The Dutch Potato Starch market dropped 5.9% in October as record EU-04 potato harvests made feedstock available while industrial demand and downstream procurement was slow. Raw material was abundant and food, pharma and adhesive sectors were not restocking, so there was an oversupply situation that put pressure on FOB Rotterdam prices. Despite stable EUR/USD and good port throughput the market was soft and surplus inventory prevented any price upturn. Mills ran at reduced capacity to manage quality and margin and minor shipping delays had no impact on overall supply. For November the Potato Starch market will recover. Seasonal procurement, inventory drawdown from exporters and demand from Europe and overseas will support firmer offers. Exporters will keep their supply discipline and prices will be stable. With balanced supply and demand the Potato Starch market will recover after the big drop in October.
The Dutch Potato Starch market fell in October because of record EU-04 potato harvests and lack of industrial demand. Export volumes through Rotterdam were below expectations as Asian and European buyers were cautious with plenty of local supply. Despite stable EUR/USD rates keeping parity for exporters, competitive pressure and plenty of stocks prevented any premium for Potato Starch.
In October Potato Starch FOB Rotterdam was 5.94% lower than previous month, due to the combination of record crop and cautious downstream demand. Potato Starch mills said that while theoretical capacity was high, actual processing was limited as they managed quality variations and margin compression. Rotterdam port was efficient and Potato Starch deliveries were made to domestic and export markets without any disruption, although minor North Sea shipping delays prolonged lead times. Processors were disciplined in their output and stocks were built in warehouses, which further pressured Potato Starch prices. The decline was not due to shortages but due to market dynamics, plenty of Potato Starch was available to meet industrial and food-grade requirements.
October was supply dominated by the record potato harvest in all over Europe, with plenty of feedstock for starch production. Mills ran at balanced capacity, producing standard and premium Potato Starch, but deferred expansion due to narrowing margins. Energy costs were generally favorable with EU subsidies and inland logistics steady after harvest peaks. Inventory buildup which increased both domestic and port level stocks. Market participants noted that while this build ensured supply was uninterrupted, it also put downward pressure on Potato Starch prices.
Demand for Potato Starch in October was soft across food, pharma and industrial sectors. Restocking slowed as manufacturers delayed procurement and demand from personal care and adhesive applications were soft. Export buyers were cautious and buying selectively with plenty of European supply. The combination of inventory and restrained consumption caused the big price move for Potato Starch but analysts said seasonal factors could turn around market sentiment in the short term.
Looking forward, Potato Starch prices are expected to recover in November. Seasonal procurement will pick up as end users prepare for year-end production and will support demand for both domestic and export shipments. Inventory drawdowns among exporters will underpin Potato Starch offers, particularly for premium grades, and stable export flows to Europe and overseas will support the upturn. Exporters will maintain disciplined supply and Potato Starch will recover steadily after the October correction and set the market up for a better Q4.
