Ethanol Blog

Despite instituting strict inspections for an unapproved genetically modified strain of U.S. corn, China's demand for dried distillers grains have remained strong, according to an article by Reuters (http://reut.rs/…).

In recent weeks, China has rejected shiploads of U.S. corn containing the GMO variety MIR 162 developed by Syngenta AG, since the country has not yet approved that GMO strain. Many feared that shiploads of DDG containing MIR 162 would be next in line to be rejected. Some in the industry felt that doing so would only be with the intention of buying the rejected cargoes at a lower price.

A report by the China National Grain and Oils Information Centre said in a recent report that China's purchases of U.S.-produced DDG will likely hit record highs in the coming year. In fact, the Centre expects that next year, China's imports of DDG will increase by as much as 60%.

China's livestock industry uses DDG as a substitute for corn and soybean meal for feed rations, almost all of which is imported from the U.S.

Cheryl Anderson can be reached at Cheryl.anderson@dtn.com

(ES)

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