Weekly Stock Analysis on Corn Starch in China (Week 34, 2018)
Subjected to heavy rains last weekend, several factories ( Jinyumi and Hongguang in Suzhou, Anhui as well as Shouguang Jinyumi in Weifang, Shangdong ) have stopped production, which is predicted to last for about 15 days, and Fukuan has also stopped for maintenance. Since some downstream companies have boded well for later market in earlier stage and signed a relatively large amount of orders at low prices, bills at 2,400-2,430 yuan/tonne in some companies remain unfinished, according to the survey. As the Mid-autumn Festival approaches, market participants gradually start to stockpile, and become more active in picking up goods. Therefore, stocks in starch companies this week continue to fall. With the coming of stockpiling peak season before festival in later August, demands get better gradually, so the short-term starch stock is predicted to decline slowly. Attention on later market shall be paid to operation rate in factories and demands in downstream companies.
According to Cofeed, corn starch stocks in 81 processing factories it surveyed totaled 652,300 tonnes till 22nd Aug (Week 34), down 28,000 tonnes from last week’s 680,300 tonnes by 4.12%.
