Corn starch industry enters consolidation period, industrial landscape faces reshaping

Corn starch industry enters consolidation period Since corn starch futures listed on the Dalian Commodity Exchange on December 19, futures prices surged then fell back, basically mildly and rationally reflecting the current operating conditions of the corn starch spot market. Since September, along with the gradual return to normal of new-season corn supply, the corn starch market has entered a seasonal decline cycle, once again reaching the edge of meager profits. Against the backdrop of overcapacity, many high-energy-consumption, poorly managed small enterprises have been eliminated, while enterprises not meeting environmental protection requirements have been suspended for rectification. Currently, operating enterprises in Shandong and Hebei are basically at full-capacity production, corn prices have begun to fall, corn starch prices have fallen even more, and profits of corn starch producers have dropped below 100 yuan/ton, with some producers having reached the break-even point.

Palm oil drives oils and fats futures rebound Malaysia has suffered its worst floods in decades, and the industry generally expects local palm oil production to be reduced as a result. Li Na, an oils and fats analyst at China Grain Network, said that the intensity of monsoon floods in Malaysia has greatly increased, and reports say the December production reduction could approach 20%, giving palm oil an obvious boost. Domestic oils and fats fundamentals lack news, long-term weakness has brought rebound demand, and with internal and external factors overlapping, the three major oils and fats opened higher and rose sharply on Monday, with soybean oil up 1.7%, while palm oil and rapeseed oil easily reached more than 2%. "Previously, oils and fats prices continuously hit new lows, and the downside space was constantly squeezed. The recent rebound is more about the impact of weather speculation on psychological factors. At present, the fundamentals are still generally weak, but factors for speculative rebound may increase later."