February 16, 2011
The corn market price is considerably increased in the last period. In Italy, in the last 6 months the price of this commodity is increased of 100 €/t, exceeding the quotation of 250 €/t in January 2011. Of course, that is due to the influence of the global market into the definition of the commodities local prices.
The world corn production is about 809 million of tons, stable in the last 4 years (source Igc – International grain council). Compared to a constant offer, the corn consumption continuously increase, from 725 millions of tonnes in 2006 to 842 millions of tonnes in the 2010 (+16% in only four years): in the last year the corn consumption is over to the offer.
The corn uses are increased caused both for the feed uses (especially in the developing countries) and for bioenergy production (e.g. bioethanol production in USA): the industrial uses of corn are estimated in 231 million of tonnes.
The USA legislation has fixed the target to triplicate the bioethanol production until the 2020, and nowadays USA uses the 40% of the corn production to do this.
Commercial and financial speculation always plays an important role in the definition of a commodity prices.
Climatic conditions (drought, rain, etc.) every year could cause problems in the crop cultivation.
With this scenario the corn prices should remain high for the next months.

Sweet sorghum is presented as an alternative crop for the first generation bioethanol production; in EU and in USA, for example, sweet sorghum can be a valid alternative to the corn use.
The question is: with these corn prices could sweet sorghum compete with this crop? Which is the price threshold that allow the competition between sweet sorghum and corn?