The Hindu Business Line  Mar 20  Comment 
Malaysian palm oil futures declined on Monday after the release of weaker export data, while March output is expected to improve from a month ago. CPO active month June futures pulled back higher from...
The Hindu Business Line  Mar 6  Comment 
Malaysian palm oil futures climbed to their highest levels in two weeks on Monday, rising higher for a fifth straight day of gains on strong soyoil and forecasts of weaker output. CPO active month May...
The Hindu Business Line  Feb 21  Comment 
Crude Palm Oil (CPO) price, which was surging since last November, is under pressure. The CPO futures contract price on the Bursa Malaysia Derivatives Exchange had been stuck in a sideways range be...
newratings.com  Dec 9  Comment 
HolidayCheck Group AG announces change in composition of Management Board - Nate Glissmeyer to succeed Timo Salzsieder as CPO and Senior Vice-President Engineering at the HolidayCheck Group DGAP-News: HolidayCheck Group AG / Key word(s): Change...
Cloud Computing  Nov 28  Comment 
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS...
Mondo Visione  Nov 21  Comment 
The U.S. Commodity Futures Trading Commission (CFTC) announced today that it has unanimously approved amendments to its regulations applicable to the financial reports that commodity pool operators (CPOs) are required to provide on their pools’...
The Hindu Business Line  Oct 9  Comment 
Crude Palm Oil (CPO) futures on MCX dropped by 7per cent last week to test a low of ₹504.70 per kg from the high of ₹542.20 per kg. In Bursa Malaysian Derivatives exchange, the CPO futures contract ...
Mondo Visione  Sep 14  Comment 
The U.S. Commodity Futures Trading Commission (CFTC) announced today that a jury in the U.S. District Court for the Northern District of Illinois foundGrace Elizabeth Reisinger of Grand Island, Nebraska, liable for operating a fraudulent...
Mondo Visione  Aug 30  Comment 
The Commodity Futures Trading Commission (CFTC) has extended the comment period on its proposed amendments to Regulation 4.22, which concerns the Annual Report that each commodity pool operator registered or required to be registered with the CFTC...
Automotive World  Aug 8  Comment 
Following a record-setting month of new-vehicle sales in July, Kia’s commitment to affordable excellence extends to pre-owned vehicles, too, as the Korean brand celebrates an all-time sales high in the CPO segment this summer. Autodata’s1 July...


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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