Modest Feedstock Prices Weaken the European Corn Starch Market
- 31-Aug-2022 5:21 PM
- Journalist: Li Hua
In August 2022, the prices of Corn Starch continued to be soft and downwardly adjusted in European countries like Germany and Belgium. This dull market sentiment toward Corn Starch is mainly backed by the continuous decline in feedstock prices. In addition, the peak season of terminal starch demand is not yet prosperous.
The feedstock corn market continues to operate weakly as early production of spring corn in agricultural areas has resulted in successive inventories entering the market, and the intention of trading enterprises of grain storage to withdraw money from warehouses continued to surge. Also, the purchase price of corn was somewhat cut at the same time when the stocks of downstream processing companies were filled, and the domestic corn market price remained under pressure.
In Germany, the prices of Corn Starch decreased by 1.7% in August due to excessive stocks in the market. Manufacturers gradually reduced their quotations to clear their stockpiles, leading the corn starch market price to fall throughout the month. Also, the purchasing activities are not high due to relatively low demand and a strong wait-and-see attitude from the downstream pharmaceuticals and food sector across European countries.
Similarly, the market sentiments toward Corn Starch in Belgium showcased a negative response. The prices of Corn Starch have dropped by 1%, backed by supply abundance. Besides, the feedstock's value slumped during the period, which eventually led to the price decrement of Corn Starch as the upstream cost was reduced. Meanwhile, the reduction in cost pressure further plummeted the market value of Corn Starch in the region.
According to ChemAnalyst, "It is anticipated that Corn Starch prices will continue to follow a downward trend in the coming weeks due to low-lying demand fundamentals from various downstream pharmaceutical and food sectors. Also, adequate inventories in the market on the back of decreased production costs impacted the prices of Corn Starch.
