Market analysts predict continued volatility as global supply chain disruptions persist. The global market for corn starch is experiencing significant price increases this month, with industry experts forecasting continued upward pressure through March. Market data reveals that corn starch prices have surged by an unprecedented percentage since January, reaching levels not seen in the past five years.

Key Takeaways:

• Prices have increased since January, reaching a five-year high, with continued upward pressure expected through March.
• Adverse weather in key corn-producing regions severely impacts crop yields, leading to reduced availability of corn for starch production.
• Brazil’s corn exports for February 2025 are significantly lower, exacerbating global supply shortages.
• Strong consumption in the food and pharmaceutical industries is driving demand, with limited substitution options.

The remarkable price hike for corn starch can be attributed to a complex interplay of supply constraints and growing demand across multiple sectors. As a critical ingredient in countless products, corn starch remains indispensable despite its increasing costs.

Corn starch prices are facing upward pressure due to a convergence of factors. Adverse weather has impacted corn production, while rising industrial demand continues to strain supply. With these challenges persisting, no immediate relief is expected in the near term.

Severe weather events in major corn-producing regions, particularly the American Midwest, have significantly diminished corn supplies. Droughts and unexpected frost have devastated crops, creating scarcity in this essential raw material for corn starch production. This reduced availability has directly contributed to the skyrocketing corn starch prices worldwide.

The Brazilian Association of Grain Exporters (ANEC) reports that Brazil's corn exports for February 2025 are estimated at just 1.03 million tons, dramatically lower than January's 3.15 million tons and representing the lowest monthly export volume since June 2024. This contraction in exports from a major producer has further constrained global corn starch availability.

Meanwhile, demand for corn starch continues to grow across various industries. The food sector's consumption remains robust, particularly due to increased production during the Spring Festival period. As a versatile thickening agent and stabilizer, corn starch is fundamental to numerous food products, making substitution difficult despite rising costs.

The pharmaceutical industry has also contributed to heightened demand for corn starch, which serves as a crucial component in the production of tablets and capsules. Ongoing health concerns worldwide have maintained strong demand for medical supplies, further straining corn starch supplies.

Additionally, policy decisions have exacerbated the situation. The Chinese government has implemented measures to increase national corn reserves while halting the release of imported corn to stabilize domestic markets. This strategic move has further tightened the availability of corn for corn starch production, reinforcing the upward price trajectory.

Industry analysts predict that corn starch prices will remain elevated through at least the second quarter of 2025, with potential for gradual stabilization contingent upon improved harvests and supply chain normalization. Companies heavily reliant on corn starch are advised to secure long-term supply contracts and explore alternative formulations where feasible.

As markets adjust to these new realities, one thing remains clear: the era of stable, predictable corn starch pricing has temporarily ended, creating both challenges and opportunities across the global supply chain.