Physical discussion on Monday was inevitably thin in Asian ethanol, with most of the market en route to Beijing. China’s potential to grow as a major importer is already generating a buzz among conference attendees ahead of Tuesday and Wednesday’s Beijing conference sessions. Chinese policy is now actively trying to discourage domestic production of ethanol from grain based feedstocks, leaving end-users looking for alternative sources of supply for the more than 70% of China’s current consumption which is supplied from corn. Ambitious policy targets to drive consumption of cellulosic and non-grain based biofuel production are also under discussion in China, which could further lift the potential for imports from suitably-equipped international producers. US ethanol prices drifted upwards on Friday, reacting to a bullish WASDE report which showed downgraded US corn production. US exports were quiet last week, as overseas buyers remain fixated on the sliding Brazilian Real.