Hello, I am happy to answer your questions:
1. The total amount of starch is limited. In the past two years, the total domestic starch production has been about 23.5 million tons, which is only about 12% of the corn production.
2. The quantity of starch products is limited. As the primary product of corn, starch has a very long downstream industrial chain. Currently, only half of the starch is commercial starch and is available for sale, which means that the amount of commodities available for circulation is only a little over 10 million tons. In recent years, the production lines for downstream products of corn starch, sugar and other starches have been continuously launched. If markets such as the United States develop in the same direction, the proportion of starch reprocessing will expand and the volume of products will be further compressed.
3. The deliverable quantity of commercial starch is limited. Xinhu Futures learned from its field survey in November that most large companies have relatively complete sales systems and stable sales channels. Companies that do well have completed the "hedging" of the spot link through long orders and short orders. Companies with high production and sales rates usually have to maintain existing customer systems and sales channels. If a large amount of additional supply is used for delivery, it will obviously conflict with the spot sales system. Futures prices may deviate significantly from spot prices due to market conditions.
I hope the answer from Soaring Bull is helpful to you and I hope you will adopt it!