Special Report

More sorghum acres needed to meet demand

grain sorghum-gi 9-14

Just six months into the marketing year, the USDA 2014/2015 sorghum exports have been met for 2015.  The largest net importer of U.S. Sorghum, China, has already surpassed last year’s commitments by 29-percent.

At the recent 2015 Commodity Classic, Jennifer Blackburn, with the National Sorghum Producers and United Sorghum Checkoff said the China market just keeps growing and demand is expected to continue.  “Last year alone, China represented 90 percent of the total exports with 168 million bushels.”

The USDA says Chinese purchases are nearly 70-percent of the 2014/2015 sorghum crop, and nearly 100-percent of total exports.  National Sorghum Producers CEO Tim Lust says new crop basis also supports growth in sorghum demand.  According to Lust, “Very rarely have we seen that market signal saying we need more acres and more grain next year.”

While the market signals are there, Sorghum Checkoff Executive Director Florentine Lopez says increasing production may take a few years to meet demand needs.

“The demand today exceeds the supply, so we continue to believe that the supply needs to come up and match that demand.”  According to Lopez, it could take a number of years and even a number of growing seasons.

2014 exports made up more than half (52 percent) of the total U.S. sorghum market share.

AUDIO: National Sorghum Producers & Sorghum News Conference at ’15 Commodity Classic (14:30 mp3):

 

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