Chinese corn buyers switching from US to Ukraine due to GMO restrictions, trade tensions

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Credit: Reuters/Jim Young

China’s purchases of U.S. corn have slowed significantly due to worries the grain might be drawn into the trade spat between the world’s two largest economies, and as Chinese customs keeps the brakes on clearances for cargoes, four traders told Reuters.

Chinese buyers have canceled multiple cargoes of corn so far this year, the latest product roiled by the China-U.S. trade tensions, traders and industry sources said.

Now some traders say they have halted buying from the United States completely despite signs some of the trade tensions may be starting to ease.

Some Chinese corn buyers switched to rival supplier Ukraine earlier this year, as Beijing tightened controls on processing genetically modified strains of the crop. Corn from the United States is mostly genetically modified.

“I have washed out more than 20,000 tonnes of U.S. corn in the recent couple of months because getting a GMO processing certificate has still been impossible, and the situation is very unclear with the ongoing Sino-U.S. trade war,” said a trader based in southern China.

Read full, original post: China’s buyers balk at U.S. corn on trade fears, GMO controls

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