For the Quarter Ending June 2025
North America
• The Wheat Starch spot price in the U.S. showed a persistent downward trend through Q2 2025, driven by oversupply and weakened demand, with the average Quarter-over-Quarter price falling by 1.43%. By June 2025, prices moved marginally lower to USD 690 per metric ton, finalizing the quarter at its lowest point.
• Wheat Starch Production cost trends were consistently soft, as global wheat surpluses—particularly from Australia, Russia, and Canada—kept input prices low. Domestic production remained stable, and favorable energy costs contributed to reduced manufacturing expenses.
• Wheat Starch Demand outlook throughout the quarter stayed bearish, with industries such as food processing, paper, and pharmaceuticals reducing their offtake. Downstream sectors frequently turned to lower-cost alternatives like corn and tapioca starch, thereby limiting demand recovery.
• Weak downstream industrial demand and robust supplies in both local and international markets led to muted spot transactions and minimal price volatility during May and June.
• The Wheat Starch spot price was under continued pressure in June 2025 as high inventories and cautious procurement persisted, with slight logistics disruptions at the Port of New York and New Jersey resolved before month’s end—having no lasting market impact.
• Intense import competition from Asia and Eastern Europe persisted, with aggressive pricing strategies by global producers who benefited from lower labor and raw material costs.
• U.S. manufacturers-maintained production at near-capacity levels; however, ample inventories and thinning margins meant suppliers were often forced to make price concessions to clear stock.
• Export competitiveness deteriorated due to the strength of the U.S. dollar and persistent global oversupply, leading to further pressure on the Wheat Starch spot price.
• The Wheat Starch price forecast for the next quarter suggests continued softness, as destocking behavior and muted downstream activity provide little foundation for near-term recovery.
• Despite sporadic optimism from improved logistics and brief dips in freight rates, the market remains structurally oversupplied, with demand-side fundamentals expected to lag through Q3 2025.
APAC
• The Wheat Starch spot price in India followed a pronounced downward pattern throughout Q2 2025, with an average Quarter-over-Quarter drop of 11.83%—ending June at approximately USD 1058 per metric ton.
• The Wheat Starch production cost trend benefited from a record-breaking rabi wheat harvest, with favorable weather and enhanced government procurement driving supply surpluses and cheap feedstock for starch manufacturing.
• Wheat Starch Demand outlook was subdued, with sluggish offtake from industrial buyers and food processors due to high inventories and increased adoption of alternate starches such as corn and tapioca.
• Price behavior in June 2025 reflected relentless downward momentum, as wheat starch manufacturers faced record grain stockpiles and were compelled to offload surplus inventory at compressed margins, sharpening spot price competition.
• Expanded domestic capacity and technological adoption among manufacturers improved supply chain efficiencies but exacerbated local oversupply and limited any upward price movement.
• Export prospects for Indian wheat starch were dampened by currency volatility among traditional importers and by abundant competing supplies in Southeast Asia, restricting external demand.
• The robust government wheat procurement program provided stability but sustained excess stock at both state and private storage, weighing heavily on starch market sentiment.
• Operational cost advantages from energy price stability aided in maintaining manufacturing throughput, though did not offset the pressure of margin erosion from price-cutting.
• Buyer sentiment in both food and industrial segments was conservative, with processers accelerating destocking and only minimal replenishment in anticipation of further price softness.
• The Wheat Starch price forecast for the next quarter remains bearish, supported by reports of buffer stocks well above historical norms, stagnant downstream demand, and continued competition from alternative starch sources.
Europe (Germany as regional benchmark)
• The Wheat Starch spot price in Germany experienced a sharp downward movement during Q2 2025, averaging a 1.05% Quarter-over-Quarter decline and finishing June at USD 658 per metric ton, with the greatest monthly drop seen in April.
• The Wheat Starch production cost trend consistently moved downward, thanks to a bumper wheat harvest across Europe and stable, subdued energy prices, ensuring low per-unit manufacturing expenses throughout the quarter.
• Demand outlook weakened as buyers—particularly in food processing and industrial applications—substituted Wheat Starch with cheaper alternatives like corn and potato starch amid inflation and economic caution.
