As negotiations for second quarter deliveries are about to start, starch suppliers aim to send a signal by announcing a price increase.
Negotiations for quarterly contracts are due to begin soon. Suppliers have already announced increases in order to least raise the lowest prices and pave the way for another increase in the third quarter.
Beside the "inadequately low" prices, suppliers are also quoting the Ukraine crisis as a factor triggering a reaction on the stock exchange that affects wheat as a raw material. The question is to what extent starch manufacturers will be able to take advantage of this political factor in the negotiations.