China Stops Issuing Import Permits for US Distillers Grains

Posted by Eric Haun
Monday, June 09, 2014

China has stopped issuing permits for imports of distillers dried grains (DDGs) from top exporter the United States on concerns they might contain an unapproved genetically-modified organism (GMO), traders said, sending U.S. prices tumbling.

Quarantine authorities have also asked buyers to re-export earlier shipments that contained MIR 162, a GMO strain developed by Syngenta AG that has not been approved for import by China's agriculture ministry.

Qingdao, China's largest port for DDGs, stopped issuing new permits for shipments last month to any buyers who had still not shipped out any cargoes previously denied entry by quarantine authorities.

"Now it is countrywide. Quarantine authorities stopped issuing import permits last Friday," said one trading manager with a major buyer.

"They asked us to take those rejected shipments away first," said the manager, who declined to be identified as he is not authorized to speak to media.

China is the world's largest buyer of DDGs, a protein-rich byproduct of corn-based ethanol that is used as livestock feed.

Bids for U.S. export barges of the byproduct fell about 10 percent on Monday to $205 per short ton, the lowest since January, U.S. traders said.

DDGs prices already had slipped some 2 percent last week on forecasts for a record domestic corn crop bolstered by favorable conditions. Corn is the main feedstock used in U.S. ethanol production.

Shipments denied entry into China over the presence of the unapproved GMO have until now been stored in bonded warehouses.

Analysts said authorities have required buyers to remove some 250,000 tonnes of U.S. DDGs denied entry due to the presence of MIR 162 and stored at major ports.

Quarantine authorities declined to comment on the matter when reached by telephone.

Chinese importers have been reluctant to re-export those shipments partly because it is hard to find overseas buyers.

China's imports of DDGs hit a record high in April at 613,678 tonnes, a rise of 252 percent from a year ago, with buyers undeterred by government scrutiny since late December, when authorities rejected more than 2,000 tonnes of the grains.

China has also rejected in aggregate since late last year more than 1 million tonnes of U.S. corn due to the presence of MIR 162.

U.S. prices fell by $30 in a week during the initial round of rejections before rebounding as shipments to China recovered their near-record pace.

"We always knew there was another potential shoe to drop," said a U.S. export trader of DDGs.

Expectation of falling imports have supported domestic China rapeseed meal prices, the most-active September 2014 contract rose 2.73 percent to more than one-month high at 3,045 yuan ($490) per tonne.

($1 = 6.2379 Yuan)

(Reporting by Niu Shuping and David Stanway,; additional reporting by Michael Hirtzer in Chicago; Editing by Tom Hogue and Andrew Hay)

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

DryShips: Public Offering of Its Senior Secured Notes

DryShips Inc. announced today that it intends to offer senior secured notes due 2017 (the “Notes”) pursuant to its effective shelf registration statement. The Company

Scanjet Secures 30-ship Tank Management Order

Scanjet Group has followed up its Tank Management order from Stolt-Nielsen with a series of contracts for its ITAMA Intelligent Tank Management concept including Tankcleaning,

Chinese Manufacturing Expansion Affects Shipping Demand

The expansion of the Chinese Manufacturing Industry continued in September at unchanged pace as compared to the month before, BIMCO reports. The manufacturing industry

News

Livorsi Launches New Throttle Lineup

Livorsi Marine introduced the all new Platinum Series throttles, which they say are designed to be more ergonomically comfortable to the operator while being lighter

Henderson, Hanes & Associates Opens Doors in Miami

Ocean Engineering/ Naval Architecture Firm Brings Innovation to the Mega Yacht Community The Miami-based ocean engineering and naval architecture firm of Henderson & Associates, Inc.

Austal Launches Trenton (JHSV 5)

Second Joint High Speed Vessel to be launched at Austal in 2014 On September 30, 2014, Austal USA successfully completed the launch process of Trenton (JHSV

Logistics

Chinese Manufacturing Expansion Affects Shipping Demand

The expansion of the Chinese Manufacturing Industry continued in September at unchanged pace as compared to the month before, BIMCO reports. The manufacturing industry

MOL Restructures Asia to S. Africa Service

Mitsui O.S.K. Lines, Ltd. (MOL) announced the restructuring of its existing Asia to South Africa liner services into two direct loops. One service will call South China,

DMR Examines Container Terminal Congestion Issues

Container port congestion has been hitting the headlines recently, but the reasons for it vary widely and in many cases it is only a short term issue. Certain world

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1320 sec (8 req/sec)