Ethanol Blog 08/24 13:39
China's Economic Woes Could Slow Down DDG Imports
If China's economic slowdown continues, its demand for U.S. meat could
decline, as well as its demand for soybeans, soymeal and DDG.
By Cheryl Anderson
DTN Staff Reporter
The economic slowdown in China could mean a consequent slowdown in the
country's demand for U.S. beef, swine and poultry, according to an article by
The Des Moines Register (http://dmreg.co/1NPweFv).
But if China's demand for U.S. meat declines, a consequent decrease in
imports livestock feed ingredients like dried distillers grains, soybeans and
soybean meal could be next.
U.S. Department of Agriculture statistics place China as the largest buyer
of U.S. agricultural products, with its imports rising 63% from 2008 to 2013 to
a total of $26 billion.
China's slumping economy caused its government to devalue its currency in
early August in an attempt to help the economy recover.
According to USDA reports, about 40% of China's $109 billion 2013
agricultural imports were soybeans and other oilseeds. China has been the
largest importer of U.S. DDG for some time.
Any decrease in China's imports of U.S. DDG can cause an immediate market
reaction. Last year, China's sudden stop in DDG imports due to its delays to
approve the MIR 162 biotech trait caused U.S. DDG prices to plummet.
Cheryl Anderson can be reached at Cheryl.firstname.lastname@example.org.
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