By Michael Hirtzer
Dec 12 (Reuters) – Rejections of U.S. distillers’ dried
grain (DDGs) shipments, first by China and then by Turkey, are
isolated events and not a sign of broader trade disruptions to
come, U.S. traders and industry sources said on Friday.
The U.S. Grains Council on Thursday confirmed that Turkey
has rejected three shipments of the feed ingredient and ethanol
byproduct as it steps up enforcement of rules on imports of
genetically modified corn. A fourth cargo was diverted from the
No. 6 buyer of U.S. DDGs.
“The Turkish market, historically, has always been a little
touchy. We had this kind of non-tariff trade barrier situation
with Turkey back in 2010 and that market really collapsed in
2011,” said Geoff Cooper, senior vice president at the Renewable
Fuels Association, an ethanol industry group.
China, the world’s top importer, rejected dozens of U.S.
DDGs cargoes earlier this year because they contained traces of
MIR 162, a GMO variety unapproved for import.
One U.S. trader said the Turkey rejections may total as many
as five, and another said that Israel and Morocco may be the new
destinations for the cargoes.
They added that Archer Daniels Midland Co was
believed to be the seller of the rejected cargoes. An ADM
spokeswoman said the Chicago-based grain trader was not
involved.
Turkey has imported 385,421 tonnes this year through
October, up 53 percent from the same period a year earlier,
according to industry data. (link.reuters.com/qup63w)
The rejections came as no surprise to many traders after a
near halt to DDGs imports in 2011 when Turkey tightened quality
standards and imposed labeling and packaging requirements.
The U.S. Grains Council cited “internal issues” as the cause
of Turkey’s tighter enforcement measures on imports this time.
“There was always that (rejection) potential. You always
knew it was out there. China is a bigger deal than the Turkey
thing but Turkey is not insignificant,” a U.S. trader said.
Export prices at the Gulf Coast have rebounded from lows two
months ago following a collapse in shipments to top buyer China
in July and were higher on Friday, as other buyers such as No. 2
importer Mexico stepped in to absorb any excess supply.
(link.reuters.com/rup63w)
A Gulf shipment traded at $230 per ton on Friday, up from a
low of $175 per ton three weeks ago, a trader said.
(Reporting by Karl Plume in Chicago; Editing by Grant McCool)