Wheat Starch Price Trend and Forecast

Wheat Starch Regional Price Overview

Get the latest insights on price movement and trend analysis of Wheat Starch in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Wheat Starch Price Trend for the Q3 of 2024

Asia

In Asia, the wheat starch market remained closely tied to the prices of wheat, a key feedstock. Any changes in the price of wheat directly affects the downstream wheat flour industry, which is directly used to make wheat starch. In China, the prices showed a stable trend after declining for two consecutive quarters due to oversupply. The government has limited imports of wheat from the US, France, Australia, and Canada, stabilizing prices this quarter amid high domestic output. The demand for upstream wheat was sluggish, projecting on the demand for wheat starch that showed the same trend in this quarter.
 

Wheat Starch Price Chart

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In contrast to this, the price of wheat in Indian market remained elevated in September as the country prepares for festival season. Recent curbs on wheat stock limits for traders and millers are inadequate to control rising prices. Downstream flour mills had urged the government to release the stocks in order to control the prices and maintain the supply in the market. The release in stocks will increase the supply, bringing down the prices of wheat and its downstream products, such as wheat flour and wheat starch.

Europe

Wheat starch prices in the European market have been volatile, driven by expectations of significantly lower wheat yields this year, along with declining inventories. Adverse weather conditions and a severe dry season were the primary causes of this decline. As a result, reduced harvest projections may lead to decreased exports to regions such as the Middle East, Africa, and Asia, disrupting global supply in the coming months. Prices showed an upward trend in the final month of the quarter, and the supply shortage is expected to push prices even higher.

North America

The U.S. wheat starch market saw fluctuations in the third quarter of 2024. In the first two months, prices remained stable as traders took a cautious approach ahead of the wheat harvest season. By late August, prices began to rise due to lower yields in the Black Sea region and the European Union, which increased demand for U.S. wheat both domestically and internationally. Although the hurricane season brought bad weather, causing logistical challenges and disrupting production, its impact on prices was limited.

Analyst Insight

According to Procurement Resource, the price of wheat starch is expected to show an inclining trend in the near future amid anticipations of lower exports from the EU countries.
 

Wheat Starch Price Trend for the Q2 of 2024

Asia

Wheat starch prices saw a consistent depreciation over the course of the second quarter of 2024. In China, the prices have degraded in response to a supply excess. Since the Russian and Ukrainian exports have replenished global wheat inventories, the prices have been facing downward in major global markets. In India, a low wheat inventory stock does present some challenges for manufacturers, however, the global sluggishness in the wheat starch prices kept the prices under check here as well.

Europe

Wheat starch prices have been downward facing in the European markets, closely mirroring the trends seen in wheat prices due to their direct correlation. A decline in fertilizer prices and favorable weather conditions, particularly in Argentina, have supported strong wheat yields in the last marketing year, indirectly benefiting wheat starch production. Additionally, Ukrainian and Russian wheat exports have recovered, with Russia's exports reaching record levels.

Despite the end of the Black Sea Grain deal, Ukraine has maintained steady wheat exports. With wheat starch prices near a floor, many buyers have delayed purchases, waiting for the market to bottom out, which should support a price recovery. The USDA also forecasts the lowest wheat stock levels in eight years by the end of 2023/24, further supporting potential price increases for wheat starch.

North America

Wheat starch prices have been following a similar downward trend in the American markets. Several factors contribute to the sustained decline in wheat starch prices over this period. U.S. producers of wheat starch face increasing financial challenges as global prices for wheat starch remain at their lowest in four years due to ample supply, while production costs for processing and transportation remain high.

Despite potentially high yields this year, many producers, especially in the Great Plains, are struggling to achieve profitability. Increased wheat exports from the Black Sea and Europe have boosted global wheat supplies, subsequently affecting wheat starch prices. Additionally, large corn harvests worldwide are exerting downward pressure on grain-based product prices, including wheat starch.

Analyst Insight

According to Procurement Resource, Wheat Starch prices are expected to remain dwindling in the coming months as well. Since wheat prices are falling, wheat starch prices are also likely to behave the same.
 

Wheat Starch Price Trend for the Q1 of 2024

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Asia

Wheat starch price trends are usually observed to be in direct accordance with wheat prices. Since wheat starch is directly sourced from wheat grains, their market behaviors are also quite similar. During the given time span of H1’24, the wheat starch prices were found to be consolidated for the majority of the said period. Since the supply and demand outlooks didn’t change or fluctuate much, the prices wavered within very narrow limits throughout the said period.

In the Indian market, the State inventories were vacating at a fast pace, still, the impending polls in the country led the regime to regulate the prices in order to avoid unrest and market concerns. Similarly, the Chinese market also exhibited a close parity with international wheat starch markets also exuding close cohesion. The Chinese market, though, was relatively more stable. Overall, a lukewarm performance was witnessed.

