Posted on Mar 06, 2015
LUBBOCK, Texas – Demand from the export market continues to increase with U.S. sorghum commitments reaching 300 million bushels, meeting the U.S. Department of Agriculture's 2015 export projections just six months into the 2014/2015 marketing year, according to the USDA Foreign Agricultural Service's March 5 report.
China is leading the demand surge representing 288 million bushels, 96 percent of total U.S. grain sorghum exports. To date, China has purchased approximately 67 percent of the total 2014/2015 U.S. grain sorghum crop.
"To put it into perspective, China is buying two out of every three rows of grain sorghum produced in the U.S.," said Florentino Lopez, Sorghum Checkoff executive director. "This paints a vivid picture of the impact strong demand is having on U.S. growers."
Lopez said the resounding pull from the export market has led to the second highest value at the port, as compared to corn, paid to sorghum producers in the last 70 years.
Demand from China is also reaching into the 2015/2016 marketing year with grain sorghum commitments of 8.6 million bushels.
Meanwhile, Japan has committed to 11.8 million bushels for the current marketing year, followed by commitments from Canada and Mexico.
"Strong demand creates positive opportunities for sorghum growers," Lopez said. "International and domestic marketplaces are sending strong signals to growers that a supply increase is needed, and through this we see a definitive opportunity to increase producer profitability long-term."