The global starch market presents a complex landscape in September, with potato starch facing oversupply pressures while tapioca demand remains robust, creating varied sourcing opportunities across different starch categories.

Potato starch oversupply weighs on prices

European potato starch markets are experiencing significant oversupply conditions, with prices decreasing month-over-month as supply exceeds demand. High carryover stocks compound the situation, while increased potato cultivation across Europe has resulted in large volumes of available raw material from recent harvests.

The oversupply has created challenging conditions for some potato processors, who may face liquidity issues due to uncontracted supply. However, organic potato harvests have been less successful, creating a divergent supply picture within the category.

Tapioca maintains strength despite seasonal challenges

Tapioca starch prices remained stable month-over-month, supported by strong demand particularly from Chinese paper manufacturers. This robust demand provides stability despite seasonal efficiency challenges, with current off-season tapioca roots yielding only 18% starch content.

Heavy rainfall across growing regions has been manageable so far, though flooding risks could potentially damage roots. The usual cassava mosaic disease is not expected to influence tapioca production this year, providing some supply security.

Industrial demand decline affects corn and wheat starches

Both corn and wheat starch categories experienced slight price decreases, primarily driven by declining demand for industrial starch applications. This broader industrial softness affects multiple starch types simultaneously.

Corn starch processors have responded by reducing prices to maintain volumes, while MATIF corn futures decreased month-over-month. Global corn harvests are looking promising, though Eastern European crops show elevated mycotoxin levels, reducing corn availability in that region.

Wheat starch faces similar industrial demand pressures, with both MATIF and CBOT wheat futures declining. European wheat harvests show mixed regional results due to weather conditions, though overall supply remains stable.

Processing capacity shifts signal market adaptation

The industry continues adapting to changing market conditions, with a Netherlands wheat processing facility set to transition to corn processing by the end of 2025. This shift reflects broader market dynamics and processor responses to demand patterns.

Looking ahead, corn and wheat starch prices are expected to remain stable, while potato starch faces bearish pressure from ongoing oversupply conditions. Tapioca starch is anticipated to maintain price stability supported by continued strong demand.


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