NEWS
Mon Aug 24, 2015 01:40 PM CDT
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.anderson@dtn.com. (ES) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.