"DTN Fri Aug 21, 2015 07:00 AM CDT
Imports of certain [US]grains and dried distillers grains with solubles to China will need to be registered beginning Sept. 1, according to a recent announcement by China's Ministry of Commerce.
All Chinese importers of DDG, sorghum, barley and cassava will need to register details of their purchases under the new system and apply for import permits for shipments.
Although there had been some indications that China was planning on taking steps to monitor imports more closely, the announcement last week was a bit of a surprise, according to Tom Sleight, president and chief executive officer of the U.S. Grains Council.
News reports following the announcements referred to the move as China's wish to monitor imports more closely. However, suspicions of China's trade decision remain after it's shutdown on DDGS imports over the MIR 162 biotech trait in 2014 wreaked havoc on the U.S. DDGS market, causing prices to plummet.
Industry experts theorize that China new regulations may have more to do with their glut of corn and their wish to monitor DDGS imports when they need to ensure end users purchase their own domestic corn first. In the past year, China has imported increasing amount of DDGS and sorghum especially, since even importing such grains/coproducts was less costly for livestock rations than the country's own domestic corn.
California Drought Could Bring Down DDGS Demand
If drought continues to affect California farmers, demand for dried distillers grains with solubles from the Midwest could fall as a result, according to an article by Missouri Farmer Today (http://bit.ly/…).
The West Coast drought could likely decrease dairy production, as large dairies such as those in California require large amounts of water to operate. This could lead to several possible outcomes: increased demand for Midwest dairy products, expansion of Midwest dairies or relocation of dairies from California to areas with more water supplies, such as the Midwest.
California's demand for forages rose with the continued drought; however, demand for DDGS could fall. Since many California dairies buy DDGS from the Midwest, decreased dairy production could limit DDGS shipments to West Coast areas."
Cheryl Anderson can be reached at cheryl.anderson@dtn.com
Imports of certain [US]grains and dried distillers grains with solubles to China will need to be registered beginning Sept. 1, according to a recent announcement by China's Ministry of Commerce.
All Chinese importers of DDG, sorghum, barley and cassava will need to register details of their purchases under the new system and apply for import permits for shipments.
Although there had been some indications that China was planning on taking steps to monitor imports more closely, the announcement last week was a bit of a surprise, according to Tom Sleight, president and chief executive officer of the U.S. Grains Council.
News reports following the announcements referred to the move as China's wish to monitor imports more closely. However, suspicions of China's trade decision remain after it's shutdown on DDGS imports over the MIR 162 biotech trait in 2014 wreaked havoc on the U.S. DDGS market, causing prices to plummet.
Industry experts theorize that China new regulations may have more to do with their glut of corn and their wish to monitor DDGS imports when they need to ensure end users purchase their own domestic corn first. In the past year, China has imported increasing amount of DDGS and sorghum especially, since even importing such grains/coproducts was less costly for livestock rations than the country's own domestic corn.
California Drought Could Bring Down DDGS Demand
If drought continues to affect California farmers, demand for dried distillers grains with solubles from the Midwest could fall as a result, according to an article by Missouri Farmer Today (http://bit.ly/…).
The West Coast drought could likely decrease dairy production, as large dairies such as those in California require large amounts of water to operate. This could lead to several possible outcomes: increased demand for Midwest dairy products, expansion of Midwest dairies or relocation of dairies from California to areas with more water supplies, such as the Midwest.
California's demand for forages rose with the continued drought; however, demand for DDGS could fall. Since many California dairies buy DDGS from the Midwest, decreased dairy production could limit DDGS shipments to West Coast areas."
Cheryl Anderson can be reached at cheryl.anderson@dtn.com
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