Analysis of Domestic Corn Starch Production and Market Situation (12.9)

Last week (December 1-7), the domestic corn starch spot market showed a stable but slightly declining trend due to the continuous weakness and decline of the corn market, as well as the relatively flat demand for starch. Among them, spot prices in northern production areas, ports, and southern sales areas all closed with a slight decline, while trading volume slightly decreased on a weekly basis. According to market monitoring and statistical information from "Starch World" website, compared with the previous week, the average spot price of corn starch in China has dropped by 20 yuan/ton (sampled average), and the total trading volume has decreased by 0.33%. Secondly, in terms of production, due to the cross impact of sufficient raw materials and weak market, the operating rate of corn starch factories remained stable (the operating rate was about 68.5%, an increase of 0.0 percentage points compared to last week). Finally, as of the weekend, the corn starch market quotes in various regions are: 2590 yuan/ton in Harbin (down 20 yuan/ton compared to the previous week), 2640 yuan/ton in Changchun (down 20 yuan/ton compared to the previous week), 2680 yuan/ton in Shenyang (down 20 yuan/ton compared to the previous week), 2780 yuan/ton in Qinhuangdao (down 30 yuan/ton compared to the previous week), 2780 yuan/ton in Shijiazhuang (down 20 yuan/ton compared to the previous week), 2960 yuan/ton in Guangzhou (down 20 yuan/ton compared to the previous week), and 2980 yuan/ton in Shanghai (down 20 yuan/ton compared to the previous week).

This week (December 8-14), it is predicted that corn raw materials will stop falling, while starch market demand will continue to decline. After comprehensive analysis, we believe that there is an 80% chance that the domestic corn starch spot market will show a fluctuating and wait-and-see trend, and the market average price (sample average price) may close flat. At the same time, the weekly turnover ratio will still slightly shrink.

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