Commodity Online  Mar 23  Comment 
Indonesia is planning cut the threshold of CPO exports to $500-$600 a ton owing to a lower price regime. Commodity Online looks at how fall in imports from India and China paints a bearish picture of CPO prices in Indonesia.
TechCrunch  Mar 12  Comment 
 Several years ago, venture investor Aydin Senkut just showed up at Shopify’s headquarters in Ottawa. He had heard about them from the organizers of the Grow Conference in Vancouver and decided to stop by apropos of nothing. “At the time, no...
TechCrunch  Mar 9  Comment 
 Almost a decade ago, Facebook’s chief product officer Chris Cox (pictured above) started playing weddings with a reggae band out of East Palo Alto. At the time, the company had barely launched beyond college campuses and Cox had just...
BBC News  Feb 17  Comment 
A business standing in the way of Spurs' £400m stadium redevelopment has claimed that an invalid compulsory purchase order (CPO) is being used to force it out, the High Court hears.
Commodity Online  Feb 16  Comment 
Crude Palm Oil February contract is likely to trade sideways for both short term and intra day. Short term support is seen at 448 and resistance at 468.
Commodity Online  Feb 13  Comment 
Malaysia exempted CPO exports from taxes from October to December, later extending the policy to the end of February. Increased supply and slack global demand have pressured palm oil prices which dropped 15 % last year.
Commodity Online  Feb 10  Comment 
Milan Shah, agri research analyst at commodity Online, said CPO January contract is likely to trade sideways for both short term and intra day. Short term support is seen at 445 and resistance at 468.
Commodity Online  Jan 22  Comment 
CPO January contract is likely to trade bearish for short term and side ways for intra day. Short term support is seen at 435 and resistance at 458.


Corn Products International (NYSE:CPO) is one of the world’s largest corn refiners and a major supplier of high-quality food ingredients and industrial products derived from wet milling and processing of corn and other starch-based materials. The company earned $3.67 billion in revenue and $41 million in net income in 2009.[1]

Our products are derived primarily from the processing of corn and other starch-based materials, such as tapioca. Corn refining is a capital-intensive, two-step process that involves the wet milling and processing of corn. During the front-end process, corn is steeped in a water-based solution and separated into starch and co-products such as animal feed and corn oil. The starch is then either dried for sale or further processed to make sweeteners and other ingredients that serve the particular needs of various industries.

The company supplies a broad range of customers in many diverse industries around the world, including the food and beverage, pharmaceutical, paper products, corrugated, laminated paper, textile and brewing industries, as well as the global animal feed and corn oil markets.[2]

Company Overview

Corn Products operates as one segment, Corn Processing, and is managed on a regional basis. The company classifies its products in three categories:[3]

  • Sweetener products include high fructose corn syrup, glucose corn syrup, high maltose corn syrup, dextrose and polyols. High fructose and glucose corn syrup are used to sweeten soft drinks, baked goods, dairy products, confections and other processed foods. High maltose corn syrup is mainly used as a fermentable sugar for making beer. Dextrose is used as a sweetener as well as a sugar in pharmaceutical applications such as intravenous (IV) injections and drips. Polyols are sugar free reduced calorie sweeteners derived from starch.
  • Starch Products are used as a thickener or binder for processed foods as well as in cooking. They are also used to help add strength and smoothness to paper as well as give shape and stiffness to clothing and fabrics.
  • Co-Products and others include products such as corn oil and corn gluten. Corn oil is used to make cooking oil, margarine and condiments. Corn Products' sells corn gluten to companies that make animal feed.

Business Growth

FY 2009 (ended December 31, 2009)[1]

  • Net sales fell 7% to $3.67 billion. Sales fell in all of the company's geographic regions -- sales in North America, South America, and Asia/Africa fell 4%, 10%, and 14% respectively.
  • Net income fell 85% to $41 million.

Trends and Forces

Rising corn prices increase Corn Products' cost of goods sold

The price of corn can change due to supply factors such as farmer decisions, climate and government policies as well as demand factors such as livestock feeding, world grain shortage and world grain surplus. When the price of corn rises, Corn Products must spend more money on the corn they use to make their products. This increases the company's cost of goods sold. On the other hand, when the price of corn falls, Corn Products spends less money on corn and their cost of goods sold decreases. Corn Products purchases corn on the Chicago Board of Trade exchange.[4]

Weak U.S. dollar boosts Corn Products' international revenue

Because Corn Products earns 70% of its total revenues abroad, the company is exposed to exchange rate fluctuations. Corn Products' international revenue benefits when the U.S. dollar depreciates relative to foreign currencies. As the value of the dollar falls, each euro or pound it earns abroad converts to a larger number of dollars, boosting Corn Products' USD-reported revenue. On the other hand, sharp appreciations of the USD reduce the value of international sales.

Decreases in demand for food and beverage products that use corn based sweeteners decrease Corn Products' sales volume growth

When the demand for food and beverage products that use corn based sweeteners increases, so does the demand for Corn Products' sweeteners. This results in increased sales volume growth for the company. When the demand for food and beverage products that use corn based sweeteners decreases, so does Corn Products' sales volume growth.


  • Archer-Daniels-Midland Company (ADM) processes, stores, transports and markets agricultural products. Its main products include seed oils, corn oils, corn based sweeteners, and peanuts. The company's corn products compete with those produced by Corn Products.
  • Bunge (BG) offers agricultural products and services. The company's products fertilizer and food products including vegetable oils, corn oils, wheat flours and processed corn products. The company's services include storage and transport of grains. The company's corn oils and products compete with those manufactured by Corn Products.
  • Cargill, Incorporated provides agricultural, food processing, industrial, trading and financial products and services. The company provides farmers with farm management services and products. The company also manufactures processed grain products such as corn oil and starch as well as steel, salt and fertilizer products. The company's corn based products compete with those provided by Corn Products.


  1. 1.0 1.1 CPO 2009 10-K "Selected Financial Data" pg. 20
  2. CPO 2009 10-K "The Company" pg. 3
  3. CPO 2009 10-K "Products" pg. 3-4
  4. CPO 2009 10-K "Raw Materials" pg. 6
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