China just put on the back burner a plan for a huge increase in ethanol use, so hopes for increased buying of U.S. biofuel or corn are dashed, reports The Western Producer.
Beijing recently shelved its ethanol plan, which was ambitious at best and likely unattainable from the start.
Conceived in 2017 at a time when policy makers thought there was a huge oversupply of corn in Chinese government hands, maybe 200 million tonnes, the idea was to create a mandate for 10% ethanol blend in all gasoline by 2020.
This would stimulate massive investment of dozens of huge corn ethanol plants that would use up the surplus.
Reuters News Agency calculated the program would require 45 million tonnes of corn a year, which would rapidly bring down the surplus of the grain.
Beijing now appears to have reverted to its long-held policy of ensuring that food security must take priority over biofuel.