Get the latest insights on price movement and trend analysis of Corn Starch in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Corn Starch Price Trend for the Third Quarter of 2022
The price trends for corn starch exhibited a mixed pattern in the Asian market. With sufficient market inventories and dwindling demand, the market price of corn starch crashed. The suppliers were forced to reduce their market quotations to ensure continuous shipments and offtakes. With the new products entering the market in September, manufacturers feared a price crash. Hence, they reduced the quoted prices to make room for fresh supplies. The price of corn starch went from 3380 RMB/MT to 3230 RMB/MT towards the end of Q3.
However, the corn prices rebounded in the second half of quarter four; supported by factors like the continuously high cost of imported corn, the rising domestic transportation cost and the continuous recovery of downstream agriculture demand, the corn market price continued to be high. These high prices impacted the price trends for corn starch. However, the prices again fluctuated towards the end of December averaging 3162 RMB/MT.
The price trends for corn starch exhibited an oscillating pattern in the US domestic market. Initially, the prices declined given the weakened demand despite the drought-like conditions in the corn-producing belts. However, the prices increased during the fourth quarter as the demand rebounded causing the prices to average 796.90 USD/MT (CIF USA) (approx..) in November’22.
The Brazilian corn prices crashed, given the lousy harvest due to the adverse weather conditions. The La Nina intensified over the region leading to prolonged rainfall and delaying the sowing and flowering season. The fall in feedstock prices and lowered market sentiment negatively impacted the pricing pattern for corn starch. However, the prices picked pace in the fourth quarter when the weather conditions improved.
According to Procurement Resource, the price trends for corn syrup are likely to increase over the next coming months given the robust downstream demand and not sufficient inventories to fulfil the same.
For the Second Quarter of 2022
In China, the corn starch market recorded a steep decline due to the falling prices of maize and other food grains amid the increasing speculations of a global recession. Also, the bearish demand from the downstream sectors because of uncertainties in the supply further affected the price in the domestic market. The price averaged 3424 RMB/MT towards the end of this quarter.
The demand for the flour is constantly increasing amongst the EU member nations. Starch extracted from wheat and corn is extensively used to manufacture paper. Hence, due to the intense demands from paper manufacturers, corn starch prices stood firm.
Due to the lowered price of its primary feedstock- corn, the price of its starch is falling in the US domestic market. Per kg price of corn starch was around 0.65-0.59 USD in New York and Washington.
Due to the region's strong consumption of processed, quick, and convenience foods, North America continues to hold the top spot in this industry. The greatest market in the area was in the United States.
The main factors boosting the expansion of this business in the US market and North America are the abundance of maize as a raw material in the nation and the low pricing of corn starch. The demand is developing as a result of the region's growing processed food and convenience food consumption as well as the region's growing population and disposable income among consumers. Major market participants are developing goods specifically for the area.
For the First Quarter of 2022
In March, domestic corn starch prices changed considerably. On March 1st, the average price of first-class corn starch was 3290 RMB/MT while on March 31st, it was 3406 RMB/MT, a 3.53% rise over the previous month. International grain prices continued to climb in March, domestic trade entities remained positive, hesitant to sell in the future, and deep-processing companies increased prices and replenished stockpiles.
The price of domestic maize as a whole increased, as did the cost of producing corn starch. Domestic corn starch prices increased as a result of cost assistance. In late March, the domestic maize market's high price steadied, the epidemic situation in many parts of China resurfaced, demand for starch continued to decline, and the majority of the starch downstream trade maintained a strong wait-and-see attitude. To secure shipment, producers cut the ex-factory price marginally, resulting in a modest decline in the overall price of domestic corn starch.
For the Fourth Quarter of 2021
Entering mid-October, under the effect of the dual control strategy, domestic corn starch stockpiles continued to be low and the general drop persisted. At the same time, as the weather became colder and domestic demand for the commodity recovered. The entire market supply was restricted.
Under the backing of demand, domestic market price of the commodity continued to grow. On October 19, the average price rose to 3,400 RMB/MT, an increase of 3.03% from the beginning of the month. Inventory was low, market supply was tight, and downstream demand was unabated.
By year end, farmers in producing regions were increasingly eager to sell the grain, the domestic maize market continued to expand, the total market supply became more plentiful, and prices continued to decline appropriately. The cost of raw materials continued to decline, maize stocks were efficiently refilled, and downstream trade organizations remained circumspect in their purchases.
The domestic market price of the commodity continued to deteriorate as a result of the suppression of several negatives. On December 29, the average price decreased to 3340 RMB/MT, a decrease of 6.70% from December 1.
The cost of raw materials is the primary cost driver in corn starch manufacturing. Corn and enzymes are the primary raw ingredients, accounting for about 70% of the total cost of corn starch manufacture.
Additionally, there are significant cost components associated with the crop’s handling and storage, steeping, germ separation, fiber separation, gluten separation, and starch washing. Maize starch accounts for 55% of the total maize mass utilized in manufacturing. In mid-December, the March corn futures in Chicago were up around 40% year over year.
For First, Second and Third Quarters of 2021
Domestic corn starch prices in China continued to fall. The average price of primary corn starch was 3320 RMB/MT, a decrease of 3.51% throughout the week (July 26, 2021). In July, the State Reserve's auction of imported maize continued to cool, a large number of replacement grains arrived in Hong Kong, the bulk of domestic grain storage commerce was realized out of the warehouse, and deep-processing firms significantly decreased the purchase price of corn.
