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Authentic Ag Sorghum Update: Opportunity Ahead For 2021 From Surging Chinese Forward Sales

Authentic Ag Sorghum Update: Opportunity Ahead For 2021 From Surging Chinese Forward Sales

Kansas farmers see opportunity ahead for 2021, as international demand for grain sorghum continues to show strength into the new year. In fact, grain sorghum prices in the U.S. have trended sharply higher from mid-August to late December in 2020. And that’s due to surging Chinese demand for grain sorghum propelling the export market. According to the International Grains Program Institute, IGP at Kansas State University of the 74.8 million bushels of U.S. sorghum forward sales yet to be shipped 97% have been made to Chinese buyers and IGP notes that forward sales of U.S. grain sorghum exports have been “bullish” through December 24th, 2020. The USDA has also acknowledged the strength of U.S. grain sorghum exports by raising its U.S. export forecast to 275 million bushels [now at 290 million bushels] in the current marketing year, which would be the largest level of U.S. grain sorghum exports since 352 million bushels in 2014/15. Kansas State University projects current marketing year average U.S. farm prices for grain sorghum to be $5.09 per bushel. So stronger cash bids for grain sorghum along with stronger new crop 2021 forward contract bids for sorghum delivered to your local grain elevator this fall will likely encourage farmers to increase grain sorghum planted acreage this spring. For growers interested in planting grain sorghum this year, be sure to head over to the United Sorghum Checkoff Program’s website at sorghumcheckoff.com for production and marketing tips. And to stay up to date on grain sorghum in Kansas, visit KSGrainsorghum.org for more news and market updates.

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