The United States is the world’s largest exporter of sorghum, a drought-tolerant feed grain that always seems to be overshadowed by corn, the most widely grown crop in the country. China is the world’s No. 1 sorghum importer, and its appetite for livestock feed is driving up sorghum prices, according to the USDA’s monthly Grain: World Markets and Trade report.
Sorghum exports are forecast at 6.7 million tonnes (260 million bushels) for the 2017/18 trade year, up 9 percent from last year. The average price at the farm gate is forecast to be $3.10 a bushel, a 31-cent increase. “Most U.S. sorghum is destined to feed-deficit southern China, where animal production is concentrated and feed demand runs high,” says the USDA. China, for which sorghum is a lower-priced alternative to domestic corn, is expected to import 6.3 million tonnes of sorghum this trade year, compared with 5.2 million tonnes the previous year.
“Meanwhile, the uptick in sales leaves little room in the U.S. sorghum balance sheet, with the forecast of tight ending stocks” — a scant 21 million bushels, says the USDA. The stockpile would be the smallest in at least four years. With China buying more U.S. sorghum, the USDA says there will be less sorghum available to make ethanol. It will be replaced by corn.