Sorghum Sales and Exports Hit All-Time Highs

LUBBOCK, TX – Demand for U.S. sorghum from China is at its highest level in history. According to the Foreign Agriculture Service’s Weekly Export Sales Report (ending April 8th, 2021), Chinese importers are taking delivery of a record-breaking 33.9 million bushels of sorghum right now which represents at least 10 million bushels more than the previous record set last August. In order to see these exports, first, there must be a purchase of the grain and USDA is reporting a record there as well. New sales commitments were almost 39 million bushels, breaking the old record from AUgust 2020 by nearly 7 million bushels. So what do the Chinese do with all this sorghum, which Tim Lust, CEO of the National Sorghum Producers says is all of the 2020 crops, there’s nothing left to buy? He explains the top three uses in China are human consumption, for the alcohol known as bijou, and the massive livestock industry in Southern China – chickens, ducks, and pigs. The underlying message is that there may be a huge opportunity for producers who can grow the drought-tolerant grain in 2021. With prices soaring over $5 per bushel, and input costs just a fraction of most other crops, it appears the Chinese appetite for U.S. sorghum is outpacing the anticipated supply. “This is the strongest new crop demand we have ever seen at this time in the season,” Lust explains. “Availability is so scarce that the sorghum crop being planted now is being marketed at the same time, and farmers have not even started planting in Kansas yet. This sends a strong demand signal to U.S. sorghum producers from our international customers, and we look forward to getting the 2021 crop in the ground.”
(SOURCE: All Ag News)