U.S. Sorghum Attracts China Attention

The timing is right for China to make purchases of U.S. sorghum. As China’s demand for imported coarse grains continues to grow, U.S. sorghum becomes an attractive commodity for its rapidly expanding market.

The U.S. Grains Council has been closely monitoring increasing demand and new market developments in China. Since late 2012 the Council has worked with the United Sorghum Checkoff Program to explore opportunities to facilitate sales of sorghum by both container and bulk vessel. The Council has been able to proactively take action to respond to China’s sudden decision to import sorghum in higher quantities than in the past. According to Alvaro Cordero, USGC manager of global trade, purchases may be much higher and not a one-time thing.

“All conversations I have had with the industry, both in the United States and China, indicate that we may see this purchasing pattern continue,” Cordero said. “At this time, the market is expecting delivery of 600,000 metric tons (23.6 million bushels) and some traders estimate that number will be significantly higher in the upcoming crop year.”

Unlike corn and wheat, sorghum is not subject to China’s tariff rate quota.

“Tariffs are at 2 percent for food use and 9 percent for feed with a 13 percent value added tax. However, today’s U.S. sorghum price is trading at a $40 per metric ton price advantage over Australian origins. This provides a strong incentive for importers and end-users to purchase sorghum from the United States,” Cordero said.

Historically, China imports the majority of its sorghum from Australia, Myanmar and Japan for alcohol use. However, the increasing demand for coarse grains has prompted China, for the first time, to expand its feed rations to include sorghum.

The 2013/14 U.S. sorghum crop is expected to significantly increase from the previous year’s production to roughly 9.1 million tons (359 million bushels). In the face of the increase in production, exports are expected to double from tons 1.9 million tons (75 million bushels) in 2012/13 to 3.8 million tons (150 million bushels) in 2013/14.

“This new demand from China is critical to maintaining a healthy U.S. sorghum industry. Equally important is that the Chinese buyers properly use sorghum in their milling and rations. These two factors will enable future exports and increase consumption of sorghum as a feed component in China,” Cordero said.

The Council will continue to monitor and foster this market opportunity by providing importers and end-users information on procurement, nutrition, and crop progress in the U.S., as well as continuing its trade servicing support.

Leave a Reply

Latest News
EquipmentAGCO to Acquire Precision Planting
July 26, 2017
AGCO and The Climate Corp. announced today that a definitive agreement has been signed for AGCO to acquire the Precision Read More
CPS-Norwood-and-Dupont-reps
Eric SfiligojA Message to Ag Retailers: Do Tell Your Good Stories
July 26, 2017
As the daughter of a peanut farmer, Krysta Harden, Chief Sustainability Officer for DuPont Crop Protection, understands the importance ag Read More
Iowa-State-Seed-Science-Center
Seed/BiotechIowa State Celebrates 10 Years of Online Seed Education
July 26, 2017
This year, Iowa State University is celebrating 10 years of service to the seed industry through its online Graduate Program Read More
Corn seed treatment
Seed/Biotech5 Steps for Stewardship of Treated Seed
July 26, 2017
With planting season just around the corner, the American Seed Trade Association (ASTA) reminds farmers to follow five basic steps Read More
Darin Lickfeldt Verdesian In Field
Crop InputsVerdesian: Sustainability Goes Hand in Hand with Profit…
July 25, 2017
Sustainability is a hot topic in agriculture these days. And while measuring sustainability and its on-farm impact can seem difficult Read More
Crop InputsBASF: In Arkansas Drift Cases, Buffer Zones Mostly Not …
July 24, 2017
BASF on Thursday addressed questions about spreading dicamba drift issues on a media briefing call. In Arkansas – which is Read More
Tim Hassinger Dow AgroSciences President and CEO
Crop InputsDow’s Tim Hassinger Named President, CEO of Linds…
July 24, 2017
Lindsay Corp. has  announced the appointment of Timothy Hassinger as president and CEO and a member of its board of Read More
Eric SfiligojThe 2017 Ambassadors of Respect Come from Around the Gl…
July 24, 2017
After a week of fun, enjoying food, sights, and company information, DuPont Crop Protection representatives and their Environmental Respect guests Read More
ManagementCropLife Retail Week: Dicamba Update and InfoAg Preview
July 21, 2017
Editors Eric Sfiligoj and Paul Schrimpf discuss reports from the field and comments from Monsanto about dicamba drift this season, Read More
Stewardship‘Gonna Fly Now’ with Environmental Respect
July 20, 2017
One of the most memorable moments in movie history occurred in the Academy Award-winning 1976 film “Rocky.” Haven gotten his Read More
StewardshipEnvironmental Respect: Grand Grounds, Posters Parade
July 19, 2017
To celebrate their accomplishments in the area of environmental stewardship, award recipients at the 2017 Environmental Respect week spent much Read More
StewardshipHarden’s Message to ERA Winners: Do Tell Your Good Stor…
July 19, 2017
As the daughter of a peanut farmer, Krysta Harden, Chief Sustainability Officer for DuPont Crop Protection, understands the importance the Read More
StewardshipFarming Smarter Hinges on 4R Best Management Practices
July 18, 2017
Preserving water quality while feeding another 2 billion people by 2050 is the challenge facing North America’s farmers and its Read More
StewardshipEnvironmental Respect 2017 Kicks Off Enjoying an Americ…
July 18, 2017
Following months of planning and scheduling, the 2017 Environmental Respect Awards (ERA) celebration kicked off in fine fashion as more Read More
Soybean Field Sunset
OpinionPicking Partners in the Crop Protection Market
July 17, 2017
Agriculture is a market awash in highs, lows, and everything in between. This is certainly true in the world of Read More
TMX-2050-In-Cab-Display-Launch-Run-Screen
EquipmentGPS Auto Steer: Innovating in a Mature Market
July 17, 2017
In the world of Big IRON, GPS auto steer has closely mirrored the evolutionary path of consumer GPS Navigation systems Read More
MFA-Centralia-MO
Eric SfiligojThe Resilience of Ag Retailers
July 17, 2017
After covering the ag retail market for 17 years, I think one of the most impressive character traits I’ve seen Read More
SERA-meeting
Stewardship4R Event Explores How to Minimize Phosphorus Losses
July 17, 2017
This year the Southern Extension and Research Activity (SERA) – 17; will be meeting in Oregon, OH, from August 14-17. Read More