Weekly Stock Analysis on Corn Starch in China (Week 39, 2018)
This week corn starch stock continues to decline slightly for the following factors. For one thing, operation rate goes wobbly in some factories. For another, some companies are still carrying out contracts since downstream companies have placed sizable bills at relatively low prices in preliminary stage. And trading volume also ticks high at lows recently under a falling strike price among starch companies. In addition, downstream companies have picked up speed to take delivery with the upcoming of the National Day. On the whole, as starch companies hasten to ex-warehouse their stocks before new corn floods into market, corn starch stock may still see muted falls in the short run. But it will take no plunge due to slow shipment under the traffic tensions during the holidays and the resumption of operation rate in factories. For later market, operation rate and new corn marketing shall be watchwords .
According to Cofeed, corn starch stock in 81 processing factories surveyed totaled 530,300 tonnes as of 26th Sept (Week 39), down 17,900 tonnes by 3.27% from 548,200 tonnes last week.