Foreign Sorghum Exports Lowest Since 2005/2006

12.02.2020 22:35 "Agro Perspectiva" (Kyiv) — According to the report of the USDA Grain: World Markets and Trade (February 2020), The current forecast for 2019/20 (Oct-Sep) foreign sorghum exports is the third-lowest in USDA’s database. World sorghum exports are expected to be the fifth-lowest in history, though the United States has slightly improved prospects relative to the previous year. Sorghum production in the United States, Argentina, and Australia has trended down over the last decade, with Australia’s droughtaffected production in particular forecast to be the lowest since 1969/70, negatively affecting global exportable supplies. On the demand side, China’s substantially curtailed demand from its 2014/15 zenith has impacted exports from its primary suppliers, the United States and Australia. Earlier in the last decade, Argentina exported sorghum to other countries in South America and Mexico, but sorghum demand in these markets has tapered off due to plentiful and comparatively inexpensive corn. Moreover, the feed value of corn is higher than sorghum, giving corn a potential advantage in both price and end use. However, there remains some sustained, though limited, demand for sorghum globally and U.S. sorghum is poised to capture most of this demand as competitors Australia and Argentina have limited presence in the 2019/20 market.

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