Monday, February 28, 2011

Starch Prices Up on Short Corn Supply

A brief report from says that corn starch prices are rising. Last month, industrial processors--including starch manufacturers--were told to stop buying corn so the government could procure corn to replenish reserves without having to compete with other buyers. After the spring festival period, manufacturers have low inventories of corn for raw material. Scarce corn is raising raw material cost and pushing starch prices higher as companies resume normal production.

On February 25, the price of starch in Jilin Province was 3250 yuan/metric ton, up 390 yuan from the price before the spring festival earlier in the month. In Weifang, Shandong, the price is 3370 yuan per metric ton, up 320 yuan.

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