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Cereal starch prices may come under pressure in Q2 negotiations

02 Apr 2019 − 

The market, which was overheated in 2018 at times, has calmed down again and is reportedly showing signs of weakness at certain points.

Prices of native wheat starches have come under pressure on the European starch products market. Buyers have tabled demands for lower prices in the ongoing negotiations for deliveries in the second quarter.

The shift in balance between supply and demand is playing a significant role in negotiations on prices from April. EUWID respondents explain that several agreements were signed at fixed prices early this year for six months until the middle of the year. Most prices thus do not fall within the scope of the current negotiations. However, prices are under pressure in cases where they are being negotiated for the second quarter

Industry representatives attribute the prevailing pressure situation especially to falling raw material prices. Corn and especially wheat is not so expensive any more. Furthermore, there is perception of oversupply for wheat starch, EUWID respondents explain.

 This article is an excerpt from EUWID's report on the starch market in Western Europe.

Find the EUWID Price Watch Native Starch for the first quarter 2019 in EUWID Pulp and Paper issue no 14/2019, which will be available to our e-paper and print subscribers as of 3 April.

Want to find out more? Check our subscriptions or test EUWID free of charge.

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