China remains top foreign buyer of US DDGS: Census Bureau

Chinese imports of US dried distillers grains rose 27% in June, rising 79,073 mt over May, as the the country remained the biggest foreign buyer of US DDGS for the second consecutive month, data from the US Census Bureau showed Friday.

China bought 370,898 mt of US DDGS in June worth $74.3 million, the data showed. However, China's June purchases were 41% lower than the same month last year in terms of volume, and 31% lower in terms of value.

China, the largest foreign market for US DDGS for the last four years, has seen interest in the ethanol byproduct drop off sharply after the country's commerce ministry launched an antidumping investigation of US DDGS. Sources in Asia have said a decision on the whether to add tariffs to US imports is expected in September.

Mexico was the No. 2 importer of US DDGS in June, buying 159,444 mt of DDGS worth $30.52 million. Vietnam came in at No. 3, with 95,484 mt worth $18.7 million.

South Korea and Turkey rounded out the top five.

Total US DDGS exports rose to $190 million in June, up $1.06 million, or 0.56%, from May.

US exports for DDGS tallied 1.005 million mt in June, a decrease of 57,174 mt compared with May, according to the data. June marked only the second month since October that DDGS exports broke the 1 million mt mark.

June, however, saw a year-on-year decrease in value from June 2015. June 2016 DDGS exports declined 39.4% over June 2015, which came in at $313.54 million. June 2015 exports came in at 1.236 million mt.

The per-metric ton price of DDGS exports rose in June, increasing to $189/mt from $177.8/mt in May, the data showed.

Source: Platts