Ethanol Blog

Despite unease in the market over trade with China, that country still retains its position as the top importer of U.S. dried distillers grains with solubles, according to an article by the U.S. Grains Council (http://bit.ly/…).

Uncertainties in China's economy and worries over trade surfaced after China announced a new registration system for importers of grain and DDGS. Also factoring into the anxiety is a bumper corn harvest in China and corn price supports. Although there is some worry over China's Ministry of Agriculture will reduce its support price for corn, and traders appear to be cautious about forward contracting, it is likely that domestic corn in China will be priced higher than the international price of imported U.S. sorghum, corn and DDGS.

Chinese importers are reportedly working through the new regulations and shipments of U.S. sorghum and DDGS continue to arrive, still placing China as the top importer of U.S. sorghum and DDGS. As of Aug. 27, China's imports of U.S. sorghum were up 4 million tons over last year, and the 4.2 million tons of U.S. DDGS imported between Jan. and July 2015 were 20% more than the same period last year.

To encourage further imports, the council is planning upcoming seminars to promote U.S. sorghum and DDGS in two Chinese provinces and already has more than 200 participants registered from the country's swine industry. Consultants from the council are also scheduled to speak at a symposium organized to respond to the energy interest in sorghum and DDGS.

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

(CZ)

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