• June 2025 marked sustained price weakness, as incoming harvests from Eastern Europe and the Black Sea region flooded the market, while downstream industries maintained low procurement due to high stocks and subdued consumer demand.
• Intense pricing pressure from both high domestic production and continued strong imports (notably from Australia) resulted in swollen inventories and routine undercutting among suppliers to clear space ahead of the new harvest cycle.
• The market faced additional selling urgency as the risk of product degradation rose with warmer weather and high storage costs, fueling trade activity at or below cost price levels.
• Supply-side stability persisted, with logistics running smoothly and no significant bottlenecks reported—though euro depreciation provided only minor relief, insufficient to reverse the overall market decline.
• The Wheat Starch market structure remained fundamentally oversupplied due to aggressive early-2025 stockpiling by processors and traders worried about potential global disruptions that ultimately did not materialize.
• Forward-looking sentiment was further undermined by lackluster demand for processed foods and bioplastic segments, as sluggish exports and weak domestic orders prevailed.
• The Wheat Starch price forecast for the next quarter signals continued weakness, with spot prices likely to remain under pressure barring a major supply shock or sudden demand surge, given the entrenched oversupply and alternative starch competition.
For the Quarter Ending March 2025
North America
The North American wheat starch market in Q1 2025 is characterized by a complex interplay of supply and demand factors. While demand is expected to gain momentum, traders remain cautious due to a steady decline in consumption and weak consumer confidence.
Inventory levels are elevated, prompting market participants to focus on clearing stocked supplies amid fluctuating quotations from downstream starch mills and the food sector. Additionally, currency dynamics, particularly a weak U.S. dollar, are influencing regional competitiveness and pricing pressures, contributing to a cautiously balanced market outlook throughout the quarter.
In the United States, wheat starch prices declined by 3.48% from Q4 2024 to Q1 2025, averaging 721 USD/MT in the current quarter. Monthly pricing exhibited a relatively flat trend, reflecting subdued volatility. This stability is underpinned by strong domestic production, a global wheat surplus, and tempered demand across starch mills. Despite these bearish pressures, a weak dollar and rising downstream quotations suggest potential upward price adjustments, indicating a cautiously stable near-term outlook for the U.S. wheat starch market.
Asia Pacific
The APAC wheat starch market in Q1 2025 is characterized by a persistent oversupply relative to demand, with traders holding ample inventories and focusing on destocking strategies. Elevated feedstock costs and rising transportation expenses are sustaining production costs and export prices at higher levels. Despite some downward pressure expected later in the quarter due to modest drops in overseas quotations and sluggish downstream demand, export inquiries remain robust, supporting overall market activity. The regional sentiment is cautiously optimistic, balancing inventory clearance with sustained overseas demand.
In Australia, wheat starch prices increased modestly by 0.57% from Q4 2024 to Q1 2025. Monthly prices remained relatively flat, reflecting stable market conditions amid sufficient inventories. Price support stems from higher feedstock costs, elevated energy and transportation expenses, and persistent overseas demand. The near-term outlook is cautiously bullish, with exporters expected to maintain elevated price levels despite some anticipated price moderation.
Europe
The European wheat starch market in Q1 2025 is characterized by subdued demand amid ample inventories and cautious purchasing behavior. Market participants face competition from alternative starches, notably corn starch, which dampens wheat starch consumption. Supply chain improvements have eased logistical constraints, yet rising global shipping costs and a weakening euro elevate import expenses. Moderate economic growth and positive consumer sentiment provide some support, but overall trading remains muted with a focus on inventory clearance and balancing supply-demand dynamics.
In Germany, wheat starch prices declined by 2.13% from Q4 2024 to Q1 2025, averaging 751 USD/MT in the current quarter. Monthly prices exhibited a relatively flat trend, reflecting stable market conditions. Price movements were influenced by sufficient inventories, weakening purchasing, and substitution by other starches, while supply chain enhancements and currency depreciation affected landed costs. The market outlook remains cautiously stable, with expectations of moderate price fluctuations supported by steady procurement and improving economic sentiment.
