Analysis of Domestic Corn Starch Production and Market Situation (1.13)

Last week (January 5-11), the domestic corn starch spot market maintained a volatile and wait-and-see trend due to factors such as the fluctuation of the corn raw material market and the continuous depreciation of the RMB. Among them, the spot prices in northern production areas, ports, and southern sales areas all closed flat, and the weekly turnover ratio was roughly the same. According to market monitoring and statistical information from "Starch World" website, compared with the previous week, the average spot price of corn starch in China has dropped by 0 yuan/ton (sampled average), and the total trading volume has decreased by 0.0%. Secondly, in terms of production, the operating rate of corn starch factories has shown a slight decline due to factors such as sufficient raw materials, year-end performance, and high inventory levels (the operating rate is about 68.5%, a decrease of 0.5 percentage points compared to last week). Finally, as of the weekend, the corn starch market quotes from various regions are as follows: Harbin 2530 yuan/ton (down 0 yuan/ton compared to the previous week), Changchun 2580 yuan/ton (down 0 yuan/ton compared to the previous week), Shenyang 2620 yuan/ton (down 0 yuan/ton compared to the previous week), Qinhuangdao 2710 yuan/ton (down 0 yuan/ton compared to the previous week), Shijiazhuang 2710 yuan/ton (down 0 yuan/ton compared to the previous week), Guangzhou 2900 yuan/ton (down 0 yuan/ton compared to the previous week), Shanghai 2920 yuan/ton (down 0 yuan/ton compared to the previous week).

This week (January 12-18), it is predicted that the corn raw material market may still maintain its current state. At the same time, the demand for pre holiday stocking of starch will still increase. Based on comprehensive analysis, we believe that there is an 80% chance that the domestic corn starch spot market will maintain a volatile and wait-and-see trend, and the market average price (sample average price) may continue to close flat. At the same time, the weekly turnover ratio will slightly increase.

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