Plot reversal, starch market oscillates and strengthens

The corn starch spot market in North China showed signs of price increase again, and after a weekend, the increase continued to expand. At present, the ex-factory price of new orders for production enterprises in Shandong is 3200-3250 CNY/ton, which is an average price increase of 1.57% from last week, and an increase of 15.18% compared with the same period last year.

In addition, it can be seen from the figure below that after the deep decline in prices in July, the market has basically been in a state of range volatility since August, and price resistance has been significantly enhanced.

Another basis for price increases is the continuous decline in the operating load rate of enterprises. As of now, the operating rate of the corn starch industry is 48.29%, down 1.51 percentage points from last week and 11.44 percentage points year-on-year. The overall operating rate in September has not reached 5.

In particular, the start-up load in Shandong dropped from 57.25% at the beginning of the month to 48.84% at the end of the month, a drop of 8.41 percentage points. The production lines of major starch enterprises all reduced production to a certain extent, and the supply of goods in the market continued to tighten.

However, in the downstream market due to the decline in construction load, the increasing sentiment of high-price purchases and the approaching National Day holiday, there are many uncertain factors in the market.

Traders and terminal enterprises often implement the just-needed replenishment plan. The continuous increase in the price of corn starch is still relatively large, or it is in the first rise. After gradually stabilizing the wait-and-see trend.