Global corn prices jump 15% in a month… “poultry” sector is the most affected in the Kingdom

A monitoring by “Maaal” revealed that corn prices in global markets jumped about $30, an increase of 15% during last January, affected by the drought that is looming over its growing areas in Brazil and Argentina – the second and third largest exporters of corn in the world – amid expectations that the prices of manufactured feed in the local market will be affected by these increases due to its reliance on corn as a basic component in that industry, and it is expected that the poultry industry sector will be the most affected due to its complete reliance on manufactured feed. According to the monitoring, Argentine corn prices jumped to about $235 per ton without shipping costs at the end of last January, compared to about $205 per ton at the end of 2024, an increase of 15%, adding to the series of continuous increases since July 2024, when prices recorded about $180 per ton. Thus, corn prices have risen during the last 7 months by about $55 per ton, an increase of 31%. The successive rise in corn prices in global markets during the past month came as a result of continued fears that the global crop would be affected by the drought that dominates its cultivation areas in Argentina – the third largest exporter of corn in the world, and the failure of recent rainfall to alleviate fears that the ongoing drought could harm the supply for export, joining Brazil, the second largest exporter in the world, which was exposed to waves of drought and fires this past year that affected all crops, including corn. The recent rise in global corn prices comes amid current concerns over global trade following US President Donald Trump’s decision to impose 25% tariffs on goods from Mexico, Canada and China starting this month, which was met in kind by those countries, which plunges the global economy into a trade war whose effects extend to food trade.

Saudi Arabia’s domestic demand for corn as a key component in the feed industry is witnessing a significant increase amid expectations that the Kingdom’s corn imports will rise during the current season (2024/2025) to 4.74 million tons, an increase of 4% over the previous season and compared to 3.4 million tons two years ago, according to a report by the US Department of Agriculture.

This is mainly due to the ongoing expansion of the local poultry farming sector, as corn remains a very important feed grain for poultry farms and represents about 60% of poultry feed formulations. It is also one of the main feed grains used by the local dairy industry. The Kingdom imports about 50% of its corn imports from Brazil, followed by Argentina with 32%, and then the United States with 16%. The United States is the world’s largest corn producer with about 390 million tons last season, followed by Brazil with about 116 million tons, the European Union with about 69 million tons, and Argentina with about 54 million tons. Expectations indicate that global corn production this season is expected to decline to about 1,218 million tons compared to 1,231 million tons last season, meaning a decrease in global production of about 12.6 million tons. The United States of America is the world’s leading corn exporter with about 53 million tons last season, followed by Brazil with about 52 million tons, then Argentina in third place with about 34 million tons, while expectations indicate that global exports this season will record about 182 million tons, down from about 199 million tons last season, down 17 million tons.