Pro Farmer Crop Tour reported below-average corn yields in key growing states, with South Dakota yields significantly down from last year and the three-year average. U.S. corn condition ratings declined to 60% good to excellent, below the five-year average. Export inspections surged compared to the prior year, supporting strong demand. The combination of tightening supply expectations and robust export demand is pushing prices higher.
Higher fertilizer and diesel fuel prices heading into fall 2026 are increasing production costs for corn growers. Elevated nitrogen and phosphorous fertilizer prices, driven by the ongoing conflict in Iran and Strait of Hormuz disruptions, combined with sharply higher diesel costs, are eroding corn's cost advantage over soybeans for the 2027 crop year.
A number of companies use bio-propanediol as a sustainable substitute for propanediol derived from petroleum. Due to its moisturizing qualities and capacity to improve product stability, it is a vital component of skin creams, lotions, and shampoos in the cosmetics and personal care industry. Furthermore, bio-propanediol is used as a renewable and biodegradable alternative in the manufacturing of eco-friendly fabrics like polyester fibers. Its eco-friendly nature comes from its feedstock material, corn, which also dictates its price trend.
The extravagant harvest of corn benefitted the consumers as it lowered the prices of livestock feed and ethanol production. The surplus corn also strained storage capacity and depressed prices, resulting in the squeezing of farmers' profits. Despite lower prices, storing grain is becoming more expensive and riskier due to rising interest rates.
High costs for fuel and fertilizer further burden farmers, with net farm income expected to decline. However, declining prices present challenges, making it harder for farmers to maintain profit margins. Due to this problem in the feedstock industry, the prices of bio-propanediol also faced instability in the last two quarters of 2023. During the fourth quarter, there was a slight rise in procurement rates due to the onset of the holiday season, but this was far from being sufficient to ease the pressure on traders.
Analyst Insight
According to Procurement Resource, the price trend of Bio-Propanediol is expected to depend on the corn harvest and trade in the next season of cultivation and on the consumer interest in this sector.
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Bio-Propanediol exhibited mixed price patterns throughout the period under discussion. Various factors like weather conditions, inventory stocks, downstream demands, crop yields, etc., determined the overall market behavior for Bio-Propanediol. Stable demands from downstream polyurethane and cosmetic industries were observed, whereas the supplies remained fluctuating in various global markets.
The prices of feedstock corn stabilized in the second quarter as supplies from Russia and Ukraine entered the market. Whereas sugar prices rose continuously owing to disturbed monsoon rain cycles as some regions received excess rainfall while others had to experience drought-like conditions. Hence, these inclined feedstock prices pressured the price trend for Bio-Propanediol.
Bio-Propanediol is the simplest member of the class of propane-1,3-diols, consisting of a linear chain propane in which one hydrogen from each methyl group is substituted by a hydroxy group. Bio-Propanediol is petroleum free and is made from renewable sources of raw materials such as carbohydrates.
C3H8O2
Production of sustainable polyurethanes, Anti-freeze/coolant applications, Production of skin care products, Cosmetics industry
Bio-based 1,3-Propanediol
DuPont, Glory Biomaterial, Shenghong Group
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In this procedure, bio-propanediol is produced using fermentation by a genetically modified strain of E. Coli under favourable temperature and pressure conditions.
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