Corn Starch, a versatile ingredient derived from corn, finds extensive usage across various industries including food, pharmaceuticals, textiles, and paper manufacturing. This powdery substance, extracted from the endosperm of corn kernels, serves as a thickening agent, stabilizer, and binder in numerous products, contributing to its indispensable role in modern manufacturing processes.

In recent months, the Corn Starch market has witnessed a notable decline in prices, particularly during April 2024. This decrease can be attributed to several factors impacting both the upstream and downstream segments of the industry. Throughout April, the domestic Corn Starch market experienced a continuous weakening, primarily due to loosen supply conditions and market suppression. Additionally, upstream raw material costs saw a consistent decline, further contributing to the downward pressure on prices.

Furthermore, the downstream demand for Corn Starch in China, particularly during what is typically considered the peak season, remained subdued. Accumulation of inventory led to increased caution among downstream starch procurers, exacerbating the downward trajectory of prices. Analysts specializing in Corn Starch products foresee this trend persisting in the short term, as the loose supply situation in the domestic raw material corn market shows no signs of immediate alleviation.

Moreover, April presented unique challenges for corn farmers in the Northeast production area, where soil moisture requirements demanded their attention, resulting in decreased corn market volume. Despite efforts to stabilize prices in this region, the overall tendency leaned towards weakness. Additionally, rising temperatures posed storage challenges for corn, compounded by the influx of imported corn to supplement domestic demand. The intent of grain trading entities in North China to sell out further increased supply pressures.

Concurrently, the domestic breeding industry operated at a low level, contributing to a surplus of corn inventory among deep processing enterprises. This imbalance between supply and demand continued to exert downward pressure on corn market prices, affecting Corn Starch prices accordingly.

Looking ahead to May 2024, industry analysts anticipate a continuation of the current trend, with Corn Starch prices expected to follow the weak operation of domestic corn prices. As the domestic corn market supply remains relatively loose, prices are projected to experience moderate to weak trends. However, with the gradual decrease in grassroots corn grain sources, stabilization of prices is forecasted by mid to late May.

As per ChemAnalyst, the decreased prices of Corn Starch observed in April, coupled with the anticipated continued decline in May, underscore the complex interplay of factors influencing the Corn Starch market. While short-term fluctuations are expected, the industry remains poised for stabilization in the coming months, driven by evolving supply dynamics and market demand.