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

Will Cuba Follow the Southeast Asia Model?

Decision to restore ties between US and Cuba has some debating whether it will lead to enhancement or regression of democracy for Communist island nation More

Kenyan Designer Finds Her Niche in Fashion Industry

‘Made in China’ fabrics underlie her success More

Report: CIA, Israel's Mossad Killed Senior Hezbollah Commander

The Washington Post story says Imad Mughniyah was killed instantly by a bomb "triggered remotely" from Tel Aviv by Mossad agents 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.
Jefferson's Library Continues to Impress, 200 Years Lateri
X
Deborah Block
January 31, 2015 12:12 AM
Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Jefferson's Library Continues to Impress, 200 Years Later

Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Egypt's Suez Canal Dreams Tempered by Continued Unrest

Egypt plans to expand the Suez Canal, raising hopes that the end of its economic crisis may be in sight. But some analysts say they expect the project may cost too much and take too long to make life better for everyday Egyptians. VOA's Heather Murdock reports.
Video

Video Threat of Creeping Lava Has Hawaiians on Edge

Residents of the small town of Pahoa on the Big Island of Hawaii face an advancing threat from the Kilauea volcano. Local residents are keeping a watchful eye on creeping lava. Mike O’Sullivan reports.
Video

Video Pro-Kremlin Youth Group Creatively Promotes 'Patriotic' Propaganda

As Russia's President Vladimir Putin faces international pressure over Ukraine and a failing economy, unofficial domestic groups are rallying to his support. One such youth organization, CET, or Network, uses creative multimedia to appeal to Russia's urban youth with patriotic propaganda. VOA's Daniel Schearf reports.
Video

Video Filmmakers Produce Hand-Painted Documentary on Van Gogh

The troubled life of the famous 19th century Dutch painter Vincent van Gogh has been told through many books and films, but never in the way a group of filmmakers now intends to do. "Loving Vincent " will be the first ever feature-length film made of animated hand-painted images, done in the style of the late artist. VOA’s George Putic reports.
Video

Video Issues or Ethnicity? Question Divides Nigeria

As Nigeria goes to the polls next month, many expect the two top presidential contenders to gain much of their support from constituencies organized along ethnic or religious lines. But are faith and regional blocs really what political power in Nigeria is about? Chris Stein reports.
Video

Video Rock-Consuming Organisms Alter Views of Life Processes

Scientists thought they knew much about how life works, until a discovery more than two decades ago challenged conventional beliefs. Scientists found that there are organisms that breathe rocks. And it is only recently that the scientific community is accepting that there are organisms that could get energy out of rocks. Correspondent Elizabeth Lee reports.
Video

Video Paris Attacks Highlight Global Weapons Black Market

As law enforcement officials piece together how the Paris and Belgian terror cells carried out their recent attacks, questions are being asked about how they obtained military grade assault weapons - which are illegal in the European Union. As VOA's Jeff Swicord reports, experts say there is a very active worldwide black market for these weapons, and criminals and terrorists are buying.
Video

Video Activists Accuse China of Targeting Religious Freedom

The U.S.-based Chinese religious rights group ChinaAid says 2014 was the worst year for religious freedom in China since the end of the Cultural Revolution. As Ye Fan reports, activists say Beijing has been tightening religious controls ever since Chinese leader Xi Jinping came to office. Hu Wei narrates.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Former Sudan 'Lost Boy' Becomes Chess Master in NYC

In the mid-1980’s, thousands of Sudanese boys escaped the country's civil war by walking for weeks, then months and finally for more than a year, up to 1,500 kilometers across three countries. The so-called Lost Boys of the Sudan had little time for games. But one of them later mastered the game of chess, and now teaches it to children in the New York area. VOA’s Bernard Shusman in New York has his story.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid

World Currencies

EUR
USD
0.8845
JPY
USD
117.71
GBP
USD
0.6643
CAD
USD
1.2669
INR
USD
62.019

Rates may not be current.