Analysis of Domestic Corn Starch Production and Market Situation (1.6)

Last week (December 29th to January 4th), the domestic corn starch spot market showed a fluctuating and wait-and-see trend due to factors such as the difficult rise and fall of the corn raw material market and the recent continuous depreciation of the Chinese yuan. Among them, spot prices in northern production areas, ports, and southern sales areas all closed flat, while trading volume shrank on a weekly basis. 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 0.12%. Secondly, in terms of production, due to sufficient raw materials and year-end performance, the operating rate of corn starch factories has shown a slight increase trend (the operating rate is about 69.0%, an increase 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 5-11), it is predicted that the corn raw material market may remain stable with an upward trend, and at the same time, the demand for pre holiday stocking of starch may also increase. Based on comprehensive analysis, we believe that there is an 80% chance that the domestic corn starch spot market will maintain a fluctuating and wait-and-see trend, and the market average price (sample average price) may still close flat. At the same time, the weekly turnover ratio will be roughly flat.

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