The corn starch market reversed rapidly, and the company rose 4 times a day

After the National Day holiday, domestic corn starch prices not only did not weaken as expected, but continued to rise driven by downstream replenishment demand. Chen Jie, an analyst at Zhuo Chuang Information, said on October 14 that some large starch companies have recently increased their prices as many as 4 times in a day. Since the holiday, the cumulative increase in corporate quotations has been about 50-130 CNY/ton. The rise was positive and the market transaction atmosphere was active.

According to Chen Jie, according to the data monitoring of Zhuochuang Information, in late September, downstream markets mostly believed that manufacturers’ inventories were easy to accumulate during the National Day and the increase in raw materials had negative impacts. They maintained low inventory operations and the price of corn starch was also lacking favorable support. In particular, competition in North China was fierce, and the price was once lowered to RMB 2,750/ton to RMB 2,800/ton in order to stimulate the transaction price. However, in the second half of the National Day holiday, due to corn lodging in some plots in the Northeast production area, the harvesting progress was slow, the supply of high-quality grains was tight, and the deep processing enterprises were actively purchasing, and the corn price rose strongly, which led to the increase of corn prices in North China. At the same time, the downstream terminal market inventory remained low, replenishment demand increased, the supply and demand of corn starch market was tight, and the price began to test upward. The rapid ups and downs in the corn starch market have also made market participants unstable, especially stimulating panic orders in some downstream industries.

According to data from Zhuo Chuang Information, as of October 9, the operating rate of the corn starch industry was 63.47%, an increase of 3.10 percentage points from the pre-holiday operating rate. In addition, the current demand for fructose continues to weaken, and the demand for beverages, cold drinks, beer, etc. is significantly reduced as the weather turns cold. Although under the influence of compensatory consumption during the National Day and part of the "Double 11" purchase demand, major companies have received more orders in advance, and there is no inventory and sales pressure. However, as the price of starch gradually rises and downstream centralized replenishment, demand may enter a short-term off-season. Manufacturers will slow down in the face of high prices and the demand for substitution will also be significantly reduced. The contradiction between supply and demand in the corn starch market will gradually Highlight.

Chen Jie said that according to the current cost and fundamentals of the corn starch market, corn starch companies are reluctant to sell corn starch in the short term, and the price of corn starch may continue to rise. However, the current high-end price in North China has risen to 2,950 CNY/ton, and downstream resistance has gradually increased, and increased supply pressure on the corn starch market is still the main negative factor. It is expected that the price of corn starch in the medium and long-term market may rise first and then narrowly pull back. The downstream market still needs to be cautious in buying and selling.