Sino-Agri News: Cassava starch production costs rise, supply decreases, and Thai domestic prices remain firm and increase

Since April, the overseas prices of Thai cassava starch have stayed firm and risen to the highest level since 2025. Cassava raw-material purchase prices have increased, and—on top of that—insufficient output of cassava starch has provided bullish support for overseas prices. From the cost perspective, the shortage of Thai cassava supply may persist; during the rainy season, the starch content of cassava declines, so purchase prices are likely to remain at high levels and there is also potential for further increases, keeping raw-material procurement costs elevated. From the supply perspective, against the backdrop of difficult raw-material supply, as time goes on, the number of factories operating may further decline, resulting in lagging cassava starch output. From the demand perspective, there is a clear price inversion between domestic and overseas markets; traders are not actively placing orders, and end-user factories may only import small quantities as needed. Overall, limited demand provides no lift to overseas prices, while high costs and insufficient output have a greater impact on overseas prices. It is expected that Thai overseas prices will remain firm at high levels before the end of April, and in May there may be room for further increases, with potential upside of around $20 per ton.