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Maize Commodity Online: Performance And Significance

Maize or more commonly known as corn or American corn are widely eaten and loved by many people worldwide. Just like how wheat and rice are a common crop found in India. Maize is commonly found in America and is widely popular in the region. Many people prefer eating corn. Maize crop is useful in a number of culinary uses and is a common ingredient in soups, salads, and other recipes. Even from the trading purpose, these hold a great significance. Nowadays everything is available online. Therefore the commodity market is also available online. By diving deep into the oceans of the commodity market, let us learn about the maize commodity online. Keep on reading further. 

Importance Of The Maize Commodity Online

Maize is a very significant cereal grain and it is running swiftly in the commodity market online. Maize is also known as corn. Its scientific name is Zea Mays, coming from the family Poaceae and subfamily Panicoideae.

After Wheat and Rice, Maize is the most important food crop all over the globe. It is the most valuable and quintessential food crop in the Americas, just as rice and wheat are the staple food for Asians.

Maize is beneficial in brewing alcohol and sweetening food items. It is also helpful in oil, starch and proteins. The latest discovery states that Maize might even help produce fuel! This is an interesting one! A wide variety of dishes are prepared using maize. It is not just famous in America but also in other parts of the world. 

When analysed against Rice and Wheat, Maize is the only crop which has the highest weight production. To make the most of the rainy season, Maize is commonly planted during the spring season in the temperate zones, as the crop is very sensitive to drought. In countries like India, Maize is planted during June-July and harvested during September-October. 

The Global Maize Commodity Market

The yearly Maize production in India is about 10 to 14 million tons, which is only about two per cent of the world’s total production. Maize crop has a high import export market. You can trade them locally as well as internationally. 

The United States is the world’s largest Maize or Corn producer. Internal demand for Maize is booming incessantly in the US, just as demand for Pulses in India is increasing year after year. The major Maize consuming countries are the US and China.

Hybrid species of Maize are mainly in the US and Canada. As these are genetically mutated to fight against natural pests. The United States produces about 40 percent of global Maize.

The chief Maize producing states in India are Karnataka, Andhra Pradesh, Bihar, Punjab, Uttar Pradesh, Madhya Pradesh and Gujarat.

USA, China, Brazil, Ukraine, Argentina, India, Mexico and Russia are the prime Maize producing countries.

Principal Maize exporting countries are the United States, Brazil, Argentina, Ukraine, France, Romania, Hungary, Russia, Paraguay, Serbia, Mexico and India.

The main Maize importing countries are Japan, Mexico, the European Union, Korea, Egypt, Vietnam, Iran, Colombia, Taiwan, Algeria and Malaysia. India is not a major importing country, as the imports are usually only about 100 tons.

What Impacts the Price of Maize Commodity Online?

Similar to the other commodities, the price of corn is usually highly connected with the price of other     such as wheat and barley. Furthermore, several economic factors that move corn prices specifically include Crude Oil Prices, Chinese Demand, The US Dollar and Climate. All kinds of fluctuations in these elements can affect the price of maize commodities online. Here are some of the factors that influence the maize commodity online.

1. Exchange Rate

The exchange rate of the maize commodity keeps on fluctuating due to its high consumption. Also mentioned before, after rice and wheat, maize is the third largest consumed commodity in the world. Thus it has really high demand. 

The market force of demand and supply mostly determines the exchange rate. These have free flow nature and do not maintain equilibrium. Therefore, this causes the exchange rate to keep on fluctuating. 

2. Local Currency

The local currency plays a vital role in determining the prices of maize commodities online. As the demand for the wheat is pretty high, it has an inelastic demand. Though it is the local currency in which a person will trade this commodity. If the local currency falls down or rises up, this will directly affect the maize commodity online. Generally the rate of Indian currency is much lower than American currency which affects the trade of maize crops between these two countries.

3. Rules And Regulations

There are various rules that the government introduces. These laws and regulations have a direct impact on the prices of the maize. As it is consumed by the majority of the people, thus it is necessary for the government to maintain some strict rules and regulations so that hoarding should not be there and people who fall in the low income category should not be exploited by the people at any cost. For instance, during the covid 19 situation, the import export of a large number of commodities was affected and maize was a part of this downfall. Due to reduction in trade, the prices fluctuated highly causing a major effect on the market of maize commodities online.

Investing In Maize Commodity Online

Investing in maize is one smart approach to protect yourself against inflation. Agricultural commodities, including maize, are more expensive if world economies experience bouts of inflation. Overly accommodative monetary policies from the world’s biggest central banks have kept global interest rates low and have formulated speculation in many different asset classes. At some point, this speculation could show up in maize commodities online, and prices could soar. A weak dollar, to be specific, could create inflation and lead to steeper maize prices.

Myanmar Golden Heart hope the article helps you understand about the crop in detail and also about the market. 

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