For the Quarter Ending September 2023
In the third quarter of 2023, corn starch prices in North America experienced consistent fluctuations. Beginning at $465 per metric ton in July, the prices declined to $460 per metric ton in September, reflecting an average quarterly decrease of 3.84%. This trend was primarily observed in the United States, where corn starch prices decreased due to an augmented supply resulting from ongoing harvests in major exporting countries of the northern hemisphere. The challenging conditions faced by U.S. corn crops, particularly in the northern regions, led to some farmers abandoning their crops due to severe drought in the western half of the state. However, the significant drop in corn starch prices during July was attributed to the harvesting season’s arrival, coupled with rains in July that facilitated crucial crop development. Additionally, a substantial harvest in Brazil, expected to surpass the United States as the leading corn exporter globally, contributed to a surplus supply that reduced demand for U.S. corn exports, leading to a decline in prices. Despite a robust domestic harvest increasing stocks, the surplus corn starch supply in the market further contributed to the price decrease. The reduction in American corn exports was linked to a decrease in purchases, influencing the decline in corn starch prices during this period.
In the third quarter of 2023, the Asia-Pacific (APAC) region witnessed consistent fluctuations in corn starch prices. Starting at $465 per metric ton in July, the prices dropped to $460 per metric ton in September, indicating an average quarterly decline of 1.05%. The July price decrease was influenced by domestic pressures on the corn market, causing slight reductions in corn starch factory prices in certain areas and, consequently, a minor drop in domestic corn starch market prices. However, towards the end of the month, as corn prices stabilized, the corn starch market rebounded and became more stable overall. Despite sporadic corn entries and optimistic expectations for a high yield of new-season corn towards the end of the month, downward pressure on domestic corn market prices persisted due to sufficient inventories and sluggish demand. Nevertheless, prices experienced a rebound in the middle of the third quarter, driven by the ongoing strength of the domestic corn market, rising raw material costs, and improved demand for starch after the summer season. Cost considerations and increased demand contributed to the continued strength of the domestic corn starch market. By the middle of the year, domestic corn market prices saw a slight increase, raw material costs fluctuated but eventually stabilized, and corn starch market prices found stability.
Get Real Time Prices of Corn Starch: https://www.chemanalyst.com/Pricing-data/corn-starch-1431
In the third quarter of 2023, the European corn starch market underwent significant price fluctuations. Corn starch prices in the European region displayed consistent volatility during this period, starting at $880 per metric ton in July and dropping to $760 per metric ton for Corn Starch CFR Antwerp (Belgium) by September, resulting in an average quarterly decrease of 5.43%. Similarly, prices for Corn Starch FOB Hamburg (Germany) started at $1110 per metric ton in July and declined to $890 per metric ton by September, marking an average quarterly decrease of 7.35%. The noteworthy price decline in July had adverse effects on consumption within the food and industrial sectors. This situation was exacerbated by a recent spike in inflation, leading to increased production and transportation costs for corn, contributing to the downward pressure on corn starch prices. Domestic traders, holding substantial corn reserves, intensified the situation by lowering their price quotations as a strategic move to mitigate potential losses, exerting additional pressure on the market. The overall corn market conditions, characterized by low production costs and ample domestic inventories, influenced the trajectory of corn starch prices. The surplus supply of corn placed downward pressure on prices in both Germany and Belgium, major exporting nations for corn.
In the third quarter of 2023, the Corn starch market in the Middle East and Africa (MEA), with a specific focus on the United Arab Emirates (UAE), witnessed a consistent decline in prices. July 2023 saw a gradual decrease in Corn Starch prices for CFR Zayed (United Arab Emirates), starting at $445 per metric ton but falling to $415 per metric ton by September, resulting in an average quarterly decline of 2.66%. Increased production in countries exporting Corn starch led to an excess supply in the market, driving further price reductions. The UAE faced significant competition from other Corn starch-exporting nations like the United States and Brazil, both producing larger quantities in 2023 and establishing themselves as major players in the global market. Favorable weather conditions for Corn cultivation, characterized by warmer and drier conditions, contributed to pushing down Corn starch prices in both exporting and importing markets. This prompted efforts to reduce inventory levels, reinforced by the onset of the Corn harvesting season in July and an increased global corn supply, keeping prices on a continuous decline.
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