News / Economy

China Rejects More US Corn Amid Trade Tensions

FILE - A farmer dries newly-harvested corn cobs near her field in Zhuliang village of Qingzhou, Shandong province, China, September 2013.
FILE - A farmer dries newly-harvested corn cobs near her field in Zhuliang village of Qingzhou, Shandong province, China, September 2013.
Reuters
— China has blocked the entry of another U.S. corn cargo, and three more may be turned away, after tests found a strain of unapproved genetically-modified [GMO] corn.

Some believe the rejection may have been prompted by other trade disputes between the two countries.

The latest cargo of 59,100 tons was denied entry on Tuesday after quarantine officials in the eastern province of Zhejiang detected MIR 162, a GMO strain not yet approved for import by the agriculture ministry, according to a quarantine official.

Since the middle of November, quarantine authorities in China, the world's second largest corn consumer, already have turned away about 180,000 tons of the grain.

“It is really causing big trouble and it seems to be related to bilateral trade conflicts,” said a corn trader with a domestic trading house.

Heavy demand

U.S. government data shows that China's appetite for corn remains strong. It was the top destination for U.S. supplies last week, which analysts say outweighs any concerns about the rejections of a few cargoes.

The U.S. Agriculture Department said on Monday it inspected 17.6 million bushels of corn earmarked for China last week, which made up 44 percent of the total amount of corn the government inspected.

“If they are still importing it, it makes us wonder if this is more of a political game that China is playing,” said Terry Reilly, senior commodity analyst at Futures International. “As long as China is taking U.S. corn on a weekly basis... we are not going to get bearish on this topic.”

About 2 million tons, or 78.736 million bushels, of U.S. corn is headed for China in ships, and China already has committed to buying another 3 million tons of the U.S. grain.

WTO dispute

China last month fought back against accusations by the United States that it was blocking a World Trade Organization technology deal, with Commerce Minister Gao Hucheng calling the United States “irresponsible.”

This month, China also launched a trade dispute against the United States to challenge Washington's accusations of having dumped cheap exports on the U.S. market.

Traders said another three cargoes already had tested positive for MIR 162, a GMO strain developed for insect resistance, and were expected to be turned away from ports in Guangdong and Fujian. Some are not even being unloaded, making it easier to ship them to other markets, including Japan.

“Rejections will be frequent, following large arrivals in coming weeks,” said one industry source who asked not to be identified, due to the sensitivity of the issue. “Some cargoes simply berth offshore and buyers are not unloading the cargoes before testing results are complete.”

China glut

The U.S. corn market appeared unaffected by China's rejection. Chicago Board of Trade March corn futures were up 2 cents at $4.29-1/2 a bushel late Wednesday morning. Prices have increased 4.2 percent since China's first rejection in November.

Large volumes of the rejected corn have been snapped up by importers in other Asian countries, sometimes with price cuts, said European traders.

China expects a record corn harvest this year and faces a massive glut due to weak consumption by the animal feed industry. Its corn output in 2013/14 is likely to rise 5.9 percent on the year to a record 217.7 million tons, surpassing consumption, seen at 197 million.

The country's corn consumption fell 1.1 percent from the previous year, partly due to outbreaks of bird flu early in 2013, according to the China National Grain and Oils Information Center.

You May Like

At Khmer Rouge Court, Long-Awaited Verdict Approaches

First phase of trial, which is coming to an end, has focused on forced exodus of Phnom Penh in 1975 - and now many are hopeful justice will be served More

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities More

Video Information War Rages Alongside Real One in Ukraine

Downing of Malaysian airliner, allegations of cross-border shelling move information war in war-torn country to a new level More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Information War Rages Alongside Real One in Ukrainei
X
Al Pessin
July 31, 2014 8:13 PM
The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Gazans in Shelled School Sought Shelter

Israel's air and ground assault against Hamas-led fighters in Gaza has forced many Palestinians to flee their homes, seeking safety. But safe places are hard to find, as VOA’s Scott Bobb reports from Jabaliya.
Video

Video Rapid Spread of Ebola in West Africa Prompts Global Alert

Across West Africa, health officials are struggling to keep up with what the World Health Organization describes as the worst ebola outbreak on record. The virus has killed hundreds of people this year. U.S. President Barack Obama and other world leaders are watching the developments closely as they weigh what actions, if any, are needed to help contain the disease.
Video

Video Michelle Obama: Young Africans Need to Embrace Women's Rights

U.S. first lady Michelle Obama urged some of Africa's best and brightest to advocate for women's rights in their home countries. As VOA's Pam Dockins explains, Obama spoke to some 500 participants of the Young African Leaders Initiative, a six-week U.S.-based training and development program.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.
Video

Video Study: Latino Students Most Segregated in California

Even though legal school segregation ended in the United States 60 years ago, one study finds segregation still occurs in the U.S. based on income and race. The University of California Los Angeles Civil Rights Project finds that students in California are more segregated by race than ever before, especially Latinos. Elizabeth Lee reports for VOA from Los Angeles.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.