Robust Sorghum Demand and Exports Expected to Bolster Prices in 2023-24

A South Ag Today article notes that recent weeks have witnessed a notable upswing in sorghum demand, exemplified by strong export sales, surpassing the levels of the past two seasons by approximately 25%. Additionally, there has been a corresponding increase in the average basis offered for sorghum on the Gulf Coast of Texas, currently standing at $1 per bushel above the price for positions with delivery from this month through December, marking an 80-cent increase compared to the previous year at this time. These price trends are anticipated to deliver substantial benefits to sorghum producers, particularly in a year characterized by the expectation of higher production and improved yields.      

China is expected to remain the foremost importer of sorghum from the U.S., driven predominantly by its livestock industry’s demand for feed. USDA projections indicate a stable market for hogs, sustained growth in aquaculture and ruminants, and a resurgence in poultry feed demand in China. Consequently, China’s sorghum imports are projected to increase by 125.7 million bu., propelled by higher U.S. production and competitive pricing.     

Bottom line according to the article: The 2023-24 sorghum season presents promising export opportunities, likely resulting in improved sorghum premiums over corn, as evidenced by the positive basis currently experienced by farmers on the Gulf Coast of Texas. Collectively, these factors are expected to reinforce the United States’ position as the leading producer and exporter of sorghum. Read more from Pro Farmer.