Genetically altered corn shipped from the U.S. earlier this fall to China and being held in a port warehouse will leave the country by the end of the year because the commodity falls short of Chinese standards, Bloomberg reports.
Chinese quarantine officials rejected the 54,000-ton September delivery, according to three unnamed sources cited by Bloomberg. China has not made the matter public and no destination has been declared for the corn, which was sold by a Japanese trading company.
"China's rejection has had a negative impact on importers of U.S. corn, because the message is that no matter how short China's grain supply is, the government's tough controls on imports won't change," Li Qiang, managing director of Shanghai JC, told Bloomberg, noting he anticipates risks and costs will rise for future imports.
As the world's second largest consumer of corn, China this is expected to import more than 1.6 tons of the grain, most of which will come from the U.S. China turning down this shipment marks the first time it has done so with a U.S. corn shipment.
"From our sources, we learned within three to six months, this particular strain of rejected seeds may be approved," the managing director said.
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