CME says China’s rejection of GMO DDG will lead to a hard time for ethanol

In Illinois, the CME says ethanol producers are in for a hard time after DDG prices fell 20% following China’s rejection of two shipments because of alleged traces of unapproved GMOs. The country has also rejected 550,000 tons of corn since November because of the appearance of Syngenta MIR 162, which is not approved in China. Ethanol producers rely heavily on DDG sales to improve margins from ethanol, so lower prices could weigh heavily on producers seeking to come back to life after many were mothballed.