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Weekly Stock Analysis on Corn Starch in China (Week 36, 2018)

2018-09-06 www.cofeed.com

    Some small and medium-sized enterprises in Hebei Province are still off production, and some factories in Anhui and Fukuan in Feicheng, are also in their downtime, meanwhile, factories like Zhonggu, Jinyumi in Linqing and Yuwang in Tongliao, still have maintenance arrangements. So the overall operation rate does not pick up. In addition, since some downstream companies have been optimistic about later market in earlier stage and signed a relatively large amount of orders at low prices, contracts at 2,450 yuan/tonne in some companies remain unfinished, according to the survey. And starch price keeps going up recently, amid an acceptable delivery speed, so corn starch stocks this week will continue to reduce. On the whole, as companies are busy in shipments before the marketing season of new corns, the starch stock is predicted to continue its slow decline. Attention on later market shall be paid to operation rate in factories and how the new corn goes. 

    According to Cofeed, corn starch stock in 81 processing factories it surveyed totaled  605,100 tonnes till 5th Sept (Week 36), down 25,200 tonnes from last week’s 630,300 tonnes by 4%.