China Said to Reject U.S. Corn Products Found to Contain GMO

Jan 15, 2014 2:48 am ET

(Updates corn prices in fourth paragraph.)

Jan. 15 (Bloomberg) -- Quarantine inspectors at China’s Qingdao port rejected batches of dried distillers’ grains from the U.S. this week as they contained a banned gene, according to two buyers who had orders blocked. Prices fell.

The corn-derived feed ingredient, known as a DDGS, is a by- product of ethanol production. The batches were rejected because officials found they contained the unapproved MIR 162 gene, said the two buyers, who asked not to be identified before an official announcement is made.

The General Administration of Quality Supervision, Inspection and Quarantine in Beijing, which only accepts queries via fax, didn’t respond to a request for comment. The agency’s office in Qingdao, in eastern China, declined to comment when contacted by phone.

Corn for March-delivery on the Chicago Board of Trade fell 0.7 percent yesterday and extended its decline at 9:51 a.m. Beijing time, falling 0.1 percent to $4.31 a bushel. The spot price for DDGS at Lillebonne, France, dropped 3.2 percent to 256.75 euros ($351) a metric ton.

China’s outstanding orders of U.S. DDGS are at risk of being canceled as the country rejects cargoes containing the insect-resistant strain MIR 162, Sylvia Shi, an analyst at Shanghai JC Intelligence Co., said Jan. 8. The agricultural research company is based in Shanghai.

Quarantine officials rejected 601,000 tons of genetically altered corn and corn-derived products last year, the official Xinhua News Agency reported Jan. 6.

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