Prices for dried distillers grains (DDGs)—a by-product of corn-based ethanol that is used as animal feed—fell $30 a ton at U.S. export markets after top buyer China rejected two shipments last week because of the presence of an unapproved strain of genetically modified grain, traders said Tuesday.
Bids for shipments during the first quarter of 2014 fell to $190 a ton in the Mississippi River market that feeds export terminals along the Gulf Coast, traders said.
That is down from $220 last week, when Chinese news agency Xinhau reported that two cargoes of DDGs from the United States were rejected from Shanghai, and from $275 earlier this month.
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"The DDG market continues to work lower, [with] buyers backing away and sellers looking for homes,'' an export trader said.