China Rejecting U.S. Corn as First Shipment From Ukraine Arrives

Jan 06, 2014 3:53 am ET

Jan. 6 (Bloomberg) -- China continued to reject corn cargoes from the U.S. that contained an unapproved genetically modified variety while accepting a first bulk-carrier shipment of the grain from Ukraine.

Genetically modified corn and corn-derived products totaling 601,000 metric tons were rejected in 2013, the official Xinhua News Agency reported today, citing the General Administration of Quality Supervision, Inspection and Quarantine. A Panamax-sized shipment of non-genetically modified corn from Ukraine entered the country on Dec. 6, according to a statement dated Dec. 25 on the website of state-owned China National Complete Engineering Corp.

The quarantine agency’s newest figure cited by Xinhua was 56,000 tons more than it announced on Dec. 19, showing the government’s continued screening of U.S. corn and and dried distillers’ grains, or DDGS, for the unapproved insect resistanr MIR 162 gene. Net corn sales to China from the U.S. in the seven days through Dec. 26 dropped by 116,000 tons from the previous week, according to a report on the website of U.S. Department of Agriculture.

China National Complete Engineering carries out overseas engineering projects, often funded by Chinese government, according to its website. It began to market grain from Ukraine last year under a contract that became effective December 2012, according to the Dec. 25 statement.

China’s Ministry of Agriculture said in May 2012 the country agreed to finance $3 billion worth agriculture projects in Ukraine in exchange for terms including rights to sell Ukrainian farm products.

Ukraine may export 18 million tons of corn in 2013-2014, tying it with Argentina as the third-biggest supplier behind the U.S. and Brazil, the U.S. Department of Agriculture forecast in December.

--William Bi. Editors: Brett Miller, Jarrett Banks