For the Quarter Ending December 2024
North America
The U.S. Wheat Starch market experienced dynamic shifts throughout Q4 2024, marked by contrasting trends influenced by seasonal, economic, and supply chain factors. In October, import prices rose due to heightened seasonal demand from the food industry, escalating shipping and fuel costs, and ongoing supply chain disruptions.
Strategic stockpiling and robust downstream demand expectations further amplified price pressures. However, by November, a decline in import prices emerged, driven by increased global wheat supply from major producing nations like Canada, coupled with subdued demand from key sectors such as food processing, pharmaceuticals, and industrial applications.
This supply-demand imbalance, exacerbated by weak downstream consumption and bumper wheat harvests in Australia and Canada, resulted in excess inventories and downward price adjustments. December witnessed a persistent decline in prices, as oversupply conditions, intense competition from global exporters like Russia and Argentina, and muted domestic and export demand further weakened market sentiments. Broader economic challenges, including inflationary pressures and restrained consumer spending, compounded the downturn, solidifying a continuous drop in wheat starch prices across North America by the year's end.
Asia Pacific
Moving forward toward the final quarter of 2024, the Indian wheat starch market demonstrated a dynamic pricing landscape, with fluctuations influenced by supply-demand imbalances, economic activity, and broader market trends. October saw a significant price surge due to tight domestic wheat stocks stemming from reduced procurement and weather-related yield losses, compounded by strong seasonal demand during the festive period. Increased production costs for wheat starch producers further escalated prices, while government interventions to stabilize wheat availability offered minimal relief amidst high global wheat prices and logistical constraints. In contrast, November marked a shift as oversupply and subdued domestic demand led to declining prices. Aggressive pricing strategies by local and international suppliers, coupled with limited offtake from downstream industries, created a buyer-driven market focused on inventory clearance. By December, the market experienced continued price declines, attributed to ample wheat availability, reduced input costs, and weaker demand across key sectors, including food processing and starch mills. Competitive global pricing and uncertainty around potential government policy measures further dampened market sentiment, solidifying a downward trend in wheat starch prices toward the end of the quarter.
Europe
During Q4 2024, the Belgian wheat starch market displayed notable volatility, reflecting broader economic challenges across Europe. In October, prices were driven upward by robust demand and increased export prices from Asia-Pacific suppliers. Belgian buyers sought to replenish stocks, while local suppliers capitalized on the constrained market, despite rising production costs influenced by crude oil price fluctuations. The strong euro offered limited relief by easing procurement costs but failed to offset the upward price momentum. However, by November, the market witnessed a significant shift as wheat starch prices declined amid weak demand, lower production costs, and broader Eurozone economic pressures. Belgium, acting as a critical import hub, mirrored regional trends of sluggish demand, high inventory levels, and limited downstream consumption, creating a buyer-driven market. By December, the downward trajectory persisted as manufacturers contended with inflationary pressures, excess inventories, and subdued export activity. Falling European wheat prices further reduced production costs but failed to stimulate recovery, as weak global consumption and logistical challenges hindered shipments. The Belgian wheat starch market ended 2024 grappling with oversupply, muted demand, and external macroeconomic headwinds, leaving stakeholders navigating a landscape fraught with uncertainty.
For the Quarter Ending September 2024
North America
During the third quarter of 2024, the North American wheat starch market experienced relative stability, paralleling trends seen in Europe. Pricing remained mostly flat, with a slight uptick toward the end of the quarter. Consistent production levels across key hubs kept the market balanced despite fluctuations in supply and demand. Subdued demand from sectors such as food processing and pharmaceuticals influenced market dynamics, with end-users adopting a cautious approach and focusing on need-based purchasing rather than restocking inventories, reinforcing bearish market sentiment.
Cost pressures from the downstream industry rose, causing reluctance among traders to engage in fresh procurements. However, as the quarter approached its conclusion in September, a moderate rise in wheat starch prices was observed, driven by increasing demand from the food, pharmaceutical, and industrial sectors. Health-conscious consumers spurred higher demand in the food industry for high-quality ingredients, while the pharmaceutical sector showed increased consumption of wheat starch for its use as a binding agent and stabilizer in drug formulations.
