24 June 2019

China rejection of US corn unlikely to hurt market, report says

China’s rejection of US corn that contains an unapproved genetically modified strain is unlikely to cause major price fluctuations in the domestic or US market, China Daily reported Monday, citing analysts. Earlier this month, quarantine authorities rejected 545,000 metric tons of corn from the United States, after detecting a genetically modified variant known as MIR 162 in the shipments, according to the General Administration of Quality Supervision, Inspection and Quarantine. The Chinese authorities are expected to reject more US corn shipments, but analysts believe such actions are unlikely to affect corn prices significantly because the blocked shipments are of very small quantity compared with total amount of US corn exports, which exceeded 28 million tons in 2012, according to the newspaper. The Chinese action could benefit the domestic corn market in the short term, as local farmers will be able to sell more of their stockpiles, SCI International analyst Xu Xiaomiao was quoted as saying.

– Contact HKEJ [email protected]



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