Weekly Stock Analysis on Corn Starch in China (Week 41, 2018)
Currently, new corn from North China has gradually shown up on the market, but corn in Northeast China not. Concerned with the further widened gap of corn supply and demand, market participants are expecting a bullish market, with more and more choosing to hoard and build stocks. Especially, new corn is of better quality than last year due to the clear weather in North China. So corn price is pulled up by the snap-up on the market. Driven by such kind of market mood, corn starch also rises recently, with a range of 20-50 yuan/tonne. And downstream companies, in face of the climbing price, are active in placing bills for low-priced corn starch, creating a fair shipment atmosphere. Among them, some Shandong companies basically sell out upon production, so corn starch stock this week goes on to decline slightly. And the stock will see no large fall with the full supply amid normal operation rate in most companies under the new corn sales. For later market, operation rate and new corn marketing shall be watchwords .
According to Cofeed, corn starch stock in 81 processing factories surveyed totaled 520,600 tonnes as of 26th Sept (Week 41), down 9,700 tonnes by 1.83% from 530,300 tonnes the week before holiday.
