Corn Oil

Corn oil is a bland, odorless oil produced by refining the crude corn oil that is mechanically extracted from the germ of the plant seed. High-oil corn, the most common type of corn used to make corn oil, typically has oil content of 7% or higher compared to about 4% of normal corn. Corn oil is widely used as a cooking oil, for making margarine and mayonnaise, as well as for making soap, paints, inks, varnishes, and cosmetics. For humans, studies have shown that that no vegetable oil is more effective than corn oil in lowering blood cholesterol levels.

Prices – The average corn oil price for 2002/3 of 28.17 cents was sharply higher than the range of 17-19 cents seen in 1999/2000 through 2001/02. Seasonally, prices tend to be highest around March/April and lowest late in the calendar year.

Supply – Corn oil production in 2002/3 rose by 4.7% to a record high 2.575 billion pounds from 2.459 billion in 2001/2. Seasonally, production tends to peak around December and March and reaches a low in July. Stocks on October 1 at the end of the 2002/3 marketing year were tight at 104 million pounds, down from 117 million in 2001/2 and 267 million in 2000/1.

Demand – US usage was 1.400 billion pounds in 2002/3, up from 1.342 billion in 2001/2.

Trade – Corn oil exports in 2002/3 accounted for nearly half of US production at 46%. US corn oil exports in 2002/3 rose to 1.200 billion pounds from 1.190 billion pounds in 2001/2.