Corn Starch Market Dynamics Report – Recent Commodity Market Intelligence

I. Price Trends
- Futures Market: On May 25, 2026, the main corn starch futures contract closed at RMB 2,655.00 per ton, down 0.41% from the previous trading day. The intraday high was RMB 2,662.00 per ton, the low was RMB 2,650.00 per ton, trading volume reached 47,200 lots, open interest stood at 332,300 lots, and daily net change in open interest was +4,042 lots.
- Spot Market: On May 25, the spot reference price for corn starch was RMB 2,988.00 per ton, down 0.66% compared to May 1. Prices vary across brands and origins; for instance, food-grade corn starch in Henan Province was quoted between RMB 3,000–3,600 per ton.

II. Supply-Demand Situation
- Supply:
- Output: Corn starch production remained stable recently, with output reaching 342,200 tons on May 25, 2026.
- Operating Rate: Following the Labor Day holiday period, the industry-wide operating rate stabilized with a slight upward trend. The projected operating rate for May 2026 ranges between 64.69% and 66.00%, indicating sustained production activity.
- Demand:
- Demand Utilization Rate: 72.47%, reflecting relatively robust downstream demand; however, overall demand growth may decelerate.
- Starch sugar is the largest consumer of corn starch, accounting for approximately 50–56% of total consumption, driven by demand from food, beverage, and pharmaceutical sectors.
- The papermaking industry accounts for about 12% of corn starch consumption; food processing accounts for 6–10%; beer brewing, chemical, pharmaceutical, and modified starch sectors each account for roughly 5%.

III. Inventory Status
- Inventory levels continue to rise, albeit at a slowing pace. As of May 25, 2026, total inventory stood at 1.368 million tons, suggesting market expectations are trending toward supply-demand equilibrium—yet elevated inventory still poses downside price risks.

IV. Related Market Developments
- Corn Market: Corn futures prices remain range-bound at relatively high levels, providing cost support for corn starch. However, weak terminal demand significantly constrains upward price momentum for corn starch.
- International Markets: Price fluctuations in U.S. soybean meal, soybean oil, soybeans, and corn futures exert some influence on the domestic corn starch market; however, their direct impact remains limited under current conditions.

Analysis & Assessment

I. Downward Price Pressure
- Accumulating inventory and rising operating rates typically exert downward pressure on prices. Although demand has grown, its pace may be insufficient to fully absorb incremental supply, resulting in continued price headwinds.

II. Cost Support vs. Demand Constraints
- Elevated corn futures prices provide underlying cost support for corn starch. Yet sluggish terminal demand limits upside potential. Future price movements will hinge on the dynamic interplay between cost-side support and demand-side constraints.

III. Industrial Structural Optimization
- Accelerated industrial upgrading has spurred rapid growth in demand from high-end sectors—including food processing and bio-based materials—sustaining high capacity utilization rates. The share of high-value-added products continues to increase, helping mitigate downward pricing pressure on traditional products.

Outlook

I. Short-Term Price Trend
- Corn starch prices are expected to remain range-bound with a mild bearish bias in the near term. Inventory accumulation and moderating demand growth will weigh on prices, while cost support and structural optimization will help cushion the extent of declines.

II. Medium- to Long-Term Trend
- Over the medium to long term, the corn starch market is projected to exhibit a gradually moderating downward trend amid volatility. Structural optimization and expanding high-end demand will increasingly shape market dynamics. High-value-added products are poised to become key growth drivers, enhancing overall industry profitability.

III. Risk Alerts
- Key risks warranting close monitoring include volatility in raw material prices (e.g., corn), shifts in downstream demand, and policy adjustments. In particular, tightening environmental regulations and evolving international trade conditions could exert significant impacts on the industry.