Mid-level trade executives wrapped up meetings in Beijing, China.
The South China Morning Post covered a press briefing, where China’s foreign ministry spokesman stated more details would be released “soon.” U.S. Undersecretary for Foreign Agricultural Affairs Ted McKinney described the trade discussions as “just fine,” to the publication. Progressions this week were also “just fine” outside of the vice-ministerial level discussions.
Earlier this week, China granted five GM traits import approval.
“They’ve approved one new GM trait for corn and two new GM traits for beans and canola, as well as renewed 27 GM traits” said Jim McCormick, senior adviser for Allendale.
McCormick shares how this announcement could affect grain transactions.
“What’s important about this is China has always had to buy corn from the United States, or anybody in the world, based on being a part of the World Trade Organization (WTO). Their excuse to the WTO is, ‘We haven’t approved those GM traits, so we can’t allow that corn or dried distillers grains in from the United States,” McCormick said.
The recent news bears the potential to boost China’s overseas grain purchases. Recent rumors of the nation’s newfound interest in United States corn now look more promising, according to McCormick.
“We have are rumors of China saying they might be willing to buy up to three to five million metric tons of corn, which would be a very bullish scenario, if they do,” McCormick said. “It’s like – How are they going to buy corn if they’re blocking it by the GM trait? With them re-upping those GM traits, that’s a very good sign of China wanting to buy corn. If they do that, that will be a very bullish scenario for the U.S. corn market and very good for the American producer.”