China imports of DDGs surge
China's imports of American DDGs have risen considerably and the pace is expected to remain strong this year as long as US corn prices remain significantly below that of Chinese corn.
China's own corn production has suffered from the most severe drought in half a century, while the United States is expecting its largest ever corn harvest this year, industry officials said.
Some Chinese importers are already shipping distillers' dried grains with solubles (DDGs) in large volume or bulk cargoes, in addition to small quantities in containers.
US exports to China in 2009 could potentially reach 400,000 tonnes. Exports so far have reached about 150,000 tonnes, far beyond the volume of 8,000 tonnes exported in all of 2008.
American DDGs was about 27% cheaper than domestic products, which was also lower in protein content.
China's corn prices were supported by Beijing's stockpiling, and recent worries over the drought damage in the northeast have pushed up physical corn prices by 5% over the past month.
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