Europe

In the European wheat starch market, the prices were found to be tottering closely during the first quarter of 2024. The regional stockpiles were still stable and quite capable of fulfilling the incoming demands. The black Sea agreement allowed Russian and Ukrainian exports to be freely in the international market in 2023.

The supplies were still sufficient; however, the current stock-to-use ratio is on a decline, which is posing some concerns for the wheat starch market security going forward. However, the outlook still appears largely stable since the demands are also not growing at that pace. Overall, a compact price pattern was witnessed.

North America

The American market trends for wheat starch were not much different from its Asian and European counterparts. Prices were oscillating the entire duration; however, the magnitude of these oscillations was very confined. Given the close parity between the supply and demand outlooks, the price trend observed a circumscribed structure.

Market offtakes were quite casual in the discussed market. Albeit international trade was full of challenges. The freight issues in the Red Sea and the logistical difficulties in the war-torn regions of Europe and the Middle East also complicated the global trade dynamics.

Analyst Insight

According to Procurement Resource, the market projections look steady for Wheat Starch for the coming months; the market drivers suggest a similar run for the next quarter too.
 

Wheat Starch Price Trend for the October - December of 2023

Asia

Wheat starch, as the name suggests, is the starch that is extracted from wheat primarily through the wet milling process. Since the wheat starch is directly sourced from wheat, their prices also align very closely with each other. During the last quarter of the year 2023, the wheat starch prices were observed to be dwindling to the lower side for the entire period.

The Indian market was witnessing some problems because of increased consumption; however, the government’s intervention controlled the wheat prices and thus also impacted the wheat starch prices. The Chinese wheat starch market was already on a drooping trajectory and continued to register falling numbers on the wheat starch price index.

Europe

The European market trend were no different from the Asian market as the prices here, too, vacillated at the lower level of the curve during the said period. The overflowing supplies, along with a slump in demand, led to a swift decline in wheat starch prices over the three-month period of Q4’23.

North America

The American market trend for wheat starch were also in alliance with the global trend as the prices depreciated here as well. Oversupplied inventories played an important role in influencing these market patterns. Hence, the wheat starch price graph continued to decline throughout the said period of Q4’23.

Analyst Insight

According to Procurement Resource, not much improvement is expected in the Wheat Starch price trend going forward. Given the current supply outlook, the stocks are capable of catering to the projected market demands.
 

Wheat Starch Price Trend for the July - September of 2023

Asia

The wheat starch price trend in Asian countries fluctuated heavily throughout the third quarter of 2023. The stabilization of manufacturing and trading activities brought some relief for the producers of wheat starch.

The paper, pharmaceutical, and other related sectors also grew gradually, aiding the rise in the wheat starch price trend. However, this momentum was not carried forward in the mid-phase of the quarter as soon in view of weak rates of procurement, the wheat starch price graph began to slide. Additionally, given the economic concerns, the traders sold wheat starch at lower rates.

Europe

The majority of the third quarter struggled with the slump in economic activities and negative demand from the food and beverages sectors. Additionally, during the initial months, the excessive supply disrupted the demand-supply equilibria giving the downward movement of wheat starch prices a boost.

The wheat starch market dynamics, however, improved with time as the European currency became stronger as compared to the US dollar and gave the wheat starch price trend the required cost support. The dynamics of demand also improved as the quarter progressed, successively supporting the inclining trajectory of wheat starch price trend.

North America

In North America, the surge in the wheat starch price trend in the first month was due to the hike in procurement rates of the food sector and depletion in inventories invoked by the contraction in imports and supply chains. However, similar to the European countries, the thrust of inflation and rising rates of interest proved to be destructive for the wheat starch demand in the domestic and overseas industries. But soon the wheat starch market rebounded as it achieved supply-demand equilibria with the help of local merchants, keeping the wheat starch price graph afloat.

Analyst Insight

According to Procurement Resource, the price trend of Wheat are expected to move in the forward direction. The resolute demand and improving economic conditions are expected to favor the upscale growth of the wheat starch price graph.
 

Wheat Starch Price Trend for the First Half of 2023

Wheat Starch is the starch that is extracted from wheat grains. Since it lacks gluten, it is primarily used as a thickening agent in the food industry rather than an elasticity enhancer. Since the Wheat Starch has wheat as its feedstock, the price trend for both align closely. During H1’23, the price trend for Wheat Starch were firm at the beginning despite a fall in wheat prices because the available stocks in the market were from the time when wheat prices were high.

But gradually, the situation eased, and the Wheat Starch prices started falling along with the wheat prices. Market access to the Black Sea supplies from Russia and Ukraine aided the wheat situation in the global market. So, general market sentiments were mixed for Wheat Starch during the said period.

Analyst Insight

According to Procurement Resource, with the current uncertainties in the downstream Wheat Starch market, the prices are likely to remain volatile in the coming months.

Procurement Resource provides latest prices of Wheat 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.