Is corn stock a good investment?
While it's possible to turn a profit investing in corn stocks, keep in mind that — like any investment — corn stocks are not immune to risk. These stocks are subject to fluctuating conditions — both in the market and in the grain industry, so carefully vet your picks before you invest.
December corn futures are also in a long-term downtrend, similar to what was seen in 2014 when the Dec contract finally bottomed during September and October. The Teucrium CORN ETF has lost 30% of its value since the end of May 2022, possibly low enough to start attracting long-term investment money.
That's why I think Ingredion, Green Plains, and Archer Daniels Midland are top corn stocks to consider buying.
Corn Health Benefits
Choosing corn and whole-grain corn products -- rather than food that has processed white flour -- can be good for your health in many ways. Corn contains lutein and zeaxanthin, which are carotenoids similar to vitamin A and are often found in yellow and dark green vegetables.
You can invest in corn by using a commodity trading platform. These platforms offer a range of commodities and are very easy to use. There are different platforms suitable for specific requirements. Some let you buy corn, others let you trade corn, and many are designed for investing in the grain.
The season average price for corn in 2022/23 was $6.54/bu and is projected to decrease to $4.80 in 2023/24 and $4.40 in 2024/25.
For corn, the baseline's 2023 yields of 181.5 bushels per acre and $5.70 average cash price received spells revenues of $1034. Total costs of $870 per acre would generate a profit of $164, down from an estimated $290 this year and a record $323 in 2021.
Ear number and size can vary greatly from cultivar to cultivar. Most sweet corn varieties will have one to two ears per plant because they are mature rapidly and are generally short statured plants. Early maturing sweet corn will have one ear while those that mature later have two harvestable ears.
Farmers bale cornstalks so they can use them as bedding or feed for their livestock. When used as bedding, chopped up stalks are spread inside barns or shelters so the animals can stand or lay on the stalks. Corn stalk bedding is an excellent way to keep livestock warm and dry in the winter.
Mexico first imported modified U.S. corn in 1994, when NAFTA (the predecessor to USMCA) mandated tariff-free access to low-priced American corn. Mexico is not legally obligated to purchase U.S.-grown corn, though its low cost makes it a popular choice.
What are the pros and cons of corn?
Corn is rich in fiber and plant compounds that may aid digestive and eye health. Yet, it's high in starch, can spike blood sugar and may prevent weight loss when consumed in excess. The safety of genetically modified corn may also be a concern. Still, in moderation, corn can be part of a healthy diet.
Unexpected Harvest
This time last year corn futures were trading well above $6.50. Supply was low as weather patterns wreaked havoc on global crops and geopolitics - namely the invasion of Ukraine - kept production limited.
The expected gross profit for this productivity soil is $449/acre for corn and $442/acre for soybeans. Assuming a 50-50 rotation the average gross return would be $446/acre. The net return would be calculated by subtracting out the land rent.
Cattle do eat stalks, particularly if they are left on a field too long, but they are primarily consuming leaf, husk, and leftover corn. The stem or stalk makes up about 48.5% of the residue, while the leaf blade and husk make up 39.6%.
The stalks can be burned, spread, composted, or stockpiled for spreading at a later time, probably after harvest this fall. Let's take a closer look at each of these options. Burning may be the easiest method IF they dry out enough.
As a general rule, corn that is lodged less than 45 degrees usually recovers nicely. Growth Stage - Corn that has root-lodged should return to an upright position by bending at the base.
For example, from 2015 to 2020, USDA's estimated production cost for growing corn averaged $680 an acre. USDA's most recent cost estimate for 2024 is $870 an acre, a 28% increase from the years when ending supplies were similar to today and December corn prices traded roughly between $3.15 and $4.50 a bushel.
Grain prices have dropped dramatically in the last year. Current prices for 2024 new crop delivery are around $4.15/bu for corn, $11.00/bu for soybeans (2/23/23). This is a decrease of around $1.00/bu for corn and $1.75/bu for soybeans compared to what these prices were expected one year ago (see Figure 1).
Our 7.5 acre field yields up to 32 tonnes of grain per year when it's in corn (which is impressive to me), or about $11,000 in revenue. Out of that, the farmer gets a small return for a lot of hard work, up-front cost, risk, and the stress that goes along with that risk.
Strong domestic demand for livestock feed and fuel ethanol coupled with growing exports has led to higher prices, providing incentives for farmers to increase corn acreage. In many cases, farmers have increased corn planted area by shifting acres away from less-profitable crops.
How tall can a corn stock get?
A corn stalk typically grows to about 2.5 meters (8 feet). One strain from Mexico is taller, sometimes 3.4 meters or more. But when the nights are short and the days are long, corn has more time to tap growth-fostering sunlight. Then it can grow even more, sometimes taller than 6 meters (20 feet).
the stalk of a corn plant. synonyms: cornstalk. type of: stalk, stem. a slender or elongated structure that supports a plant or fungus or a plant part or plant organ.
Birds, deer, raccoons, squirrels, even black bears will help themselves to your sweet corn patch, usually right before you're ready to harvest.
Sweet corn, popcorn, field corn, and the new super and sugar enhanced varieties all will cross pollinate. If you plant them too close, you will end up with starchy, very un-sweet corn. To keep your corn separate and sweet as advertised, you must have at least 50 feet between blocks of corn.
Each corn plant produces one ear of corn. There are 600 kernels per ear.
