The Operating Rates of Starch Processing Companies Were High Than Last Month, and Processing Margins Descended Obviously

(1) March Corn Starch Prices in the Production and Consumption Areas Averaged at RMB 2,470/MT, RMB 25/MT lower than Last Month
 
Due to a weak demand from the downstream, the stocks of starch processing companies are gradually increasing. Corn starch prices in the northeast and north China and Huang-Huai Region generally descended in March. The average price of corn in the production and consumption areas was RMB 2,470/MT, down 1.0% or RMB 25/MT less than last month.  
 
The quote from the Northeast was 2,235 RMB/ton on average, the quote from North China and the Yellow-Huaihe River Region was 2,375 RMB/ton, and the price in consuming regions was 2,555 RMB/ton on average, down 30 RMB/ton, 35 RMB/ton and 20 RMB/ton from previous month.
(2) Corn Starch Processing Margins Lower than Last Month
In March, corn starch prices descended, but the quotations of byproducts such as corn bran and protein were less than last month, and the costs of corn of further processing companies increased, so corn starch processing margins went down obviously. The average profits in March were RMB 2/MT, RMB 132/MT less than last month.
 
Starch processing margins in main production areas witnessed different growths and growths. Without the subsides, in Jilin, the average processing margin of corn starch was 30 RMB/MT, 140 RMB/MT less than last month; in Shandong, the average loss was 25 RMB/MT, 123 RMB/MT less profit than last month.