agricultural technology

The continuous advancement of agricultural technology is also one of the factors that led to the decline in corn prices. The application of agricultural technology in planting, fertilization, and prevention of pests and diseases has improved the yield and quality of corn.

Efficient agricultural technology has reduced the production cost of corn, resulting in increased supply and lower prices.

3. Global trade instability

The instability of the global trade environment has also had a significant impact on corn prices. In 2017, the US government imposed tariffs on imported corn, restricting international trade.

In addition, global trade frictions have intensified, and countries have adopted different protection measures on agricultural product markets. These factors have further affected the price formation of the global corn market.

4. Declining demand for feed

Corn, as an important raw material for feed, is widely used in animal husbandry. However, in 2017, the animal husbandry industry faced a series of challenges, such as the outbreak of African swine fever and the spread of avian influenza.

These factors have led to a decline in livestock industry production capacity, which has reduced demand for corn and caused corn prices to fall.

Summarize

Taking all the above factors into consideration, the main reasons for the decline in corn prices in 2017 were the sharp increase in global corn supply, the advancement of agricultural technology, the instability of global trade and the decline in feed demand. These factors have changed the supply and demand pattern of the corn market to a certain extent and reduced prices.

Thank you for reading this article. I hope it helps you understand the corn market in 2017.