Weekly Stock Analysis on Corn Starch in China (Week 35, 2018)
Some small and medium-sized enterprises in Hebei Province are still not in production, neither was Fukuan in Feicheng, Shandong, and machines in some Anhui factories have also stopped running. Some companies also have maintenance plans in September according to the survey, so operation rate will be hard to top 70%. Since some downstream companies have been optimistic about 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. With the coming of Mid-autumn Festival, market participants begin their stockpiling, and become more active in taking delivery, which makes starch stocks drop again this week. As stockpiling peak season in the run-up to festival has boosted starch demands and companies begin to lower down stocks for the marketing season of new corns, the short-term starch stock is predicted to decline slowly. Attention on later market shall be paid to operation rate in factories and demands from downstream companies.
According to Cofeed, corn starch stock in 81 processing factories it surveyed totaled 630,300 tonnes till 29th Aug (Week 35), down 22,000 tonnes from last week’s 652,300 tonnes by 3.37%.
