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

Bulk Carrier Trends

LUSCHI Begins Dredging at ArcelorMittal’s Canal

LUSCHI announced today it will mobilize its vessel Giovanella to Espírito Santo to assist in the dredging and final disposal of accumulated sediments in the seawater storage canal of ArcelorMittal,

Grounded Freighter Refloated in Lake St. Clair

The Federal Rideau, a 656-foot freighter that had been hard aground in the downbound shipping channel of Lake St. Clair since early Sunday morning, was refloated

News Flash! Greek Shipowners Prefer Bulkers

The buying interest from Greek ship owners is focused on bulkers to an increasing extent, BIMCO said. Data from VesselsValue.com reveal that Greek owners were at

News

Huge Waves Measured for First Time in Arctic Ocean

As the climate warms and sea ice retreats, the North is changing. An ice-covered expanse now has a season of increasingly open water which is predicted to extend

Messer's CEO Norville Announces Retirement

Bill Heller to assume the position as Messer Cuttings Systems’ President and CEO Gary Norville started at Messer Cuttings Systems Inc. in September 1980 selling and installing cutting machines.

Charter Boat Crew Rescued in Gulf of Mexico

U.S. Coast Guard search and rescue crews worked throughout the night to find a missing charter boat with four people aboard as far as 70 miles off Galveston. A

Logistics

Iraq's Kurds Have Right to Sell Oil While Squeezed by Baghdad

Iraq's Kurdish region has the right to keep selling oil as long as the Baghdad government keeps cutting its budget, the head of the Kurdish parliament's energy committee said on Tuesday,

Diana Containerships Q2 & 1H 2014 Financial Results

Greece-based Diana Containerships Inc., a global shipping company specializing in the ownership of containerships, has reported net income of $0.6 million for the second quarter of 2014,

Mercator Lines Profit Hit by Low Bulk Freight Rate

Mercator Lines (Singapore) reported a revenue of US$ 16.5 million for Q1 2015, an increase of 19% as compared to correspoding period in the previous previous year, however a net loss of US$ 7.

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics 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: 0.1894 sec (5 req/sec)