Corn oil and fractions market in South America

Earlier Report Observations

From 2018 to 2022, the South American corn oil market expanded consistently, with volume growing from 234.8 thousand tons to 421.6 thousand tons. This rise was fueled by robust corn production in Brazil and Argentina, which provided ample raw material. The growing ethanol and biodiesel industries further stimulated demand, as corn oil is a co-product of ethanol production and a feedstock for biodiesel. Post-COVID economic recovery in 2020-2021 also contributed to higher consumption.

A sharp increase occurred in 2021, when market volume jumped to 405.0 thousand tons. This surge was largely driven by expanded corn ethanol production in Brazil, generating additional corn oil as a by-product. Stricter biodiesel blending mandates in Brazil and Argentina boosted industrial consumption, while investments in agricultural technology and improved corn varieties helped offset challenges from adverse weather conditions like droughts in Argentina.

In 2023, the market volume contracted to 378.2 thousand tons. This decline coincided with a substantial rise in export activity, which reduced domestic supply. Regulatory developments, such as India's FSSAI standards for crude corn oil, reflected evolving international norms that may have influenced trade flows, while continued investments in R&D and product launches by key players highlighted ongoing market dynamism.

Production corn oil and fractions in South America

In kind, 2017-2020, K t

Top producers of corn oil and fractions, 2017-2020

World map of production of corn oil and fractions, 2017-2020

South America's corn oil and fractions production has grown for the third year in a row. In 2020, the region produced 329.9 thousand tons, marking a 15.8% increase from the previous year. Looking at the period from 2017 to 2020, production rose by 48.6%, which translates to an average annual growth rate of 14.1%.

Annual dynamics of production in South America in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of corn oil and fractions output in South America reached 277.1 million US dollars, up 41.5% from 2019. Over the 2017-2020 span, production value increased by 40.9%, with an annualized rate of 12.1%. The lowest value was in 2019 at 195.8 million US dollars, when it declined by 1.9%.

Annual dynamics of production in South America in value, 2017-2020, M $ US

Exports corn oil and fractions from South America

Exports in kind, t

Corn oil and fractions exports from South America have risen for the second consecutive year. In 2020, exports totaled 57 443 tons, a 24.9% year-over-year increase. However, from 2017 to 2020, exports decreased by 6.7%, averaging a 2.3% annual decline. The lowest volume was in 2018 at 28 808 tons, which saw a sharp drop of 53.2%. In contrast, 2019 recorded the largest increase at 59.7%.

Annual dynamics of product's exports from South America in kind, 2017-2020, t

From 2017 to 2020, Tunisia, South Korea, and Spain were the top destinations for corn oil and fractions exports from South America in volume terms. Tunisia accounted for 53.0% of exports, South Korea for 5.9%, and Spain for 4.5%, together making up 63.4% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South America in kind, 2017-2020

Exports in value, K $ US

Corn oil and fractions shipments from South America have increased in value for the second year in a row. In 2020, exports were valued at 48 244 thousand US dollars, up 52.7% from the previous year. Over the 2017-2020 period, however, export value decreased by 11.5%, with a compound annual growth rate of -4.0%. The lowest value was in 2018 at 22 232 thousand US dollars, when it fell by 59.2%.

Annual dynamics of product's exports from South America in value, 2017-2020, K $ US

From 2017 to 2020, the leading destinations for corn oil and fractions exports from South America in value terms were Tunisia, South Korea, and Turkey. Tunisia represented 55.1% of export value, South Korea 5.8%, and Turkey 5.2%, collectively accounting for 66.1% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South America in value, 2017-2020

Imports corn oil and fractions to South America

Imports in kind, t

The market for corn oil and fractions imports in South America showed notable fluctuations during the period. Imports reached their lowest point in 2017 and peaked in 2019, with a 5.5-fold difference between these years. In 2020, South America imported approximately 11 074 tons, a slight decrease of 3.7% year-over-year. The highest volume was in 2019 at 11 505 tons, while the largest increase occurred in 2018 at 146.5%.

Annual dynamics of product's imports to South America in kind, 2017-2020, t

From 2017 to 2020, Canada, the United States, and Turkey were the main sources for corn oil and fractions imports into South America in volume terms. Canada accounted for 2.0% of imports, the United States for 1.5%, and Turkey for 1.1%, together representing 4.6% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South America in kind, 2017-2020

Imports in value, K $ US

The import market for corn oil and fractions in South America exhibited volatility over the observed period. The value varied by a factor of two, with the minimum in 2018 and the maximum in 2019. In 2020, import volume amounted to 12 227 thousand US dollars, reflecting a modest contraction of 4.7% from the prior year. The lowest value was in 2018 at 6 574 thousand US dollars, when it declined by 7.1%. The highest value was in 2019 at 12 825 thousand US dollars, which saw a significant increase of 95.1%.

Annual dynamics of product's imports to South America in value, 2017-2020, K $ US

Throughout 2017 to 2020, the United States, Canada, and Turkey formed the key group of partners for corn oil and fractions imports into South America in value terms. The United States accounted for 4.2% of import value, Canada for 3.7%, and Turkey for 1.8%, jointly representing 9.6% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South America in value, 2017-2020