Native starch prices remain under downward pressure in Western Europe amid growing supply competition and falling commodity prices for wheat and corn.
Price negotiations for native starch deliveries in the third quarter are currently underway with a number of contracts already concluded. Shorter contract terms and price validity periods are becoming more common, but quarterly supply agreements remain the norm, according to EUWID respondents.
So far, there is a trend towards price reductions for wheat and corn starch in third quarter deliveries due to growing supply competition and cheaper raw material prices. As commodity prices for wheat and corn have fallen, suppliers of native starch products will have to accept mark-downs of a similar magnitude, it is learnt.
Native potato starch producers are feeling the pinch from the rapid development in the cereal starch markets and growing competition among suppliers, as demand from the graphic paper industry continues its downward trend in 2013. Despite high raw material costs, producers believe they will have to follow the trend in native wheat and corn starch prices.