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Newsflash -- into June, why would Thailand's cassava starch offer be significantly, continuously reduced? Here's the answer.

Date:6, 28, 2018Hits:3

Recently, many colleagues are very concerned about a problem:
Thai because of fear of July 15 after the new raw materials continue to dig, will lead to a large increase in the supply of raw materials, so has continued to reduce prices?
In fact, the Thai price reduction, there are various factors. Mainly because
Thai people also have a large package of 850kg, about 70,000 tons(the main force of the current deal is to use this part of the inventory to repackage to 50kg)
2, Thai people still have some small packaging 50kg, the production date is before or after the Spring Festival powder, different opinions, about about 4,000 to 5,000 tons, ready to go
3, the Thai baht exchange rate continues to depreciate, Thailand's export FOB costs reduced
4,The Chinese market placed too few orders in May-June. The quantity and pace of shipments were not satisfactory. The Thais also helped them in their hurry. So they had to exchange space for time, go out of stock, and wait for the squeeze

5,The Chinese market placed too few orders in May-June. The quantity and pace of shipments were not satisfactory. The Thais also helped them in their hurry. So they had to exchange space for time, go out of stock, and wait for the squeeze
The Chinese and Thais have said confidence is the most important thing about future market expectations(trade war, China's economic slowdown, etc.)
All in all, it is the demand that determines the quotation, not the supply that determines the quotation.
Post-market variables need to pay attention to the following directions:
2,RMB exchange rate situation(affecting import costs)
Thailand exchange rate situation(affecting export costs)
3, cassava root supply situation(how much supply affects the price of starch factory)
4,Weather conditions(affecting the stability of the cassava supply, the smooth transportation of cassava to the starch plant, whether the cassava in the yard is soaked in rain)
5,The situation of maize
6,Recovery of the end market