Native potato starch in short supply due to reduced potato crop. More and more consumers are switching to low-priced alternatives as prices for native potato starch are expected to rise.
Lower prices for grain are dictating a clear trend on the European market for native starch products. Market players expect the fall in wheat and corn starch prices to continue over the coming three to six months, following a price reduction for third quarter deliveries.
New production capacity started by Agrana and Syral is said to put additional pressure on prices in Europe. However, native corn starch is reportedly performing slightly better and has restored the traditional price difference to wheat starch.
Intensive competition is said to be shaping the market for potato starch as well, accompanied by users' willingness to switch to lower-priced cereal starches. In spite of fierce competition, prices for potato starch are expected to increase in the coming quarter due to recent potato crop failures and limited raw materials supply.