Reports that China is buying U.S. ethanol again sent a positive message to the industry Tuesday that the Phase One trade agreement promises may yet be met.
During an investor call, Archer Daniels Midland Co-Chief Financial Officer Ray Young said they believe China has already made commitments “in the first half of the year for U.S. ethanol equal to the previous all-time high for the calendar year, roughly 200 million gallons.”
During a panel discussion at the Iowa Renewable Fuels Summit, former Ambassador to China and Iowa Governor Terry Branstad said Chinese purchases of U.S. ethanol are long overdue. “We need to hold their feet to the fire and keep the pressure on for them to fulfill the commitments they made under the Phase One trade agreement.”
Also on the panel with Branstad were U.S. Grains Council CEO Ryan LeGrand and Hagan Rose with Eco-Energy, with Absolute Energy CEO Rick Schwarck moderating the discussion. Listen to some of their comments here about the potential for China to buy more ethanol and DDGs.IRFA Summit Trade panel segment (7:36)