The global starch market is experiencing significant supply chain disruptions as Trump’s tariff policies create uncertainty for procurement managers across all major starch categories.

Tariffs hit key starch suppliers

Current US tariffs of 10% are now affecting major starch exporters including Turkey for corn derivatives, the EU for potato derivatives, and Thailand and Vietnam for tapioca derivatives. This uniform tariff structure is forcing procurement teams to reassess their supplier portfolios and pricing strategies.

Food demand remains strong despite industrial weakness

While food applications continue to drive strong demand across corn, potato, and wheat starches, industrial starch demand has weakened considerably. This divergence is creating underutilization at starch processors who recently expanded their drying capacity, particularly in the corn and wheat starch segments.

Supply fundamentals show mixed signals

Each starch category faces unique supply challenges:

Corn starch prices have decreased slightly due to high corn supply from South America, despite strong food demand offsetting weak industrial applications.

Potato starch remains stable with limited supply meeting high demand. Organic potato starch is completely sold out until the September harvest.

Tapioca starch faces supply tightness as heavy rains in growing regions have reduced starch content in cassava roots and forced early harvesting in flood-prone areas.

Wheat starch has seen slight price decreases following lower wheat futures, though good EU crop prospects provide supply stability.

Ocean freight volatility adds procurement complexity

Political tensions affecting oil prices have created volatile ocean freight rates, with bullish forecasts from freight analysts adding another layer of cost uncertainty for international starch procurement.

Market outlook varies by type

Price expectations diverge across starch categories: corn starch is expected to remain stable, potato and tapioca starches face slightly bullish outlooks due to supply constraints, while wheat starch may see slight price softening.

For FMCG procurement managers, the combination of tariff uncertainty, freight volatility, and divergent supply fundamentals requires careful supplier diversification and flexible contract strategies to navigate the current market environment.


For more insights on starch market prices, view our full price overview: https://app.vespertool.com/dashboard/.