U.S. Bomb Cyclone, ‘Blizzard of the Century’ to Crumple Corn Starch Prices
- 27-Dec-2022 6:29 PM
- Journalist: Robert Hume
An intense snowstorm, also being known as the ‘Blizzard of the Century,’ is wreaking havoc in the U.S. and Canada, with more than 50 casualties reported. The extreme cold weather in the central U.S. continues to endanger winter harvest, involving corn crops. The situation is largely impacting the downstream markets, including that of Corn Starch.
The consequence will lead to a hike in Corn Starch prices due to a shortage of feed Corn inventories among market players. In turn, the scarcity will depend on the extent of damage to the crops, but it is too early to predict if there are any permanent damages. The record-low temperature also affects the operating rate of Corn Starch as it causes power outages in the country. The influence of the Russia-Ukraine war, climate change, supply chain disruptions, and Covid restrictions have already saddled the country by engrained food inflation.
In December 2022, the Corn Starch market outlook resulted in lower exports to the international market as relatively high U.S. prices have proceeded in slow consumer demand and foreign shipments. This wave of uncertainty in the U.S. will definitely take some time to get over, especially when protracted supply chain issues cloud the market scenario along with Covid and the geopolitical situation.
Authorities and market players have come to a prediction that shortly after Christmas, temperatures will start to warm up again, moving from west to east, benefiting the Corn Starch manufacturing industries. However, the damage will take time to recover, due to which the price of a commodity like Corn will be on the higher side in the starting month of 2023. Tight feedstock supplies are forecasted to support high prices of Corn Starch next year. Moreover, the nation needs good quality Corn crops to produce Corn starch in order to satisfy the demand of end-user industries.