As mentioned in the subject line, here is a brief description of the market situation in May from the four perspectives of raw materials, exchange rates, shipping costs, and derivatives market to help more participants to have a clearer understanding of the China market and then make informed decisions.
1, Corn market | Rise amid fluctuations : the corn price had been rising since the beginning of the month, reaching its highest around May 10, then gradually decreasing, before rising again around May 25. The average wholesale price was around CNY 2.38/Kg.
2, Exchange rate | Keep rising : the exchange rate had basically shown an upward trend this month, and the central parity rate of CNY/USD had risen from 7.201 at the beginning of the month to 7.189 at present.
3, Shipping costs | Diverged by route, Tight shipping space : the container shipping costs remained low and stable at the beginning but diverged by route after mid-May. It is said that the cost of some routes will increase by at least $1000/40'container in June.
4, derivatives market | Stable generally: the price of most derivatives remained stable in May, such as dextrose, maltodextrin, glucose syrup etc., while the price of some derivatives rose affected by the current production capacity, like fructose.
Conclusion and suggestions: based on the above mentioned, with changes in exchange rate and shipping costs, the CIF price of derivatives will increase in early June. So, for those temporary and unhurried orders, recommended to "wait and see" until the shipping cost of the second shift in June available. For regular orders, recommended to cautiously confirm the specific quantity according to the exact inventory situation.
As a memeber of Biotio Shanghai Corporation, Shanghai Unitebiz International Trade Co., Ltd. has been engaged in corn deep-processing industry since 2013, and provided more and more partners with premium products, such as dextrose monohydrate, dextrose anhydrous, maltodextrin, crystalline fructose etc. If it would ever be advantages for you to supply these food additives, we would help you go further.