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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

News

Migrants Survivors Tell of Struggle at Sea

The bodies of 21 women and one man were brought ashore to Sicily on Friday as fellow migrants described scenes of panic and violence when water poured into their dinghy.

SENER Presents Two FORAN Papers at the Morintekh

In June, the SENER engineering and technology group participated in the 17th Morintekh – Praktik 2016 Scientific Conference, in the city of St. Petersburg, Russia.

Asia-N.Europe Box Rates Fall 8.1 pct

Freight rates for transporting containers from ports in Asia to Northern Europe fell 8.1 percent to $713 per 20-foot container (TEU) in the week ended on Friday,

Logistics

Libya's PFG to Lift Terminal Blockades

Petroleum Facilities Guard has blocked terminals for months. Ras Lanuf, Es Sider terminals damaged by fighting. Libya's Petroleum Facilities Guard (PFG) will

Unipec: U.S. ANS Destined for Sinopec

Arbitrage opens after ANS discount widen on ample supplies. Unipec, the trading arm of top Asian refiner Sinopec, has bought two U.S. crude cargoes, including

Asia Tankers-VLCC Rates to Hold, Ample Tonnage Weighs

"Pure" chartering market with little disruption. Rates to hold around W45 for Middle East; W48 for West Africa. Freight rates for very large crude carriers (VLCCs)

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.1005 sec (10 req/sec)