Corn declined on concern China, the world’s second-biggest consumer, may reject more U.S. cargoes containing an unauthorized, genetically modified variety as the country reviews it safety.
The contract for March delivery lost as much as 0.4 percent to $4.375 a bushel on the Chicago Board of Trade and was at $4.38 by 10:42 a.m. in Singapore. Prices climbed 0.8 percent yesterday on signs of increasing demand for ethanol.
China on Dec. 6 said it rejected shipments of insect-resistant MIR 162 grain because it was still reviewing their safety. As of Nov. 28, about 3 million metric tons in sales to China hadn’t been inspected for shipping, according to the U.S. Department of Agriculture. Six batches totaling more than 180,000 tons, found to contain the unauthorized trait, have been rejected and returned, according to General Administration of Quality Supervision, Inspection and Quarantine.
“There is continued speculation that more U.S. corn cargoes have or will be rejected by the Chinese because of unapproved GMO strains,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note today.
Syngenta AG had applied several times for the approval of MIR 162 grain since 2010 and was told materials and statistics submitted were incomplete, Bi Meijia, chief economist of the Ministry of Agriculture, said Dec. 6.
The rejection “has the trade now expecting that the USDA will increase U.S. ending stocks in their January report to account for lower than expected U.S. exports,” Profarmer Australia, a unit of NZX Ltd., said in a report yesterday.
Soybeans for January delivery fell 0.3 percent to $13.40 a bushel. Wheat for March delivery advanced 0.2 percent to $6.42 a bushel.
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