Under the weight of widespread negative news, the domestic maize market price sank precipitously. Maize prices remained low, the wait-and-see attitude of downstream corn starch trade subjects increased, the starch industry's peak season became more apparent, and under the dual pressure of cost and demand, corn starch manufacturers reduced the ex-factory price one after another, sharply lowering the domestic market price.
As of April 2021, manufacturers of native wheat and maize starch began increasing prices in quarterly contracts and for delivery. They were then preparing to boost pricing on half-year contracts, charging up to 200 EUR/MT extra for July delivery. Due to increased business activity and the addition of corrugated case material and corrugated board capacity in Europe, demand for starch products increased significantly in spring 2021 and continued to do so in June.
Industrial starches were experiencing healthy growth despite a decline in graphic paper consumption as a result of the expanding e-commerce and plastic-free tendencies. Capacity for industrial starch production has risen in recent years in response to growing demand from the paperboard sector. However, two starch drying assets were recently removed from the market, further tightening the present supply-demand balance, and no new drying capacity is scheduled to enter the market this year.
Between 1.5% and 5% starch by weight is used for paper packaging, depending on weight, type, methods, and locality. Corn starch accounted for about 5-18 USD/MT, or 2%-6% of the anticipated total cash cost of containerboard, at the pricing of USD 17.62/CWT. The corn price had the strongest influence on its net cost.
While corn starch prices rose, gross margins remained stable in the 8-9 USD/cwt range. On the raw commodity front, prices for wheat, corn, and soybeans began to rise in 2020 and were subsequently exacerbated in some cases by dry conditions throughout the 2021 crop season.
For the Year 2020
Domestic corn starch prices in China increased to a record high. The average price of first-grade corn starch for consumption was 2,846.67 RMB/MT in October. Following the two festivals, the price of domestic grain increased again, as did the cost of raw supplies.
The primary concern of starch downstream dealers was that the market price would continue to grow. Resupply demand grew. With downstream demand and cost support, the domestic ex-factory price of the commodity was expected to rise.
The average December price of first-grade corn starch for consumption was 3,160.00 RMB/MT and 3,146.67 RMB/MT, later in the month, a minor reduction of 0.42%. Domestic maize market prices adjusted somewhat lower, raw material costs decreased marginally, and downstream starch purchases were more circumspect. Certain manufacturers reduced the ex-factory pricing marginally. Domestic market corn starch prices went somewhat down in response to the maize price.
France corn starch prices have fluctuated throughout the years. In 2019, the export price increased by 8.674% to 0.52 USD/kg. Exports to Greece, Poland, the United Kingdom, Sweden, and Switzerland were some of the top performing markets for France maize flour per kilogram.
Starch is one of the necessary raw ingredients in papermaking, even if it is not among the greatest cost contributors. Sustained price rises in maize starch might significantly affect the margins of paper packaging makers. US corn starch prices followed the increasing trend in the larger maize market. It contributes to around 1.5% of total US maize demand.
The surge in maize prices that began in August 2020 had been both supply and demand led, a rare and strong combination. On the supply side of the balance sheet, US maize supplies dropped in 2020 owing to drought in the western corn belt and the August 10, 2020 ‘derecho’ storm, which flattened crops through the center of the corn belt. In addition, drought in Brazil, Argentina, and Ukraine led to lower output there, tightening up the world corn supply.
Procurement Resource provides latest prices of Corn Starch. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Corn starch or better known as maize starch is the starch that is extracted from the corn (maize) grain. The starch is derived from the endosperm of the kernel. Corn starch is a common food ingredient that is often utilised as a thickening agent in sauces or soups, as well as in making corn syrup and even some other kinds of the sugars.
|Product Name||Corn Starch|
|Industrial Uses||Corn syrup and other sugars, thickening agent, Sauces and soups, adhesives, Paper products, anti-sticking agent, Textile manufacturing|
|Supplier Database||Cargill, Incorporated, Archer Daniels Midland Company, Ingredion Incorporated, Tate & Lyle Plc, Grain Processing Corporation, Roquette Freres, Tereos SA|
|Region/Countries Covered||Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|Currency||US$ (Data can also be provided in local currency)|
|Supplier Database Availability||Yes|
|Customization Scope||The report can be customized as per the requirements of the customer|
|Post-Sale Analyst Support||360-degree analyst support after report delivery|
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In this production process, corn is first soaked in water for at least 2 days, in order to ferment a little. This facilitates the separation of germ and endosperm, from which Corn Starch is removed by washing.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
Procurement Resource is a one-stop solution for businesses aiming at the best industry insights and market evaluation in the arena of procurement. Our team of market leaders covers all the facets of procurement strategies with its holistic industry reports, extensive production cost and pre-feasibility insights, and price trends dynamics impacting the cost trajectories of the plethora of products encompassing various industries. With the best analysis of the market trends and comprehensive consulting in light of the best strategic footstep, Procurement Resource got all that it takes.
Procurement Resource has made a mark for itself in terms of its rigorous assistance to its clientele. Our experienced panel of experts leave no stone unturned in ensuring the expertise at every step of our clients' strategic procurement journey. Our prompt assistance, prudential analysis, and pragmatic tactics considering the best procurement move for industries are all that sets us apart. We at Procurement Resource value our clients, which our clients vouch for.
Expertise, judiciousness, and expedience are the crucial aspects of our modus operandi at Procurement Resource. Quality is non-negotiable, and we don't compromise on that. Our best-in-class solutions, elaborative consulting substantiated by exhaustive evaluation, and fool-proof reports have led us to come this far, making us the ‘numero uno' in the domain of procurement. Be it exclusive qualitative research or assiduous quantitative research methodologies, our high quality of work is what our clients swear by.