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Corn oil is oil extracted from the germ of corn. Its main use is in cooking, where its high smoke point makes refined corn oil a valuable frying oil. It is also a key ingredient in some margarines.cooking, like canola oil or safflower oil. Corn oil is quite a healthy oil because it is composed mainly of polyunsaurated fatty acids (PUFAs ) and low on saturated fat. It is also used in skin care and hair care, besides many other industrial applications.