An analysis by the Center for Agricultural and Rural Development at Iowa State University shows China’s new E10 mandate could create more demand for U.S. corn and ethanol. ISU Economics Professor Dermot Hayes says China recently reduced their corn stocks and announced the E10 directive. He says as a result China will either need to import corn to produce that ethanol or just import the biofuel.
He says because China has now approved more biotech corn traits for import, that puts the U.S. in a better position to ship corn and ethanol to China.
Hayes says it’s positive China is mandating 10-percent ethanol because they have significant air quality concerns.
The CARD analysis pointed out that for China to meet their national E10 mandate it will require an extra 3.6 billion gallons of ethanol, which would put them as the world’s third largest ethanol consumer.
