As for the general trends currently being seen in the plant-based raw materials market, it is a very busy buying season for various types of bakery supplies. All ingredients used in bread making are selling like hot cakes (coincidence?). It’s not entirely clear why. Perhaps bakeries are already stocking up for the coming fall and winter.
We have also noticed over the past few weeks that most individual requests tend to be for smaller quantities than usual. We ourselves are curious to see how long this trend will last, and will certainly monitor it closely.
Of great interest in general are sweeteners and sweetening agents, as well as other raw materials (such as Citric Acid) used in the production of sweet drinks and other delicacies, whose consumption increases in the summer.
Native Starches
As for Native Corn Starch, there is some demand, including from Southern Europe. The price has started to rise, which is not accepted by buyers at this time. After European producers raised prices, product from outside the region also appeared on the continent. Inquiries for Native Wheat Starch are now mainly for Q3 and Q4. Demand for the product is coming mostly from the food sector; paper manufacturers are not particularly interested for the time being. There are shortages of Native Potato Starch, as there is still some time before the next harvest and existing stocks are slowly running out. For this reason, prices are relatively high, but currently it is difficult to convince buyers to accept them. One of the larger suppliers of Native Tapioca Starch has stopped offering the product in 25 kilogram bags, which is a challenge for many processors. Many are now on the lookout for packaging of this type. Those who are lucky (whether it is luck or perhaps the right business partners…) manage to catch Native Tapioca Starch in 25 kg bags.
Modified Starches
The slowdown in the end-product market plays an important role in the current situation in the Modified Starches sector. Customers are increasingly turning to supermarkets’ own brands, making it difficult for manufacturers of other brands to sell products such as sauces or ketchups from their warehouses. As a result, demand for Modified Starches is declining. Until recently, we wrote about shortages, especially for Modified Potato Starch and Modified Waxy Corn Starch. Temporarily, there is more of all Modified Starches than the market needs. This is quite an interesting development, considering that there has been no new crop since then, but we explained the reasons a few sentences earlier.
Proteins
We are getting many requests for Vital Wheat Gluten for large quantities in Q3 and Q4, but at the same time some say there is virtually no demand. That would explain the recent price drop, wouldn’t it? Corn Gluten Meal is in demand, but it’s difficult to close contracts right now. Buyers are looking for special offers and very attractive deals, which are hard to come by at the moment given the high and ever-increasing transportation costs. The situation is quite different for Potato Protein, for which demand is currently low. The market’s needs are met for the moment, partly due to reduced pig and cattle herds. At the same time, pork prices are rising, so an increase in pork production can be forecast soon, which in turn will be reflected in an increase in demand for Potato Protein, a popular additive for pig feed.
Sweeteners
The price of Sugar has risen dramatically, including that produced in Poland. It is becoming increasingly difficult to find Sugar on the market. All these conditions are partly due to the ban on sugar exports imposed by Ukraine at the beginning of June, which is expected to last until mid-September and predicts further price increases on world markets in the coming months. The hottest time of the year for sweetener syrups consumption is currently underway. While processors have undoubtedly had to stock up earlier for the current season, evidence suggests that they will be talking about buying Glucose-Fructose Syrup and similar substances for next season in just a few weeks, so it is almost certain that both demand and price will rise in the near future.
