China, which competes with the United States in grain sales to Asia, may push up prices of non-genetically modified soybeans by scrapping export tax incentives, South Korean food importer Korea Agro-Fisheries Trade Corp said yesterday.

 

"The Chinese move will definitely raise prices for non-GMO soybeans," Kang Gye Weon, general manager at the state-run company's trading team, said, according to Bloomberg News.

 

China is removing export tax rebates on crops including wheat, corn and soybeans from today to secure domestic supplies and control food prices.

 

South Korea may turn to rival grain and oilseed suppliers, including the US and Brazil, if Chinese supplies are limited, boosting world prices. Wheat futures in Chicago jumped to a record this week, soybeans rose to a 34-year high and corn reached a nine-month peak.

 

"We are concerned about a situation where we can't buy grains even with money," said Kim Chi Young, purchasing team manager at the Korea Feed Association, South Korea's biggest importer of feed grains. "For the time being, corn importers may have to rely on supplies from the US."

 

South Korea may import 8.8 million metric tons of corn, three million tons of wheat and 1.2 million tons of soybeans in the year ending September 2008, the US Department of Agriculture forecast last week. The country is the biggest buyer of Chinese corn.

 

"Exporters may require buyers to help absorb the impact" of the tax rebate removal, Li Gang, program manager at Jilin Grain Group Co, said.

 

(Shanghai Daily December 20, 2007)