Despite this late-quarter demand surge, supply chain disruptions and rising production costs presented challenges. The overall market outlook remained weak, with oversupply conditions and subdued demand keeping prices settled at USD 745/MT CFR New York. This combination of factors led to a cautious market sentiment, with traders and manufacturers navigating fluctuating conditions throughout the quarter.
Asia Pacific
Across the APAC region, Q3 2024 witnessed a challenging period for Wheat Starch pricing, marked by an overall downward trajectory in market prices. Several significant factors contributed to this downward trend. Weak demand from both domestic and international markets played a crucial role, resulting in oversupply and surplus inventory levels. Additionally, competitive pricing strategies among exporting countries further intensified pricing pressures. The market also faced uncertainties related to economic conditions and geopolitical issues, adding complexity to the pricing environment. In India, where the most significant price changes were observed, the Wheat Starch market experienced notable fluctuations. Seasonal shifts, coupled with rising input costs, influenced price dynamics. The correlation between demand patterns and supply dynamics was evident, with strategic adjustments made to balance market equilibrium. Despite challenges, market resilience and adaptability were notable features during the quarter. However, the prices demonstrated a modest upward trend at the end of the quarter supported by improved inquiries from the regional market. Overall, the quarter recorded a -3% decrease from the previous quarter, reflecting the prevailing negative sentiment and culminating in a closing price of USD 85600/MT of Wheat Starch Ex- Ahmedabad in India.
Europe
While on the European market side, during the entire Q3 2024, the Wheat Starch market in Europe witnessed relative stability in pricing, with Germany experiencing the most significant price changes. Various factors influenced market prices, including stable production costs, subdued demand in key sectors, and oversupply challenges. The overall trend in the region indicated a balanced supply-demand scenario, with pricing dynamics remaining relatively flat and a steady upward trend at the end. Ahead of higher supplies witnessed by market participants, manufacturers cut production volumes accordingly at the second-quickest rate in the past six months in key producing nations further impacting the overall market trading atmosphere and the import prices. Lastly, market transactions continued to remain muted with the industry only focused on the needly basis. This as a result considerably creates a supply-demand imbalanced scenario with trading sentiments leaning on the southerly side. Germany, as a key player in the market, saw fluctuations in prices, albeit within a stable range. The correlation between price changes from the same quarter last year and the previous quarter in 2024 remained consistent at 2%. The quarter concluded with Wheat Starch prices at USD 765/MT CFR Hamburg in Germany, reflecting a stable pricing environment overall.
FAQ:
1. What is the current price trend of Wheat Starch in major global markets?
As of June 2025, Wheat Starch prices showed a consistent downward trajectory across key regions. In the U.S., spot prices settled at USD 690/MT; India’s market closed lower at USD 1058/MT; and Germany recorded a drop to USD 658/MT. Persistent oversupply, lower production costs, and soft downstream demand contributed to these reductions globally.
2. Who are the major global producers and exporters of Wheat Starch?
Major Wheat Starch producers globally include Archer Daniels Midland (ADM), Cargill, Roquette Frères, Tereos Group, and Manildra Group. In India, key contributors include Gujarat Ambuja Exports and Sukhjit Starch. These firms leverage integrated wheat processing and export capabilities, with aggressive pricing to maintain competitiveness amid market oversupply.
3. Why is the Wheat Starch market experiencing a price decline in Q2 2025?
The Q2 price decline stems from a combination of global wheat surpluses, subdued industrial demand, and increased adoption of alternative starches like corn and tapioca. Additionally, competitive exports from low-cost Asian and Eastern European markets, coupled with high domestic inventories, pushed suppliers to offer steep price concessions across all major regions.
4. What is the market outlook for Wheat Starch heading into Q3 2025?
The Q3 2025 outlook remains bearish. With excessive stockpiles, limited demand from key sectors such as food processing and pharma, and no imminent supply shocks, prices are expected to stay under pressure. Destocking behavior and muted export prospects further suppress any near-term recovery across North America, Europe, and India.
