Syngenta AG said on Tuesday that grain prices have played a role in China’s rejection of U.S. corn shipments containing an unauthorized, genetically modified trait developed by the company, reports Reuters.
China, the world’s third-biggest corn buyer, has turned away since November more than 900,000 tonnes of U.S. corn containing Syngenta’s Agrisure Viptera trait.
“There’s unquestionably a global trade issue at play here relating to contracts and prices,” said David Morgan, Syngenta’s regional director of North America.
Syngenta, the world’s largest crop chemicals company, has been waiting for China to approve Viptera, known as MIR 162, for import for more than four years.
Beijing started cracking down on shipments containing the trait late last year, even though Viptera corn had been mixed in with other varieties since China increased imports of U.S. corn in 2011.
The rejections have fueled speculation among grain traders that China was strictly enforcing its ban as a way to exit contracts for pricey corn and to prevent imports into a well-supplied market. U.S. corn futures soared to $8 a bushel last summer and dropped almost 50% by November.
SOURCE: Reuters News