China denies US dried distillers grains shipments

China has denied about 2,000 metric tons of U.S. dried distillers grains (DDG), and more rejections are expected in coming weeks as Beijing imposes strict checks over an unapproved genetically-modified (GMO) strain, traders said on December 26, 2013.
According to a Reuters report, the move follows the rejection of more than a half-million metric tons of U.S. corn when authorities detected the presence of MIR 162, a GMO variety developed by Syngenta AG but not approved for import by China's agriculture ministry.
"The containers, which were sealed for a while, have been rejected at a port in Shanghai," said one trader with a domestic trading house.
Quarantine authorities in Shanghai declined immediate comment.
According to the report, more rejections were likely after the General Administration of Quality Supervision, Inspection and Quarantine (CIQ) issued a notice to local authorities asking them to step up checks for MIR 162 in DDG cargoes.
"Quarantine authorities at major ports have been notified and will be strict in testing," said another trader, with a major state-owned trading house. "Before, authorities were just checking on selective shipments, but now all shipments will have to be tested and a large volume may be turned away."
The U.S. has urged China to act promptly to approve the strain.

China drops antidumping investigation against US distillers grains

China has decided to drop its antidumping investigation against imports of U.S. distillers dried grains with solubles, DDGS, according to the Asian country's Ministry of Commerce. The investigation was launched in December 2010 at the request of domestic producers Cofco Biochemical (Anhui) Co., Jilin Fuel Alcohol Co., Meihekou Fukang Alcohol Co. and Jilin New Tianlong Wine Industry Co.
The same four companies requested that the ministry end the probe on May 10. Demand for U.S. DDGS is strong, as it is cheaper than feed grains. In 2011, China's DDGS imports totaled 1.69 million tons, down 47 percent from 2010 numbers, as buyers worried Beijing might impose duties on imports.

World feed grain use increases

World utilization of grains for animal feeds is forecast to resume a trend of annual growth in 2011-2012 after two seasons of stagnation, according to the latest Food Outlook global market analysis from the United Nations Food and Agriculture Organization.
Strong demand from the livestock sectors in the leading emerging economies is seen as the main driver for a projected 1.7% increase in feed grain use to 780 million metric tons. Some 637 million metric tons of this will consist of maize and similar coarse grains, according to the FAO forecasters. This would represent a relatively small annual rise of about 1% for reasons including tight supplies and comparatively high prices against more abundant and cheaper feed wheat and large availabilities of distilled dried grains.
The latest indications point to a 5.6% increase in the global utilization of wheat for feeds, up to 130.9 million metric tons, driven by more competitive prices boosting feed use especially in China, the EU and the U.S.
Overall, however, prospects in the developed-economy countries and regions are predicted to be affected by slow economic growth. In fact, rather than expanding, feed demand is expected to contract in the U.S. (reducing by 3.7%), in the EU-27 (down by 2.6%) and in Canada (lower by 1.4%).
These declines are considered to offset strong expansions elsewhere, particularly in the CIS area including Russia (up 11%) and in China (higher by 4.8%). Total feed utilization of coarse grains in the developed countries is forecast to be around 323 million metric tons, or some 0.5% less than in the previous season. By contrast, the aggregate feed use of these grains (excluding wheat) in developing countries is expected to grow by 2.5% from the 2010-2011 level, to 313 million metric tons.

New FDA technique could impact ethanol industry

Controversy over potential antibiotic residues in Distillers Dried Grains with Solubles (DDGS) has led to the development of a technique that could impact the ethanol industry. This multi-residue analytical technique, described in an article published in the Journal of Chromatography by Dr. Hemakanthi DeAlwis and Dr. David Heller of the Food and Drug Administration’s Center for Veterinary Medicine, Office of Research, is designed to detect up to 13 antibiotics in DDGS.
The FDA is expected to start a surveillance program for DDGS. The ethanol industry is said to have relied extensively on antibiotics to suppress lactobacillus bacteria. But with surveillance, ethanol producers may be more selective in using antibiotics and to adopt cleaning procedures accepted for distilling liquor for human consumption.

DDG futures now available for trading

Distillers’ Dried Grain (DDG) futures are available for trading on CME Globex, the CME Group electronic trading platform. DDG futures may bring much-needed price discovery and price transparency to the market. Particularly, they may help customers better manage their price risk in the feed, livestock, dairy, biofuels, grains and oilseed industries.