Analysis of Domestic Corn Starch Production and Market Situation (12.23)

Last week (December 15-21), the domestic corn starch spot market showed a sudden decline due to the continuous decline in the corn market and the wait-and-see attitude of starch merchants. Among them, the spot prices in northern production areas, ports, and southern sales areas all fell sharply, while the trading volume shrank 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 60 yuan/ton (sampled average), and the total trading volume has decreased by 0.27%. Secondly, in terms of production, affected by sufficient raw materials and year-end performance, the operating rate of corn starch factories remains stable (the operating rate is about 68.5%, an increase of 0.0 percentage points compared to last week). Finally, as of the weekend, the corn starch market quotes from various regions are as follows: Harbin 2530 yuan/ton (down 60 yuan/ton compared to the previous week), Changchun 2580 yuan/ton (down 60 yuan/ton compared to the previous week), Shenyang 2620 yuan/ton (down 60 yuan/ton compared to the previous week), Qinhuangdao 2710 yuan/ton (down 70 yuan/ton compared to the previous week), Shijiazhuang 2710 yuan/ton (down 70 yuan/ton compared to the previous week), Guangzhou 2900 yuan/ton (down 60 yuan/ton compared to the previous week), Shanghai 2920 yuan/ton (down 60 yuan/ton compared to the previous week).

This week (December 21-28), it is predicted that the corn raw material market will remain stable with some decline, and at the same time, the demand for starch market will continue to shrink. Based on comprehensive analysis, we believe that there is an 80% chance that the domestic corn starch spot market will fluctuate and decline, and the market average price (sample average price) may still close with a slight decline. At the same time, the weekly turnover ratio will still shrink.

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