Analysis of Domestic Corn Starch Production and Market Situation (12.2)

Last week (November 24-30), the domestic corn starch spot market showed a fluctuating downward trend due to factors such as the weak and declining corn market and the beginning of a decline in starch demand. Among them, prices in northern production areas closed with a moderate decline, while spot prices in ports and southern sales areas slightly fell. At the same time, trading volume 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 40 yuan/ton (sampled average), and the total trading volume has decreased by 0.62%. Secondly, in terms of production, due to the cross impact of sufficient raw materials and a slight decline in the market, the operating rate of corn starch factories has remained 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: 2610 yuan/ton in Harbin (down 50 yuan/ton compared to the previous week), 2660 yuan/ton in Changchun (down 50 yuan/ton compared to the previous week), 2700 yuan/ton in Shenyang (down 50 yuan/ton compared to the previous week), 2810 yuan/ton in Qinhuangdao (down 40 yuan/ton compared to the previous week), 2800 yuan/ton in Shijiazhuang (down 30 yuan/ton compared to the previous week), 2980 yuan/ton in Guangzhou (up 20 yuan/ton compared to the previous week), and 3000 yuan/ton in Shanghai (down 20 yuan/ton compared to the previous week).

This week (December 1-7), it is predicted that corn raw materials will continue to decline, while starch market demand will continue to decline. Based on comprehensive analysis, we believe that there is an 80% chance that the domestic corn starch spot market will show a stable but declining trend, and the market average price (sampling average price) may close slightly lower. At the same time, the weekly turnover ratio will continue to shrink.

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