Success in any industry resonates differently depending on whether you are producer, consumer, or somewhere in the middle along the production chain as well as your relative position in the market. By some measures, the current yield and market supply of corn and soy can be considered a success.
- Producers in every region of the world have progressively increased the yields for maize and soy since 1963, with the highest yield per hectre in 2013 for both commodities being in the Americas and lowest in Africa.
- In 2013, the United States and Brazil were the world's largest producers of soy, with a commanding 62 percent total combined share of global production, according to the UN Food and Agriculture Organization.
- The United States and China led the globe in maize production during the same year, making up 56 percent of total global production.
The glut could be an opportunity for governments in some economies to reduce price supports to domestic producers, analogous in the opportunity some governments are taking to reduce fossil fuel subsidies while global oil and gas producers remain low.
In contrast to the positive reception the global market conditions could have among governments and consumers, the world's major seed and fertilizer companies may view conditions more as challenges to their operational and marketing strategies. The glut - largely attributable to years of agricultural research into seeds, fertilizer, optimization of production - ironically reduces demand for seed and fertilizer companies, intensifying interest in market coverage and new markets as well as efficiency gains within the supply chains.
In today's Viz of the Day, we invite you to explore the global corn and soy markets more closely, including through comparisons to other select commodities and a snapshot of major players in the industry.
Last updated: Monday, 19 December 2016