Weekly Stock Analysis on Corn Starch in China (Week 38, 2018)
Recently, corn price in Shandong keeps falling amid the marketing of new corn in Northern China, which is quite bearish to corn starch market. Additionally, with the end of festival stockpiling, starch attracts less and less contracts at high price; corn starch stock in Shandong thereby begins to bounce back. In Northeastern China, on the contrary, some companies, having signed large amounts of orders with downstream companies in the earlier period, still have contracts remained to be finished. Besides, several companies also cut production for maintenance recently, so corn starch stock continues its small decline this week. Therefore, the overall domestic stock extends to fall slightly this week. On the whole, corn starch stock may maintain its status quo through September as companies hasten the shipments before new corn floods in. For later market, participants shall pay attention to operation rate and the marketing of new corn.
According to Cofeed, corn starch stock in 81 processing factories surveyed totaled 548,200 tonnes ended 19th Sept (Week 38), down 14,700 tonnes from 562,900 tonnes last week by 2.61%.
Fig.: China’s Corn Starch Stocks Weekly Based on 81 Businesses
