Corn Starch Prices Decline in APAC and European Markets Amid Weak Feedstock Corn Costs

As October began, there was a global decrease in Corn Starch prices, and this trend is expected to persist throughout the month. In mid-September, the Asia-Pacific (APAC) region observed a notable drop in Corn Starch prices due to fluctuations in the domestic corn market. Several businesses responded to the lower raw material costs by reducing their factory prices for starch, resulting in a slight decline in domestic Corn Starch market prices. Toward the end of the month, sporadic arrivals of corn from the northeast production areas, combined with optimistic forecasts for a bountiful new season, continued to exert downward pressure on the domestic corn market, consequently impacting Corn Starch prices.

As October progressed, corn from production areas started flooding the market, further intensifying the pressure on domestic corn prices. The raw material cost remained under constant low pressure, causing a slight decrease in domestic Corn Starch prices after the National Day holiday. According to sources within the Corn Starch industry, there is still potential for further price declines in the domestic corn market in the short term. Given the persistent weak cost pressure, domestic Corn Starch prices are expected to continue to operate with weakness.

In mid-October, domestic corn supply increased significantly as the market faced strong supply and weak demand pressures. This, combined with the continuous low-pressure system affecting raw material costs, caused the overall pressure on domestic Corn Starch market prices to remain weak. Grain trading entities exercised caution in their buying and selling activities, while grassroots farmers showed a strong willingness to sell their grain. As a result, domestic corn market prices continued to trend downward, making for a challenging environment in the sector.

Similarly, the depreciation trend in Corn Starch prices has been witnessed in the European region. October data reveals a significant increase in the export volume of Russian corn, with 300,000 tons exported, surpassing both the figures for September (200,000 tons) and the same period last year (50,000 tons). Additionally, from October 1 to 20, Brazil exported 5.893 million tons of corn, which was lower than the total volume exported in October of the previous year (6.785 million tons).

As of the week ending on October 20, 2023, Brazil's corn exports reached 1.904 million tons, higher than the preceding week's 1.642 million tons. However, it was still less than the 2.347 million tons exported during the first week of October. These statistics underscore the influence of abundant raw material corn and a good yield in the European region, indicating that the Corn Starch market is likely to remain weak and consolidated throughout October.

These statistics indicate that the European region, with a good yield and ample availability of raw material corn, will likely witness a weak and consolidated market for Corn Starch throughout October. The increased supply, weaker demand, and low-cost pressure have contributed to the ongoing depreciation in Corn Starch prices in both the APAC and European regions.