- Reuters has today reported that China has stopped issuing permits for the import of DDG’s from the US due to non-approved GMO contamination. The much discussed MIR 162 event has been responsible for in excess of 1 million mt of rejections of corn in the last year. It was also reported that around 250,000 mt of contaminated material, stored in port stores, is now required to be re-exported, although there is no official confirmation of this. US DDG prices look likely to decline on the news as ethanol producers, and resellers, will target livestock producers already hard pressed by high protein prices due to tight soybean stocks and the resultant impact upon soybean meal availability. The ban by China is expected to last well into Q4 2014.
- There is also news that China is looking to dispose of some 25-30 million mt of corn from their reserves at a break-even or better price. A ban on imported US corn and products dovetails wonderfully into the corn sales plan – isn’t it amazing how these coincidences arise so fortuitously for China on so many occasions!
- CBOT prices on grains have been lower throughout the day with corn leading the way, having shed over 2.5% with about 40 minutes of trading left. Wheat was also lower, but only 1.5% down in active trade. Soybeans and soybean meal have traded either side of unchanged and look to have found some (slight) support – for now.
- Wheat prices in Black Sea regions remain under pressure as harvest in SE Russia and Romania look likely to start within two weeks and buyers are scarce to say the least. Prices look as if they will come under further pressure, certainly until harvest gets under way.
- The USDA is scheduled to release their June crop supply/demand report on Wednesday at 5pm UK time.