SunSirs: Agriculture: Corn Starch Price Fluctuates Slightly in November

1. Price Trend

According to data from SunSirs, the domestic corn starch price fluctuated slightly in November. The average price of edible first-grade corn starch on November 1 was 2,433.33 RMB/ton, and the average price on November 29 was 2,346.67 RMB/ton, a slight increase of 0.14%.

2. Market Analysis

In the first half of November, the domestic corn market price rose slightly overall. Under the support of raw material costs, the ex-factory prices of starch manufacturers in some regions adjusted slightly. And the domestic corn starch market price slightly increased. Overall, the current domestic corn starch inventory has declined, associated with the rebound in starch demand in the fourth quarter, and the ever-increasing operating rate of manufacturers, which will support the domestic corn starch market price in the future.

Data: Up to November 20, the main production areas had acquired 42 million tons of mid-late rice, corn and soybeans, a year-on-year decrease of 7.29 million tons. Heilongjiang, Shandong and other 11 major production areas have cumulatively purchased 12.77 million tons of corn, a year-on-year decrease of 6 million tons.

3. Marketing Forecast

SunSirs' analyst on corn starch product believes that the domestic peak of corn has not yet reached. Corn prices continue to be under pressure, and raw material costs have been suppressed. Downstream trading entities have a wait-and-see attitude. At the same time, low inventory and demand for starch in the fourth quarter will have a certain effect on starch prices. Long position is gambling with short position. It is expected that the domestic corn starch market price will be in dilemma in December and the price of corn starch will continue to be in a slight fluctuation of the current level.

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