The Hindu Business Line  Jun 19  Comment 
The uptrend in Crude Palm Oil (CPO) prices that has been in place since last August, seems to be losing momentum. The CPO futures contract on the Mul
The Economic Times  Jun 15  Comment 
The urge to reinvent himself and seek out new challenges got him a plum position at PolicyBazaar, where as the CTO and CPO, he heads all things digital, including product, technology, and digital marketing.
The Hindu Business Line  Jun 6  Comment 
IT firm Tech Mahindra has appointed Harshvendra Soin as the Chief People Officer, effective July 1. Soin will take over from Rakesh Soni, who moves in
The Economic Times  Jun 6  Comment 
TechM has joined its peers such as Wipro in promoting people experts as they face challenges of tech shifts towards areas such as digital, cloud and analytics.
The Hindu Business Line  May 28  Comment 
Malaysian palm oil futures ended lower on Monday, lowest in over a week, tracking losses in crude and weaker related edible oils. CPO active month Au
The Hindu Business Line  Feb 19  Comment 
Malaysian palm oil futures rebounded from a one-week low lifted by prospects of better export demand. CPO active month May contract is moving in line with our expectations. As mentioned earl
The Hindu Business Line  Oct 17  Comment 
The uptrend in the Crude Palm Oil (CPO) price, which has been in place since August, paused in early September. The CPO futures contract price on the Bursa Malaysia Derivatives Exchange fell from MYR...
The Hindu Business Line  Sep 12  Comment 
Crude Palm Oil (CPO) prices have made a smart recovery over the last one month. Prior to this upmove, the CPO prices were on a sharp fall since February. The CPO futures contract price on the Bursa Ma...
The Hindu Business Line  Aug 28  Comment 
Malaysian palm-oil futures on Monday ended lower weighed down by expectations that production in August would rise slightly and by a stronger ringgit. CPO active month November futures moved as expect...


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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