As for the cassava starch production, data from Cepea indicate that the produced amount in the first trimester of 2012 was 12% lower compared to 2011. Moreover, in May, the production remains below that registered in previous years. For June, agents expect a new decrease. Therefore, players surveyed by Cepea say that the production might total 535 thousand tons in 2012, which would represent a slight rise of 3% compared to 2011.
The oscillation of cassava starch prices may continue influencing the demand for the product. However, the higher credit supply in economy may increase the cassava starch demand from some sectors. It is worth noting that, in early 2012, despite lower cassava starch prices, corn starch is still more competitive compared to the cassava starch, in general terms.
Center for Advanced Studies on Applied Economics (Cepea)
marketing@alchempro.com
