Corn starch 1605 finished lower Wednesday to close at 2155, down 13 yuan, down 0.6 percent, closing 743,270 hands, hand positions by 11,106 to 456,254 hand. Recent spot price of corn starch by strong support to maintain a slight upward trend, but the fundamental point of view, do not have long-term upside momentum.

Recent large-scale snow by cooling influence, difficult to transport corn prices upward. Up to now, Jilin Yu corn deep processing enterprises purchase price range at 1840-1920 yuan / ton, the end of the 40-50 yuan / ton price increase. Coupled with the recent acquisition of a large amount of temporary storage support in Northeast corn prices strengthened. Corn prices firm, driving the price of corn starch to follow up, to improve business conditions. Yiwu Market The latest offer of starch processing enterprises, the current spot price of Shandong local starch 2550-2600 yuan / ton, Jilin starch offer 2,300 yuan / ton. Starch businesses re-enter the profit cycle. Jilin area of ​​corn starch processing enterprise after receiving government subsidies, processing profits rose to 177 yuan / ton, weekly ratio increased 84 yuan / ton. Operating profit to pick up by the stimulation, 50% starch enterprises operating rate to 67% before the upgrade, starch supply is phased heavy volume. And starch businesses high operating rates, the supply of an enlarged Correspondingly, starch downstream consumer still in the doldrums. Given the current corn starch and tapioca starch spreads narrowed, substitute advantage disappears, another slump in consumption. Meanwhile, with corn starch price increase, export is blocked, starch downstream demand is also expected to re-enter into the low state of the market.

Strong starch prices is due to short-term factors, until the weather improved and Yiwu Futian Market the end of the temporary storage acquisition, temporary storage of corn high inventory, high pressure supply of starch will re-appear after the end of this starch will return to rising short-term downtrend channel.

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