To meet a fuel blend requirement, China must import more corn, according to industry analysts. A Stewart Peterson advisor says that China will need to import “an additional billion bushels of corn a year” to meet the mandate. Earlier this year, China announced the nation would require ethanol blends in all fuel by 2020. Demand is growing in China, and ethanol imports to China increased in October. Currently, just 20 percent of fuels in China contain ethanol. Stewart Peterson is a commodity brokerage and analysis firm.
The firm says China is starting to make moves now to meet the mandate and that 70 percent of China’s current corn stocks may be unusable. If so, those stocks will need to be replenished with fresh corn, and some analysts expect a demand boom will come in 2019.
Source: NAFB News Service