China to Extend Anti-dumping Probe on the U.S. Dried Grains Imports

In China, the Commerce Ministry announced it will extend an anti-dumping probe on imports of U.S. distillers' dried grains (DDGs) until June 28, 2012 before making a final ruling.

The ministry said the extension was necessary because the case was "special and complicated". It launched the investigation a year ago, threatening trade that grew massively in 2009 and 2010, when China became the world's largest importer. A by-product of corn-based ethanol production, DDGs have found a large market in China, where growing demand for meat has fuelled a boom in animal feed production that is using up increasing volumes of corn, soymeal and DDGs.

Four Chinese ethanol producers, including COFCO Biochemical Anhui Co Ltd and Jilin Fuel Alcohol Co Ltd, requested the investigation by the ministry even though domestic production is only about 3.5 million tons, and cannot meet feed mill demand. Feed mills were opposed to the probe, which has pushed up prices of the feed ingredient and meat.