This year’s good harvest has triggered a downward trend in starch prices. Native starch prices generally tumbled by 10% at the start of the fourth quarter and more price cuts are expected to come in the first quarter of 2012. However, markets insiders say that no extreme price drop is foreseen for 2012 as demand for starch products is rising, especially for wheat starch. Demand for native starch in Europe is reportedly good, notably for food, bioplastics and speciality applications.
The eyes of many starch producers are currently focused upon the consolidation process in the graphic paper business. Mill closures and extended temporary stoppages are expected to curb starch demand from the paper industry and influence starch pricing in the next year.